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Case Files: Ships Burned and Lessons Learned

Case files—real-world moments when leaders torched the old way, sometimes with brilliance, sometimes with regret.

CHANGE

Mark Gedeon

9/4/20253 min read

The outcome: Over time, profits surged. Recurring revenue stabilized cash flow, and adoption climbed once the value became clear. The difference-maker? Adobe didn’t just burn the ships; they built bridges—migration support, steady improvements, and a clear vision of long-term value.
Lesson: If you cut off the old model, you’d better deliver on the new one quickly and visibly.

Case File 2: Apple Removes the Headphone Jack

The burn: In 2016, Apple killed the headphone jack on the iPhone 7.
The risk: Customers were furious. Memes mocked the decision. Accessory makers scrambled.
The outcome: Within a few years, wireless earbuds became the norm. Apple forced an ecosystem shift, and the bet paid off.
Lesson: Burning the ships works when the broader ecosystem supports the change—and when leaders have the trust capital to take the heat in the short term.

Case File 3: Netflix and Qwikster

The burn: In 2011, Netflix abruptly split DVD and streaming services, rebranding DVDs as “Qwikster” and charging separately. Customers had to manage two accounts.
The risk: Confusion and cost. Subscribers revolted.
The outcome: Stock price plummeted, 800,000 subscribers walked, and Netflix backtracked within weeks. Streaming eventually triumphed, but the Qwikster fiasco remains a cautionary tale.
Lesson: Burning the ships too early—before customers are ready—can set back your strategy more than accelerate it.

Case File 4: Lean Supply Chains and COVID

The burn: For decades, manufacturers embraced just-in-time inventory: cut buffers, reduce waste, boost efficiency.
The risk: Fragility. When COVID hit, global supply chains collapsed. Companies with zero slack were exposed.
The outcome: Some firms bounced back, but many struggled with shortages and reputational damage. Efficiency had burned the buffer ships that once offered resilience.
Lesson: Efficiency without resilience is a fragile win.

Case File 5: Smaller but telling examples

Google killing Reader (2013): Forced users to shift. Some stayed in Google’s ecosystem, many didn’t. Burning ships can also burn goodwill.
Ford’s EV bet: Committed billions to electric vehicles, scaling down ICE development. The jury is still out, but it shows how burning ships can strain finances and workforce adaptability.

The bottom line from the case files

When leaders burn the ships, outcomes hinge on three factors:

Customer readiness — Are you dragging them, or are they leaning that way already?
Ecosystem support — Will partners, suppliers, and infrastructure make the leap with you?
People sustainability — Do employees have the clarity, energy, and resilience to see it through?

Get these right, and burning the ships becomes a powerful forcing function. Get them wrong, and you don’t just sink the ships—you risk sinking the crew.

In this series on playing with fire, we’ve noted:

Change always carries risks—to profits and to the people who implement it. Fire is one tool. Knowing when and how to use it is critical.
Some fires are real burning platforms that require urgency and threat assessment.
Some fires are false alarms, which we don’t recommend. They erode trust and drain energy. (Deadlines with clear purpose and values work better.)
Burning your ships builds focus and forces commitment, but it can also create blind spots. That’s why we built a playbook and reviewed case studies.

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