Why some business organisations fail

Business process re-engineering was arguably the most debated management concept in the 1990s thanks to the seminal work of respected authors like Thomas Davenport. This was when information and communications technology, trade liberalisation and deregulation were shaking the foundations of many established industries like banking, aviation and retail.

Various management strategy blueprints were proposed to help business organisations reinvent themselves to remain relevant. Total quality management became a standard unit in most business courses. Many wanted to know the secret of how to fight off the competition from new ventures that saw opportunities in the collapse of entry barriers that for decades had seemed unsurmountable.

It is a sobering reality that most business re-engineering projects fail. These failures have impacted both small enterprises, which may lack the know-how on managing change successfully, and large and long-established organisations that never believed that they faced existential challenges.

There is no shortage of academic literature on why some business organisations fail. Those involved in re-engineering a business to ensure that it remains viable in...