Here’s what we covered in Sunday’s edition…
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Last week, we discussed the commoditization/decommoditization loop. In doing so, we nodded to the death spiral, a situation in which a company attempts to rebound through cost cutting measures.
This week we’ll dive more deeply into the death spiral, how to recognize it, and how to escape it.
Here’s what you’ll find:
This Week’s Article: The Corporate Death Spiral
Share This: Recognizing the Corporate Death Spiral
Case Study: How IBM Escaped the Corporate Death Spiral
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Why you should read it ☝️
Startups and innovation-driven companies move fast. But without a clear vision and disciplined execution, they risk falling into an organizational death spiral—a cycle of reactive decision-making, loss of focus, and eventual collapse.
This article breaks down the warning signs that you may be entering the death spiral.
Why you should read it ☝️
This doc explores how service organizations—especially knowledge-based ones—often fall into a death spiral when pressures to reduce costs and increase efficiency lead to employee burnout, lower service quality, and customer attrition. This self-reinforcing loop ultimately reduces profitability and service capacity, further accelerating decline.
It does an excellent job of highlighting how short-term efficiency gains can erode long-term sustainability and customer trust.
Why you should read it ☝️
Addresses the perilous cycle companies enter when indiscriminate cost-cutting measures lead to reduced productivity, declining quality, and customer attrition. This article advocates for the adoption of process improvement methodologies, such as Lean Six Sigma, to enhance efficiency without compromising quality or employee well-being.
By focusing on continuous improvement rather than reactive cost reductions, businesses can maintain competitiveness and prevent the downward spiral associated with hasty financial cuts.
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