I want to more fully explain the concept of Strategic Inflection Points. I have referred to this topic in my Week 5 and Week 11 update videos. Former Intel CEO Andy Grove first described a strategic inflection point as a time in the life of a business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end. An inflection point can be the result of an action taken by a company or an action taken by another entity. An excellent recent example may be Facebook’s announced intention to enter the cryptocurrency market. The markets have already reacted sharply to Facebook’s move. Analysts have suggested that it may significantly alter the forecasts for cryptocurrencies. Change is inevitable and change is happening more rapidly than ever. Adaptation to change is imperative for corporate survival.
Anyone starting a new company should understand the concept of the “corporate life cycle”, and use it as a guide for understanding where the company is in that cycle, to understand the risks at each stage, and to recognize the need for action to change course. This graphic shows a typical corporate life cycle and different possible paths as the company matures. Management of the corporate life cycle also dovetails with the concept of a “strategic inflection point,” which I briefly discussed in my Week 5 Report, The Internet of Things. John Chambers, the former CEO of Cisco Systems has pointed out that the rapid acceleration in market changes has also accelerated the corporate life cycle, emphasizing the importance of understanding it. Companies abound that were initially very successful and yet eventually closed their doors, or were acquired because the company did not anticipate market changes and the need to adapt to the new situation.
This week I want to discuss the importance of strategic focus, while still being open to possible opportunities, sometimes called corporate “nimbleness,” which may seem like a contradiction. I am a strong believer in strategic focus, however I have also personally experienced a case where an “openness” to opportunity transformed the enterprise from a pedestrian company into a Silicon Valley legend. Ascend Communications was “focused” on ISDN based video conferencing with a modest and profitable OEM agreement with AT&T. However, AT&T came to Ascend and asked if it could solve a much bigger problem…
Engineer to Entrepreneur For the last few years, I have been invited to speak with graduating classes of […]
I want to talk a bit about networking with new acquaintances or renewing old contacts. Networking is often dreaded because it sounds like being disingenuous or insincere. Good networking is genuine and sincere. I made the point in Week 1 that communication skills are crucial, and they can be learned. Warren Buffett has said that “public speaking” is the most important skill he ever learned. So let’s discuss a few ideas on how to make networking less stressful and more successful. In this video, I will list three key things to remember when networking and expand on why they are so important. My UBC Management students will remember this from my Management Communication course.
Welcome to Mayo615’s Odyssey to France and the first of our Tuesday weekly updates. We invite you to subscribe to our YouTube Channel and follow our weekly updates. In this Week One update we will focus on my first Big Idea, and how I achieved it. I will also discuss my three most important key takeaways from that experience. We hope that you find this video helpful in achieving your own Big Ideas and goals. So here we go.
On this YouTube Channel, we will share our Big Idea: our personal goal and invite you to participate with us, share your comments and questions and perhaps motivate you to achieve your own Big Idea. We will post an update on our project every Tuesday. We invite your comments and questions about your own Big Idea while you follow ours. We will both reply to all comments and will feature the best questions in our YouTube update videos each week. So click SUBSCRIBE and let’s get started!
How business schools are adapting to the changing world of work Creativity, adaptability are now cornerstones of business […]
Source: Financial Times ranks UBC Sauder’s Master of Management program #1 in North America | UBC Sauder […]
One of my most popular posts from July 8, 2013 Harvard Business School Professor John P. Kotter Years […]