Renewal, Reinvention & Creative Destruction
To stay relevant and resilient in a world of constant change, businesses must be willing to change themselves. There are two levels of this. Renewal is moderate - adjusting from season to season to stay relevant. Reinvention is profound - transforming the business (or parts of it) from generation to generation to stay resilient. Underpinning both is Schumpeter's idea of creative destruction: destroying the old to make way for the new.
Quick poll
When change threatens a business, which is usually harder?
Pick the answer that fits you best - there's no wrong choice.
VUCA
The world we face
Renewal
Season to season
Reinvention
Generation to generation
Creative Destruction
Old makes way for new
Learning objectives
After completing this module, you'll be able to:
- Describe the VUCA world and why it demands ongoing change
- Distinguish renewal (for relevance) from reinvention (for resilience)
- Explain what an organisation may have to change - purpose, brands, structures, offerings
- Explain Schumpeter's creative destruction and why it is necessary
- Recognise the warning signs that reinvention is overdue
In this module
Sources & Further Reading
- •Schumpeter, J., Capitalism, Socialism and Democracy, 1942 (creative destruction).
- •Bennis & Nanus, and the U.S. Army War College - origins of "VUCA".
- •Foster, R. & Kaplan, S., Creative Destruction, 2001.
- •Govindarajan, V., The Three-Box Solution, 2016.