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<jats:title>Abstract</jats:title><jats:p>Though incremental improvements are necessary for strategic survival, incremental ism is increasingly becoming an insufficient source of competitive advantage. Protected markets that are a necessary condition for the development of strategic advantage through incremental improvements in productivity, quality, time, or service will increasingly disappear. The remaining competitors, especially in mature industries, will encounter global competitors that already have in place successful incremental approaches. As this article explains, these approaches, while essential, will no longer be a source of competitive advantage. The ability to manage a wide variety of relationships, especially with those outside the organization, is likely to become a key, if not core, competency as firms move toward the next millennium.</jats:p>