The strategic Inflection point is the most critical stage of a company or even personal life. Success or failure is decided at this stage. The more open to change an org/oneself is, the more seamless strategic transformation happens.
Running a company is like a sport. You need to act fast to survive in this competitive era.
Strategic transformations during Inflection points require:
- Long-term point of view — Requires clear strategic direction for the future.
- Deep understanding — Uncomfortable learning and change.
- Real Questions — Honest questions to self and org on the strategy.
Andy Grove, Intel’s co-founder, described a strategic inflection point as “an event that changes the way we think and act.”
When do we see Strategic Inflection Point?
Change in an organization happens because of:
- Regulatory Environment
- Change in customers’ preference
- Small addressable market
- Competition getting neck to neck.
- Disruptive technology gaining traction
To take the changes head-on, all 5 above points require a fundamental change in the business strategy, and this point is called the Strategic inflection point
The point is that it causes us to make a fundamental change in business strategy. Nothing less is sufficient.
The company which survives has handled this well.
Few strategic inflection points in wrt business strategy: Innovation in mobile phones, consumer marketplaces, SAAS, Physital Business Models, Artificial Intelligence, etc.
Why is it essential to act at an Inflection point?
- To avoid a catastrophic decline
- To be a more innovative org aiming at high growth.
Classic Example :
At the start of the 2000s, Nokia had a 30.6% market share of the mobile phone market. After not being able to compete with the emergence of smartphones, Nokia sold its mobile phone business to Microsoft in 2013. Microsoft couldn’t figure out a way to reboot the company and sold it in 2016. and the rest is history.
How should one make Strategic Inflection point work in favour?
Transformation requires step-out courage from leaders to have honest conversations about their system of organizing, managing, and leading.
To adapt and succeed post strategic inflection point takes a lot of energy from everybody involved and creates a lot of turmoil within the organization. Change resistance is at the core.
Many times this is top-down with key stakeholders in confidence. Common questions that come across in the organisation during this phase. Few responses are also captured
- “We’ve never done this before.” — The absolute classic!
“This is exactly why we’re going to do this.”
- “Why wasn’t I involved in this decision?”
“Because it was not part of your area of responsibility.”
- “How is this supposed to work?”
“You’re welcome to help us make it work.”
- “Why are we listening to the ideas of people who just started here?”
“That’s why we hired these people.”
