We’ve seen this pattern before – notably in the realm of digital disruption. Rewards often flow disproportionately to first movers or, at a minimum, to companies at the forefront of addressing the disruptive threat. So what can established companies do? They can understand what makes disrupters different, lay a foundation for taking action and prioritise four imperatives:
Set a ‘North Star‘: a bold sustainability vision that sets them apart.
Double down on talent and culture.
Flex their operating model, with leaders role-modelling a bold experimental mindset.
Take an agile approach to risk capital, knowing commercialisation of products and services won’t happen overnight.
Incumbents hold numerous advantages over disrupters, from access to capital to deep institutional knowledge. While it can be difficult for incumbents to apply the playbook of the startup world, it is possible. By learning what makes their emerging competitors tick, they can learn how to be faster, compete more effectively and win.
From ‘Building a Green Business: Lessons From Sustainability Startups‘, McKinsey & Co.