Obsolescence of Theory

A progressive illness needs immediate treatment. Decisive action is required. Several company presidents can be named who successfully managed to change the theoretical foundations of their businesses. The CEO of Merck, by focusing on research and the development of patented drugs, turned it into a successful pharmaceutical company. Afterward, he radically changed the theoretical basis of his business, transforming the company into a distributor of generic and over-the-counter medicines. He did this without waiting for a crisis, as Merck was doing well at that time. When the "wizards," capable of transforming outdated business theories, are asked how they managed it, they categorically deny having any gift of foresight. They start with diagnostics and analysis. The "wizards," realizing that to achieve their goals and rapid development, they need to fundamentally change the theoretical premises of building a business, begin with diagnostics and analysis. They believe in success but do not discount the possibility of unexpected failure due to subordinates' incompetence or misfortune. The "wizards" understand that the obsolescence of theory is a progressive disease that threatens a fatal outcome, and they decide on surgical intervention. A progressive illness needs immediate treatment with the most radical methods. TIP OF THE DAY: Has your business’s theoretical foundation become obsolete? If so, don't delay. Analyze and rethink your assumptions and adjust the theory.