Human Performance & Leadership
Strategic Inertia
When radial tires arrived, Firestone answered the threat by building more of the tires that were being replaced.
2026-08-311 min read
Under threat, capable organizations rarely freeze. They accelerate — and they accelerate along the track they already know. The response feels like decisiveness because it is fast, coordinated, and expensive, three things that are easy to mistake for resolve. What it actually is, is the old strategy executed harder.
Firestone watched Michelin's radial tire move through the American market in the 1970s. Radials lasted far longer than the bias-ply tires Firestone had built its business on, which meant every radial sold shrank the replacement demand that kept Firestone's plants busy. The company did respond, and it responded vigorously: it committed capital to production, defended its dealer relationships, and worked its existing manufacturing base harder. Almost none of that addressed the fact that the product itself had changed. Radial production is not bias-ply production run faster; it wants different plants, different tolerances, different economics. Firestone's leaders were neither passive nor careless. They were fluent, and fluency in the old game is what let them read acceleration as adaptation. By the end of the decade the company was closing plants, and in 1988 it was sold to Bridgestone.
The trap has a signature you can hear in a room. When someone names a threat, listen to whether the proposals that follow change the verb or only the volume. Ship faster, call more customers, cut cycle time — those are volume answers, and they are the answers a successful team generates most easily, because the routines behind them are already rehearsed and already funded. The harder something has worked, the more automatically it arrives under pressure. The strongest organizations are therefore the ones most reliably supplied with the wrong answer at exactly the wrong moment.
Key insights
Under threat, experienced teams default to doing more of what already worked.
Firestone answered a change in the product with a push on production, and lost the decade.
Sort every proposed response by whether it changes the verb or only the volume.
Why it matters
Mistaking acceleration for adaptation burns the years when changing course is still cheap.
A team that only ever proposes doing more will never surface the option that actually matters.
Use this tomorrow
1Take the last five decisions your team made in response to a competitor and count how many changed what you do rather than how much of it you do.
2In your next planning meeting, write each proposed response on the board and mark it V for volume or D for different; if fewer than two carry a D, send the list back.
Go deeper
Donald Sull named this pattern active inertia in a 1999 Harvard Business Review article, and Firestone is his central case. His argument is that companies fail not by standing still but by responding energetically with a formula that no longer fits. The formula is built from things that were genuine assets — strategic frames, processes, relationships, values — which harden into blinders, routines, shackles and dogmas. What makes it hard to see from inside is that every one of those assets is still producing results right up until it isn't.
The counter-move is not open-endedness; a team that reconsiders its frame every quarter never builds anything. The useful distinction is between a threat that changes your throughput and a threat that changes your unit of production. Volume answers are correct for the first kind and fatal for the second, so the question worth forcing early is simply which kind you are looking at. Most organizations never ask it, because asking admits the possibility that the machine they spent a decade building is now the wrong machine.