Improving Performance: How to Manage the White Space on the Organization Chart

2.4. The Reality of Adaptation

Primerica's transformation illustrates a fundamental element of systems theory applied to organizations—adaptation. A processing system (organization) will either adapt to its environment, especially its receiving system (market), or cease to exist. An organization seeks equilibrium with its external environment.

Not long ago, adaptation was not a burning issue. Organizations adapted to significant changes in key inputs, such as the price of fuel and the cost of capital. With each major disruption, organizations needed to make significant adjustments. However, equilibrium was reestablished in months, or perhaps in a year. Historically, the timing of disruptive events has allowed organizations to adapt before the ...