Sustainable Disruption……a new growth model for businesses

It’s common knowledge that all organizations, no matter their size, are constantly trying to figure out how to grow. Most leadership teams running these organizations are trying to figure out new and innovative ways to stay ahead of competition.

Why do most fail? Why are there only a few “great” organizations and a zillion mediocre ones? Why do leaders who miss earnings 2 quarters in a row blame it on the economic downturn or unrest in the Middle East?

Answer: They forget that in order to sustain a favorable growth model. Disrupting the market place is more important that any other initiative.

You don’t have to look to far back to see why Apple has succeeded in dominating while Sony is sucking wind. It’s clear why Toyota will produce (and sell) 10 million cars by 2010 and GM may be a bad memory.

Where is new growth going to come from? It’s a question on every CEO’s mind. Most CEOs take the traditional approach and go crazy on initiatives like Six Sigma, Customer Intimacy, ERP System Rollout, Outsourcing, for example. Unfortunately these good initiatives add no value if the organization cannot build a sustainable and competitively disruptive business model.

Sustainable Disruption – A simple definition: Ability of an organization and its human capital to regularly create a market place disruption that wows the client and to which competition cannot catch up to easily. These regular cycles are anywhere between 6 – 18 months. At the midpoint of each cycle you are planning for the next disruption. It’s a mindset/DNA shift that companies need to make in order to survive. They have to unlearn and go back to basics by simplifying and streamlining business functions in ways that free them to think beyond their current state.

Sustainable Disruption brings focus across the board in an organization because everyone is aligned to a common goal. It should not be mistaken for product/service innovation. For most companies innovation is like “made to order antiques”- no real value. Take for example the launch and failure of the HUMMER – it was never disruptive and certainly not sustainable given the price of gas. GM can’t get from under its own weight let alone be sustainable or disruptive. Sony will join the ranks with GM unless Howard Stringer can figure out a way to get them out of the current “lack of innovation” hole they are in. On the other hand a real success has been the hybrid car Prius. Toyota realized that in order to stay ahead it had to bring to market a disruptive product that would take competition decades to catch up. Sustainable Disruption is an approach that needs to be adopted at all levels of the organization and everyone from the Board down needs to be help accountable.

Why are organizations struggling to grow or stay ahead of the game in their markets?
  • They have made their business model hard to execute
  • Their operational costs are volatile and most often over budget
  • They have a leadership vacuum
  • There is significant disconnect between their business development efforts and actual feet on the street sales
  • Their brand is diluted due to lack of focus
  • They lack thought leadership
  • They miss thinking about the client’s customer
  • They blame India and China for labor arbitration


These are basic areas that have long been ignored because leaders/organizations try to complicate the simple. It’s critical to address these seven areas if you want get sustainable disruption. Here are some very simple yet powerful thought processes to address the above:
  • If you can’t articulate your business model in two pages or less you have a problem.
  • Commoditize your business not your customer experience. This flat lines your operating costs and lets you focus on front-end issues.
  • If your key leadership team (c-level) is not willing to be fired for not meeting year end metrics/goals you have a problem.
  • If your brightest biz dev folks are your best sales people why aren’t they out selling?
  • True brand building is picking one or two key disruptors that the whole organization can rally around.
  • Make the rules that the market will follow.
  • “Third-Box” thinking. Your client’s customer is more important that your direct client.
  • With annual 8% economy growth numbers in countries like India - stop complaining and figure out a way how you will meet the demands of billion plus consumer base.

How do you create sustainable disruption?

  • Identify market disruptors that will benefit your organization
    This is a simple yet powerful exercise that focuses on looking at market drivers and coming up with a business model that will put your current organization out of business. Ask your leadership team “what are they going to screw up in the next 6-12 months?” It’s a very hard question to answer but one that needs to be addressed if you want to generate growth via untraditional approaches.
  • Act precisely and effectively to leverage the disruption
    Once the disruptors have been identified it’s extremely important to execute at three levels – people, process and technology. Just as computers have operating systems, organizations have Human Operating Systems which need to be upgraded consciously and regularly. For disruption to stay sustainable the business processes and supporting technology needs to be updated. Most often organizations make the mistake of blindly jumping into new technology and/or process improvement fad which are counterproductive. It’s better to leverage a commodity model when executing a disruptive strategy i.e. focus on front-end of the business and commoditized back office functions like HR, IT, Finance, Supply Chain etc. Execution is critical because the best successes came out of flawless execution not flawless strategies.
  • Gear up for the next disruption
    Just thinking long term is not good enough anymore. Organizations need to think about next generation disruptors i.e. changes in the market place from players who don’t exist today. For example it is very likely that India will become THE economic super power by 2020. While most of the progressive nations have spent time reflecting and gloating on past economic successes, countries like India and China are slowly but steadily disrupting the global economic model one programmer at a time. The reality for US firms is not how to keep from losing jobs to India but how can they be disruptive so they can leverage fast growth economies in countries like India and China.


So next time your Board asks about your growth strategy, go beyond traditional approaches and focus on a sustainable yet disruptive business model.
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