{"id":1428,"date":"2024-04-17T17:43:04","date_gmt":"2024-04-17T17:43:04","guid":{"rendered":"https:\/\/aidanmccullen.com\/?p=1428"},"modified":"2024-04-17T17:43:04","modified_gmt":"2024-04-17T17:43:04","slug":"burning-down-the-building-platform-next-door","status":"publish","type":"post","link":"https:\/\/aidanmccullen.com\/?p=1428","title":{"rendered":"Burning Down The Building (Platform) Next Door"},"content":{"rendered":"<div>\n<p><strong><em>\u201cEmotionally, it\u2019s easier to change when you\u2019re haemorrhaging.\u201d\u200a\u2014\u200aAndy\u00a0Grove<\/em><\/strong><\/p>\n<p>Conventional wisdom suggests that to effectively motivate people for digital transformation, a leader needs a burning platform\u200a\u2014\u200aa narrative of how an external threat is going to disrupt your organisation, such that you must either change quickly or go up in\u00a0flames.<\/p>\n<p><strong><em>\u201cWe had a series of misses. We haven\u2019t been delivering innovation fast enough. We\u2019re not collaborating internally. Nokia, our platform is burning.\u201d\u200a\u2014\u200aStephen\u00a0Elop<\/em><\/strong><\/p>\n<p>The term \u201cburning platform\u201d comes from a famous memo written by Stephen Elop, the CEO of Nokia at the time, who was trying to awaken his executives from their inertia. Despite Nokia being the leading company in mobile phones for years, Elop highlighted the existential threat posed by Apple\u2019s iPhone and Google\u2019s Android, urging a drastic and immediate response to these disruptive technologies.<\/p>\n<p>The Innovation Show is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.<\/p>\n<p>In the memo, he relates a story about a worker on an oil platform in the North Sea waking to find the entire platform on fire after an explosion. The memo is worth a read, see <a href=\"https:\/\/www.engadget.com\/2011-02-08-nokia-ceo-stephen-elop-rallies-troops-in-brutally-honest-burnin.html.\">here<\/a>. As we know, Elop\u2019s burning platform was not enough and Nokia\u2019s mobile phone business went up in smoke. Nokia sold its phone business to Microsoft and exited the category.<\/p>\n<p>This sense of urgent, existential threat exemplifies why companies often find it easier to transform when faced with clear, linear, and imminent risks. Success, ease, and prosperity can be the biggest enemy of innovation.<\/p>\n<p>It took the murder of George Floyd in 2020 for companies to act on their neglect of diversity, equity, and inclusion. It took Russia to invade Ukraine and the business implications of operating within a nation known for corruption became starkly clear. Even the widespread issue of environmental damage only reached a tipping point in public and corporate consciousness following a revealing documentary by David Attenborough on corporate packaging practices.<\/p>\n<p>Organisational transformation seems to occur only in the wake of visible disruption. Similarly, individuals often only undertake significant lifestyle changes after facing severe health crises, despite years of prior warnings. This pattern suggests that both learning and change are most profound during crises. Consider, for instance, how the COVID-19 pandemic acted as a catalyst, forcing countless organisations to spring into action and adapt to new realities, underlining the intense impact that immediate threats can have on prompting decisive\u00a0change.<\/p>\n<p><strong>\u201cA man who carries a <em>cat<\/em> by the <em>tail<\/em> learns something he can learn in no other way.\u201d\u200a\u2014\u200aMark\u00a0Twain<\/strong><\/p>\n<p>The absence of a palpable threat often represents a significant barrier for those looking to initiate change. Phrases like \u201cIf it ain\u2019t broke, why fix it?\u201d are delivered with self-assured confidence, illustrating how triumphs can inadvertently sow the seeds of future failures.<\/p>\n<p>Consider IBM in the late 1970s and into the early 1980s, when Jobs and Wozniak were laying the groundwork for Apple Computer. While Apple grappled with the challenge of evolving its products beyond the hobbyist realm, IBM was reaping substantial profits from its established mainframe business. For IBM\u2019s senior executives, the idea of their lucrative revenue streams drying up, or envisioning that Apple could develop into a formidable competitor, was almost inconceivable. In the context of the global business landscape, and more specifically against IBM\u2019s reputation for reliability and performance in mainframe computing, it\u2019s understandable why IBM\u2019s top management might have struggled with this predicament.<\/p>\n<p>Just as IBM\u2019s initial disregard for the potential of personal computers is a cautionary tale, so too is the history of Levi Strauss through the 1990s. Throughout the early part of the decade, Levi\u2019s witnessed strong revenue growth, a success that unfortunately masked critical shifts in customer behaviour that would undermine the company. Despite losing relationships with key distributors like the Gap and facing new competition from both high-end designers and low-end retailers introducing their own jeans, Levi\u2019s initially perceived these challenges as manageable\u200a\u2014\u200aor even ignorable\u200a\u2014\u200aas long as the revenue numbers looked promising.