Stages of Organizational Decline

In Luke 14:28-33, Jesus shared two examples of the importance of planning before undertaking any type of enterprise. His first was about having enough funds to build a tower and the second had to do with waging war. In the first situation, any builder worth his salt will estimate the cost and make sure enough funds are available to complete the project. In the second, a military leader will first see if he has the capacity to take on a foe before engaging the enemy; otherwise, he will ask for terms of peace.

Jesus concludes that one must be willing to give up everything in order to be his disciples. There’s a cost to consider before undertaking this serious decision to follow him wholeheartedly for the rest of your life.

Unfortunately, many companies are not willing to pay the price to remain efficient, relevant, or sustainable. Not counting the cost (or willing to pay it!), these organizations decline in stages marked by:

1. Pride born from success leading to a sense of entitlement.
2. Undisciplined pursuit of more leading to lack of well-trained and competent leaders.
3. Denial of risk and failure to properly analyze the data.
4. Looking for a quick fix instead of making fundamental changes and realignment.
5. Abandoning hope after quick fixes fail leading to organizational irrelevance or death.

[Next week we will look at organizational disciplines needed for long-term success.]