What are those metal discs at the base of some walls?

Ever noticed small metal discs at the bottom of some walls? For instance, they can often be found in shower stalls at workplaces. These discs are not just limited to interior structures but can also be seen on exterior walls.

These mysterious discs play a crucial role in various types of walls, whether in bathrooms, kitchens, or outside. Their primary function often relates to preventing moisture buildup and ensuring ventilation.

Many top-performing companies experience a decline when the market changes. They do not fail because they are inactive, but because they are too active in the wrong ways. This concept is known as active inertia. Instead of adapting to new market conditions, they cling to outdated practices, digging themselves deeper into trouble.

These companies fall prey to their prior success, believing that their established methods will always work, even as the market evolves.

For companies to avoid this pitfall, they must recognize that sometimes action can be detrimental. Before reacting, they should ask, "What is holding us back?" They need to reassess their underlying beliefs about the business and industry, paying close attention to indicators of active inertia: strategic frames becoming limiting, processes becoming rigid, relationships becoming restrictive, and values hardening into ideologies.

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The Practical Implications

Here are examples showcasing the adverse effects of active inertia:

• Strategic Frames as Blinders: While strategic frames focus managers on key business areas, they can also obscure new opportunities.

Firestone: Despite decades of dominance in the U.S. tire industry, Firestone failed to recognize the threat of Michelin’s radial tires in the 1970s. While they competed in Europe, they missed the change in the U.S. market and eventually lost significant market share.

McDonald's: By the 1990s, rigid adherence to standardized processes caused McDonald's to lose ground to competitors like Burger King and Taco Bell, who better adapted to consumer desires for healthier options.

Apple: Known for its innovative culture, Apple struggled when the market shifted towards commoditized computers. The inflexible nature of its top engineers compromised the company’s ability to adapt promptly.

Polaroid: A strong focus on pioneering research turned into a disregard for marketing, finance, and consumer preferences. This single-minded approach almost led to the company’s collapse.

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