Past success breeds inertia

When a company has enjoyed consistent success with a particular product, service, or business model, it naturally becomes invested in that approach. The processes, culture, and incentives that grew around that success often harden into habits. As the environment changes and new competitors emerge, those same habits can make it difficult to pivot. Leaders may cling to what worked before, assuming it will continue to work, even as the underlying landscape evolves.

This inertia stems from a mix of fear and familiarity. Teams are reluctant to abandon revenue streams that have historically performed well, and organizational structures can reinforce the status quo. The longer this state persists, the harder it becomes to break out of it. Recognizing that past victories can blind you to present threats is a crucial first step in adapting to changing circumstances. The more successful the previous approach was, the stronger this inertia becomes.

🔀 Related Strategies

• Managing Inertia – trigger: recognising when past wins create resistance to necessary change.
• Defensive Regulation – influence: incumbents often rely on regulation when past success makes them reluctant to adapt.