The Hidden Patterns Behind Business Failures: Conversations with Larry Mandelberg | Episode 18

The Recognition Factor: Transforming Workplace Culture | A Scratchie Podcast

What if everything you thought you knew about business failure was completely wrong? Drawing from five generations and "170 years" of family business experience, Larry Mandelberg challenges conventional wisdom with a provocative claim: businesses don't fail—they commit suicide through their own decisions.
This conversation takes you deep into the hidden patterns behind organisational failure. Mandelberg, author of "Businesses Don't Fail, They Commit Suicide," reveals how his research across hundreds of organisations identified the true culprits behind business collapse. Contrary to popular belief, external forces like economic downturns, competition, or even natural disasters aren't what kill most businesses. The real threat comes from within—specifically from how organisations respond to success and growth.
Mandelberg introduces the counterintuitive concept of "surviving success." When businesses grow—whether in customers, revenue, territory, or offerings—this success forces change. Those unprepared for these growth-induced changes make decisions that eventually destroy the company. Finance problems, rather than being the cause of failure, are merely "lagging indicators of prior bad decisions that show up too late to fix."
The conversation explores practical frameworks for building resilient organisations, including Mandelberg's "three organisational imperatives" that must be addressed in sequence: clarity of purpose, consistency of performance, and engagement of people. Through compelling case studies, including a healthcare company turnaround and Disney's remarkable COVID recovery, Mandelberg demonstrates how proper planning and decision-making can make businesses virtually "indestructible" even in the face of severe external challenges.
Whether you're running a family business, leading a growing enterprise, or simply fascinated by organisational behaviour, this episode offers powerful insights into why some businesses thrive across generations while others implode despite apparent success. Ready to learn how your organisation can avoid committing "business suicide" and instead build lasting resilience? Listen now.

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챕터

1. Meeting Larry Mandelberg (00:00:00)

2. Five Generations of Business Experience (00:04:38)

3. Why Businesses Commit Suicide (00:09:11)

4. External Forces vs Internal Decisions (00:16:28)

5. Planning: The Secret Competitive Advantage (00:27:56)

6. Three Organizational Imperatives (00:35:13)

7. Healthcare Case Study Turnaround (00:42:41)

8. Purpose and Business Transformation (00:45:45)