Larry Mandelberg is a seasoned consultant, speaker, and author specializing in transforming complex business challenges into opportunities for growth. As a fifth-generation entrepreneur, he brings over 150 years of inherited business acumen to his practice. Larry has a proven track record of revitalizing organizations across diverse industries, including software, automotive, education, and agriculture. He is the author of “Businesses Don’t Fail, They Commit Suicide,” a compelling exploration of the internal factors leading to business demise and strategies to avert them. Beyond his writing, Larry has contributed over 80 insightful columns and delivered more than 60 impactful keynotes and workshops. His expertise encompasses leadership development, executive coaching, ethics training, and strategic planning. Larry’s mission is to equip business leaders with the tools and insights necessary to navigate change effectively and foster sustainable success.

In this insightful episode of Talking with the Experts, host Rose Davidson engages with Larry Mandelberg, a distinguished consultant, speaker, and author, to explore the critical factors that determine business success and failure. Drawing from his extensive research and his book, “Businesses Don’t Fail, They Commit Suicide,” Larry delves into the internal dynamics that often lead businesses to self-destruct and offers actionable strategies to prevent such outcomes. 

Larry emphasizes that most business failures are not due to external forces but result from internal missteps and leadership challenges. He introduces the concept of the “Three Ps”: Purpose, Performance, and People, as foundational pillars for organizational success. By ensuring clarity of purpose, consistency in performance, and engagement of people, businesses can create a resilient framework capable of withstanding economic fluctuations and industry disruptions. 

A significant portion of the discussion centres on the misconceptions surrounding business failure. Larry challenges the notion that financial shortfalls are the primary cause, asserting instead that they are lagging indicators of deeper issues. He shares insights from his “Business Suicide Prevention Program,” which helps organizations identify and address vulnerabilities before they escalate into critical problems. 

Larry also discusses the importance of adaptability and proactive change management. He provides examples of companies that have successfully navigated transitions by fostering a culture of continuous learning and open communication. Listeners will gain valuable perspectives on how to anticipate challenges, manage internal conflicts, and leverage change as a catalyst for growth. 

Three Key Points from the Interview: 

1. Internal Factors as Primary Causes of Failure:
   Businesses often fail due to internal issues such as leadership challenges and misaligned purposes, rather than external economic factors. 

2. The “Three Ps” Framework:
   Focusing on Purpose, Performance, and People provides a robust foundation for sustainable business success. 

3. Proactive Change Management:
   Embracing adaptability and fostering a culture of continuous learning are essential for navigating business transitions effectively. 

This episode offers a comprehensive look into the often-overlooked internal dynamics that influence business outcomes and provides practical strategies for leaders aiming to build resilient and thriving organizations. 

For a deeper understanding of Larry Mandelberg’s insights on preventing business failure, consider watching the following video: 

New Book: Businesses Don’t Fail They Commit Suicide

Introduction of Larry Mandelberg

• Larry Mandelberg is introduced as a consultant, speaker, and author who solves complex problems.

• They represent the fifth generation of their family’s business, inheriting 170 years of organizational success experience.
• Larry has achieved new levels of efficacy and growth for businesses in diverse industries such as software, automotive, education, and agriculture.
• They have published more than 80 columns, and their first book, ‘Businesses Don’t Fail, They Commit Suicide,’ was released in April 2023.
• Larry has delivered over 60 business-changing keynotes and workshops. 

Family Business History

• Larry’s family business started in hides and furs in the mid-eighteenth century.

• The business has survived by adapting to changes and leveraging knowledge for profit and success.
• The family business transitioned through various industries, with the most recent being in the automotive aftermarket (auto parts and machine shop work for motors).
• Knowledge was passed down through generations, with each teaching the next everything they learned about doing business.
• This rich family history of success and transition provides Larry with a competitive advantage in understanding how to maintain and transition businesses. 

The Arc of Success Concept

• The Arc of Success is a concept derived from Larry’s 23 years of primary research.

• It highlights how organizations mature, grow, and improve, as well as the trigger that causes business failure: change.
• The arc begins with an idea, which, if successful, leads to growth.
• Growth creates complexity, which necessitates the implementation of controls.
• Controls reduce flexibility, creating a shift from a free-wheeling environment to a more structured one.
• Larry shared an example of how explaining the Arc of Success helped resolve a conflict in a client organization over centralized office supply purchases. 

Change Management

• The eternal conflict in business is between the constant state of change in the world and people’s desire for stasis.

• Effective change management requires passion for the organization’s purpose and connecting all changes to that purpose.
• Larry uses the ADCAR model (Awareness, Desire, Knowledge, Action, and Reinforcement) for change management.
• The model emphasizes creating awareness of inevitable change, fostering desire for positive aspects of change, providing knowledge about the change, encouraging action through penalty-free practice, and reinforcing the change.
• Larry stresses the importance of adapting to change, citing Amazon’s evolution from a purely online business to one with physical locations as an example. 

Reasons Organizations Fail

• Larry identified three main reasons organizations fail, corresponding to different stages of business maturity.

• Clarity of Purpose corresponds to the Youth stage.
• Consistency of Performance corresponds to the Adolescence stage.
• Engagement of People corresponds to the Adulthood stage.
• Early-stage businesses often fail due to misalignment among key personnel about the organization’s purpose.
• Middle-stage businesses fail when they can’t deliver consistent results, affecting trust with employees, vendors, and customers.
• Mature businesses fail when they can’t effectively engage their workforce.
• These issues waste critical business resources: people, money, and time. 

Book Details and Philosophy

• The book title ‘Businesses Don’t Fail, They Commit Suicide’ originated from a comment Larry made during a brand equity assessment of their practice.

• The book contains about 70% data, 15% real-world experience (fictionalized to protect companies), and includes practical stories like ‘The Case of the $362,000 Check.’
• It provides a step-by-step process for business success, including an assessment of organizational strengths and weaknesses.
• The book aims to help businesses build clarity of purpose, consistency of performance, and engagement of people.
• Larry emphasizes that ‘profit without purpose is pointless’ and businesses need to provide value beyond just making money.
• They stress the importance of leadership in preparing companies for various scenarios and taking responsibility for business outcomes.
• The book is available on major platforms like Amazon, Apple, Playstore, and Barnes & Noble.

• Larry shares his family’s 170-year business history, starting from hides and furs in the mid-eighteenth century to automotive aftermarket
• Discussion of the Arc of Success concept, explaining how organizations mature through growth, complexity, and controls
• Explanation of the ADCAR change management model (Awareness, Desire, Knowledge, Action, Reinforcement)
• Introduction of the three reasons organizations fail: clarity of purpose, consistency of performance, and engagement of people
• Detailed explanation of consistency of performance using McDonald’s as an example
• Origin story of the book title “Businesses Don’t Fail, They Commit Suicide” from a 2014 brand equity assessment
• Discussion of the book’s content structure: 70% data, 15% real-world experience, and assessment tools

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