Shift Happens- good strategy is adaptable to dramatic, external market disruptions

Early strategists thought change was primarily linear, with constant improvements leading to success. This birthed the “quality movement.” But, great companies that were world class at quality, like Motorola and its Six Sigma program, were annihilated by dramatic, large changes created by external events. New, small competitors used new technology to leapfrog established, successful competitors, creating rapid growth for new entrants while old leaders fell like dinosaurs. Strategy transformed from simply improving performance, with sustaining innovations, to understanding that disruptive innovations, usually from external competitors, were industry game changers. Thus strategy changed from creating rigid organizations focused on their core, to creating adaptable organizations able to manage external disruptions.