Performance shocks refer to sudden and unexpected changes in an individual's or organization's ability to perform. These shocks can be caused by various factors, such as economic downturns, technological advancements, or shifts in consumer preferences. They can lead to significant fluctuations in productivity, efficiency, and overall performance. In the context of businesses, performance shocks can impact revenue and market position. For example, a company may experience a performance shock if a new competitor emerges with a superior product. Understanding and managing these shocks is crucial for maintaining stability and ensuring long-term success in a competitive environment.