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2.5 Counterintuitive Behavior > 2.5.1 Recap - Pg. 77

54 Systems Principles Yet while Jobs was working on his "insanely great computer," Microsoft Windows had come on the market. Windows wasn't even as good as the Mac, let alone the Next interface, and it wasn't seamlessly integrated with computers or applications. But it was cheap and it worked, most impor- tantly, on the inexpensive personal computers that by the late 1980s were available anywhere in the world from hundreds of PC manufacturers. grove, 1996, pp. 59­60 The Next machine, even with all its beauty, never took off. Despite an ongoing infusion of cash, a state-of-the-art software operation, and a fully automated factory built to produce a large volume of Next com- puters, Jobs could not overcome the widespread momentum generated by the combination of Microsoft Windows and Intel Pentium chips, known figuratively as "WinTel." Ironically, Microsoft owes as much of its success to Intel as Intel owes to Microsoft. Each one, by default, cre- ated a 10X market for the other. It is also worthy to note that the Next machine and its operating system is now the basis for the popular and very successful Apple computers and Apple X Operating System. 4. Passive adaptation to a deteriorating environment is a road to disaster. It's been said that if a frog is suddenly dropped into boiling water it will immediately jump out. However, if you put the same frog in warm water that is heated gradually, the frog will boil to death with no objec- tion. The same is true of social systems. The capacity to adapt gradually to a changing environment can lead to a disaster if the adaptation is to a deteriorating environment. That only one of the original companies in the Dow Jones index participated in its centennial celebration is an indication that death, even among successful organizations, is more common than we like to believe. In fact, gradual deaths are more com- mon than sudden deaths. In what is called the "Pan Am Syndrome," organizations bleed to death by adapting to an imperceptible gradual change, always doing too little too late. Ironically, sudden change of phase with all of its ramifications is less dangerous than imperceptible, gradual change. An organization facing a sudden change may still have enough organizational strength left in it to cope. But in the case of pas- sive adaptation, by the time an organization recognizes the severity of the problem, it may have already lost most of its strength and be unable to do anything about it. 2.5.1 recap · Successinplayingthegamechangesthegame,andtenacityinplaying the old game converts success to failure. · Marketeconomies,likedemocracies,makeonlyrationalchoices.The winners are not necessarily the best, but those most compatible with