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The art of staying on the top
Shining today, gone tomorrow? For every Apple, there is an Atari, for every Fuji a Polaroid and for every Netflix a Blockbuster.
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Netflix app on tablet screen. Netflix is an international leading subscription service for watching TV episodes and movies. (Shutterstock/Diabluses)
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hining today, gone tomorrow? For every Apple, there is an Atari, for every Fuji a Polaroid and for every Netflix a Blockbuster. It’s harder to stay on top than to get there. How can you avoid the seemingly inevitable and become an “evergreen” corporation?
Our past research has established that companies die sooner than ever before: one in three public companies overall and one in six large companies will not survive the next five years. Despite this threat to their longevity, companies are more focused than ever on the short term.
And, the biggest threat to the survival of large companies may come from their own lack of strategic renewal.
What does this mean? Markets are more dynamic and diverse than in the past, requiring companies to innovate and self-disrupt more frequently and decisively.
In other words, large companies comprising multiple businesses need to be ambidextrous: to apply different and even contradictory approaches to strategy and execution in different parts of their business.
Our research shows that while only a small minority of companies achieve ambidexterity, those that do perform significantly better than those that do not.
Ambidexterity also means balance — exploiting existing business options while exploring new ones, running and reinventing the company at the same time. Exploratory activities include searching for, nurturing, and scaling growth opportunities, whereas exploitative activities involve refining existing recipes for success.
