MIT Sloan Management Review Article on Leaders Must Have the Courage to Choose the Future

In a crisis, it’s easy to unconsciously prioritize the past. But crises are also when leaders need to look forward.

In December 2007, Shantanu Narayen took over as the CEO of Adobe. The timing seemingly could not have been worse: Not only did Narayen and his team have to confront disruptive developments such as the rise of new platforms like the iPhone and the emergence of nimble software-as-a-service (SaaS) competitors, they had to do so in the midst of a financial crisis that upended markets around the globe.

But in the face of upheaval, Adobe launched a comprehensive transformation strategy. In 2008, Adobe tested a software-delivered model of Photoshop. A few years later, the company stopped producing packaged software and moved to a completely SaaS model, charging a monthly subscription fee to access its products online. In 2009, Adobe made the bold decision to purchase the web analytics and marketing company Omniture for approximately $1.8 billion, a price 40% lower than Omniture’s pre-crisis peak, but 2.5 times above its mid-crisis trough. That acquisition would serve as the cornerstone of Adobe’s efforts to build a new growth business related to advertising services and analytics. From 2009 to 2019, Adobe’s revenues tripled, and its stock price went up by 29% a year.