With the current economic crisis continuing to slap us in the face with an incredible wake up call I find it hard to stomach that businesses are closing doors all over the country. If not for the federal government stepping in we would see so many more businesses experiencing the same fate. Amazing... or is it?
Foster and Kaplan point out in their book Creative Destruction that very few companies have endured for a long time. Of the original Forbes 100 companies from 1917 only 13 have survived independently to the present day. All 13 of these survivors except for GE have been mediocre to poor performers. The problem is it is very difficult to continue to adapt for success over many generations. Organizational success is dependent on radical transformation, not once or twice, but continuously. Surviving this economic crisis or future challenges will require businesses to set themselves on a constant track of transformational change.
"Adapt or die" has become more than just a saying. In today's economy, it's becoming a reality.
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