How to Go from Dinosaur to Disruptor in 3 Quotes

How to Go from Dinosaur to Disruptor in 3 Quotes

If you’re leading a legacy business through uncertainty, pay attention. When The Cut asked, “Can Simon & Schuster Become the A24 of Books?” I expected puff-piece PR. What I read was a quiet masterclass in business transformation—delivered in three deceptively casual quotes from Sean Manning, Simon & Schuster’s new CEO. He’s trying to transform a dinosaur into a disruptor and lays out a leadership playbook worth stealing.

Seventy-four percent of corporate transformations fail, according to BCG. So why should we believe this one might be different? Because every now and then, someone in a legacy industry goes beyond memorable soundbites and actually makes moves. Manning’s early actions—and the thinking behind them—hint that this is a transformation worth paying attention to.

 

“A lot of what the publishing industry does is just speaking to the converted.”

When Manning says this, he’s not just throwing shade—he’s naming a common and systemic failure. While publishing execs bemoan declining readership, they keep targeting the same demographic that’s been buying hardcovers for decades.

Sound familiar?

Every legacy industry does this. It’s easier—and more immediately profitable—to sell to those who already believe. The ROI is better. The risk is lower. And that’s precisely how disruption takes root.

As Clayton Christensen warned in The Innovator’s Dilemma, established players obsess over their best customers and ignore emerging ones—until it’s too late. They fear that reaching the unconverted dilutes focus or stretches resources. But that thinking is wrong.  Even in a world of finite resources, you can’t afford to pick one or the other.  Transformation, heck, even survival, requires both.

 

“We’re essentially an entertainment company with books at the center.”

Be still my heart. A CEO who defines his company by the Job(to be Done) it performs in people’s lives? Swoon.

This is another key to avoiding disruption – don’t define yourself by your product or industry. Define yourself by the value you create for customers.

Executives love repeating that “railroads went out of business because they thought their business was railroads.” But ask those same executives what business they’re in, and they’ll immediately box themselves into a list of products or industry classifications or some vague platitude about being in the “people business” that gets conveniently shelved when business gets bumpy.

When you define yourself by the Job you do for your customers, you quickly discover more growth opportunities you could pursue. New channels. New products. New partnerships. You’re out of the box —and ready to grow.

 

“The worry is that we can’t afford to fail. But if we don’t try to do something, we’re really screwed.”

It’s easy to calculate the cost of trying and failing. You have the literal receipts. It’s nearly impossible to calculate the cost of not trying. That’s why large organizations sit on the sidelines and let startups take the risks.

But there IS a cost to waiting. You see it in the market share lost to new entrants and the skyrocketing valuations of successful startups. The problem? That information comes too late to do anything about it.

Transformation isn’t just about ideas. It’s about choosing action over analysis. Or, as Manning put it, “Let’s try this and see what happens.”

Walking the Talk

Quotable leadership is cute. Transformation leadership is concrete. Manning’s doing more than talking—he’s breaking industry norms.

Less than six months into his tenure as CEO, he announced that Simon & Schuster would no longer require blurbs—those back-of-jacket endorsements that favor the well-connected. He greenlit a web series, Bookstore Blitz, and showed up at tapings. And he’s reframing what publishing can be, not just what it’s always been.

The journey from dinosaur to disruptor is long, messy, and uncertain. But less than a year into the job, Manning is walking in the right direction.

Are you?

I Thought I Knew Strategy Development – Then ChatGPT Blew My Mind

I Thought I Knew Strategy Development – Then ChatGPT Blew My Mind

It’s easy to get complacent about your strategy skills.  After all, our yearly “strategic planning” processes result in quarterly “strategic priorities” that require daily “strategic decisions.” So, it’s reasonable to assume that we know what we’re doing when it comes to strategy development.

I’ll admit I did. After all, I’ve written strategic plans for major brands, developed strategies for billion-dollar businesses, and teach strategy in a Masters program.

