Research and technology institutes (RTIs) around the world are facing a number of strategic and operational challenges: changes in their role, pressures on funding, more global competition, and increasing demands from their sponsors and customers. To adapt successfully, institutes need to avoid the trap of incremental changes and "death by a thousand cuts". Instead, they need to take a more fundamental approach by revisiting role and strategy, sharpening the focus of research activities, and making real changes to operational processes, organisation and incentives.