We're on a Road to Nowhere

The reasons that iconic, once-vibrant brands fail are varied and in some cases complex. But an argument could be made that because they existed and thrived long before digital disruption became a force, they had plenty of time to address the problems that led to their demise. The organizations that are struggling to survive today—or those that will soon find themselves gasping for air—have no such luxury.

Customers are demanding more. Insurgent competitors are raising the bar ever higher on what drives market share, customer loyalty, and financial results. Technology continues to reshape the landscape. So, to hesitate or to merely focus on incremental change is to risk falling farther and farther behind.

And once the gap widens between what customers demand and what we can deliver, catching up to the competition that aimed higher, acted more boldly, moved much faster—in other words, that leaped across that chasm—will not just be difficult. It may very well be impossible.

It’s not like most organizations don’t know this. Studies consistently make it clear that most executives are worried about disruption and how ill prepared they are to effectively deal with it. There's a good chance you feel the same way.

The problem—the gigantic issue looming like an asteroid about to strike—is either that they aren’t doing anything about it, or if they are, their efforts will most likely fall well short of what’s needed.

Here’s what I mean. In a 2021 study, McKinsey & Company found that over 80 percent of executives report that innovation is among their organization’s top three priorities. Yet less than 10 percent say they are satisfied with their company’s innovation performance.

In its 2023 Disruption Index study, AlixPartners found that 78 percent of the CEOs surveyed indicated that their companies faced serious disruption in the past year (up 10 percent from the year earlier). Moreover, they highlighted many concerning findings, including:

• 98 percent say their business model must change in the next three years, but 85 percent say they find it hard to know where to start.

• 75 percent worry their organizations are not adapting fast enough, and 72 percent say their executive teams lack sufficient agility.

• 65 percent say technology is changing at a rate they can’t keep up with.

• 70 percent are worried about losing their jobs.

It’s worth asking the question: Why is everyone so anxious and unsure?

After all, disruption isn’t new. It’s not hard to find books, white papers, podcasts, TED talks, and the like that stress the importance of innovation and lay out the process changes necessary to respond to these inexorable forces.

Many (if not most) organizations include “innovation” in their mission statements and investor presentations. In the last few years, it’s become commonplace for CEOs to talk about how their company is undertaking a transformation strategy or is committed to transforming. Many have even created a new role in their C-suite: chief transformation officer.

And yet almost always the result is at best incremental change and at worst lots of flailing that sets the company on a path to more and more struggle and perhaps even an extinction event. In fact, another McKinsey study from 2021 found that 70 percent of transformations fail.

I’d wager that this statistic isn’t very shocking to you. If you’ve been in the workforce for a decent amount of time, there’s a good chance you’ve experienced—or maybe had a hand in—this painful process.

To me, this is a clear sign that the current advice for disruption-proofing your future isn’t cutting it. There must be a way to get off a road to nowhere. 

And there is. 

For inspiration, check out my new book and our special summer series of the Remarkable Retail podcast.

This post is adapted from material in my new book Leaders Leap: Transforming Your Company at the Speed of Disruption, available in hardcover, Kindle, and Audible formats.