I thought I knew what I was doing.

Then ChatGPT proved me wrong.

 

How it Began

My student’s Midterm assignment for this semester is to develop, recommend, and support a strategy for the companies they’ve studied for the past seven weeks. Each week, we apply a different framework – Strategy Kernel, SWOT, Business Model Canvas, Porter’s 5 Forces, PESTLE, Value Chain – to a case study. Then, for homework, they apply the framework to the company they are analyzing.

Now, it’s time to roll up all that analysis and turn it into strategic insights and a recommended strategy.

Naturally, they asked me for examples.

I don’t have a whole lot of examples, and I have precisely none that I can share with them.

I quickly fed The LEGO Group’s Annual Report, Sustainability Report, and Modern Slavery and Transparency Statements into ChatGPT and went to work.

Two hours later, I had everything needed to make a solid case that LEGO needs to change its strategy due to risks with consumers, partners, and retailers. Not only that, the strategy was concise and memorable, with only 34 carefully chosen words waiting to be brought to life through the execution of seven initiatives.

Two hours after that, all of my genius strategic analysis had been poured into a beautifully designed and perfectly LEGO-branded presentation that, in a mere six slides, laid out the entire case for change (which was, of course, supported by a 10-page appendix).

 

The Moment

As I gazed lovingly at my work, I felt pretty proud of myself. I even toyed with the idea of dropping a copy off at LEGO’s Back Bay headquarters in case they needed some help.

I chuckled at my little daydream, knowing no one would look at it because no one asked for it, and no implementers were involved in creating it.

That’s when it hit me.

All the reasons my daydream would never become a reality also applied to every strategy effort I’ve ever been part of.

  • No one looks at your strategy because it’s just a box to check to get next year’s budget.
  • No one asks for it because they’re already working hard to maintain the status quo. They don’t have the time or energy to imagine a better future when they’re just trying to get through today.
  • No one responsible for implementing it was involved in creating it because strategy is created at high levels of the organization or outsourced to consultants.

What the strategy is doesn’t matter.*

What matters is how the strategy was created.

Conversation is the only way to create a successful, actionable, and impactful strategy.

Conversation with the people responsible for implementing it, they people on the ground and the front lines, the people dealing with the ripple effects of all those “strategic” decisions.

 

How It’s Going

Today, I’m challenging myself—and you—to make strategy a dialogue, not a monologue. To value participation over presentation. Because strategy without conversation isn’t strategy at all—it’s just a beautiful document waiting to be forgotten.

Who are you inviting into your next strategy conversation that isn’t usually there but should be? Share in the comments below.

Risk Management in Uncertain Times: How Innovation Tools Help You Stay Safe

Risk Management in Uncertain Times: How Innovation Tools Help You Stay Safe

Risk management is critical in uncertain times. But traditional approaches don’t always help when volatility, ambiguity, and complexity are off the charts.

What many leaders overlook in their rush to safety is that many of the most effective tools for managing risk come from an unexpected place: innovation.

 

The Counterintuitive Truth About Risk Management

Risk Management’s purpose isn’t to eliminate risks. It’s to proactively identify, plan for, and minimize risk.  Innovation is inherently uncertain, so its tools are purpose-built to proactively identify, plan for, and minimize risk.  They also help you gain clarity and act decisively—even in the most chaotic environments.

Here are just three of the many tools that successful companies use to find clarity in chaos.

 

Find the Root Cause

When performance dips, most leaders jump to fix symptoms. True risk management means digging deeper. Root cause analysis—particularly the “5 Whys”—helps uncover what’s really going on.

Toyota made this famous. In one case, a machine stopped working. The first “why” pointed to a blown fuse. The fifth “why” revealed a lack of maintenance systems. Solving that root issue prevented future breakdowns.

IBM reportedly used a similar approach to reduce customer churn. Pricing and product quality weren’t the problem—friction during onboarding was. After redesigning that experience, retention rose by 20%.

