Jonathan MacDonald: 7 Mindsets Needed to Create the Most Powerful Business Models
“You can avoid reality, but you cannot avoid the consequences of avoiding reality.”
On the 4th September, Jonathan MacDonald presented ‘How To Think Differently And Powerfully About Perpetual Change’ for ZeeMelt 2020.
Change, as we all know, is a very 🔥 topic.
Within the whirlpool of change that the world is constantly going through, it can be hard to find where to focus our attention.
Well, in his presentation, Jonathan delineated what headspaces we need to get into to keep our business lives afloat and functioning (perhaps better than ever before). We can either build a wall and resist change, or build a windmill and be powered by it.
These are the titular ‘7 Mindsets Needed to Create the Most Powerful Business Models’ that we’ll go through now.
(They’re really helpful, promise.)
Productive Paranoia.
First, think about what paranoia is. Often the fearful awareness of something bad that could happen acts as a paralytic agent for productivity.
This can be due to an unwillingness to act or uncertainty of how to embrace the change.
What should we do instead of freezing up at the sight of change on the horizon? How can we work with the feeling of paranoia?
The key is to recognise which stage of the ‘DNA of Disruption’ you’re at (this is a Jonathan MacDonald term so, don’t worry, I’ll explain it).
The initial stage of the DNA is the ‘fundamental change’. The first sighting of the monster coming over the hill, if you will. Awareness is essential.
The next stage is the ‘low threat rating’. The problem appears far enough away that we don’t need to take it seriously or overly concern ourselves.
Then the change becomes mainstream, at which point it’s too late to do anything about it, for the most part.
You need to be productively assessing the change in the first stage. As soon as you see that monster, pick up a pitchfork. 🏃♀️
Consider: what is happening in your industry? What can you see emerging - can you get involved or innovate it?
2. Elevate.
Take a bird’s eye view of your company perspective. What is the real overall purpose?
“The business we’re in is different to the one we think we’re in.”
What is stopping you from taking a wider perspective? If your company creates sports shoes, aren’t you really in the business of sports performance?
Why limit the possibilites to a miopic level?
Think Fujifilm - they began their brand producing photography film. Film is affected by light, sourced from the sun, which affects the skin. They now have a skincare brand under their hat, Astalift.
Fujifilm made the SUN ☀️their business. Talk about taking a bigger perspective.
“Our ability to innovate is directly proportional to our ability to elevate.”
3. Barrier Navigation.
Let’s return to the questions of what’s stopping you from elevating your perspective and getting ahead of the change?
Is it the structure of the company? Are there too many people saying ‘no’?
(Don’t get me wrong, you can’t do every idea you come up with, and there are times where the ‘no’-guy is necessary, but everything in moderation 🤷🏻♀️.)
Are people stuck in their comfort zone and unwilling to get out? Think about what you could do to make people feel ok with being less comfortable.
For some people, having a better understanding can decrease their fear level.
“Increasing the amount of facts available involves increasing the amount of speculating you do.”
4. Paradox Management.
Once the first 3 mindsets have been taken on board, we hit a paradox. How can we think differently when we’re also supposed to be thinking the same?
The expectations of investors or partners are that business will be proceeding as usual - how can you meet expectations of the old ways while implementing the new?
Big questions. 🤯
Well, it’s a balancing act. Allowing the old and new to co-exist is essential to keeping at the apex of the wave of change.
5. Alternative ROI: Risk of Inaction.
Not talking about Return on Investment 💵, as you might expect. Although it may be more interesting or exciting to think about what will happen
What happens if you watch change happening and do nothing? What will be the repercussions of inaction?
“The benefit needs to outweigh how much it would cost to change, or the cost of not changing. ”
6. Mess Finding.
There will always be a mess that needs to be found and fixed.
It can be an internal mess, which will obviously require intervention (see Janet in HR 💼).
The best kind of mess to find is one in your industry. As Jonathan says, “Where there’s a mess, there’s a market”. If you get to the mess first, you can fix it first.
If you manage to find a mess without a market…exploit it.
Here’s how to start:
Start with the most simple mess.
Use existing solutions to fix the mess.
Keep the solutions super simple.
Don’t make more mess.
7. Enabling Culture.
The culture of your company has a huge effect on how it functions. A company culture that enables employee growth will get the most out of them.
If you aren’t familiar, acquaint yourself with Kurt von Hammerstein-Equord’s “Theory of Army Formation”. Jonathan MacDonald drew inspiration from it when he came up with a new formation - one more heavily weighted towards will and skill than cleverness and laziness.
He reasons that you can train skill, but you can’t train will. An employee has to want to be part of the company perspective and culture.
The value comes from finding the willing and making them skilled.
💥 If you want to learn more about engendering a productive company culture (or any of the elements above), pre-register for our upcoming Creative Leadership course now. 💥
