"Winter Is Coming!”
If you’re a lover of HBO’s Game of Thrones series, then you’ll recognize the ominous motto of House Stark, “winter is coming.” it's used throughout the series to remind the skeptical leaders of The Seven Kingdoms of Westeros that their world is close to transforming.
While we business leaders don’t need to fear the dead army of white walkers invading from the north, there's a true cause for concern. I’d wish to sound an identical alarm to all or any those skeptical leaders who still think that the disruption we are experiencing will somehow pass them by. Winter is coming; my friends and business disruption may be a reality that you simply cannot avoid.
What Is Business Disruption?
Most leaders acknowledge that our world is changing. the talk seems to be about the pace and magnitude of this continuous change. Business disruption is just the accelerated and disruptive effect of innovation and alters in technology, process, business models, customer preferences, etc.
Business disruption isn't unique to our time. It’s been an endless thread throughout our history. Only, the pace has been slow and manageable by human standards. a quick history of the sooner disrupters is printed in a piece of writing by Klaus Schwab, Founder and Executive Chairman of the planet Economic Forum, titled The Fourth Industrial Revolution: what it means and the way to respond”. During this article, Klaus states, the primary revolution used water and steam power to mechanize production, the second used electric power to make production, while the third used electronics and knowledge technology to automate production. While these challenged people and organizations to adapt, it'll be nothing just like the magnitude of the fourth revolution. The difference is that the velocity, scope, and systems impact will test organizations like never before. As Klaus notes, “the speed of current breakthroughs has no historical precedent. In comparison with previous industrial revolutions, the fourth is evolving at an exponential instead of a linear pace. Moreover, it's disrupting almost every industry in every country. And therefore the breadth and depth of those changes herald the transformation of entire systems of production, management, and governance.”
"It’s not the neatest or strongest that ultimately succeed, but people who are most resilient and determined"
A brief study of history shows many samples of the disrupters and therefore the disrupted. Samples of fairly recent disrupters include Apple, Amazon, Uber, Tesla, Netflix, and Facebook. In contrast, consider those companies that have did not adapt like Borders, Kodak, Blockbuster, and Myspace.
Why Companies Fail To Evolve
So why is it that some companies fail to reply to disruption? on behalf of me, the solution is fairly simple, and it’s supported by how leaders view the planet. I even have seen only too frequently when leaders fail to know the facility of disruption and its impact on their business. On the opposite hand, I’ve also seen leaders that followed anything new and glossy down the rabbit burrow only to finish up losing also.
Unfortunately, there isn’t an algorithm or simple process one can follow. Instead, leaders got to start by acknowledging that the great old days are far behind us and that we are now leading our business through a protracted period of accelerated change and growth.
There are companies where adaptability and agility are hardwired into their DNA. Most other companies will believe some catalyst or crisis to force them to reprogram their DNA. the great news is that there are several samples of companies that have proven if you're taking the proper steps, and with a touch little bit of luck, you'll thrive during this new era.
Crisis or Opportunity?
Napoleon Hill once said that each crisis carries with it the seed of an equal or greater opportunity. It’s important to notice that there are several companies that have found the seeds of innovation and reinvention within the midst of disruption.
Netflix is a superb example of opportunity over the crisis. Seeing real disruptive forces moving faraway from video and DVD to streaming, Netflix decided to disrupt its own business model by moving far away from DVDs to streaming media. Despite their success within the streaming business, they still innovate and grow by evolving into content production. By the way, Blockbuster turned down the offer to accumulate Netflix for $50 million in 2000. Today, Netflix is worth quite $60 billion.
As Netflix shows, there's hope for companies that are willing to be smart and bold. So, what can leaders do to assist their companies better steel oneself against the opportunities and avoid the crisis? I’d wish to offer the subsequent points for consideration:
1) Change Your Thinking: As leaders, you'll help change the way your organization is brooding about the new world. Though we can’t control the weather, we will surely steel oneself against it better. With the sponsorship of your CEO, challenge your organizations to prevent being passive and begin thinking differently. I highly recommend that leadership competencies and capabilities within the areas of change, innovation, and agility be added.
2) Change Your Behavior: Put your money where your mouth is. Begin recognizing and rewarding leaders that display the type of leadership agility needed to assist move your organization forward. Open up lines of communication to assist gain greater insight from your employees, vendors, and customers.
3) Make the Structural Changes: Create an innovation team purely tasked with the “structured ideation” of the way to disrupt your business. They ought to be trying to find new technologies, partners, acquisition targets, and the other information that would help your leadership gain insight into the changing landscape. There are many samples of corporation companies creating their own risk capital funds for innovation.
4) Timing: Lastly, strategically decide where you would like to get on the adoption curve. Timing is critical. Don’t make the novice mistake of thinking the innovators or first mover wins. In most cases, it’s the first adapter that wins.