Lessons Learned from McDonald's

In the appendix to its report on "Enhancing Adaptability of U.S. Military Forces," which I wrote about today, the Defense Science Board culled some lessons learned from commercial firms that quickly adapted to new circumstances in order to deal with a changing world.

This included McDonald's Corp., which in 2002 faced falling profits as it stuck to a formula of opening new stores to boost growth.

Since that model no longer worked, the company shifted to a new one based on luring new customers into existing stores with an enhanced menu, including salads and coffee bars. The result? An eight-times increase in cash flow in one year.

The lesson for the Defense Department is simple -- adapt or die; change and thrive.