Is the Model Synchronous With the Adoption Cycle?

Much like fashion, models of strategy go through cycles. For example, the current model of manufacturing and back office operations is entrenched in outsourcing to low-cost countries. This model, and many others that precede it, emanated from one business or sector and then cascaded across the landscape to touch many firms or sectors of the economy. Those who are early to adopt these trends are likely to reap a differential advantage over their competitors. However, others who are at the tail end of the cycle risk being entrapped in a model that belongs to a previous generation of business practice and may not offer any differential advantage. If this is done repeatedly, in that a model is adopted after it becomes popular and widespread, then one may be trapped in a cycle where the trend that gets adopted is the one that is about to perish. Therefore, it is important to examine whether or not the mental model one plans to adopt is synchronous with model cycles. It is important to appreciate the peaks and valleys tied to the usefulness and appropriateness of these models and be flexible enough to adopt the next paradigm when it becomes relevant.