7.1.3 Responding late in the change continuum
Figure 3 Losing competitiveness through changing late
Figure 3 expands on the late-response scenario. Here, change is initiated at A2 rather than A1; as a result, change will not be implemented until A3, late in the evolution of that change cycle. Meanwhile, early adopting competitors are already responding to another change cycle, depicted as C. By the point marked as B1, the late adopter is well behind the competition, struggling with a declining revenue base and facing yet another cycle of change. The situation is even worse if the C wave is based on a more sophisticated technology that is replacing B. Here, rather than developing a new market, the organisation is spending time, money and resources on a technology in market decline. The difference between B1 and C1 therefore represents a gap in responsiveness.
The required responsiveness (RR) to achieve the necessary change is not a simple move from one change continuum to another. As responsiveness is acquired or agility achieved, the organisation is better placed to improve its overall competitive position. In short, a virtuous circle is established. By contrast, failure to achieve the required responsiveness leads to a vicious circle of declining competitiveness, falling revenue and diminishing capacity for change. This becomes especially important when numerous cycles of change affect an organisation and cascade into further transformations, as shown in Figure 4.
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