Why Do Successful Businesses Fail? Is It Just Profits or Mindset?
The Innovator’s Dilemma by Clayton Christensen has been a cornerstone of business theory for decades, highlighting how successful companies can fail to keep up with disruptive innovation. My work takes a complementary approach, focusing on how to identify reasons for businesses to succeed and adjust over time by hiring for mindset capacity ahead of need, and utilizing remote mindset calculations of ecosystems.
Christensen’s work focuses on the idea that successful companies can become too focused on profits, leading to a lack of innovation and a reluctance to change their business model. The key takeaway from his work is that companies need to embrace disruptive innovation in order to stay relevant and successful.
My work takes this concept further by looking at the psychological factors that contribute to a company’s success. William Torbert’s seven leadership types are an inspirational part of this, as they provide a framework for understanding the different mindsets that leaders may bring to the table. By hiring for mindset capacity ahead of need, companies can ensure that they have the right mix of leadership types to drive innovation and growth.
My work incorporates remote mindset calculations of ecosystems, which takes into account the psychological profiles of potential customers, partners, and competitors. By understanding the mindset of these stakeholders, companies can more effectively tailor their offerings to meet their needs and stay ahead of the competition.
To put these ideas into practice, companies need to begin by embracing the idea that innovation is key to success. They should focus on creating a culture that encourages experimentation and risk-taking, and be willing to pivot quickly when needed.
They should also take a more strategic approach to hiring, focusing on mindset capacity rather than simply filling positions as they become available. This means identifying the leadership types that are needed for a given project or initiative, and seeking out candidates who bring those qualities to the table.
Finally, companies should leverage remote mindset calculations of ecosystems to gain a deeper understanding of the psychology of their stakeholders. This means conducting market research that goes beyond simple demographics, and delving into the values, beliefs, and motivations that drive consumer behavior.
In conclusion, Christensen’s work on disruptive innovation provides a crucial foundation for understanding the challenges facing businesses today, my work builds on this by incorporating a remote, asymmetrical data version of Torbert’s leadership types and mindset calculations of ecosystems. By taking a more holistic approach to business strategy, companies can position themselves for long-term success in an ever-changing marketplace.
I took Clayton’s class on disruptive innovation. To say he was my early business hero, besides Bob Moesta and David Oreck and my dad is an understatement. His work push me into higher levels of thinking and solve problems where no other answer could be found.