In 1942 Joseph Schumpeter in his work entitled “Capitalism, Socialism and Democracy” coined the phrase “Creative Destruction” defined as a “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” Once again this concept is gaining popularity and being quoted by economist as they try to explain economic volatility. This resurrection is not due to a belief that innovation or creativity has increased but rather that the rate of destruction has accelerated. Historically, creative destruction involved marginal improvements occurring over many decades. Armed with a time advantage, businesses could adapt to the new methodologies. More importantly, the elapsed time frame allowed generational adaptation, whereas the originators of the obsolete technology where surpassed by the next generation of new inventors. It is a known fact that change occurs more freely when the innovator was not the originator of the first idea.

However, today changes are occur ring rapidly; sand castles built in the morning are being washed away by the afternoons’ tide. Such expediency requires the originator to recognize and respond to creative destruction prior to a comfortable mental release of the old methodologies. Especially hard hit are the small to medium businesses (SME’s) with the founders nearing retirement. At an awkward point in their business life they are learning that their company asset (and once perceived safe nest egg) is yesterday’s business model and losing value daily. Unfortunately many business owners do not recognize or more accurately refuse to accept this inherent threat until it is too late.