
Ready, set, go! A roadmap for sustainable business transformation
Getting “ready” for net zero is increasingly becoming a lynchpin in corporate strategy. However, making a net zero commitment should not be made lightly....
by Howard Yu Published 26 October 2021 in Brain circuits • 3 min read
The difference between companies that thrive in times of crisis versus those who stagnate is tied to their ability to jump from one core competency to another as the business landscape shifts. This is something I refer to as a company’s ability to LEAP. But what do you do if you missed that next big thing and realize everything is changing and you are at risk of getting left behind? All is not lost, you just need to consider something that makes a lot of executives uncomfortable but can change everything.
Making frenemies
There are times when you need to compete, and there are times when you need to collaborate. This is one of the key managerial choices to make in a world of disruption. When a newcomer enters the market and is shaking up the industry, you need to ask yourself if you should be looking at them as competition, or would it be better to become partners.
If you can’t beat them, join them
There are times you can’t outcompete a potential threat to the market, even if you are dominant in the field. It may be better to look for ways to help each other.
An excellent example of this is Visa and Mastercard. When PayPal and other fintech disruptors entered the market, Visa and Mastercard realized they could not outcompete them, or it would be too late, so instead they formed partnerships, opening their infrastructure through APIs so that other fintech disruptors could use them. Now Google Pay, Apple Wallet, and PayPal are all using Visa and Mastercard’s technology. Even cryptocurrencies are working with Visa’s card infrastructure to be able to convert back to real money. As a result, the traditional credit card companies are now beating American Express, which failed to move early.
Making this sort of move requires tough managerial choices and is a bit too radical for some companies. But the ones who are brave enough to do it are the ones that will live to compete another day.
LEGO® Chair Professor of Management and Innovation at IMD
Howard Yu is the LEGO® Chair Professor of Management and Innovation at IMD and the Director of IMD’s Center for Future Readiness. He is the author of the award-winning book “LEAP: How to Thrive in a World Where Everything Can Be Copied“. Howard Yu directs our Future Readiness Strategy and Business Growth Strategies programs.
22 April 2022 • by Vanina Farber, Patrick Reichert in Brain circuits
Getting “ready” for net zero is increasingly becoming a lynchpin in corporate strategy. However, making a net zero commitment should not be made lightly....
7 April 2022 • by Knut Haanaes , James Henderson in Brain circuits
Here are the essential steps needed to ensure that your business stands the test of time. ...
6 April 2022 • by Ben Bryant in Brain circuits
While it is always important to ensure teams are collaborating well, the strain on individuals this year has been extreme so it is more important than ever to foster dialogue to provide...
5 April 2022 • by Öykü Işık in Brain circuits
It’s not a matter of if, but rather when, your organization will experience a cyberattack. Have you assembled the right team to address the problem when it happens, and have you answered...
You have 4 of 5 articles left to read.