Why is it so difficult for organizations to attain and sustain long term success?

Any organization starts with an individual or group of people with a quality product or service offered at a reasonable price to meet a market need or to utilize a technological breakthrough.  If done well, the organization takes off. 

To attain and sustain long term success, organizations must:

• attract,  select, train, compensate, recognize, reward, promote, treat fairly and retire honorably a diverse group of employees;
• develop visionary, decisive, ethical leaders throughout the organization who go out  ahead and show the way, who listen and communicate, who serve and lead;
• find ways to utilize the ideas and talents of every employee;
• weed out the few who after time and training will not or cannot meet the performance standards;
• listen carefully to the voice of the customer to improve current products/services and customer service, increase value through feature additions and/or price reductions — or at least keep price increases minimal in times of higher inflation;
• offer new products and services on a timely basis and don’t make customers suffer with defects the organization should have found through better testing;
• expand into new markets after careful study;
• monitor competitors, including unlikely ones with alternative solutions — strive
  to be better than the best competitor;
• track technology and adopt it as soon as feasible for customers and internal processes;
• search constantly for ways to reduce costs;
• renew, reform, reinvent, change any aspect of the organization when early warning signs appear;
• develop strong relationships with strategic partners, suppliers, unions and other
  stakeholders;
• stay current on all applicable governmental laws; rules and regulations and follow them fully;
• make your impact on the environment positive or at least no worse than neutral;
• measure all important external and internal aspects of the business, set goals and 
  objectives and tie part of compensation to individual, team and organization performance;
• develop tight internal financial controls and use many checks and balances — make 
  it easy for basically honest people to stay honest;
• cultivate and never forget financial backers, investors, contributors — reward them with solid financial performance;
• support with time, talent and treasure the various communities in which the organization and its people work, live and prosper;
• don't panic during inevitable economic downturns or short term organizational troubles; act humanely;

Why is it so difficult for organizations to attain and sustain long term success?  Why do some good, even great organizations falter, decline or fail after one, five, fifty, one hundred years?

 I think it is because the leaders forget to emphasize people in general and individuals in particular — the people and individuals who are customers, who are investors, who are other stakeholders, and especially, who are employees.