Hierarchical decision-making is rooted in levels of authority, not in depth of expertise and specific knowledge of the situation.

It isn’t entirely foolish, either: Presumably, those higher in the hierarchy (which might be a pun but I doubt it) are there because in the past they demonstrated leadership and good judgment in their areas of responsibility.

The world changes faster, though and the detailed knowledge needed to handle a responsibility increases. The result: Those with the proper authority to make a decision are, to an ever greater extent, insulated from both the knowledge and the information necessary to make it well, let alone fast enough for it to be useful.

Past successes pose the greatest risk of future failure.

This statement, while accurate, is hardly original, whether applied to a business or a business executive. But Adam Hartung’s Create Marketplace Disruption: How to Stay Ahead of the Competition (2008) goes far beyond this commonplace observation. Hartung details its dynamics, allowing him to recommend practical ways to prevent it.

Quite a few of you asked for more information about this book. In particular, you asked about Hartung’s “Phoenix Principle” — his prescription for avoiding the stagnation and eventual disintegration that are the near-inevitable consequence of business success.