<\/p>\n<p>However, by the late 1990s, as revenue growth began to stall, it became clear that Levi\u2019s market share had dramatically decreased, and the company found itself burdened with an expensive retail strategy and a product line that was misaligned with the evolving market demands at both the high and low ends of the denim market. Throughout the decade, the signs of these market shifts were clear to Levi\u2019s executives; however, the challenge lay in discerning the critical signals from the noise, as the illusion of ongoing success obscured the true gravity of the evolving market dynamics. Levi\u2019s experience underscores the difficulty of adapting to market changes without the impetus of a \u201cburning platform\u201d\u200a\u2014\u200aa scenario where the urgency of declining sales is\u00a0absent.<\/p>\n<p>When an organisation is not experiencing a crisis, rallying everyone around the need for transformation<strong><em> is the immediate threat<\/em><\/strong>.<\/p>\n<p>Many frustrated changemakers have realised that compelling facts and logic alone will not motivate action. They send articles, podcasts, and keynotes in the desperate hope that those in positions of authority might take notice. As American novelist and social reformer Upton Sinclair noted \u201c<strong>It is difficult to get a man to understand something when his salary depends on his not understanding it.\u201d <\/strong>Furthermore, people are bombarded with information and misinformation, pros and cons, rewards, and penalties. Decision-making is more complex than ever before. In such cases, you might require an impactful event to truly compel\u00a0action.<\/p>\n<h3>Staging a Crisis: Daylight\u00a0Robbery<\/h3>\n<p>Consider the compelling example shared by my friend <a href=\"https:\/\/www.linkedin.com\/#\">Charles Conn<\/a>, in his book <a href=\"https:\/\/www.linkedin.com\/#\">The Imperfectionists: Strategic Mindsets for Uncertain Times<\/a>.<\/p>\n<p><strong>The Stage:<\/strong> the Federal Reserve Bank in San Francisco.<\/p>\n<p><strong>The Actors<\/strong> ( <a href=\"https:\/\/www.linkedin.com\/#\">McKinsey &amp; Company<\/a> legendary advisers) <a href=\"https:\/\/www.linkedin.com\/#\">Ted Hall<\/a> and <a href=\"https:\/\/www.linkedin.com\/#\">Don C.\u00a0Watters<\/a>.<\/p>\n<p><strong>The Concern:<\/strong> lax security around the building\u200a\u2014\u200aparticularly a bulletproof glass door consistently left propped\u00a0open.<\/p>\n<p><strong>The Challenge:<\/strong> could not convince the bank\u2019s senior team of the potential risks.<\/p>\n<p><strong>The Play:<\/strong> they conspired with the bank\u2019s president, John Balles, to stage a\u00a0robbery.<\/p>\n<p>With the senior team watching, Hall and Watters disguised themselves as delivery personnel. They bypassed the unsecured guard shack and made their way to the vault. Inside, they found bolt cutters stored for emergencies, which they used to symbolically \u2018break out\u2019 of the vault\u00a0area.<\/p>\n<p>The bank\u2019s security team\u200a\u2014\u200awho weren\u2019t in on the demonstration\u200a\u2014\u200aarrived with the San Francisco police department, guns drawn. Don says, \u201cThey found bank president Balles with arms crossed standing in front of his two co-conspirators, blocking the first responders\u2019 entry to the vault, Ted guarding the three filled-to-the-brim laundry carts, and my arms reaching up to the ceiling with the bolt cutters on the elevator padlock\u200a\u2014\u200aready to make the cut.\u201d Tensions quickly eased, but the point was\u00a0made.<\/p>\n<p>This dramatic demonstration, unknown to the security team vividly highlighted the security gaps. The immediate, tangible experience of the staged robbery led to significant security overhauls at the Federal Reserve, affecting everything from delivery protocols to access controls\u200a\u2014\u200achanges that mere words or traditional presentations could never have achieved.<\/p>\n<p>A changemaker cannot stage a robbery within their organisation, but what can they do? As the author of \u201cRed Team\u201d, <a href=\"https:\/\/www.linkedin.com\/#\">Micah Zenko<\/a> shared one of his favourite quotes from the former head of security for Dow Chemical, Dan Erwin. Erwin said, \u201c<strong>The surest way to get the senior management invested in a senior management plan is to burn down the building across the street<\/strong>.\u201d The problem is you rarely have a spare building to burn down. A notable example of how one changemaker drove change by notionally burning down the building next door comes from \u201cThe Corporate Explorer Fieldbook\u201d, his name, <a href=\"https:\/\/www.linkedin.com\/#\">Krisztian Kurtisz<\/a>.<\/p>\n<h3>Cherrisk: Igniting Industry Transformation<\/h3>\n<p>Ai\u2019s depiction of UNIQA beside\u00a0Cherrisk<\/p>\n<p>In 2018, <a href=\"https:\/\/www.linkedin.com\/#\">UNIQA Insurance Group<\/a>\u2019s Hungarian branch, with a clientele of twenty million across Europe, launched Cherrisk, a venture that metaphorically set the neighbouring building on fire, signalling an urgent call for change not just in the insurance industry., but in UNIQA itself. Cherrisk was a departure from tradition, breaking many industry norms and redefining digital insurance service.