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'Kill the Company': Identify Your Weaknesses Before Your Competitors Do

December 17, 2012 / 09:55

This episode features Lisa, author of "Kill the Company," discussing corporate culture, innovation, and risk management. Key topics include identifying company vulnerabilities, the importance of middle managers, and how to foster a culture of change.

Lisa explains the "Kill the Company" exercise, where teams act as competitors to identify weaknesses in their own organization. This method encourages a shift in mindset, allowing leaders to confront their company's vulnerabilities.

She emphasizes the need for companies to assess their culture to understand their willingness to take risks. Lisa identifies complacency as a significant barrier to innovation, suggesting that organizations must avoid becoming stagnant.

Lisa shares insights from her research, highlighting that change should come from middle managers rather than top-down mandates. She argues that employees need skills like perseverance, agility, and strategic imagination to drive innovation.

Finally, she cites companies like Shell, GM, and BMW as examples of organizations successfully adapting their business models to stay relevant in a changing market.

TLDR

Lisa discusses corporate culture, innovation, and risk management in her book "Kill the Company."

Episode

9:55
00:00:01
[Music] [Music] Lisa thank you so much for joining us at knowledge of warden today thank you for
00:00:24
having me you open your book kill the company with a group of people ferociously plotting to decimate their
00:00:30
main competitor as they aim for Market domination but there's a Twist we discovered that this group is engaged in
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exercise to help them look at their own company's vulnerabilities it was their
00:00:40
own company that they had torn apart in fact what is kill the company all about oh I'm glad you asked it's of course my
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favorite exercise because it's the name of the book um you know kill the company
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is about um having an outof company experience it's about um really examining your weaknesses so you can
00:00:56
make them your strengths so the idea of kill the company is um rather than how it happens in most businesses that each
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year we we do a SWAT analysis you know our strengths weaknesses opportunities threats and most people use it as like a
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political construct to say where they're strong and they're not really weak it's
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where they're challenged and that doesn't really work and so kill the company is pretend that you are your
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number one competitor you have 30 minutes how will you put yourself out of business and what that does especially
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with Executives it kind of gets their War mentality on and they're given permission
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to really look at what's wrong and then ideally what you find out is where are
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you really weak what can you do about it who can you partner with and even best how can you then turn that back onto
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your competitors so it's just a neat way a neat twist in terms of looking at what
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how your weaknesses are but you give it kind of a gaming mentality right and part of what you're looking at is
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removing those obstacles to Innovation what what are some of those obstacles that you see well there's many there's
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many I mean I think inherently a lot of people are adverse to taking a risk and they don't realize it they'll say
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especially leaders that uh they want their teams to take a risk when they may be the biggest barrier to risk because
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they have so much on the line you know quarterly earnings they've got all kinds
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of things that they have to manage but I think U one of them is just aversion to
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risk another thing is is a lack of definition around how much risk you can take so those are some of the biggest
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barriers if you can have leaders all of a sudden be open to more risk and Define
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it I think they'll operate less with handcuffs and more with guard rails and
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be willing to do not just incremental change but really dramatic disruptive ones that's great and if a company is
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committed to making that kind of a change and looking at you know where they are uh where how would they go
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about looking at where they fall in The Innovation Spectrum well it depends on what you're
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talking about it could be around risk I think what they have to do is look at their culture and I talk a lot about
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this in the book and that I think you can really look at a company's culture
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and determine how much risk they're willing to take and I think they can look at a few things um how much do
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their Executives lead by example how much failure or experimentation are you allowed to take how much resources that
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can be time or money do they put towards new Ventures um what metrics are they measuring and do those metrics have to
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do with um uh new things new to Market New to the world types of Adventures and that will kind of give you a feeling for
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what is their culture like and are they really involved in leading Innovation or
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is it more of a lip service you'll get a real feel for that Spectrum quickly
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right right and just in terms of those those uh different types of cultures what what do you see are some of the uh
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main types of cultures within organizations well I uh I'll tell you it's interesting what I did over the
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last few years is I studied corporate cultures and change and what was fascinating to me is we seem to talk
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about change um or cultures in terms of good versus bad but I I don't think it's
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that simple actually I think there's another culture that permeates all the organizations that many of us have
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worked at and is probably like the silent killer um the worst kind of culture isn't a bad culture it's a
00:04:01
complacent one and I think the world has gotten so complex that we keep putting more and more processes in place and the
00:04:07
result of that is is that people become complacent they no longer think they can
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affect change even though they might want to they kind of give up it's the everything's just fine mentality and we
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see that at a lot of big corporations they've got the money and the brand and
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they can write it out for a long time until all of a sudden where did that small company come from who knew and
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they had a compl culture so I think that's that's something people really
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have to watch for in the future and if if an organization is ready to change if they have identified
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these things and um sort of reckon with their their own culture what are the what are the tenants to make change
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stick well there's a few in fact we did some um some case studies over the last
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couple years and because we didn't know what really made change stick and why
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corporate culture change was so hard and what we found through some of these case
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studies was it was interesting it wasn't what I thought when we first set out to
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do it the first was is that I think change has to happen not from the top down but from the middle out and what I
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mean by that is it has to really stick with people that are in the trenches and they're respected by leadership but
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they're admired from those that are rising stars these are the guys that are
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in the meetings and emails and slugging it out every day that I think can really
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affect change the most as long as of course leadership wants you to make that change in the first place the second
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thing is I think we think change is a um it's a process and I don't believe
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that's true I think that um if Innovation or change was a process we all could do it because I'm sure people
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are very smart and can follow the rules I think it's a toolkit I really think
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it's in this world that's so complex they need OnDemand tools that they can
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draw on with different things that come at them and then the final thing I think
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with change is um I can't I don't think it can be big mandates I think it has to
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be something called little bigs it's change with a little C we have to start
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affecting change on on an everyday level in those meetings with emails with reports with procedures we have to
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affect it by Leading by example in small ways to get people to them want to take
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big change and that's not something we expected we thought it would be big change initiatives and in fact it was
00:06:14
the opposite that worked so that was a great cool learning for us in in fact uh just to pick up on the
00:06:21
first part of what you talked about you cite Recent research from whon management Professor Ethan mik that
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shows that midle managers have more impact on a company's performance than nearly any other part of the
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organization you know according to this work you've done and the research you've
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done uh why is that important and can you tell us more about how um that that works well I think it's very um it's
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important for people that are in organizations and you know there's more managers than there are leaders right
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and those are the people that really are on the ground and that know how to run the business and can really affect
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change with so many different people so I I think it's important one to acknowledge it um I think two what you
00:06:56
find is like people don't want to fire lit from underneath right they don't
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want to uh fire lit from underneath them by leaders they want to fire lit within
00:07:04
them and people can't tell you to do that they have to really believe that they can affect change to do it so I
00:07:09
think the managers are the ones that really we need to concentrate on with change versus always these top- down
00:07:14
approaches we got to put more money here not just here you argue that employees need certain skills what are some of
00:07:21
those uh I again you know when we did some research it wasn't what I thought
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it's um it's some basic things it's perseverance I think especially with
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Innovation and change um you can't expect it to happen the first try so you have to have some perseverance that's
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hard in this really on demand do it this quarter World um I think you need to have agility you got to be able to Pivot
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have a plan B that's really important we talk a lot about um provocative inquiry
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I think that there's a lost art of asking questions so we're so focused on
00:07:52
getting the answer and being right that we've forgotten how to ask the right
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question some of it is because we don't want to make people comfortable um and I think some of it is
00:08:02
we've just forgotten how so provocative inquiries another one another one I'll
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mention is strategic imagination and I only say that because I want to separate it from you know creativity because I
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think people can come up with ideas but you've got to be a dreamer with purpose
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in today's day and age because there's only so much money and time so people
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that can really have strategic imagination I think will be the ones that rise to the top and can you tell us
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um as a final question about one or two of the companies that you think are are really um headed in the right direction
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when um and have done this type of work oh sure um I'm a big fan of shell and
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not many people mention oil or energy companies I a fan of them because I think what they do that's really
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interesting is they have um game changers or futurists on staff that are constantly looking to disrupt their
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business model so they imagine and they have plenty of money and they can make money for a long time without changing
00:08:53
but they imagine for example uh will we live in a world soon where we are no longer extracting energy but growing it
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and they start to build that kind of a business I think that companies like GM and BMW um they are looking at their
00:09:06
business models and saying well gosh if everybody is really moving towards Urban
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models and living in cities maybe they won't be able to drive as many cars so
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maybe we won't be a car company it will be a Mobility systems company so they're
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really doing Forward Thinking in terms of how they destroy or kill their own companies to become ones that they need
00:09:24
to be before someone else kills them very inspiring thank you very much for speaking with us today Lisa oh thank you
00:09:30
I appreciate it [Music]