 

Focus on What You Can Actually Control

Trying to manage everything is a recipe for burnout. Better risk management starts by separating what you can control, what you can influence, and what you can only monitor. Then, allocate resources accordingly.

After 9/11, most airlines focused on uncontrollable external threats. Southwest Airlines doubled down on what they could control: operational efficiency, customer loyalty, and employee morale. They avoided layoffs and emerged stronger.

Unilever used a similar approach during the global supply chain crisis. Instead of obsessing over global shipping delays, they diversified suppliers and localized sourcing—reducing risk without driving up costs.

Attack Your “Deal Killer” Assumptions

Every plan is based on assumptions. Great risk management means identifying the ones that could sink your strategy—and testing them before you invest too much time or money.

Dropbox did this early on. Instead of building a full product, they made a simple video to test whether people wanted file-syncing software. They validated demand, secured funding, and avoided wasted development.

GE applied this logic in its FastWorks program. One product team tested their idea with a quick prototype. Customer feedback revealed a completely different need—saving the company millions in misdirected R&D.

 

Risk Management Needs Innovation’s Tools for a VUCA World

The best risk managers don’t just react to uncertainty—they prepare for it. These tools aren’t just for innovation—they’re practical, proven ways to reduce risk, respond faster, and make smarter decisions when the future feels murky.

What tools or strategies have helped you manage risk during uncertain times? I’d love to hear in the comments.

Why “Innovation” is Killing Innovation (Hint: it involves peanut butter and cats)

Why “Innovation” is Killing Innovation (Hint: it involves peanut butter and cats)

Innovation is not peanut butter.

You can’t smear it all over something and enjoy the deliciousness.

In other words, “Innovation” is not a one-sized-fits-all term.  If you apply it to everything new and different that you’re doing, you’ll be confused, frustrated, and ultimately left with very little to show for your efforts.

In a previous post, I defined Innovation as something different that creates value.  For companies to increase their odds of creating value, however, they need to develop a language and discipline around at least three different types of innovation.

Why do I need different types of innovation?

Imagine if we used the word “Cat” to describe every feline from a house-cat to a lion.  If you proudly proclaim that you just got a new cat, people might wonder whether that purchase was truly legal.  If you yell, “There’s a cat behind you!” people might not react with the level of urgency required.

Specificity enables rapid understanding which leads to better decision making.

Labeling everything new and different with the term “innovation” can result in dramatically under-resourcing some efforts and prematurely canceling others.  After all, launching an entirely new business model takes far more time, money, people, and patience than launching an improved version of an existing product.  You need a language that reflects that.  

Why do I need at least three types of innovation?

Because, after decades of research and application, academics and practitioners alike seem to agree that two is too few and, since three comes after two and three seems to work, you need at least three.  (Doblin said 10 but that feels like too many to remember).

Which three should I use?

The three that best reflect your company’s strategies, priorities, and culture.

I know that’s a bit vague, but the truth is that there is no one right answer.  The only “right answer” I’ve ever seen is the one that sticks, that advances key corporate strategies, and that enables thoughtful decision making.

Start Here

When one of my clients is at the very beginning of building their innovation capability, we start simple

  1. Core Innovation is improvements to what they currently do
  2. Adjacent refers to innovations which combine existing and new elements (e.g. selling an existing offering to a new customer, selling a new offering to an existing customer, or monetizing an existing offering in a new way)
  3. Breakthrough innovations change everything (e.g. new offerings to new customers, monetized and delivered in new ways)

We then develop a high-level innovation process that can apply to all three (this helps with communication across the company and reinforces that everyone can participate in innovation). From there, we create more detailed structures, processes, tools, trainings, and timelines for each type of innovation to ensure that we have a balanced innovation portfolio, allocate appropriate levels of resources, and set realistic expectations with regards to timelines and ROI.

But what about (fill in the framework here)?

