Manchester City, one of the most dominant football teams in the world, has been a force under Pep Guardiola. They’ve won back-to-back championships, set records, and played breathtaking football. But this season (2024/2025), something changed—or rather, something did not change. The same tactics that had made them unstoppable were no longer working as well. Opponents adapted, the competition evolved, and suddenly, their dominance was in question. Success, ironically, had become their biggest threat.

This phenomenon isn’t unique to sports. In business, companies that don’t evolve, even at the peak of their success, eventually decline. The best leaders understand that what worked yesterday won’t necessarily work tomorrow. That’s why at Glilot Capital Partners , even after achieving an almost 90% net IRR in our first fund and being named the best-performing fund globally, we constantly challenged ourselves to change. The market was evolving, competition was getting tougher, and technology was shifting. Staying still wasn’t an option.

The Nokia Lesson: What Happens When You Don’t Adapt

Nokia was once the undisputed leader in mobile phones. Their devices were everywhere, their brand was synonymous with reliability, and their market share was unrivaled. Yet, when the smartphone revolution began, Nokia was slow to adapt. They underestimated the shift, clung to their existing technology, and resisted embracing change. The result? They went from being the king of mobile to an afterthought in just a few years. Their failure wasn’t due to a lack of resources or talent—it was due to an inability to recognize that staying the same was the riskiest move of all.

Microsoft’s Bold Pivot: Betting on Change

In contrast, Microsoft provides a masterclass in embracing change. In the early 2010s, the company was seen as a legacy giant losing relevance in the new cloud and mobile-driven world. Many believed their dominance in enterprise software would gradually fade. But Satya Nadella took over and made bold moves—shifting the company’s focus to cloud computing with Microsoft Azure , embracing open-source technology, and rethinking their entire software distribution model. At first, some questioned these changes. But today, Microsoft is stronger than ever, with its cloud business driving massive growth and its stock price soaring. Their success came not from holding onto the past but from actively reinventing themselves.

GenAI: The Ultimate Test of Adaptability

Today, we are witnessing another massive shift—Generative AI. It’s reshaping industries, transforming the way businesses operate, and redefining competitive landscapes. Companies that embrace this change and integrate AI into their operations, products, and decision-making processes will unlock incredible opportunities. Those that resist, dismiss, or delay will find themselves left behind. #GenAI is not just another trend; it’s a fundamental shift, much like the internet or cloud computing before it. The question is: Will your company evolve with it or be disrupted by it?

The Key Takeaway: Change Isn’t Optional

Whether in sports, startups, or global enterprises, the principle remains the same—complacency is the enemy of long-term success. Winning today doesn’t guarantee winning tomorrow. The best teams, the best companies, and the best leaders are those who recognize when it’s time to adapt and act decisively.

Pep Guardiola understands that, he has been around for a while, he introduced some changes, but none was enough. I cant tell if he should have been more aggressive on changing field tactics, or replacing old stars or something else. Some times its difficult to know what is the right change, but one thing for sure, no matter how successful you are , you need to change, otherwise you will surely fail(!)