Of all the ailments endemic to large corporations, perhaps the most cancerous of all is tunnel vision. The symptoms are subtle, if visible at all. In fact, years of acceptable performance against key metrics mask any early symptoms and warning signs. And typically, a culture of rewarding continuity, stability and caution percolates across the organisation.
So what is wrong with this, you ask? Surely, we should put a premium on battle hardened leaders who appear impervious to any crisis or uncertainty around the corner?
Perseverance and resilience are admirable qualities in leaders – so long as they do not inhibit risk taking, creativity, pushing boundaries and continuous innovation. Business history is littered with examples of corporations that have fallen on either side of the divide – those who have stayed true to their original charters, and those who have rewritten their DNA to become market leaders in emerging industries.
In recent years, the threat of tunnel vision to established corporations has become increasingly apparent, thanks in large measure to the great level playing field that is the internet. A remarkably large number of new entrants have usurped market share and brand loyalty from powerhouse corporations who had the wherewithal to succeed, but sorely lacked imagination.
Consider the travel industry. Both airlines and travel agencies had enjoyed cosy relationships that guaranteed steady revenue for all. For decades, customers twisted and turned in their seats to sneak a peak into the mysterious and magical terminal used with aplomb by booking agents. When the internet empowered customers to take control of this experience, it was new entrants like Expedia and Travelocity that captured our imagination. They created services that would go beyond airline and hotel bookings, and include tools and advice that helped us plan our entire holiday. It wasn’t until a few years later that the airline industry retaliated with their online travel site Orbitz. Even the code name for the initiative termed T2 – apparently meaning Travelocity Terminator – conveyed better than anything else the reactionary rather than proactive forces at play.
Tunnel vision is especially acute in financial services. Some of the most interesting innovations have come from new players in the industry. The most notable of all is PayPal. To date, leading banks have had a lukewarm response to PayPal, especially for small and medium sized businesses who, having trusted existing relationships with their banks, would certainly feel more secure about using their banks online payment gateways. And yet, setting up an online merchant account via your local bank is a technical exercise that can frustrate and intimidate – compared with the simple and efficient process offered by PayPal. Other innovative examples in financial services include websites like mint.com, a site that aggregates a person’s financial activity across multiple service providers, and makes offers and recommendations that can help save the user money. Or peer-to-peer lending sites like zopa.com, and socially conscious services like kiva.org that have created a new platform for lending and borrowing small sums of money.
Large, established corporations are fully capable of innovating, and even reinventing themselves. Consider the example of Finnish company Nokia, which began as a wood-pulp mill, and over the course of its history produced bicycle and car tires, and even footwear. Not every organisation has to endure such extreme transformation. But combating tunnel vision is essential to survival today – and risk taking, pushing ourselves to be creative, and to innovate continuously should be the new mantra at work.
Besides, remember the battle hardened leaders traditionally cultivated in large organisations – surely they can steer the rest of us as we push boundaries.
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