EstablishmentItems of InterestManagement

A Very Very Long Run

Disruptive Marketing is not just about creating disruption and displacing established market participants. It’s also about how established participants respond to and ultimately capitalize on (and sometimes eliminate) disruptive threats.

This story from Business Week is the story of just such a company. It started with

The world’s oldest continuously operating family business ended its impressive run last year

1,428 years. That’s a very very long time to be in business. In the technology industry where I live, many businesses are lucky to be around for more than five years.

Ultimately, according to this article, the business wasn’t displaced or made irrelevant (through a market disruption), but faded away in a series of mis-directed financial decisions.

But what struck me as interesting was the way that this company made decisions over its incredible millenium-and-a-half run. They refused to comply with established protocols and societal norms. They focused (until near the end) relentlessly on doing the one thing they knew better than anyone else, and they found ways that worked for them to overcome change on a scope that most businesses can barely conceive.

The result was a business that sustained financial, economic, political and military storms of nearly every conceivable variety. It is what they chose to do differently – making business and management decisions that defied the norms – that kept them stable over a very very long run.

It also points out that sometimes the best way to capitalize on disruption is not to respond at all – just let it wash over you and keep going.

One of the most common debates I see in businesses today is about the meaning of, and response to, competitors (and others) actions. There tends to be a common pattern to these discussions: panic, some analysis, then an increasing sense of urgency to act.

I can’t say what the decisions of Kongo Gumi’s management were a millenium ago, but from the history it seems to me that there must have been lots of decisions not to act in these situation.

An idea that might help many companies today is to include in the set of possible decisions “do nothing differently” and rely on the plans in place to succeed. Then play out that scenario next to ones that include the panic-driven actions. I have seen this work effectively far more often than you might expect.

My question is: Do you have the courage to trust your direction and not respond with panic?

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