Crossing the Chasm and Over the Abyss: Perspectives on Organizational Failure

Abstract

In this paper, we present an integrative perspective on organizational failure by conceptualizing three levels of failure—organizational learning processes (which can give rise to simple failures), organizational planning processes (which can give rise to complex failures), and strategic capacity for organizational agility (which can give rise to catastrophic failures)—as a Guttman-like model of escalating dysfunctions. Simple failures are the result of learning deficiencies stemming from single-loop decision making and weak learning competencies. Complex failures are caused by structural rigidities and intelligence pathologies. Catastrophic failures are a result of weak knowledge inclusiveness and weak organizational platforms, which occur from a downward spiral of events stemming from simple and complex failures. Areas for further study are suggested.