How organisations die

"The purpose of life is to be defeated by greater and greater things"
(Austrian poet/novelist Rainer Maria Rilke)

One way to (yes, yes, we know) really mangle Rilke's quote is to state that businesses are eventually defeated by better strategies and/or disruptive innovation.

The one-hour lecture

At lunch, with a business connection of mine, the following conversation (loosely remembered/transcribed) ensued:

Him: "Why this focus of yours on ventures and innovation? Few business do that. Most are just fine with good processes and continuous improvements."

Me: "Research. Data. Books. Proof."

Him: "Successful people don't have time for that and don't need that."

Me: "Do they have one hour to watch a video?"

I then recommended this video (also shown below) to him.

If you're a business leader, we understand that you are:

(1) already successful,
(2) very likely also highly-educated,
(3) learning more (in the saddle) every day.

So, further input might thus not bring much more to the table? And it may thus be a waste to allocate such time?

But, nope, that's wrong.
For today, don't listen to us.
Listen to the real expert.
Watch this video.
Then put this information to work.

The Video

Prof Clayton M. Christensen covers:

Strategy:
~03:55: mini mills usurped integrated steel companies.
~14:00: Toyota, with the same strategy, beat the American automobile industry.

Disruptive innovation:
~18:12: transforms complicated/expensive into affordable
~22:10: creates 'all' new jobs
~22:28: is good for everyone (i.e. 'smart')

Other innovation:
~23:20: sustaining innovation doesn't create new jobs
~24:35: efficiency innovation destroys jobs

Measuring Success?

My lunch date also criticized my dislike for long-accepted business-leader success-measures such as ROIC (Return on Invested Capital). "You are arguing against all business schools".

My response (to him) was to watch this exact same video (the one above).

From ~29:10:
Prof. Christensen dismantles these types Business School measures. In fact, he calls Business Schools 'seminaries' for spreading doctrines and gospels.

From ~33:20:
Why business leaders, given these success-measures, are hesitant about disruptive innovations (and venturing approaches).

From ~35:35:
How the seminaries (and their measures such as ROIC) destroyed the Japanese economy.

... and so forth.