Article PDF: 3.4.3 Reaction Lag

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Six rules describing how size creates temporary openings because of slow reaction time.

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This article explains how opportunities arise from slow, large competitors. Speed is the essence of competition. What happens to reaction time as an organization grows? Its ability to react to external events slows down. In any organization, the strategic decisions are made on the front-lines, reacting to external events. The problem in larger organizations is the coordination of response. The larger the organization, the more entangled its lines of authority. More levels of decision-makers are involved. Different parts of the organization will react to events in very different ways. While strategy arises from our reaction to external stimulus, for large organizations, that reaction becomes an internal problem.