An inflection point is a time in the life of an organization [or leader] when its fundamentals are about to change. That change can mean an opportunity to rise to new heights; but it may just as likely signal the beginning of the end. ~Unknown

At some point in the life of an organization [or leader] you discover that what used to work perfectly before, no longer does. This inflection point demands a shift—maybe in working style, decision, strategy, execution—everything on which it [or they] survived in the past.

Christine Comaford, contributing author on Forbes.com, suggests three reasons/solutions to shift upwards when faced with an inflection point. Comaford focuses on companies, but I believe that the same principles can apply to an organization of one, or even to an individual leader. I believe that leaders, too, find themselves at inflection points.

At each inflection point, an organization [or leader] must reinvent itself in order to reach that point and move through it. If it doesn’t, it will become stuck and ultimately decline into an upside-down curve, rather than back into growth mode. To continue to grow, to shift upwards at an inflection point, an organization [or leader] needs to make changes in each of the following areas: people, money & time, and model. Comaford suggested people, money, and model. I added “time” to the second area.

People. Leaders must work on themselves—on their own beliefs and behaviors. Some of your team members [or you] may need to develop profound new skill sets, behaviors, capabilities, beliefs, or identities. A phrase I heard from someone who recently retired gives perspective to this idea. Instead of calling it “retirement” he calls it “rewirement.” What “rewirement” do you and others in your organization need to experience?

Money and Time. To grow to the next inflection point, your systems must be aligned and your funding model must be appropriate. In organizations funding models may be required to shift because of a number of factors: consumer trends, competition, innovation, etc. On an individual level for a leader, I think what also changes is the balance of money and time. Ways to acquire more time may have far more value than more money, or vice versa depending upon the inflection point. I think it’s critical for leaders to wrestle with the balance of money and time at each inflection point.

Model. As an organization [or leader] grows, core competencies shift, markets (customers, competitors, environment, distribution channels and technology) evolve, and some opportunities are more leverage-able than others. One example that always comes to mind for me is Blockbuster. I was a Blockbuster member (they had my personal information!) and frequent movie renter. Blockbuster peaked in 2004 with more than 9,000 stores. Only six years later, in 2010, they filed for bankruptcy. Again, I emphasize, they had my personal information! They could have done what Netflix did. They reached an inflection point, did not make adjustments when the market shifted; and consequently experienced a very sharp decline that became their demise.

I also see the same phenomenon happen with leaders. As an example, in the not-so-distant past, command and control was a frequently practiced leadership style. Many leaders were really good at command and control. However, the type of work and workplace culture that dominates the workforce today is quite different. Today’s workforce requires much more of a coaching leadership style. Consequently, I see leaders who were very effective ten or 20 years ago struggle to be effective today. They haven’t shifted their model to current conditions.

Have you reached an inflection point? If so, what can you change so it becomes an opportunity to reach new heights?