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The second cycle: Winning the War Against Bureaucracy by Kolind Lars

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Chapter 1. The First Cycle: Why Success Breeds Failure

Lifecycles Follow the Way People Think

The history of business is paved with companies where roaring success was followed by steep decline: Digital Equipment Corporation, MG-Rover, and Upjohn, just to mention a few. Steep decline followed decades of prosperous growth and industry leadership. It seems as though a virus was allowed to enter into the once-healthy businesses. The virus gradually spread without management or staff really bothering or even knowing what happened. Alarm signals were overheard or neglected for years. Management continued to act as if the company was successful, even at a point where the emerging disaster was obvious to outsiders.

That’s how a company’s lifecycle usually ...

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