Sadly, most enterprises fail. Per Forbes Magazine eight out of ten businesses fail. Per a Harvard Business School study 75% of venture-backed startups fail. Only 50% of businesses will survive five years, and only 30% will survive their 10th year.
Many organizational and economic reasons could contribute to this phenomenon, but the main reason for frequent failure is human nature itself.
One of our distinguishing characteristics is reflexivity: humans tend to identify a need, or a problem, conceive a solution and set to implement it.
This is a recipe for failure.
Humans are not only reflexive but also vastly irrational. Several Nobel Prize winners in economics in recent years, most notably Daniel Kahneman (a psychologist renowned for his work on the psychology of judgment, decision-making and behavioral economics) challenged the assumption that rationality prevails in modern economic theory. Their experiments revealed an underlying cognitive bias that leads to common human errors. Human thought and behavior is highly complex and not necessarily causal or linear.
Although many believe that failure is an inevitable step on the way to success, there is a rather simple solution that could help avoid failure and minimize risk.
The R-SWIM® system helps in the conceptualization, construction and implementation of the enterprise. It is a customized package of steps necessary to minimize risk and increase chances for success and growth.
The R-SWIM system is designed to help individuals and institutions develop a solid and actionable strategy by making sure all dimensions of the proposed enterprise are thoroughly researched: the “known’s”, “unknown’s” and most importantly the “unknown unknown’s”.
The system includes five essential components; each must be executed in the following order. All components represent the need to develop an answer to a simple and basic question.
R- Research: “Who are we?”