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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

  1. Founders lack industry experience in chosen domain
  2. Repeated operational errors from domain ignorance
  3. Inability to anticipate industry-specific challenges
  4. 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

  1. 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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