At any given moment, about 5%–7% of companies either are in free fall or are about to be. Free fall is a crisis of obsolescence and decline that can happen at any point in a company’s life cycle, but most often it affects maturing incumbents whose business model has come under competitive attack from insurgents or is no longer viable in a changing market. And here’s a sobering fact: Only about 10%–15% of those companies will ever pull out of it. Of those who do, about half have to fundamentally redefine at least a part of their core business in order to save themselves.
"How to Pull Your Company out of a Tailspin" is from hbr.org, published on September 8, 2016.