The Illusion of Success

In the 15th century, such was the power of Portugal as a seafaring and military empire that Pope Alexander VI had to step in to broker a treaty between Portugal and arch-rival Spain, effectively dividing the world between the two. So extensive was the Portuguese power, that at the height of it - half of Africa, and major trade routes to Asia were in their absolute control. Resistance in the Arabs, India and Southeast Asia were smothered with overwhelming firepower and superior military technology. By mid 16th century, Portugal’s sphere of influence included outposts that spanned the west of the Atlantic (notably Brazil) all the way to the Far East (today’s Melaka, Macau, Taiwan and Japan).

The rest of the history, was of course, one of rapid decline.

Today, while Portugal remains a key member of the European Community, its influence pales in comparison to those of the United Kingdom, Germany and France. Indeed, it is an open secret that neighbour and economic rival Spain sees its poorer neighbour with barely hidden disdain. It is a well known joke in the Spanish business community that if you want cheap prostitutes, you turn to the Chinese, but for cheap labour, you hire a Portuguese! Crude indeed, but that sums up the extent of Portugal’s decline from a world power to a middling country in Europe.

Portugal is not the only superpower that has fallen. Arguably, today’s Japan is a pale shadow of its dominance in Asian trade and economy in the 70s and early 80s. At one point, major economists and analysts were convinced that Japan will overtake the United States as the world’s dominant economic power. It was indeed an impressive growth story for a country that was almost devastated by war, and had to swallow the shame and bitter economic pill prescribed by victors of the second world war.

THE LESSON IN SUCCESS

If there’s a parable to be learned from both countries’ stories, it is that past glory is not a guarantee of success.

In the case of Portugal, many attribute her decline to a change in the rulers. But in reality it was a combination of over-extension, local resistance and competition from other seafaring powers. These of course, are problems familiar to many entrepreneurs - as they are not unlike the challenges we face daily as business people.

More importantly, the Mongols, the Greeks and the Chinese – all fell not because of ‘global uncertainties’ or ‘competitive pressures’, but because of uncontrolled pride, arrogance and complacence. In business, and especially for second generation family business owners, because success came easy, we forget that at the blink of an eye, our business can fall too. Ask Enron. Or Lehman Brothers.

There are indeed lessons to be learned from the past. When Columbus sailed to the West across the Atlantic, hoping to reach India from its Eastern side – he reached America and assumed that he had arrived at India. For years and until his death, he believed that it was India that he found.

In real life, we often believe that we have achieved our goals and our best – when it is no more than illusions of success. And because we have not really succeeded, our downfall comes faster and more thorough than we thought possible.?