<\/p>\n<p>Cherrisk was revolutionary for being entirely digital, requiring no physical agents or customer service personnel. It offers flexible monthly subscriptions with simplified products, drastically reducing the need for administrative staff and operational costs also introduced a novel idea: allowing customers to direct a part of profits to charities and promising to settle claims within an astonishing three days by presuming customer honesty and using AI for fraud detection.<\/p>\n<p>Despite UNIQA\u2019s existing success, the leadership chose to invest in Cherrisk, a concept that defied conventional insurance practices. This bold move was driven by <a href=\"https:\/\/www.linkedin.com\/#\">Krisztian Kurtisz<\/a>, who identified the industry\u2019s shift from community support to a complex, self-serving model as the\u00a0enemy.<\/p>\n<p>Kurtisz illustrated the required shift for UNIQA, not by writing a burning platform, but with a stark visual. He presented a traditional office building\u2019s operational cost next to Cherrisk\u2019s efficient model. On one side, he showed a large office building, segmented by the percentage of cost represented by the different administrative departments of the company. The other side was the cost to serve Cherrisk customers\u200a\u2014\u200ain the first plan, just two people. This visual served as a wake-up call, emphasizing the need to embrace change or face obsolescence.<\/p>\n<p>Cherrisk\u2019s success across nine countries stands as a testament to visionary leadership and the boldness to incite change, proving that sometimes, the best way to drive action is to metaphorically \u201cburn down the building next door\u201d, even when you own both buildings!<\/p>\n<p><strong>Note to Reader.<\/strong> Framing change as a threat can be effective but it can activate organisational fight or flight responses. Fear and anxiety, anger, and stress shut down agility, innovation, adaptation, and change. A burning platform should be accompanied by a kindling future that burns brighter than the current reality. Negative urgency must be girdled by a strong vision for the future. This is a topic for a future Thursday Thought and an episode of <a href=\"https:\/\/www.linkedin.com\/#\">The Innovation Show<\/a> with <a href=\"https:\/\/www.linkedin.com\/#\">David\u00a0Rogers<\/a>.<\/p>\n<p>For now, I will leave you with the words of Milton Friedman\u2026<\/p>\n<p><strong><em>\u201cOnly a crisis\u200a\u2014\u200aactual or perceived\u200a\u2014\u200aproduces real\u00a0change.\u201d<\/em><\/strong><\/p>\n<p>The latest in our Corporate Explorer Fieldbook series thanks to <a href=\"https:\/\/www.linkedin.com\/#\">Wazoku<\/a> and inspired by <a href=\"https:\/\/www.linkedin.com\/#\">Andrew Binns<\/a>, <a href=\"https:\/\/www.linkedin.com\/#\">Michael Tushman<\/a> and <a href=\"https:\/\/www.linkedin.com\/#\">Charles O\u2019Reilly<\/a> is on \u201cConnected Collected Intelligence\u201d with the founder of <a href=\"https:\/\/www.linkedin.com\/#\">Wazoku<\/a>, <a href=\"https:\/\/www.linkedin.com\/#\">Simon Hill<\/a>. Find that episode below and anywhere you get your podcasts.<\/p>\n<p><a href=\"https:\/\/medium.com\/media\/d680f29c3de0ce6105cd00a954f56ccf\/href\">https:\/\/medium.com\/media\/d680f29c3de0ce6105cd00a954f56ccf\/href<\/a><\/p>\n<p><a href=\"https:\/\/medium.com\/thethursdaythought\/burning-down-the-building-platform-next-door-a90c35208d7e\">Burning Down The Building (Platform) Next Door<\/a> was originally published in <a href=\"https:\/\/medium.com\/thethursdaythought\">The Thursday Thought<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>\n<\/div>\n<p>The post <a href=\"https:\/\/theinnovationshow.io\/burning-down-the-building-platform-next-door\/\">Burning Down The Building (Platform) Next Door<\/a> appeared first on <a href=\"https:\/\/theinnovationshow.io\/\">The Innovation Show<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>\u201cEmotionally, it\u2019s easier to change when you\u2019re haemorrhaging.\u201d\u200a\u2014\u200aAndy\u00a0Grove Conventional wisdom suggests that to effectively motivate people for digital transformation, a leader needs a burning platform\u200a\u2014\u200aa narrative of how an external threat is going to disrupt your organisation, such that you must either change quickly or go up in\u00a0flames. \u201cWe had a series of misses. We [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":1429,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Burning Down The Building (Platform) Next Door - Aidan McCullen \u2013 Keynote Speaker Ireland | Innovation &amp; Leadership Expert<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aidanmccullen.com\/?p=1428\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Burning Down The Building (Platform) Next Door - Aidan McCullen \u2013 Keynote Speaker Ireland | Innovation &amp; Leadership Expert\" \/>\n<meta property=\"og:description\" content=\"\u201cEmotionally, it\u2019s easier to change when you\u2019re haemorrhaging.\u201d\u200a\u2014\u200aAndy\u00a0Grove Conventional wisdom suggests that to effectively motivate people for digital transformation, a leader needs a burning platform\u200a\u2014\u200aa narrative of how an external threat is going to disrupt your organisation, such that you must either change quickly or go up in\u00a0flames. \u201cWe had a series of misses. 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