Just One Thing
The Just One Thing series at Management Excellence is intended to prompt ideas and provoke debate…one topic at a time.
One of the most difficult but potentially compelling plays in strategy is to redefine the rules of the game. Those who write the new rules…and get them to stick, win.
Apple re-wrote the rules. Then they rewired the profit models of several industries…and well, it’s remarkable to watch.
Southwest wrote their own rules…and they wired in the profits as well. The rest of the industry still hasn’t figured out the right rules to make the game work for their firms. Buffet might have been right. (Warren, not Jimmy.) Investors would have been happier if someone had shot Wilbur down that fateful day at Kitty Hawk.
IBM changed their rules and the game they were in and saved themselves.
Long ago, Microsoft rewrote the rules. However, somewhere along the way, they lost the book that told them how to rewrite the rules. It doesn’t make them bad…just big and mundane.
Star Trek fans have known about the power of rewriting the rules for years. Kirk did this first. Kobayashi Maru, anyone? He took an un-winnable game and reprogrammed it in his favor. (OK, that’s my inner geek doing a shout out.)
Some companies and industries run into the forces of Creative Destruction. The rules are rewritten for them…and they capitulate, seemingly without a fight. Can you say Kodak? What about the entire publishing industry? Best Buy, the new rules are being written right now…not sure if you’ll be in the next game.
We get used to playing on a discrete playing field with familiar boundaries, whether its in our businesses or industries. We plot predictable strategies…with equally predictable tactics.
The same goes for our careers. We work in jobs…do little to strengthen or diversify our skills or experiences and then it happens. Wham. Out of nowhere, we’re out there…and when we look around, signs of the familiar are nowhere to be found.
On a personal level, strive to rewrite your own rules. Pursue a second discipline. Do something way outside of your routine that forces you to rethink everything you ever knew about a subject. Study companies outside your industry that are changing the rules and winning.
For those of you involved in setting the rules for your firms…quit planning the future of your business using the same dusty old playbook. Fight the inertial resistance of the status quo. If you’re not busy rewriting the rules for your business and industry, you can bet that someone else will do it for you. Soon.
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Art,
Great post and advice in rewriting the rules.
You identified a number of companies who were not afraid to rewrite the “dusty old playbooks” and connect to their markets of today.
We also see companies who failed and kept marching to the beat of their own drum…and they often keep beating that drum even after stepping off a cliff.
I have found this topic is easy to get our heads around but it is VERY difficult for executives to get rid of the Kool Aid they drank so many years ago. However good, market leading, executives thrive on unfiltered data to drive strategic decisions that shape their companies’ futures. They are constantly seeking a better way to serve their markets.
I have also seen companies intentionally hire a Heretic (the role I often play) that I shared in my blog some time ago http://www.nosmokeandmirrors.com/2009/04/10/want-to-add-value-to-your-bottom-line-quicklyhire-a-heretic/ . This is another quick way to tune into your market.
Your readers may enjoy getting a copy of Art Kleiner’s book: the Age of Heretics, as it helps leaders understand the need to wipe away the cob webs on their perceptions of the market and get connected to what reality is today.
Mark
Thanks, Mark! Wise words and great resources. -Art
Good point that if you don’t re-write the rules of your industry, someone else will. Look at many struggling industries today – Office Max and Staples come to mind. If you haven’t been in an office supply store recently, take a look. The entire business model has changed since people would rather scan paper than print paper. There are many other examples. Thanks for the reminder. Suzanne
Thanks, Suzanne! IMO there’s an app for just sbout everything in the office supply stores. Their rules have been rewritten! Thanks for reading and sharing. -Art