After much study and decades on the front lines of business, I suddenly realized there was a pattern.
There are three root causes of corporate business failure (businesses not legally tied to the life of the owner).1. Human Dimension:
- Individual – every person is important, no exceptions.
- How we treat and communicate with each other – how effectively we work together.
- Cognitive Bias – the countless ways that our minds trick us into thinking we’re right when we’re actually wrong…
- How we make decisions.
- How we manage risk.
- How we plan for the future.
- Hidden Assets – untapped capabilities in personnel, accumulated know-how, data, etc.
- Creativity/Innovation – (internally and externally) businesses must continually evolve or die.
- Failure to build Relationship Capital with all Stakeholders and simultaneously build mutually beneficial relationships with all of them.
I decided that if these were the root causes of business failure that any solution would have to address all of these areas. The Root Causes of Business Failure became the Core Competencies.