Avoiding the Traps That Can Cause Your Company to Self-Destruct

Jagdish Sheth:

When Exceptional Achievement in the Past Warps Your Perception of Present Reality

Like several of the other self-destructive habits, arrogance can arise from exceptional achievement. One situation especially predictive of arrogance is when a company, through unexpected or stunning accomplishment, catapults to the position of industry leader and then goes on to successfully defend itself against wave after wave of competitive, regulatory, and even public opinion assault. Quite naturally, such a company comes to believe it is immune to external forces -- a belief bolstered by the media and its stakeholders (suppliers, dealers, and so on) --and its reputation is blown out of proportion. To me, this is the real meaning of "good to great": The company doesn't change, but its accomplishments are exaggerated by a media overly fond of big words and big stories. Gradually, the arrogance-prone company comes to believe its own press clippings. Then we have the familiar story: Success courts its own demise. For a particularly good illustration, let's look again at...