The book "Good to Great" talks about the Doom Loop. The Doom Loop starts at the juncture of environmental analysis and strategy formulation, where the company does not choose an appropriate strategy to align the company with its environment. It also comes from a failure at the juncture of strategy implementation and formulation, where a company abandons its strategy before seeing the results of longterm decisions and chooses a new strategy as a reaction instead of as the result of careful environmental analysis.
What do you think, where does the Doom Loop starts for most failed companies?
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I agree, Shane. I think many failed companies "jumped ship" before they were able to see the results of their decisions. Consistent, well-thought decision making doesn't always result in rapid or extreme growth, so abandoning a strategy when quick results don't follow sets companies up for failure. Slow and steady sometimes wins the race. :)
ReplyDeleteThanks Shane! I researched Nintendo's history and find it interesting how innovative the company really is starting from Mario and Zelda to the most recent Wii console. Nintendo has a long-term focus and is able to execute its operations effectively. It will be interesting to see which organizational direction they continue to go in--they may be leaving their cult players to appeal to a more universal audience.
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