Inertia

The inertia created by standard routines can be revealed by sudden outside shocks: a tripling of the price of oil, the invention of the microprocessor, telecommunications deregulation, solid state lighting...

Organizational inertia generally falls into one of three categories: the routine, cultural inertia, and inertia by proxy.  Each has different implications for those who wish to reduce inertia or those who seek to gain by attacking a less responsive rival.

The heartbeat of any sizable business is the rhythmic pulse of standard procedures for buying, processing, and marketing goods.  Its more conscious actions are guided by less rhythmic but still well-marked paths.  Even the breathless chase after an important new client, the sizing of a new facility, and the formulation of plans are familiar moves in a game that has been played before.  An organization of some size and age rests on layer upon layer of impacted knowledge and experience, encapsulated in routines--the "way things are done."  These routines not only limit action to the familiar, they also filter and shape managers' perceptions of issues.  An organization's standard routines and methods act to preserve old ways of categorizing and processing information.

The inertia created by standard routines can be revealed by sudden outside shocks: a tripling of the price of oil, the invention of the microprocessor, telecommunications deregulation, solid state lighting and so on and so on.  The shock changes the basis of competition in the industry, creating a significant gap between the old routines and the needs of the new regime.

ACTION POINT: Examine your routines in light of seismic shocks that may affect your business.