The Seneca Effect, also known as the Seneca Cliff or Seneca Collapse, is a concept named after the ancient Roman philosopher Lucius Annaeus Seneca. The effect is based on Seneca’s quote, “Fortune is of sluggish growth, but ruin is rapid.” He observed that many things in nature, including human affairs, systems and civilisations, tend to decline much more rapidly than they ascend.
Derek van Bever and team investigated the incidence and consequences of growth stalls in major corporations, then probe the root causes. Examining hundreds of stall points, the authors conclude that the greatest threat to a company’s growth is posed by obsolete strategic assumptions that undermine market position, and by breakdowns in innovation and talent management. This is Stall Points.
If you neglect to remove the black walnut, you will see a gradual departure of the surrounding species to healthier pastures, with the younger saplings leading the way. In conclusion, just as removing a black walnut tree from an environment restores balance and promotes healthy growth, it’s essential to address toxic employees in the workplace to maintain a positive and productive work environment. It is essential to repair the broken windows.
Microstress: tiny moments of stress triggered by people in our personal and professional lives; stresses so routine that we barely register them but whose cumulative toll is debilitating. We welcome the author of “The Microstress Effect” Karen Dillon
When an organisation recalibrates to adopt a radically new strategy, most leaders focus on the changes in processes, practices and procedures. These are the mechanics of business, the easiest to measure and easier to implement. Successful change efforts engage both the mechanics and humanics of change. The humanics involves the community, collaboration and culture. In a world of constant change, organisations must adopt a “chameleonic” culture, one that is capable of rapid change in line with strategic change.
It is a pleasure to welcome the Executive Director of the Stanford d.school and the author of Creative Acts for Curious People: How to Think, Create, and Lead in Unconventional Ways, Sarah Stein Greenberg.
We are joined by the former CEO of Cypress Semiconductor, TJ Rodgers and his friend and author of Lead and Disrupt, Charles O’Reilly III
In Chapter 5 of the Corporate Explorer, Binns, Tushman and O’Reilly share how a Corporate Explorer created a new business inside the consulting and accounting firm Deloitte.
His new unit, Deloitte Pixel, uses the “wisdom of crowds” to solve complex management problems. Ice are joined by Balaji Bondili.
In part 2 of our Tushman and O’Reilly series, Charles O’Reilly III explores the importance of cultural alignment in encouraging change. We focus on the cases of DaVita, Microsoft and AGC.
In today’s business world of flux, explore units are agile, decentralised, experimental cultures, loose work processes, strong entrepreneurial and technical competencies, and relatively young and neurodiverse employees. In contrast to the exploit units, these small entrepreneurial units are inefficient, rarely profitable, and have no established histories. They often deliberately violate the norms valued in older parts of the organization.
Because the explore units are wildly different from the exploit incumbent, explorers are often undermined by the parent company, whose short-term needs override exploration. While the exploit teams win in the short term, they sink the company in the long.