Three Epic Business Failures Caused by Wicked Problems. What 5 Things Can We Learn?
Too Big to Fail?
Your business is successful. It’s a market leader in your sector. What could go wrong?
Let me show you:
Enron was an energy company that went bankrupt in 2001 due to a series of accounting scandals and fraudulent business practices. The problem was wicked because it involved complex financial arrangements and a culture of greed and deception that was difficult to uncover and address.
Kodak, a leading camera and film company that failed to adapt to the digital photography revolution, filed for bankruptcy in 2012. The problem was wicked because it involved a rapidly changing technology landscape and a culture that was slow to change and embrace new opportunities.
Blockbuster was a leading video rental company that failed to adapt to online streaming and went bankrupt in 2010. The problem was wicked because it involved a rapidly changing technology landscape, a failure to embrace new business models, and a slow response to changing customer preferences.
These examples demonstrate how wicked problems can result in epic business failures if organizations cannot adapt to changing circumstances and address complex challenges.
What Can We Learn?
Five lessons learned from epic business failures due to wicked problems are:
Embrace change.
Embrace diversity.
Empower employees.
Be proactive.
Focus on long-term value.
What Can You Do?
Study failures, especially your own. By learning from the lessons of epic and normal business failures due to wicked problems, organizations can build more adaptive and resilient organizations better equipped to navigate complex challenges and create long-term value.
Too Successful to Fail?
Success does not guarantee immunity from challenges, including wicked problems, which are complex and difficult to solve due to their interconnected and ambiguous nature. A successful organization or individual may still face difficulties in solving such problems and must continuously adapt and find new solutions to stay successful.
Learning to Loop the Loop
Learning from failure is one of the most valuable things we can do. As the examples show, you’re never too big, small or successful not to fail. We have to learn, and not just the five things sketched above.
Looping the loop? We need to develop a habit of learning to really question our assumptions and value (through critical thinking) before sketching templates of solutions. We do that by learning from our failures and the failures of others.
Any Lessons for Me?
Let me know what you think.