Why businesses should never stop changing

If it's not broken, do not fix it.

This business philosophy, often encountered in old-fashioned organizations, which are driven by narrow-minded leaders, reflects the fear for the unknown of risk-taking or the security of the already tested. However, equally often, it has been proved that organizations, which do not act proactively, spend double-up for catching up with competition that had acted proactively.

By and large, the new economy is being driven by (1) rapid technological changes, which reflect continuity and complexity, (2) globalization, which creates emerging markets and new economies, and (3) fierce competition, which requires knowledge sharing and constant adaptation. Typically, industries with low barriers to entry such as cigarettes, liquor and spirit, or canned food and vegetables, to name a few, focus on product differentiation in order to remain competitive and achieve successful operations.

How many types of Marlboro cigarettes you may find at Walgreen's? How many types of beer, whiskey or vodka you may find at the liquor store at the corner? How often do you see Campbell changing its packaging? All these are signs of change. Organizations that focus on product differentiation are mindful of the required capital expenditure. These organizations need to invest in information technology, to adjust their organizational structures and to align with the market realities. Within this context, knowledge sharing, innovation and great insight assist in making the organization viable, while aiming to achieve organizational development.

To my view, new market realities do not allow for too much thinking. Organizations need to decide quickly on the optimum strategy by effectively processing information and allocating corporate resources. Considering the example of India and China, which have become global players, although significantly poorer than Europe and the US, it is obvious that investing in constant corporate change is a necessity. India and China attract foreign direct investment and outsourcing from the Western companies having realized that in order to remain competitive in the corporate jungle they had to fix it before it was broken. Isn't this a great example of incessant corporate change?

In conclusion, organizations aiming at achieving a sustainable competitive advantage and increasing their profitability need to adjust their corporate culture and structures according to the competitive market realities as to conduct profitable and successful business.