Breaking Failure: How to Break the Cycle of Business Failure and Underperformance Using Root Cause, Failure Mode and Effects Analysis, and an Early Warning System

6. The Preplanned Exit Strategy

“We are not retreating; we are advancing in another direction.”

—General Douglas MacArthur

Despite the high probability of failure or underperformance, most business plans fail to include a trigger point to signal the need for a serious assessment of either a substantially different strategy or an exit strategy. Especially during the honeymoon period of a new venture, the thought of including an exit strategy is, for some, tantamount to “jinxing” the venture, or demonstrates a lack of confidence in the new company or product. The truth, however, is that failing to include a trigger point and preplanned exit strategy is more a sign of negligence than a no-confidence vote. As a previous cruise ship example illustrated, ...