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Icarus Paradox

Firms fail through the amplification of the very strength that made them succeed.

Miller's 1990 study of failed firms: the craftsman becomes obsessed with quality, the builder over-expands, the pioneer over-innovates. Each was doing more of what had worked.

In practice

  • A firm celebrated for engineering rigour ships nothing, because the rigour that made it good has become the whole of the culture.
  • A restaurant known for a demanding chef closes when the demandingness that produced the standard drives out everyone who could meet it.
Standing
The organisational form of Flanderization.
Further reading
Wikipedia
Subject
Organizations & Bureaucracy
Essay
Why organisations learn, harden and decline

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