A strategic inflection point is a period of time when an organization must respond to changing competitive forces in the environment or face the consequences of a strategic decline. This inflection point can occur after the organization has become very successful and represents the need for the business to reinvent itself in order to go to the next level.

The concept of a strategic inflection point was initiated by Intel’s former CEO, Andy Grove. He noted that inflection points have mathematical, physical and geographic implications in addition to strategic ones. It happens when the way of doing business has changed and the old ways of working begin to dissolve. Grove stated that “only the beginning and the end are near; the transition in between is gradual and puzzling.”

Strategic inflection points are the catalyst for a new normal. Prior to the new normal, however, misalignment between corporate statements and operational actions continues to grow. These periods of time create dissonance – people are told to march forward and deep disagreements can develop regarding whether to support a new vision or hold on to the old one.

According to Grove, acting in the early stages of these strategic inflection points is the best option in order to survive and succeed. Key leaders in the organization will have to act without complete information. They will need to make important business decisions based on data, instincts and market insights as a result of listening to a different set of signals in the market.

Transition Designs helps executives develop and execute an effective strategy.

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