SlideShare a Scribd company logo
- Do not, or slowly, adapt themselves to
the business changes
- Freeze when they face a disruption in
the business : Paralysis
- Unleashing plenty of initiative to face changes
- Active Inertia
Some successful companies
Example of Firestone
-
-
-
Rapidly became famous Had a strong
culture
Had strongly embedded operating
processes
-
-
Faced rapid and intensive competition with Michelin
Knew that radial tires represented a huge
opportunity
-
-
Didn’t change their processes
accordingly Took time to close obsolete
factories
Active
inertiaBecame rapidly in trouble-
Example of Laura Ashley
-
-
-
Provided British romantic clothes
Rapidly grew to become a worldwide famous
retailer Had a strong and loyal customer base
-
-
Took control on their business
The clothes sector became a global market
-
-
Didn’t change their processes
Tried to find solutions to
increase sales and cut costs
Active
inertia
Became rapidly in trouble-
Active Inertia in Organisations
The Dynamic of Failure
4 HALLMARKS OF ACTIVE INERTIA
STRATEGIC FRAMES BECOME BLINDERS
Strategic frames are really important and
useful mind-sets for managers
They can also make managers blind, or
even reduce their effective vision, so that
they can miss opportunities
PROCESSES HARDEN INTO ROUTINES
Fixing on a single process frees people’s time and energy for other
tasks, increased Productivity, provides the operational predictability.
Once a process becomes a routine, it prevents employees from
considering new ways of working.
RELATIONSHIP BECOMES SHACKELS
In order to succeed, every company must build strong relationships –
with employees, customers, suppliers, lenders, and investors
The need to maintain existing relationships with customers can hinder
companies in developing new products or focusing on new markets
VALUES HARDEN INTO DOGMAS
A company’s values are the set of deeply held beliefs that unify and
inspire its people
As companies mature their values often harden into rigid rules and
regulations that have legitimacy simply because they’re enshrined
in precedent.
RENEWAL, NOT REVOLUTION
Success breeds active inertia, and active inertia breeds failure.

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Reading presentation why good conpanies go bad

  • 1.
  • 2. - Do not, or slowly, adapt themselves to the business changes - Freeze when they face a disruption in the business : Paralysis - Unleashing plenty of initiative to face changes - Active Inertia Some successful companies
  • 3. Example of Firestone - - - Rapidly became famous Had a strong culture Had strongly embedded operating processes - - Faced rapid and intensive competition with Michelin Knew that radial tires represented a huge opportunity - - Didn’t change their processes accordingly Took time to close obsolete factories Active inertiaBecame rapidly in trouble-
  • 4. Example of Laura Ashley - - - Provided British romantic clothes Rapidly grew to become a worldwide famous retailer Had a strong and loyal customer base - - Took control on their business The clothes sector became a global market - - Didn’t change their processes Tried to find solutions to increase sales and cut costs Active inertia Became rapidly in trouble-
  • 5. Active Inertia in Organisations
  • 6. The Dynamic of Failure
  • 7. 4 HALLMARKS OF ACTIVE INERTIA
  • 8. STRATEGIC FRAMES BECOME BLINDERS Strategic frames are really important and useful mind-sets for managers They can also make managers blind, or even reduce their effective vision, so that they can miss opportunities
  • 9. PROCESSES HARDEN INTO ROUTINES Fixing on a single process frees people’s time and energy for other tasks, increased Productivity, provides the operational predictability. Once a process becomes a routine, it prevents employees from considering new ways of working.
  • 10. RELATIONSHIP BECOMES SHACKELS In order to succeed, every company must build strong relationships – with employees, customers, suppliers, lenders, and investors The need to maintain existing relationships with customers can hinder companies in developing new products or focusing on new markets
  • 11. VALUES HARDEN INTO DOGMAS A company’s values are the set of deeply held beliefs that unify and inspire its people As companies mature their values often harden into rigid rules and regulations that have legitimacy simply because they’re enshrined in precedent.
  • 12. RENEWAL, NOT REVOLUTION Success breeds active inertia, and active inertia breeds failure.