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Episode Highlights

  • Kill the Company Concept
    Lisa discusses her book 'Kill the Company', focusing on examining weaknesses for strength.
    “Kill the company is about examining your weaknesses to make them your strengths.”
    @ 00m 44s
    December 17, 2012
  • The Silent Killer Culture
    Exploration of how complacent cultures hinder innovation and change.
    “The worst kind of culture isn’t a bad culture, it’s a complacent one.”
    @ 03m 59s
    December 17, 2012
  • Change from the Middle Out
    Lisa emphasizes that effective change must come from middle management, not just leadership.
    “Change has to happen not from the top down but from the middle out.”
    @ 05m 04s
    December 17, 2012
  • Everyday Change Matters
    Highlighting the importance of small, everyday changes in corporate culture.
    “We have to start affecting change on an everyday level.”
    @ 05m 58s
    December 17, 2012
  • Future of Mobility
    Discussion on how companies like GM and BMW are evolving into mobility systems.
    “Companies like GM and BMW are becoming mobility systems companies.”
    @ 09m 16s
    December 17, 2012

Episode Quotes

  • Kill the company is about examining your weaknesses to make them your strengths.
    'Kill the Company': Identify Your Weaknesses Before Your Competitors Do
  • The worst kind of culture isn’t a bad culture, it’s a complacent one.
    'Kill the Company': Identify Your Weaknesses Before Your Competitors Do
  • Change has to happen not from the top down but from the middle out.
    'Kill the Company': Identify Your Weaknesses Before Your Competitors Do
  • We have to start affecting change on an everyday level.
    'Kill the Company': Identify Your Weaknesses Before Your Competitors Do
  • Companies like GM and BMW are becoming mobility systems companies.
    'Kill the Company': Identify Your Weaknesses Before Your Competitors Do

Key Moments

  • Kill the Company00:44
  • Complacent Culture03:59
  • Change Dynamics05:04
  • Everyday Change05:58
  • Future of Mobility09:16

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