A sequel to my last post (https://lnkd.in/eVdrJ3v)
Something I have seen once or twice in my career is a kind of corporate Dunning-Kruger, where attachment to the success of an existing business model increases the vehemence of those defending it, to the point where management reduces its collective cognitive ability by shutting down dissent. This self-lobotomising takes many forms; people making waves can be excluded, not promoted or just fired.
This works fine as long as the model works, but it slowly reduces an organisation’s ability to adapt to change and creates a senior management layer committed to defending the status quo that has enabled their own success.
The people may be smart, but the organisation becomes stupid. It also becomes conceited about its success. In one example I have seen, the scattered attempts to adapt were stifled almost subconsciously by a corporate culture that, at heart, felt that the current model was best.
The most famous example of this is Kodak, where self satisfaction sent the fifth most valuable brand in the world into Chapter 11.
Is your firm having a Kodak moment?