Disruption Doesn't Care How Smart You Are

I want to share a story—one that shaped how I think about disruption, innovation, and organizational resilience. It happened early in my career, at a company called ScenicSoft.

We were a small but successful software firm specializing in high-end publishing tools. Our flagship products handled imposition for bookbinding, color management for printers, and packaging design. It was niche, powerful software, and it sold incredibly well—thanks largely to a clever reseller model.

The Business Model That Worked—Until It Didn’t

Our model was simple: when someone bought a high-end printing press, like a $100,000 Heidelberg, our software came bundled in the deal. We didn’t have to sell directly to customers—we just took a cut. The margins were good. The product was strong. The competition was minimal.

For a company of about 135 people, we were doing very well. We had stable revenue, a clear market, and loyal clients.

And then the world changed.

The Double Whammy: Internet Disruption and Economic Shock

Two disruptions hit us in quick succession.

The first was gradual but powerful: the rise of the internet. It changed everything. Print budgets shrank as businesses shifted their attention—and money—toward digital. Companies like Amazon, Google, and a growing list of dot-coms were attracting all the attention, all the capital, and all the excitement. Meanwhile, traditional industries like printing were starting to look… well, dated.

Entire categories of print—manuals, catalogs, brochures—suddenly had digital replacements. You didn’t need to print a help guide if it could live online. And then came the rise of e-books, which sent shockwaves through our customer base in book publishing.

The second disruption was far more sudden and devastating: the 9/11 attacks and the collapse of the dot-com bubble. Overnight, lending dried up. Companies that relied on short-term loans to manage payroll couldn’t make ends meet. And despite all our experience and momentum, we weren’t immune.

We Saw It Coming—and Still Got Hit

Here’s the thing: we knew disruption was happening.

We talked about it constantly. Our customers talked about it. Our partners talked about it. We explored new product lines. We made strategic acquisitions. We bet on modern technologies. We were using extreme programming and early Agile practices—Scrum, continuous integration, all the latest tools.

And yet… we went down.

When the financial crisis hit, the money dried up. We couldn’t make payroll. Leadership tried to raise funds, but nothing came through. Within three months, we were acquired and dissolved. All our products were absorbed by a competitor. Every single one of us was laid off.

What We Missed

Looking back, I don’t think we failed because we didn’t see the future. We failed because we didn’t act as a truly adaptive organization.

From my seat as a project manager, I didn’t have visibility into the company’s financials—but I had no reason to believe we were poorly managed. What I did see was a company that kept strategic decision-making locked away in the executive suite.

And that, I believe, was the real failure.

We had a talented, deeply committed team—people who would’ve done anything to help. I would’ve run a bake sale on the corner if it meant saving the company. But no one ever asked. The message was: keep doing your job, Tom. The result? No engagement. No collective problem-solving. No distributed sense of ownership.

Disruption Is Not a Surprise—It’s a Test

If there’s one thing I’ve learned, it’s this: disruption usually doesn’t sneak up on you. You see it coming. You talk about it. You might even feel pretty smart about spotting it early.

But being smart isn’t enough.

Using the right technology isn’t enough.

Seeing the disruption isn’t enough.

If your organization isn’t structured to engage its people—if your culture isn’t designed to respond, adapt, and co-create the future—you’re still going to get flattened. We didn’t need more intelligence. We needed more participation. More transparency. More trust.

Disruption isn’t just a strategic problem. It’s a cultural one.