Sometimes Success is Just a Lucky Break… Waiting to Break You
Sometimes Success is Just a Lucky Break… Waiting to Break You
Success can be dangerously deceptive. We've all observed companies celebrating record quarters while ignoring operational issues bubbling beneath the surface. The dashboard looks green, so why rock the boat? This is particularly relevant in the Pacific Northwest, where our unique market dynamics create both opportunities and pitfalls.
Consider the cautionary tale of Recreational Equipment Inc. (REI) during its rapid expansion phase in the 2010s. The Seattle-based outdoor retailer enjoyed remarkable growth, opening locations nationwide while reporting strong financials. Yet beneath this success lurked inventory management issues and an overextended supply chain that became painfully apparent when market conditions shifted.
Similarly, Portland's Puppet (formerly Puppet Labs) rode the DevOps wave to impressive growth, but internal operational inefficiencies and challenging integration of acquisitions remained masked by favorable market conditions until competition intensified.
The history of Northwest tech and retail is filled with such examples – companies that appeared unstoppable until suddenly they weren't.
Conversely, some regional companies have demonstrated admirable foresight. Microsoft's transformation under Satya Nadella stands out – the company pivoted toward cloud services and subscription models while still profitable in traditional software, addressing fundamental business model challenges before financial metrics forced their hand.
Smaller examples exist too. Portland's Vacasa identified operational inefficiencies in their property management systems during high-growth periods and invested in technology solutions despite the short-term financial impact. This discipline later became a competitive advantage when market conditions tightened.
Nordstrom's early investment in online capabilities and omnichannel integration – initiated during periods of retail strength rather than desperation – has similarly positioned them better than many competitors.
The real leadership challenge is finding courage to address these issues while things are going well. It means potentially disrupting a success narrative that stakeholders have embraced. It requires weathering pushback from those invested in the status quo (particularly challenging in our region's collaborative business culture).
The question worth asking in times of success isn't just "How do we maintain this?" but "What might our success be hiding from us?" In the distinctive business environment of the Pacific Northwest, where rapid growth can quickly give way to equally rapid market shifts, this question becomes even more crucial.