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FM-12 · Failure Mode

Strategic Myopia

Tier: Terminal (Tier 3)
Severity: Existential
Detectability: Very Low

Definition

The organization optimizes near-term execution so aggressively that it loses the ability to see second- and third-order effects.

Strategy collapses into a sequence of reactions. Long-term positioning is replaced by short-term survivability dressed up as pragmatism.

What Fails

Future positioning. The ability to make tradeoffs that pay off beyond the current quarter.

Why It Emerges

Sustained pressure rewards immediacy. Short-term wins are measurable; long-term positioning is not. Executives inherit incentive structures optimized for survival, not advantage.

How It Hides

  • Framed as realism
  • Justified by market volatility
  • Masked by high activity levels
  • Reinforced by quarterly reporting
  • Protected by urgency language

The organization mistakes busyness for progress.

What It Gets Mistaken For

  • Focus
  • Discipline
  • Responsiveness
  • Strong execution culture

In reality, it is strategic blindness.

Early Warning Signals

  • Strategy conversations constantly postponed
  • "Next quarter" replaces "next year"
  • Long-term bets labeled as irresponsible
  • Leaders rewarded for firefighting, not foresight
  • Vision statements stop changing behavior

If strategy only exists in decks, it no longer exists.

Common Misdiagnoses

  • "The market changed"
  • "We need to be more agile"
  • "This is just execution debt"
  • "We'll fix it next quarter"
  • "Strategy is a luxury right now"

Core error: The system believes it is adapting when it is actually narrowing.

What Actually Interrupts It

Explicit protection of long-horizon thinking.

Not:

  • Annual offsites
  • Vision refreshes
  • Inspirational slogans

But:

  • Separate decision lanes for short vs long term
  • Leadership roles accountable for future-state health
  • Time-bound protection for strategic work
  • Willingness to absorb short-term pain for long-term leverage

Strategy requires insulation from urgency.

Recovery Condition

Strategy updated with longer-term tradeoffs acknowledged.

Fail-Safe Default

Freeze optimization and widen time horizon.

Cascade Relationships

Upstream: FM-08 Decision Latency, FM-11 Metric Authority Drift

Downstream: FM-13 Capability Atrophy, FM-14 Narrative Collapse

When there's no time for strategy, there's no strategy.
A structural failure mode. Diagnostic only. · DRI™ Coherence Taxonomy