165
See also: Managing risk 40–41 ■ Luck (and how to get lucky) 42 ■ Reinventing and adapting 52–57 ■ Creativity and
invention 72–73 ■ Beware the yes-men 74–75 ■ Thinking outside the box 88–89 ■ The learning organization 202–07
WORKING WITH A VISION
to “turn every disaster into an
opportunity.” As the world turned
to electric lighting from kerosene oil
lamps, his business was threatened.
However, he quickly saw the
potential of Ford’s automobile and
realized that oil could just as easily
be converted to gasoline as
kerosene. His fortune rocketed.
Constant learning
Personal experience is recognized
as the way individuals learn, and it
is much the same for organizations;
they gain knowledge and capability
from corporate experience. The
pace of change in the global market
means that constant improvement
has become the norm. The greatest
challenge, however, is for
companies to recognize failure and
learn from it. In order to do this, an
organization needs to build a
culture in which people are not
criticized or penalized for mistakes,
but are actively encouraged to gain
useful insights from them.
Some companies recognize that
it is only through failure that
success can be found, and build
this principle into their culture. US
corporation 3M, for example, allows
technical staff to allocate 15 percent
of their time to experimenting with
ideas, understanding that there will
be occasional winners (such as the
Post-it Note) along with the
repeated failures.
Recognizing error, cutting
losses, spotting new opportunities,
and changing course is a test of
leadership and also sends out a
positive message to those who
work in the organization. It requires
rational, unemotional thought that
focuses on the costs and benefits
of changing direction.
In the mid-1980s, the Coca-Cola
Company decided to replace its
original formula with a sweeter
product: New Coke. In the US, this
prompted consumer protests. The
company learned that US consumers
were protective of Coca-Cola and
felt unhappy about any tampering
with the recipe. The CEO quickly
reintroduced the original formula as
Coke Classic. By responding quickly,
he grasped an opportunity for
significant publicity; sales soared.The world’s third-largest retailer,
Tesco, opened its Fresh & Easy
stores in the US in 2007. After six
years and $2.27 billion in costs,
it admitted failure and pulled out.
The stores were unsuccessful
because Tesco misjudged the
shopping habits of its target
customers. Chairman Richard
Broadbent said they had learned
the value of remaining open-
minded about projects. Flexibility,
feedback, and fast response are key
to finding a new path via failure. ■J. D. Rockefeller John Davidson Rockefeller was
born in 1839 in Richford, NY.
At age 16, he took a job as an
assistant bookkeeper with a
commission-merchants business.
Just four years later, he set up
his own, similar company with
a partner: it grossed $450,000
in the first year. He then opened
his first oil refinery in 1863,
founding Standard Oil.
Rockefeller’s business interests
made him the richest person in
the world at the time, but his
practices were unpopular.
Realizing the value of effective
distribution, he arranged anexclusive deal with the railroad
company to transport his oil,
putting all his competitors out
of business. Standard Oil gained
a monopoly position first in
Cleveland and then in the US.
In 1902 his monopoly in refining,
transporting, and marketing oil
made headline news and the
company was broken up by the
US Supreme Court in 1911.
Rockefeller then became the
world’s greatest philanthropist,
giving away around $350
million, and setting up many
charitable institutes. He died
in 1937, at 97 years old.I have not failed.
I’ve just found 10,000 ways
that won’t work.
Thomas A. Edison
US inventor (1847–1931)