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OP-003Chronic
Competence-Complexity Mismatch
Also known as: Domain Expertise Gap, Industry Knowledge Deficit
Operational PathologyFounder-induced
Key researchers: Tom Eisenmann
Definition
An operational pathology where the organization's knowledge and expertise are insufficient for the complexity of its chosen domain, leading to systematic errors in execution.
Diagnostic Criteria
- Founders lack industry experience in chosen domain
- Repeated operational errors from domain ignorance
- Inability to anticipate industry-specific challenges
- Learning curve outpaces available runway
Symptoms
- Repeated operational errors
- Underestimation of domain complexity
- Inability to anticipate industry-specific challenges
- Difficulty recruiting domain experts
- Learning curve outpaces runway
Risk Factors
- Founders entering unfamiliar industries
- Industries with high regulatory or operational complexity
- Ventures requiring specialized supply chains
- Domains with established incumbent relationships
References
Additional Sources
- Eisenmann, T. (2021). Why Startups Fail: A New Roadmap for Entrepreneurial Success. Currency.
Known Cases
- Quincy Apparel - founders lacked fashion industry experience, leading to production problems and poor vendor relationships
Classification
- Code
- OP-003
- Localization
- Operational Pathology
- Primary Etiology
- Founder-induced
- Typical Course
- Chronic
- Functional Impairment
- Cognition
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