Citation
Creative Destruction: Why Companies That Are Built to Last Underperform the Market - and How to Successfully Transform Them
TL;DR
S&P 500 company average lifespan declining from 60+ to ~20 years
Documents accelerating corporate extinction rates: S&P 500 company average lifespan declining from 60+ years to ~20 years. Analyzes why operational excellence doesn't prevent extinction when environments shift - a business application of the Dinosaur's Dilemma.
Foster and Kaplan's research quantifies what biologists observed in mass extinctions: being well-adapted to current conditions provides no protection against environmental change. Companies 'built to last' in one era become extinction candidates in the next. The book provides the empirical foundation for understanding organizational extinction as a systemic, accelerating phenomenon.
Key Findings from Foster & Kaplan (2001)
- S&P 500 company average lifespan declining from 60+ to ~20 years
- Operational excellence doesn't prevent extinction from environmental shifts
- Creative destruction is accelerating in modern economy
- Transformation capability is more important than current fitness