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Status update on January 22, 2011 at 6:43 pm

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This is an interesting article from the Harvard Business Review that points out the need for companies to be consistently looking to reinvent themselves, rather that just adapt. Early in a business’ life, it is initially dynamic and adaptive as it finds a niche in the market. It then solidifies its processes to maximize profitability, and finally hits a growth rate plateau later in its life. As the HBR article outlines, this stall is typically when a business frantically tries to adapt to the new circumstances. It points out that successful reinventions typically include “tracking the basis of competition in their industry, renewing their capabilities, and nurturing a ready supply of talent”–three hidden S curves that are comparable to Schumpeter’s theory of creative destruction.

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