It’s worth taking a few minutes to understand exactly what I mean by a “pivotal moment.” Chances are, you intuitively understand the concept, but clarity is never a bad thing.

A pivotal moment is a significant inflection point where the stakes are high and the decisions made will materially shape the company’s future. It’s a moment when doing nothing carries real risk. The consequences don’t always arrive overnight, but left unaddressed, they compound until the cost of inaction is far greater than the cost of change.

Over the past decade-plus, I’ve seen the same ten scenarios surface again and again:

1. A market gets disrupted by new entrants or shifting technologies.

2. Growth stalls and the strategies that once worked suddenly don’t.

3. A merger, acquisition, or leadership change reshapes the culture and leaves teams searching for direction.

4. New products come online without a clear go-to-market.

5. Digital systems lag behind.

6. Private equity firms impose new priorities.

7. Founders or CEOs prepare to step away.

8. Margins shrink.

9. A brand story that once fit no longer matches the reality of scale and ambition.

10. Trust erodes under the weight of a crisis.

There are others, of course, which I’ve come to define as “emergent” pivotal moments. But they’re often specific to the organization I’m working with and not part of a broader trend.

One recent example is a firm leaving its holding company to operate independently. The moment was indeed pivotal, and carried both risk and opportunity, but it was unique to that particular business. It also emerged only after we dug into two other, more obvious pivotal moments.

The Pivotal Moment Test

Most organizations want to know how, exactly, they can identify if a moment is truly pivotal. And while the concept is intuitive, three questions make the distinction clear:

1. If left unaddressed, does the issue threaten revenue, margin, valuation, or even your license to operate?

2. If you wait a quarter or two to act, will the problem become harder or more expensive to solve?

3. Does the choice you make now materially shape—or limit—the long-term trajectory of the business?

A yes to all three is a definitive pivotal moment. A yes to two is a strong signal it deserves immediate attention. Anything less is still important work—and may even be urgent—but it isn’t pivotal.

Not All Moments Matter Equally

A technology challenge that doesn’t touch customers or affect revenue is not pivotal. A single underperforming campaign in an otherwise healthy marketing engine is not pivotal. An operational hiccup that stays contained within one department may be frustrating, but it isn’t pivotal.

Understanding the distinction between urgent issues and pivotal moments matters because not every challenge should command the same energy. Pivotal moments carry high stakes, compounding risk, and the need for decisive action. Recognizing them—and responding with focus—is how leaders protect today and shape the future.