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STRATEGIC DRIFT
The organisation takes a series of logical, incremental steps that were part of its plan to change ahead of the market and develop a competitive advantage.
The rate of change in the market place speeds up, and the firm's incrementalist approach is not enough to maintain its advantage, and it is left behind.
Faced with a stimulus for action, managers may seek to extend the market for their business, but may assume that it will be similar to their existing market, and therefore set about managing the new venture in much the same way as they have been used to.
If this is not successful, strategy development is likely to go into a state of flux, with no clear direction, further damaging performance.
Eventually transformational change is required if the demise of the organisation is to be avoided. Transformational change tends to occur when performance has fallen off significantly, i.e. in times of crisis.
Over time, organisations will have to deal with many different types of change and it is important that these changes are managed effectively.
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