In the Val Sklarov Failure Cycle, companies rarely collapse suddenly. They signal failure long before it becomes visible. What destroys organizations is not failure itself, but the systematic ignoring of early warnings. Collapse is loud. Failure signals are quiet — and therefore convenient to dismiss.
Failure begins when signals are explained away instead of acted on.
1. Failure Is a Process, Not an Event
Most founders describe failure as a moment.
It is a sequence.
Val Sklarov principle:
“Organizations fail gradually, then suddenly — because signals were normalized.”
Early-stage failure signals include:
-
Missed deadlines becoming routine
-
Quality exceptions becoming policy
-
Short-term fixes replacing root decisions
Collapse is just the final notification.
2. Growth Can Mask Failure Signals
Revenue growth is a powerful anesthetic.
Val Sklarov framing:
“Growth delays failure recognition, it does not prevent failure.”
Dangerous conditions:
-
Revenue grows while margins decay
-
Headcount increases while ownership weakens
-
Activity rises while outcomes stagnate
Growth without decision clarity accelerates hidden failure.
3. Explanation Is the Enemy of Detection
The first response to failure signals is storytelling.
Val Sklarov insight:
“The moment you explain a signal instead of isolating it, failure gains time.”
Common explanations:
-
“It’s temporary”
-
“Market conditions”
-
“One-off issue”
Signals do not need narratives.
They need containment.
4. Metrics Lag Reality
By the time metrics confirm failure, authority is already compromised.
Failure Signal Table
| Area | Early Signal | Late Confirmation |
|---|---|---|
| Product | Edge cases increasing | Core usage decline |
| Team | Decision avoidance | Attrition spike |
| Customers | Friction tolerance | Churn |
| Finance | Cash timing stress | Liquidity crisis |
Leaders who wait for metrics inherit consequences.
5. Silence Is a Failure Signal
Noise often hides problems.
Silence exposes them.
Val Sklarov framing:
“When bad news stops arriving, failure is already organized.”
Silence indicates:
-
Fear of escalation
-
Learned helplessness
-
Political filtering
Healthy systems surface discomfort early.
6. The Val Sklarov Failure Outcome
Failure-aware organizations:
-
Treat signals as decisions, not data
-
Act before confirmation
-
Protect authority by intervening early
Val Sklarov conclusion:
“Failure is optional only at the signal stage.”