The 5 Stages of Decline

In his book “How the Mighty Fall,” business expert Jim Collins outlines what he believes are the five stages of decline for top organizations:

Winter seasons are underway across sports — and many teams that finished at the top of the standings last year will come in with high expectations once again. 

But coaches banking on returning talent, the same tactical schemes or similar opponents on the schedule may want to consider a concept from business expert Jim Collins.

In his book “How the Mighty Fall,” Collins outlines what he believes are the five stages of decline for top organizations — and they’re relevant far beyond the boardroom:

1. Hubris born of success

General arrogance in which achievement is widely viewed as a right
Losing sight of the hidden factors that led to positive results in the first place
Failure to recognize the elements that distinguished the team initially

2. Undisciplined pursuit of more

Past success creating a sentiment of invincibility
•Taking un-calculated risks
Greed and a desire for more becoming the overwhelming mindset

3. Denial of risk and peril 

Dismissing negative data; amplifying positive
Blaming external factors for poor results
Putting a positive spin on setbacks

4. Grasping for salvation

Decline is evident, even to outsiders
Sweeping changes are made to try to get back on track
The quest for the miracle solution or savior begins

5. Capitulation to irrelevance or death

Setbacks completely erode strengths
Morale disappears, and trust is gone
Leaders also lose hope 

While we don’t necessarily need to make dramatic changes if we’ve had success, simply resting on our laurels and assuming similar results will follow can easily lead to our downfall.

The best teams in any industry don’t play the scoreboard of the past.

They remain inspired, innovative and motivated regardless — recognizing that the impressive results of yesterday matter little if there’s arrogance and complacency tomorrow.

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