TechNexus Perspectives — August 12, 2020
Big companies across the globe are experiencing unprecedented economic disruption. Nearly 3 out of 4 companies on the Fortune 1000 list a decade ago are no longer listed today. Within the next 10 years, half of the Fortune 500 will cease to exist — even without the influence of the 2020 global coronavirus pandemic. Ironically, most big companies still won’t recognize the likelihood that they will end up (quickly) on the losing end of these equations. The “wild frontier” is now just outside every company’s front door, and adapting to the rapid, chaotic, ever-changing market is an essential survival skill. It’s not that large company CEOs are blind to the risk, but many (just like gilded settlers of old) are headed down the trail with bloated wagon loads, and too few of the right tools and skills they will need. To survive (and then thrive), they’ll need entrepreneurial pathfinders and collaborators with aligned interests.
A few years ago, the TechNexus team spent some time with a large financial firm, learning about their innovation goals. They were nearly finished with a year-long internal effort, where each week they convened small focus groups of current customers and employees, challenging them to “think outside the box” and “help imagine what the company should become” to remain relevant. 52 weeks of “exploring,” and most of the ideas amounted to “keep doing what we do, just better, faster or cheaper”. This wasn’t surprising. For decades, the most popular management philosophy focused on sustainability and staving off disruption, not harnessing it to explore new frontiers. Successfully scaling a business was about reducing risk and variables and creating repeatable processes. Customers and employees were conditioned to value predictability (and struggled to see the firm as an entirely different business). I’m convinced that including entrepreneurs in those weekly discussions — people with different senses of survival (incentives and risk tolerances) — would have changed the outcome of that innovation effort, and helped that large firm find entirely new paths to market. Accessing fresh, outside perspective is critical. You can’t build a fence around your business and expect to survive on the frontier. You might feel protected, but you’re not exploring, and you’re not really moving forward.
Many businesses try to hire pathfinders--consultants to help them navigate the wild environment. The TechNexus team believes a better way is to curate a community of entrepreneurial insight that can be more provocative than anything consultants provide, with optionality that can be more actionable. The future of big business isn’t about sustainability anymore. And it’s no longer just about disruption. Innovation is now about survival. Whole industries are at risk of being replaced. Entrepreneurial activity will largely map out these new territories and accelerate this shift. And the other half of the Fortune 500 companies I mentioned earlier — the half that will survive a decade from now — those companies will adapt, collaborate to learn the trail forward, and thrive.