Sunday, January 26, 2025

Why Successful Businesses Embrace Change

 What if I told you the biggest threat to your business isn’t competition, market shifts, or even a global crisis? It’s your own inability to see what’s coming. That’s what I learned when I dove into Seeing Around Corners by Rita McGrath. The premise is simple but profound: businesses don’t fail because the world changes—they fail because they don’t see the change until it’s too late. And here’s the kicker: the signals of impending change are always there. They’re subtle, they’re scattered, and they’re easy to miss—but if you know where to look, you can anticipate disruption before it disrupts you. So, let’s break it down.

Let’s start with inflection points—the seismic shifts that redefine industries. McGrath calls them “the moments when the fundamentals of your business are about to change.” Think about the rise of smartphones, the shift to streaming, or the explosion of AI. These weren’t random events; they were predictable, even inevitable. The companies that thrived didn’t just react—they saw the signs and adapted early. But here’s the brutal truth: most organizations are blind to these shifts. Why? Because they’re too focused on optimizing today’s business to prepare for tomorrow’s. The result? By the time they recognize the inflection point, it’s already passed them by.

Now, let’s talk about the warning signs. McGrath calls them “weak signals”—the subtle clues that an inflection point is brewing. These aren’t glaring red flags; they’re whispers on the edges of your market, like a new competitor gaining traction, a customer behavior shifting ever so slightly, or a technology that seems niche but is growing fast. The problem? Most leaders ignore weak signals because they seem insignificant—until they aren’t. It’s like noticing a crack in the dam and doing nothing until the flood comes. Are you paying attention to the edges, or are you too caught up in the center?

And then there’s the mindset shift McGrath challenges us to embrace: stop playing defense. Too many leaders treat change like a threat instead of an opportunity. They resist it, fight it, or worse, ignore it. But here’s the reality: inflection points don’t have to be the death knell for your business. In fact, they can be the launchpad for your next big move—if you’re willing to rethink everything. That means questioning your assumptions, challenging your strategies, and embracing the discomfort of change. It’s not easy, but the alternative—clinging to the status quo—is far riskier.

Let’s get practical: how do you see around corners? McGrath lays out a roadmap, and it starts with curiosity. Are you actively scanning your environment, asking questions, and exploring possibilities? Or are you stuck in your echo chamber, surrounded by people and ideas that reinforce what you already believe? The next step is experimentation. Don’t wait for a perfect plan—start small, test ideas, and learn fast. And finally, build agility into your organization. That means creating a culture where it’s okay to fail, where decisions can be made quickly, and where teams are empowered to act on new information. Are you ready to embrace uncertainty, or are you paralyzed by it?

But here’s where it gets uncomfortable: seeing around corners means letting go of what’s working today. McGrath warns about the “incumbent’s curse”—the trap of clinging to old successes while the world moves on. Kodak, Blockbuster, Nokia—they all saw the inflection points but failed to act because they couldn’t bear to disrupt themselves. The lesson? You can’t protect the past and embrace the future at the same time. Sometimes, you have to destroy what you’ve built to stay ahead. It’s painful, but it’s necessary. The question is: do you have the courage to do it?

And here’s the paradox of leadership in the face of inflection points: the better you are at navigating change, the less dramatic it feels. Leaders who see around corners don’t wait for crises to adapt. They’re constantly evolving, experimenting, and staying ahead of the curve. The result? When the world shifts, they’re already prepared. It’s not reactive—it’s proactive. But here’s the hard truth: this kind of leadership requires humility. You have to admit what you don’t know, listen to dissenting voices, and stay curious even when you think you’ve figured it out. Are you willing to do that, or are you too attached to being right?

Now, let’s address the elephant in the room: is it really possible to predict the future? McGrath doesn’t claim you can see everything, but she’s adamant that you can see enough. The trick is to focus on patterns, not predictions. Look at trends, behaviors, and technologies that are gaining momentum. Watch for small shifts that hint at bigger changes. And most importantly, stay flexible. The goal isn’t to have all the answers—it’s to be ready to adapt when the answers reveal themselves.

So, what’s the takeaway? Seeing around corners isn’t a magical ability; it’s a discipline. It’s about paying attention, staying curious, and taking action before it’s too late. It’s about creating an organization that thrives on change instead of fearing it. And ultimately, it’s about realizing that the future isn’t something that happens to you—it’s something you shape. The question is: will you shape it, or will you be shaped by it?

Let me leave you with this: the next inflection point is already out there, waiting to change everything. The signs are there, the signals are whispering—are you listening? Because if you wait until the shift is obvious, you’ve already lost. The future belongs to those who see around corners. So, ask yourself: are you looking ahead, or are you stuck looking back? The choice is yours.