Management Mistakes and Successes, Tenth Edition

Chapter 1. Introduction

At this writing, Management Mistakes has passed its twenty-fifth anniversary. The first edition, back in 1983, was 254 pages and included such long-forgotten cases as World Football League, Korvette, W. T. Grant, Montgomery Ward, Edsel, Corfam, A. C. Gilbert, Robert Hall, and STP.

In this tenth edition, we have added four new cases from the ninth edition. Six other cases have been dropped to make room for the new entries, or have been revamped and updated, and in some instances reclassified. One new part, Players in a Time of Economic Crisis, reflects these times. Another new part, Entrepreneurial Breakthroughs, introduces students to the mighty successes of Google and Starbucks and their leadership in innovation and employee benefits. Many of these cases are as recent as today's headlines; some have still not come to complete resolution.

We continue to seek what can be learned—insights that are transferable to other firms, other times, and other situations. What key factors brought monumental mistakes for some firms and resounding successes for others? Through such evaluations and studies of contrasts, we may learn to improve the "batting average" in the intriguing, ever-challenging art of management decision making.

We will encounter examples of the phenomenon of organizational life cycles, with an organization growing and prospering, then failing (just as humans do), but occasionally resurging. Success rarely lasts forever, but even the most serious mistakes ...