Again, the two most important things about innovation types are that (1) you define them and (2) they are practical, actionable, memorable, and enable progress against your strategic priorities.

That said, there are other Innovation Type frameworks from which you can draw inspiration.  Here are three of the most popular

McKinsey’s 3 Horizons Making its debut in the 1998 book The Alchemy of Growth, McKinsey’s 3 Horizons frameworks remains a favorite amongst consultants and executives (but not Steve Blank, who thinks it no longer applies).

The book argued that for companies to kick-start growth or continue to grow rapidly, they need to simultaneously focus on three “horizons of growth:”

  1. Horizon 1 ideas drive continuous improvements in existing offerings, business models, and capabilities
  2. Horizon 2 ideas extend the core to new customers or markets
  3. Horizon 3 ideas create new capabilities or businesses in response to disruptive opportunities or threats

Clayton Christensen

In his 2014 Harvard Business Review article, “The Capitalist’s Dilemma,” Professor Christensen wrote that the terms he famously coined, “disruptive” and “sustaining” innovation, are not types of innovation, rather they describe “the process by which innovations become dominant in established markets and the new entrants challenge incumbents.” Innovation types, however, should describe the outcome of the innovation.  The three he identified are:

  1. Performance-improving innovations that replace old products with new better models
  2. Efficiency innovations that enable companies to sell existing products to existing customers at lower prices
  3. Market-creating innovations that combine an enabling technology that rapidly reduces costs with a new business model to reach new customers, resulting in the creation of (as the name implies) entirely new markets.

P&G

From 2000 through 2012, P&G, under the leadership of CEO AG Lafley,  improved its innovation success rate from 15% to 50% and doubled the average size of successful initiatives.

One of the first steps in achieving these dramatic results was to define 4 types of innovation.

  1. Commercial innovations that increase trial and use of existing products
  2. Sustaining innovations that make existing products better, faster, cheaper, or easier to use
  3. Transformational innovations that deliver a step-change improvement in a product’s performance, ultimately setting new performance expectations for a category
  4. Disruptive innovations (new brands or business models) that “win through simplicity or affordability”

 

OK, I’m on-board.  How do I start?

My clients and I follow these four steps:

  1. Put a stake in the ground and name 3 types of innovation. Don’t overthink it.  Just pick three types and go on to step 2
  2. Share the types (names and definitions) with people and see how they react. Do they immediately understand?  Do they look confused?  Do they recoil in horror?  Get curious about their reactions and ask for feedback.  Refine your types and their definitions until a majority of people immediately understand (note: you’re not going for 100% agreement because that never happens, you’re going for “good enough with no one violently disagreeing)
  3. Map your innovation initiatives to each type.
    • Are there types with no initiatives? Is that type critical to achieving a strategic priority or key metric?
      • If yes, you have a gap in your portfolio.
      • If no, get rid of the type.
    • Are there initiatives with no types? Is that initiative critical to achieving a strategic priority or key metric?
      • If yes, create a type to describe that (and hopefully other) initiatives.
      • If no, get rid of the initiative.
  4. Share your innovation portfolio with key decision-makers and start developing your innovation strategy.

 

Congrats, you have a working draft of your Innovation Types!  You’ve taken a crucial first step in your journey getting real results from innovation.  Reward yourself with some peanut butter!

Back to Basics: What is Design Thinking?

Back to Basics: What is Design Thinking?

Last week, I published a post with a very simple goal – define innovation so we can stop debating what it means and start doing it.

The response was amazing.  So, I figured that this week I would tackle another buzzword – Design thinking.

We’ve all heard it and we’ve probably all said it but, like “innovation’ we probably all have a different definition for it.  In fact, in the last few months alone I’ve heard it used as a synonym for brainstorming, for customer interviews, and for sketching while talking.  Those things are all part of Design thinking but they aren’t the entirety of Design thinking.

