Rita McGrath, best-selling author and professor at Columbia Business School, dives into the nuances of strategic inflection points in business. She explains how change may seem sudden but is often preceded by gradual shifts. McGrath outlines the four stages of inflection points and stresses the importance of being present at the edges of industries to spot emerging trends. She emphasizes enabling direct communication from the frontlines to leaders, encouraging a culture where even awkward insights are valued. It's all about anticipating change before it arrives!
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insights INSIGHT
Inflection Points
Strategic inflection points change underlying business assumptions.
This occurs by shifting constraints and challenging accepted reality.
question_answer ANECDOTE
Rand McNally Example
In 2006, Rand McNally's CEO dismissed the idea of paper maps disappearing.
He compared it to newspapers, believing people would always want physical copies.
insights INSIGHT
Peripheral Vision
People who foresee potential changes are often peripheral.
They possess diverse perspectives, unlike those immersed in daily operations.
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Seeing Around Corners
How to Spot Inflection Points in Business Before They Happen
Rita McGrath
Rita McGrath: Seeing Around Corners
Rita McGrath is a best-selling author, a sought-after speaker, and a longtime professor at Columbia Business School. She is one of the world’s top experts on innovation and growth and is one of the most regularly published authors in the Harvard Business Review. Rita is consistently ranked among the top 10 management thinkers in the world and was ranked #1 for strategy by Thinkers50.
Rita is the author of the bestseller The End of Competitive Advantage*. Her newest book is titled Seeing Around Corners: How to Spot Inflection Points in Business Before They Happen*.
In this conversation, Rita and I explore how it feels like change happens overnight, but why that’s not usually accurate. We detail four basic stages of inflection points, why it’s critical to be present at the edges, and what leaders can do practically to see around corners.
Key Points
Strategic inflection points feel like they happen overnight, but in reality there are many indicators over time that inflection points are coming.
The four basic stages of almost every inflection point: hype, dismissive, emergent, maturity.
Snow melts from the edges. The most effective leaders can and will see this if they are present at the edges.
To see early warning signs, create information flows that reach directly from leaders offices into the frontlines of the business.
Create incentives that reward useful (and awkward) information.
Talk to the future that is unfolding now. There are people, customers, and businesses where the future is already happening.
Resources Mentioned
Seeing Around Corners by Rita McGrath
Rita McGrath on LinkedIn
Breaking Up the Degree Stranglehold: Disruption in Higher Education
Only the Paranoid Survive* by Andrew Grove
Book Notes
Download my highlights from Seeing Around Corners in PDF format (free membership required).
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The Truth and Lies of Performance Management, with Michael Bungay Stanier (episode 361)
The Way to Nurture New Ideas, with Safi Bahcall (episode 418)
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