Nowhere is it written that a company, regardless of how large it is or how successful it might seem to be, will survive. There have been too many highly visible and painful reminders of this fact over the last several years. While many of these companies fall apart seemingly overnight, the reality is that the decline is a process that usually takes several years and results from a number of actions, decisions, and behaviors that contribute to the demise.The purpose of this book is to present the warning signs of organizational decline, and provide a method for leaders to identify and eliminate them before the organization enters a death spiral. It provides detailed explanations of each warning sign, including an explanation regarding how the sign contributes to the decline, and also an assessment tool to determine the existence and extent of the signs within an organization. The principles and concepts present are equally applicable to healthcare, manufacturing, or service organizations. "A compelling and revealing account of why businesses do and do not survive. I and many of my colleagues consider it mandatory reading." Jim Schroth President J.L. Schroth Company "It is hoped that corporate executives will take heed to the message of this book to avoid (or end) death spirals of their companies, but time is running out for many formerly great companies!" Gene PerkinsbrGroup Vice President – Retired Emerson Electric "Gregg Stocker’s excellent new book captures the fundamental lessons all organizations must learn...This is a remarkable, must-read book for leaders and students of organizations everywhere!" Jeff Lickson President The Consortium"Gregg Stocker is a well-versed, lifetime advocate of quality and performance improvement. His book points the way." David Phillips Former CEO Sherex Chemical, Inc.
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Avoiding the Corporate Death Spiral
Also available from ASQ Quality Press:
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Everyday Excellence: Creating a Better Workplace through Attitude, Action, and Appreciation Clive Shearer
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The Six Sigma Path to Leadership: Observations from the Trenches David H. Treichler
The Executive Guide to Improvement and Change G. Dennis Beecroft, Grace L. Duffy, and John W. Moran
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12 11 10 09 08 07 06 5 4 3 2 1 Library of Congress CataloginginPublication Data Stocker, Gregg, 1959– Avoiding the corporate death spiral : recognizing and eliminating the signs of decline / Gregg Stocker. p. cm. Includes bibliographical references and index. ISBN 0-87389-684-X (pbk. : alk. paper) 1. Organizational effectiveness. 2. Management. 3. Business failures. I. Title. HD58.9.S755 2006 658.4063—dc22 2006001952
ISBN-10: 0-87389-684-X ISBN-13: 978-0-87389-684-9
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Most people, if told that they are in a death spiral, would pay great attention to the doctor delivering that startling message, especially if told there was a way out.Avoiding the Corporate Death Spiral: Recognizing and Eliminating the Signs of Declinedelivers the same message to leaders of the world’s com-panies. It is to be hoped that corporate executives will take heed to the mes-sage of this book to avoid (or end) death spirals of their companies. But time is running out for many formerly great companies! We have all witnessed/are witnessing the decline of great companies that have been dying for many years. Various leaders are brought in to save the company, but the decline continues. Sometimes, a high-profile leader is brought in to save the com-pany and a temporary lull in the decline occurs, only to be resumed when the miracle worker leaves. Intransigent workers, governmental action/inaction, and other forces are often blamed, but it is difficult for we who are leaders to look in the mirror and find the real source of problems. In a great many cases, the company in question could be saved and could prosper, but leaders do not pay heed to the rather simple (though not short-term) messages of this book. Most companies have corporate mission statements, affirming in writ-ing their reasons for being in business and their vision for the future. Instead of following their mission/vision and letting it drive their actions, however, many companies put the declarations on the wall and pay no heed in day-to-day operations. They never really decide who they are, who their cus-tomers are, and that their companies are in business to serve these customers. This type of mission/vision statement is a waste of time and paper. In my experience, shared vision is one of the most powerful tools at getting people to work together. Provided the course is right, this is vital to greatness. Many companies that are in death spirals could know that they are there by the numbers that they generate, but these numbers either come too slowly or management will not acknowledge their problems. They suffer a long-term decline of market position, profitability, customer service levels, successful new products, and an increase in waste (inventory, scrap, rework,