In 1958, the life expectancy of an S&P 500 company was 61 years. Today, it is less than 18. By 2027 it is expected that 75% of the companies currently on the S&P 500 will have disappeared.
Companies on the ASX 200 haven’t fared much better, with almost 40% of the largest corporates disappearing in the past 14 years. In fact, many companies we consider invincible today, will eventually be superseded by newcomers.
94% of all companies that have listed
on the ASX have disappeared.
Good organisations are simply not keeping up with the rapid pace of change. That’s because, to compete in this fast-moving digital economy, organisations need to function at a higher level.
Traditional management models, such as Mission, Vision, Values, which have been around since the 1940s, are preventing good companies from evolving into higher functioning organisations. Their leaders have failed to disrupt these conventional models and, as a result, their organisations are slow to adapt as the world around them changes at an increasingly accelerated rate.
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