All businesses/organizations have a natural life cycle, and many successful ones fade with time.
Being a leader/owner of a business or organization means a lot of thinking ahead. In the business and organizations I have worked with….some changed some didn’t. There is always the tension between doing better, not giving up on a model or strategy and the willingness to change course. Often business try to change….yet at the wrong time….usually when its too late and resources are limited. GE has expressed interest in selling its home appliance division. We have GE appliances….and they have been pretty good. However GE believes that the appliance division no longer fits its long term strategy and GE appliances is further along its life cycle.
Remember video stores. Talk about life cycles. There were numerous video stores when we moved to Cary. They rented VCR tapes. That life cycle was brief. Than video stores rented DVD’s. Than Netflix appeared and let you rent DVD’s through the mail. So much for video stores and Blockbuster. Now….NetFlix has announced that it will provide a $99 box that will allow us to stream movies via cable directly into the tv…..eliminating DVD’s by mail. NetFlix is creating a whole new model to counteract the DVD by mail life cycle that it created!
Lesson Learned: Don’t wait until you are too far along the life cycle curve to change your business model or strategy. The risk for any business/organization is to hold on to the past too long.