This archive report was first published on 15 October 2019.
Published on October 15, 2019, by Wale Akinyemi, Chief Transformation Officer at PowerTalks.
Thieves have been punished for stealing since time immemorial, yet people still steal, convinced they can never be caught. Similarly, companies can fail despite knowing the reasons behind other corporate failures.
Forever 21, an American fast-fashion retailer with over 800 stores and 32,800 workers, went bankrupt. Despite having revenues of over $4 billion, the company failed due to cut-throat pricing, online competition, and an unsatisfactory in-store experience.
Forever 21's leadership seemed to have adopted a 'thief mentality,' believing they could get away with what others did. However, this mentality led to unrealistic visions, huge expansion projects, and a poor online presence.
As Wale Akinyemi notes, 'hype may open the door, but it takes substance to keep the door open.' Forever 21 lacked substance, and its failure serves as a reminder that no one is too big to fail.
A successful company can still fail due to blind spots in decision-making. To overcome this, leaders must listen to critics and identify those who disagree with them. As Akinyemi puts it, 'if everyone always agrees with me, then there is no need for them to be there.'
