In business transformations, there are plausible reasons to believe that time is an essential factor. Companies that change early may get a first-mover advantage, acting ahead of their competitors and potential disruptors. Besides, business organizations are complex systems, which often decline much faster than they grow, an asymmetry that has been called the Seneca effect.
Considering that transformations take time, moving pre-emptively may be the best way to prevent obsolescence and collapse.
Nevertheless, leaders may be reluctant to change their companies when they are in a comfortable position. And they may understandably feel little urgency to change when current performance indicators are still healthy. Transformations are costly, monopolize management attention, and may create distraction or instability, leading many to follow the adage, “If it ain’t broke, don’t fix it.”
So, should business leaders engage in transformation pre-emptively or wait for a degradation of performance to trigger change?
Find out more from BCG’s article
