Robert E. Mittelstaedt Jr., dean of the W.P. Carey School of Business at Arizona State University (and former entrepreneur and submariner in the U.S. Navy), examines some of the more notorious business and physical calamities of recent times.
Professor Mittelstaedt suggests that there is a common sequence of failure:
1. An initial problem, often minor, that goes uncorrected
2. A subsequent problem that compounds the effect
3. An inept corrective effort
4. Disbelief at the accelerating situation
5. An attempt to remedy the situation while hiding the facts
6. Sudden recognition that the situation is out of control
7. The disaster scenario – with loss of life and/or financial resources
Professor Mittelstaedt draws 38 insights from the incidents he studies, conveniently summarized at the end of the book. Some of these, such as “establish and enforce standard operating procedures” and “culture is powerful – what creates success may kill you,” fall into the true-but-not-very-helpful category, and it is difficult to see how a manager could integrate them into his or her daily activities. Many of his points, however, are valuable, such as the suggestion that every organization conduct an “economic business visioning” (EBV) exercise. – David K. Hurst
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