There’s No Such Thing As Mature Companies

WE have all been told that businesses have a life cycle. It’s usually broken down into start-up, growth, maturity, and decline. But in terms of agility and sustainability, that’s not a helpful way to look at it. If you intend to lead people for the long-term, you need to consider a different outlook.

London Business School professor Don Sull says that the secret to the fountain of youth is: “companies do not pass through life cycles, opportunities do. Most firms, particularly large organizations, oversee a diverse portfolio of opportunities that exist at different stages of the life cycle.”

Even one-hit-wonders can find hidden opportunities if they look hard enough. To view what you are doing through the lens of the business life cycle, tends to make you myopic and limits your thinking. A perspective that emphasizes the opportunity life cycle encourages agility and openness in your thinking.

Sull writes in The Upside of Turbulence, “There are no mature companies, only portfolios overloaded with mature opportunities. Organizations can avoid a corporate midlife crisis through portfolio agility—the ability to quickly and effectively shift resources, including cash, talent, and managerial attention, out of less promising units and into more attractive ones.”

“To achieve portfolio agility,” writes Sull, “leaders should view their organization as an array of opportunities at various stages in the life cycle, paying attention to promising opportunities. The trick, then, is to keep your opportunities in balance. With that in mind, the following questions are helpful:

• Can the mature opportunities fund all the start-up and scaling activities being undertaken?
• Are there enough or too many early-stage start-ups?
• Is a core business about to enter a period of decline?

While this is directed at organizations, how might you apply this to your own personal life path? How might you keep your personal portfolio in balance and relevant to your world?

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Posted by Michael McKinney at 07:49 PM
Permalink | Comments (0) | This post is about General Business , Vision