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"Many leading companies plummet from the pinnacle of success to the depths of failure when market conditions change. Because they’re paralyzed? To the contrary, because they engage in too much activity—activity of the wrong kind. Suffering from active inertia, they get stuck in their tried-and-true activities, even in the face of dramatic shifts in the environment. Instead of digging themselves out of the hole, they dig themselves in deeper.Como não recordar:
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Such companies are victims of their own success: they’ve been so successful, they assume they’ve found the winning formulas. But these same formulas become rigid and no longer work when the market changes significantly."
péssimo sinal https://t.co/6Ex8KQbxLF— Carlos P da Cruz (@ccz1) October 14, 2019
"Strategic frames become blinders.
Strategic frames are the mental models—the mind-sets—that shape how managers see the world. The frames provide the answers to key strategic questions: What business are we in? How do we create value? Who are our competitors? Which customers are crucial, and which can we safely ignore? And they concentrate managers’ attention on what is important among the jumble of raw data that crosses their desks and computer screens every day.
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But while frames help managers to see, they can also blind them. By focusing managers’ attention repeatedly on certain things, frames can seduce them into believing that these are the only things that matter. In effect, frames can constrict peripheral vision, preventing people from noticing new options and opportunities.
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As a strategic frame grows more rigid, managers often force surprising information into existing schema or ignore it altogether.
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Sadly, the transformation of strategic frames into blinders is the rule, not the exception, in most human affairs.
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When strategic frames grow rigid, companies, like nations, tend to keep fighting the last war.
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Processes harden into routines.
When a company decides to do something new, employees usually try several different ways of carrying out the activity. But once they have found a way that works particularly well, they have strong incentives to lock into the chosen process and stop searching for alternatives. Fixing on a single process frees people’s time and energy for other tasks. It leads to increased productivity, as employees gain experience performing the process. And it also provides the operational predictability necessary to coordinate the activities of a complex organization.
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But just as with strategic frames, established processes often take on a life of their own. They cease to be means to an end and become ends in themselves. People follow the processes not because they’re effective or efficient but because they’re well known and comfortable. They are simply “the way things are done.” Once a process becomes a routine, it prevents employees from considering new ways of working. Alternative processes never get considered, much less tried. Active inertia sets in.
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Relationships become shackles.
In order to succeed, every company must build strong relationships—with employees, customers, suppliers, lenders, and investors.
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When conditions shift, however, companies often find that their relationships have turned into shackles, limiting their flexibility and leading them into active inertia. The need to maintain existing relationships with customers can hinder companies in developing new products or focusing on new markets.
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Values harden into dogmas.
A company’s values are the set of deeply held beliefs that unify and inspire its people. Values define how employees see both themselves and their employers.
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As companies mature, however, their values often harden into rigid rules and regulations that have legitimacy simply because they’re enshrined in precedent. Like a petrifying tree, the once-living values are slowly replaced by the cold stone of dogma. As this happens, the values no longer inspire, and their unifying power degenerates into a reactionary tendency to circle the wagons in the face of threats."
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