Episode 161 - The Danger Of Success & Why Thriving SMEs Still Fail

In this episode, we explore a paradox that many business owners quietly face: what happens when success itself becomes the problem? Drawing inspiration from the BBC Reith Lectures and historical examples such as the Roman and Venetian empires, we discuss how organisations often rise through clarity, discipline and value creation, only to drift once wealth, comfort and status take hold. We reflect on how easy it is for leaders to lose sight of what made them successful in the first place.

We examine the warning signs within businesses, from vanity projects and ‘gentleman’s hours’ to over-complication and complacency, and ask how leaders can remain grounded as they grow. We consider generational shifts, the loss of entrepreneurial hunger, and the importance of deliberate mechanisms that reconnect leaders with customers, teams and the core mission. Ultimately, we challenge ourselves and our listeners to build in safeguards before success dulls the edge that built the business.

You can listen to the full episode here 

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Key Topics Discussed:

• How civilisations, and companies, often decline not from external threats, but internal drift.
• The risk of comfort replacing hunger once financial pressure eases.
• Vanity projects and symbolic ‘bling’ as symptoms of deeper strategic distraction.
• The generational challenge: why businesses often fail to sustain momentum beyond the founder.
• The concept of “gentleman’s hours” and leadership disengagement.
• Why a vision should never be fully “achieved”, and what happens when it is.
• The cultural differences in risk appetite and how long periods of stability shape business behaviour.
• The importance of deliberate “reset” mechanisms to stay connected to reality.
  

Who Is This Episode For:

This episode is aimed at business owners, founders, managing directors and senior leaders of SMEs, particularly those who have experienced growth and are now navigating what comes next. It will also resonate with sales and marketing leaders, leadership teams in family-run firms, and anyone responsible for sustaining performance beyond the start-up phase.

Quotes to Remember:

"When a company is struggling, it’s absolutely clear what it has to do… when you are successful, that clarity can fade”.

“You can sometimes see that leadership team losing sight of what got them there”

“I think you need to have mechanisms in place to bring you back almost to that start-up phase”.

Actionable Takeaways:

1. Define your “success drift” warning signs in advance (e.g. reduced customer contact, stalled innovation, leadership absence).
2. Schedule regular time back on the frontline; with customers, on the shop floor, or in delivery.
3. Refresh and stretch your vision, before you feel you have “arrived”.
4. Ring-fence budget and time for R&D and next-stage growth initiatives, even when trading is strong.
5. Invite honest external challenge; a non-executive, adviser or peer who will question ego-driven decisions.
6. Build succession and leadership depth before you ease off operational intensity.
7. Create a cadence (quarterly or annual) that deliberately revisits purpose, values and customer needs.
   

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