What is organizational Death Spiral ?

24 Feb 2022

What is organizational Death Spiral ?

The death spiral is a do-or-die condition for an organization. We call it the spiral of death, mainly because, it can result in a complete downfall for a company. If done without the right tactics of effective negotiations and in the absence of resilient leaders. The loss of life spiral is a long, drawn-out procedure. People often talk about these kinds of death spirals, the first being the end of a company`s life cycle. At this moment, humanity is desperately looking for a way out. Secondly, the situation where a person is disoriented and can blindly obey everything he sees or hears. The thinking here is nihilistic, like following the world around you without even thinking twice about the consequences.

Stages involved in the death spiral:


This is the period where industry collapses and workplace wellness suffers. In this round, the company loses its position of public responsibility. As a result, it refuses to maintain transparency and tends to show a lack of acceptance of current issues; issues such as high costs, poor product quality, internal conflict, organizational vulnerabilities, etc come into the picture and destroy the wellness at the workplace.


It is also observed that there is a constant blame game occurring among different teams. All these happen regardless of the quality of their leaders’ negotiation skills. For project failures, sales blame sourcing and delivery, they blame sales, and so on. There may also be a persistent lack of resources during this period.


During the avoidance phase, departments are a means of protecting their employees. Failure to partner with departments below on effectiveness programs, are the moment where each department may initially apply. But declines during eventual participation.


This is the final stage of the death spiral that most entities are unable to pull out off. During this period, employees lose hope following rumors of takeovers by other industry players. At the same time, it has been observed that losing their own company’s expectations causes employees to leave their organizations and merge with competitors. Employees do all these for lack of an essential work ethic and motivation. And while this is something that can be easily overcome with leadership and negotiation skills, it is a difficult step to take.

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