There is a paradox I have experienced in practice and continue to see play out across our industry.
A paradox exists when two seemingly contradictory conditions can be true at the same time. Like most, this paradox can be hard to detect. But its consequences, and ability to limit your long-term growth and prosperity can be very real. This is especially true when times are good.
Here’s the paradox:
Firms experience excellent business results while simultaneously becoming less capable of sustaining them.
“Firms can experience excellent business results while simultaneously becoming less capable of sustaining them.”
– Peter C. Atherton, PE
Said another way, firms can become increasingly successful while becoming less capable of sustaining that success.
I call this the Success–Capability Paradox, and it can take a minute to fully sink in.
Consider what happens in many growing firms:
- Revenue rises while leadership bandwidth shrinks.
- Backlog expands while delivery capacity becomes strained.
- New offices are added while firmwide coordination becomes harder.
- Successful principals and project managers become increasingly indispensable rather than less so.
- Client needs are met, but employee development gets postponed.
- Annual and strategic plans grow more sophisticated while execution remains inconsistent.
How real does any of this feel?
Any one of these conditions can be manageable. Several occurring together can become consequential.
As illustrated in the graphic above, the issue is not always that organizational capability is declining. Many times, capability may be improving; it simply may not be advancing fast enough to keep pace with the demands of growth, increased complexity, and a changing environment.
In normal times, this gap will eventually threaten performance. In this new era of disruption, this gap can also threaten resilience, succession, and strategic freedom.
“In normal times, this gap will threaten performance. In this new era, this can also threaten resilience, succession, and strategic freedom.”
– Peter C. Atherton, PE
Why is it hard to see?
Successful firms often develop enough workarounds to keep moving. Experienced leaders bridge gaps through relationships and judgment. High performers take on additional roles, clients, and projects. People work harder. The numbers still look good.
But what happens when a longtime leader retires or a high performer unexpectedly exits? When two major projects start at once? When a client expects a level of integration the firm has not consistently delivered? When technology creates an opportunity that cannot be scaled because the underlying systems are inconsistent? Or when the next generation of leaders is asked to take responsibility without the time or support that made their predecessors successful?
The consequences of this paradox are not limited to any type or size of firm. They can happen to anyone, but do not have to happen to you, or at least not happen to you moving forward!
“This can happen to anyone, but it does not have to happen to you, or at least not happen to you moving forward!”
– Peter C. Atherton, PE
Again, strong present-day performance may be real. So can the vulnerability beneath it.
Closing the gap starts with a deeper question:
Is your organization actually getting stronger and more capable, or just bigger, busier, or more profitable?
Closing the Gap
Keeping success and capability moving together requires that we:
- Recognize that strong results can hide a growing gap.
- Protect leadership bandwidth so your leaders can lead, not just produce.
- Grow delivery capacity and firmwide coordination alongside revenue and new offices.
- Develop more leaders, so success is more distributed.
- Always invest in professional development, even when clients are happy.
- Connect your plans to everyday operations.
- Use new technology to strengthen your business model, not just personal productivity.
Strong performance is something to celebrate. Making sure your organization is growing strong enough to sustain it is how we turn more great years into lasting next-level success.
