Business Inertia
Newton's First Law of Motion states "Objects in motion tend to stay in motion, and objects at rest tend to stay at rest unless an unbalanced force acts upon them."
What if we were to change the term "object" to "a business"? Business inertia provides stability. A business that can distill customer engagements and internal processes down to easy to execute and repeatable procedures will see their market share and/or profits grow. There is a danger with this. It only works for a period of time. At some point the world changes around you and that inertia starts to work against you. The same processes that helped you grow your business start resisting change. An unbalanced force (some refer to as "Mr. Market") starts to work against your company. This requires an unbalance force inside your company to offset it.
Seth Godin has an interesting take on this. He refers to it as reflexology.
The best companies find methods of establishing sound "reflexes", but also embrace change. The other extreme to a company stuck in its own inertia is a company that is always changing. This company can not establish the necessary reflexes to scale and take advantage of the market opportunity. Finding the right balance between inertia and change is a key to success.
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Posted by: Christian J | December 16, 2008 at 09:12 AM