To Develop the Mindset to be Better at Innovation and Transformation
There are many reasons to lose sleep over “ What-ifs ” –
- What if tariffs disrupt my supply chain ?
- What if inflation hurts my customers ?
- What if a digital / Silicone Valley based company enters our space ?
- What if AI disrupts the business or the industry ?
- What if another technology triggers change – while we’re worrying about AI ?
An example of these concerns is CEO confidence plunging in April after President Trump unveiled broad and deep tariffs. In addition, Consumer optimism plummeted – even after the administration scaled some of them back. As well, enterprises like General Motors, UPS, and Delta Air Lines have withdrawn their earnings guidance because of the numerous unknowns and uncertainties stemming from the changing business landscape and concerns about the impact of these policies or other unforeseen events that make forecasting and planning problematic.
Interestingly, while the near future doesn’t look measurably different from the recent past, CEOs realize many of the unknowns and uncertainties haven’t appeared yet on their companies’ financial statements, in the inflation rate, in the jobless numbers, the overall economic impact, changes in consumer behavior or expectations, etc. In addition, there is the ongoing issue of decision makers with no or little technology backgrounds needing to determine how their organization is to transform to grow relevance and revenue in an increasingly digital world.
Bottom line – lots of reasons to be concerned !
Stated another way, it’s like the moment in a movie when someone says – “It’s quiet. Too quiet.” Despite the relative calm, there’s a general feeling that upheaval is just over the horizon, and that it could have a dramatic negative impact on things.
Take tariffs, if they’re here to stay (even in a reduced form), they’re just one variable – and the beginning of the bite ! Case in point : Walmart and many small sellers on Amazon depend heavily on Chinese suppliers are beginning to pass on the cost of increased import fees to consumers. That’ll mean higher prices, which generate more revenue – unless they scare too many buyers away, and it’s a wash, or worse, sales decrease. If a company gets this balance right, it can sustain or even increase its profits – but what are the odds of that ? Worse again is the dynamics might trigger a recession. Multiplying this consternation across many enterprises, it’s easy to see why Executives are losing confidence in established planning processes, strategic thinking, success metrics, notions of value, etc.
To put in perspective, Warren Buffett, a business icon, often chides investors and business leaders for expecting stability. He says – “ What CEOs hate is uncertainty. But to demand certainty, is to ask for the impossible. It was uncertain on September 10, 2001 when people just didn’t know how things would change the next day ! It’s uncertain every day, but uncertainty can be your friend.”
When uncertainty escalates into volatility, it simultaneously causes problems and creates opportunity. Further, disruption forces change by requiring people and companies out of their habits and updating their assumptions to adapt. With few people enjoying a crisis, good leaders see the changes and opportunities a significant change can bring – and want to be proactive to benefit from it. An example of this thinking is – “ Where is there new value ? “ , “ What are the new possibilities or expectations ? , “ Where is the money going to be ? ”, etc. + Asking many other questions to assess the opportunities and challenges.
The mindset needed to move forward is referred to as “ the Digital Way” so the organization is better positioned for a “Successful Transformation “ or to “ Innovate for Impact “ – with a focus on creating new value and emphasizing curiosity, empowerment, autonomy, strong look ahead, being good at exploring, having the willingness to try, etc. These are important attributes to improve the quality and timeliness of decision making – which is needed to prudently manage the changing nature of risk and meaningfully improve business outcomes.
For this to occur –
- Highlight the need for new thinking, concepts, processes, etc.
- Challenge or shed old habits
- Adopt a more entrepreneurial culture – built on rapid iteration and constant feedback.
- Ensure there are digital competencies in the C-Suite
- Utilize a portfolio approach to innovation and transformation initiatives
- Reward success and learn from failure
Summary
Developing the mindset needed to create significant new value is hugely determined by –
“ How you look at a situation “ – and – “ What you do to benefit from it “.
To be good at this, you need the team and the mindset with complimenting high level competencies.
Given many will struggle when a crisis occurs, organizations with the best leaders will find ways to benefit from change by leveraging their interests and abilities to –
- Look for opportunities
- Create new value
- Become more sophisticated in managing change and risk
- Trigger “ AHA Moments “
Why are “ AHA Moments “ important ? Because the sooner the spark occurs, the sooner you’re on the path to driving change – versus being a victim of it.
If developing this mindset is needed, please contact CAIL. In the interim, you’re welcome to learn more from the associated articles herein.
June 20, 2025 Fortune / CAIL CAIL Innovation info@cail.com www.cail.com 905-940-9000