 

What I tell my clients

When a client asks if we’re “doing Design thinking,” here’s what I say;

“Yes, because Design thinking is a way of solving problems that puts customers and stakeholders, not your organization, at the center of the process and seeks to produce solutions that create, capture, and deliver value to your customers, stakeholders, and your company.”

 

The Basics
  • What: One could consider the official definition of Design thinking to come from Tim Brown, Executive Char of IDEO, who stated that “Design Thinking is a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success”
  • Why: Useful in solving “wicked problems,” problems that are ill-defined or tricky and for which pre-existing rules and domain knowledge will be of limited or no help (or potentially detrimental)
  • How:
    • Inspiration: Understand the problem by building empathy with stakeholders (deeply understand their functional, emotional, and social Jobs to be Done) and document that understanding in a brief that outlines goals (ideal end state), bounds (elements to be avoided), and benchmarks against which progress can be measured
    • Ideation: Generate ideas using brainstorming to develop a vast quantity of ideas (divergent thinking) and then home in on the ideas at the intersection of desirability, feasibility, and viability that best fit the brief (convergent thinking)
    • Implementation: Prototype ideas so that they can be tested, evaluated, iterated, and refined in partnership with customers and stakeholders, ensuring that humans remain at the center of the process.
  • When: At the start of any R&D or development process
    • Traditionally, design was involved only in the late stages of development work, primarily to improve a solution’s functionality or aesthetic. Design Thinking’s ability to pull the designer mindset into the earliest phases of development is, perhaps, one of the biggest impacts it has made on business and technical fields
  • Where: Can be done anywhere BUT, because it is a human-centered approach, it must involve multiple human beings through the process
  • Who: Anyone who is willing to adopt a “beginner’s mind,” an attitude of openness to new possibilities, curiosity about the problem and the people with it, and humility to be surprised and even wrong

 

Important Points & Fun Facts
  • Design Thinking IS a human-centered design approach. This means that it seeks to develop solutions to problems by involving the human perspective at every single step of the process
  • Design thinking is NOT synonymous with user-centered design though user-centered design could be considered a subset of Design Thinking because it gives attention to usability goals and the user experience

 

  • Design Thinking was NOT invented by IDEO, but I would argue that they have done more to popularize it and bring it into the mainstream, especially into business management practices, than any other person or firm.
  • Design Thinking IS the product of 50+ years of academic and practical study and application. Here’s some fun facts:
    • 1935: The practice of Design thinking was first established by John Dewey as the melding of aesthetics and engineering principles
    • 1959: The term “Design thinking” was coined by John E. Arnold in his book Creative Engineering
    • 1991: the first symposium on Design Thinking was held at Delft University in the Netherlands
    • 2000s: Design thinking is widely adopted as an innovation approach thanks to books by Richard Florida (2002), Daniel Pink (2006), Roger Martin (2007), Tim Brown (2009), and Thomas Lockwood (2010)
    • 2005: Stanford’s d.school begins teaching Design thinking as a general approach to innovation

 

  • Design Thinking is NOT just for radical/breakthrough/disruptive innovation
  • Design Thinking IS useful for all types of innovation (something different that creates value) resulting from wicked problems. In fact, as far back as 1959, John E. Arnold identified four types of innovation that could benefit from a Design thinking approach:
    1. Novel functionality, i.e. solutions that satisfy a novel need or solutions that satisfy an old need in an entirely new way
    2. Higher performance levels of a solution
    3. Lower production costs
    4. Increased salability

 

If you want to learn more…

As noted above, there are lots of resources available to those who are deeply curious about Design thinking.  I recommend starting with Tim Brown’s 2008 HBR article, Design Thinking, and then diving into IDEO’s extremely helpful and beautifully designed website dedicated entirely to Design thinking.

 

Here’s what I’d like to learn…
  • Was this helpful in clarifying what Design Thinking is?
  • What, if anything, surprised you?
  • What else would you like to know?

 

Drop your thoughts in the comments or shoot me an email at robyn@milezero.io