The Sigmoind Curve's Basic Mechanism

The Sigmoind curve's basic mechanism is in it's constant evolution. This is extrapolated and used in the business arena by the ability to practically apply functional curve management. This is a metaphor for how to manage growth in itself. The key impetus of the S. Curve is being acutely aware of where you are placed on the curve and knowing when is the right time to change and hence how to start a new curve/cycle. The timing of when to get in + when to get out is critical. Riding the first curve while cultivating the second is always the best option. When all is well and you are at the top of your game, then you know it is time to plan your exit.

A: The time to re-invent is here – but therein also lies the problem with the paradox or folly of having to change in itself. The key driving factors for success up till now has been the successful business model in operation. So why change? Therein lies the paradox - perceiving the need to change ‘why fix it if it isn't broken'. At the critical moment in the business cycle, when the business needs to and should be changing to adapt to fast paced external pressures beyond it's control, such as radical technological and cultural shifts, the business environment and culture cultivated up till this point is sending the exact opposite message. It's message is that the overriding drivers and factors for it's past successes – is exactly because we are great at what we are doing + how we are doing it. Change is costly + unnecessary. The ability to the have the canning, nous and insight to predict when and how to change at the right time is therefore critical.

B. This is a low ebb of the curve when the business is in steep decline. Change should have been implemented years ago – the business is in dire straits. Typically revenue has declined and moral is at an all time low, the ship is sinking and the business is in real danger of failing.

C: The learning phase when the new/current strategy is brought in. Should create value for the next 5 – 10 years (although in the current economic environment) – this period cycle of the curve has decreased significantly to approximately two years. This phase can be frustrating, hard and diligent work is required for sometimes a lack of perceived reward. Persistence is required to push through this phase – many businesses fail at this point

D. This can generally be seen as a period of rapid growth as the business expands and matures. Despite the hard work and building upon the initial success, the groundwork for change needs to be laid at this point. Being aware that there will be a need for a change in strategy at a near point in the future (approximately in 1 years time) is essential in managing the curve for success.

E. This is a period of intense anxiety – the business has passed it's peak and is beginning to slip – if intense self reflection

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