Andrew Grove, former CEO of Intel, has a model that can help companies not only to deal with critical moments in their existence but also use them to thrive.
Strategic Inflection Points
A strategic inflection point(SIP) is when the balance of forces shifts from the old structure, from the old ways of doing business, from the old ways of competing, to the new.” In other words, a strategic inflection point brings on a significant change of fundamentals, which it’s hard to fully plan for, formally at least. An agile response to change is key.
Managing The Chaos
Let it reign—”Resolution comes through experimentation.” “Only stepping out of the old ruts will bring new insights.”
Rein it in – Clarity of direction, which includes describing what we’re going after, is exceedingly important at the late stage of the strategic transformation
The IBM Example
IBM was greatly affected by how their computers were built because they used to sell pre-built computers but then people could combine components like microchips, hard drive software etc., so now consumers preferred designing their own PCs instead of buying pre-made ones from IBM
Critical Moments
Critical moments, or “strategic inflection points,” need to be handled with care.
A few pointers:
• It’s not always a good idea to keep secrets.
• Open communication with outsiders is important.
• A company shouldn’t trust the opinion of someone who feels emotionally attached to it.
Success Inertia
The late author warns against the “inertia of success” and encourages readers to expose themselves to the winds of change and to do so constantly. His point is that strategic inflection isn’t a point; it’s a long, torturous struggle in which we’ll have to manage the chaos.
