Our only security is our ability to change." — John Lilly
The term "new normal" dates back to World War I and II and describes major societal and economic shifts. It resurfaced after the dot-com crash, the 2008 financial crisis, and the COVID-19 pandemic, signalling periods of transformation. Historically, it implied a reset to a stable reality after a disruption. Today, however, stability no longer follows—disruption is continuous.
Change vs Disruption, a Flipped Script
Business owners recognize the growing disruption around them, but they respond in different ways. While some still try to cling to familiar ways, prioritizing stability and predictability, most have embraced the reality of constant change and adaptability as necessary for building a successful business. However, the traditional shift from stability to adaptability has reversed, given the rapid AI advancements, polarized consumer behaviours, and a shifting world order. Disruption is now the norm (NOT the "new normal), adaptability is required, and reliance on stability is a failing strategy.
Beware The False Comfort of Adaptation
Businesses have become skilled at adapting—embracing digital transformation, automation, remote work, and innovation. Many foster a culture of continuous change. However, mistaking adaptability for true resilience creates false security. The real risk isn't adjusting to a "new normal" but believing stability exists. Traditional adaptability alone is not enough for long-term resilience in a constantly shifting environment.
The Way Forward: Embracing Permanent Beta
Borrowed from software development, "beta" refers to an evolving product that is still being tested and refined. It reflects a strategic approach designed around an ability to adapt to the unexpected through a process of iteration, experimenting, learning, and adopting—rather than keeping up with change. However, a familiar concept to software and tech startups, Deep Seek catching leading AI developers by surprise (an actual disruptive event) illustrates that embracing strategic beta is a challenge for any business.
A Three-Step Action Plan
In embracing strategic beta, we recommend starting the process by having external and independent conversations - before taking it in-house. Just like you, your team are also being impacted by a sense of losing control over things they thought they understood (See the concept of BANI). Therefore, in leading the strategic beta conversation, it needs to start in a measured and structured manner.
- Audit Assumptions – Identify what your organization sees as "normal" and assess its sustainability. Uncover hidden risks masked by stability.
- Build Dynamic Capabilities – Expand knowledge, adopt AI-driven systems, and empower teams to spot and respond to emerging shifts.
- Create a Change Engine – Establish ongoing innovation, either in-house or through external partnerships, and allocate resources for experimentation.
The Solution: Proactive Instability
The real solution isn't finding a new standard – it's building an organization that doesn't need one by:
- Elevating your "adapting to change" mindset to one of "permanent beta."
- Building systems that expect and are designed to deal with disruptions
- Developing leadership capabilities that can steer through continuous disruptions
- Creating a culture that is comfortable with the concept of productive instability
Businesses that will thrive during the next few years aren't waiting for the next "new normal" to arrive. They understand that the only "new normal" is one of constant evolution. The sooner you can find ways to embrace this reality, the better positioned you will be to turn what other businesses experience as potentially dilapidating disruptions into opportunities for growth.
