Some of my most interesting insights are gleaned from real-life. Like orange trees (see The Tale of the Orange and the Lemon Tree)! This week an orange tree taught me another valuable lesson about how we can maintain ongoing organizational success.
We live in an area of the California desert which has an abundance of citrus trees. In February and March these trees blossom. For several weeks our desert air is filled with the cloyingly sweet smell of citrus blossoms. It is one of my favorite times of year.
However, this year I noticed something in addition to the aroma. Amidst the spring blooms, most of the orange, lemon, grapefruit and lime trees are still filled with ripe fruit. While these trees are still bearing the literal fruits of their labor, their work for next year is already underway.
This is a rich lesson about how we can foster ongoing organizational success! It is not uncommon for our organizations to experience a fruitful season. However, only focused organizations experience success on an ongoing basis. If you don’t believe me, perhaps these statistics will convince you.
In 1920, the average company on the Standard & Poor’s stock exchange (S&P) lasted 67 years. By 2015, this has been reduced to 15 years. This means that an S&P company is now being replaced every two weeks. Analysts estimate that 75 percent of today’s S&P 500 firms will be replaced by new firms by 2027 (The Atlantic).
These sobering statistics remind us that over time, success over time is earned and should not be assumed. So how do organizations facilitate blooms amidst their fruitfulness? Let me answer this question from my perspective as a consultant.
Here are three types of organizations that I regularly encounter.
Can you guess which one has the best chance to maintain success?
Unhealthy organizations are those who have failed to prepare their blossoms at the right time. Even organizations that appear healthy will fail if they lack the foresight to look beyond their current harvest. However, healthy organizations will do the hard work required to blossom amidst fruitfulness!
Success does not always breed success in a changing global marketplace. The S&P data reminds us that the things that made you successful in the past may not work in 15 years! So is your organization doing the work required to blossom at the right time?
Jeff Suderman is a futurist, professor, consultant and pracademic who works in the field of organizational development. He works with clients to improve leadership, teamwork, organizational alignment, strategy and organizational FutureReadiness. He resides in Palm Desert, California. Twitter: @jlsuderman. Email: email@example.com
Lam, Bourree (April 12, 2015). Where do firms go when they die? The Atlantic on-line.