Complacency bred by success can be a company’s undoing 

The adage “the greatest threat to success is success itself” is a profound reminder for organisations, especially those riding the high tides of success.

This concept, often overshadowed in traditional Swot analyses, holds a critical truth: the complacency bred by success can be a company’s undoing. When organisations achieve a certain level of success, there’s a tendency to shift focus from proactive innovation to defensive maintenance.

This change in strategy, from aggressive expansion to cautious preservation, can inadvertently stifle the very dynamism and adaptability that fueled their initial growth.

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Jeff Bezos, in acknowledging that no company, not even Amazon with its astronomical valuation, is immune to failure, encapsulates the essence of this threat. Success can create a false sense of invulnerability, a dangerous mindset in a world where market dynamics are constantly shifting. 

Companies that have not yet attained a level of success are not susceptible to this threat, but it is good for them to be aware as they climb the ladder of success. Success breeds vulnerability and the height of success is oftentimes the beginning of decline.

Living in Kenya, one always hears references to the amazing innovation called M-pesa. Without a doubt it is revolutionary, and it put Kenya on the global innovation map. However, it is one thing to be on the map and a different thing to stay there. We need to be aware that the minute an innovation is born, someone somewhere is working night and day to make it obsolete.

If we spend too much time celebrating our innovation, by the time we are done celebrating, we will realise that the replacement is already about to be celebrated.

I heard on the news that the president of Kenya has announced that from January 2024 no one will be required to get visas to enter into Kenya. The same week I heard that from March 2024, even passports will not be required to get into Dubai.

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Faces will just be scanned and if a person has no issues, a green light will pass them, otherwise the light will turn red. There is no end to innovation and anyone who does not realise this will be the victim of competition.

When we talk of innovation it is not just about the competition. The risk is not just in being overtaken by competitors but also in failing to meet the evolving needs of a dynamic consumer base. 

The tendency to become defensive rather than offensive when an organisation achieves success is a significant concern. Companies often shift focus from exploring new opportunities to protecting their existing market share. This shift can result in a reluctance to take risks or invest in untested innovations.

For any successful organisation, it is crucial to maintain a balance between leveraging current strengths and exploring new paths for growth. This requires a culture that values continuous learning and encourages experimentation. 

A successful organisation often becomes the target of competitors, who meticulously study its strategies and look for weaknesses to exploit. Therefore, it is vital for successful organisations to continually reassess their strategies, remain vigilant about industry trends, and be prepared to pivot quickly in response to new challenges.

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For successful entities, the path forward involves a delicate balancing act. They must harness their current strengths while remaining open to change. This approach will require a mindset that embraces flexibility, encourages continuous improvement, and is alert to both internal and external shifts in the business landscape. 

Wale Akinyemi is the Founder of the Street University Email [email protected]