Organizational Adaptation & Punctuated Equilibrium — after Harrington (1999) & Beinhocker (2006)
This simulation reveals a paradox: the very traits that make leaders effective in stable times — deep expertise, unwavering conviction, consistent strategy — become fatal when the environment shifts. Watch as "Rigid" leaders rise to the top through sheer competence, then drag the whole organization down when the world changes under their feet.
Harrington's devastating finding: the less frequent the transitions, the MORE dominant Rigids become, and the MORE catastrophic the eventual crash. Organizations that maintain a "reserve of Flexibles" — people who might seem less impressive in stable times — survive transitions with far less damage. This is the explore/exploit tradeoff in human form.