Despite the fact that executives could improve the value and performance of their companies by shifting capital from under-performing business units to better performing units, most choose to allocate their resources the same way year after year. More troubling, our own research shows that even when business leaders are proactive resource allocators, they are still hesitant to invest in new business models. As technology continues to change and challenge even the most successful incumbent organizations in every industry, the cost of inertia is growing.