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Purpose

To provide practicing managers and consultants with advice about common pitfalls encountered in diagnosing the causes of organizational decline. Hopefully, the paper will help managers and their advisors avoid these pitfalls.

Design/methodology/approach

Reviews common problems that the author and other researchers have documented in their research examining how firms and organizations respond to poor performance.

Findings

Shows how managers naturally have “blind spots” in perceiving and interpreting the sources of organizational problems.

Originality/value

Provides managers with explanations for why they may have a difficult time spotting organizational problems. Also, gives practical tips for avoiding the pitfalls encountered in diagnosing decline.

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