THE PROBLEM AS AN ADAPTIVE CHALLENGE
We’ve said that everything starts from a problem. We’ve also said that organizations — and people — face problems differently, depending on how large their adaptive capacity is. The larger the adaptive capacity, the more rapidly and thoughtfully an organization (or an individual) will face problems, taking them as challenges that ought to mobilize people to do adaptive work. And the more adaptive work the organization performs, the more its adaptive capacity will increase. It’s a virtuous cycle.
When Lou Gerstner took over IBM in April 1993 as the first CEO from outside the company, things were not looking good for the company. In fact, 1991 had been IBM’s first year in the red since its creation ...