The inevitability of change

Nothing lasts for ever. Not people, not redwood trees, not empires, not climatic conditions, not even the Sun and Earth themselves. And certainly not an organization's success formula.

Regardless of how strong and successful an organization is, and regardless of how long a period of success the organization has had, the need for change is inevitable. In some instances, the need for change occurs because of changes in the environment. This can be due to changes in customers' tastes and preferences, changes in technology, changes in the nature of competition, or other external factors beyond the control of management. The need for change can also occur because of the organization's own success. Changes in organizational size and complexity as a result of growth and market success create the need for changes in organizational structure and, possibly, culture.

The “secret” of long-term success is the ability to adapt to change. Organizations develop “success formulas” or “winning business models” that last for a period of time. Then, as the environment changes or conditions within the organization itself change, the enterprise must adapt. If it does so successfully, it will continue to exist and flourish. If it does not adapt successfully, however, it will experience difficulties and perhaps failure, regardless of how strong it appears at a moment or how many resources it has. The decline can occur swiftly or agonizingly slowly over a long period of time. The decline of General Motors, AT&T, Xerox, Reuters, and Mövenpick are just a few examples.