Super-adaptation

The ability to adapt faster and smarter than the competition can mean the difference between coping and succeeding, says a new book

The point of failure is not to fail; the point is to allow failure in the course of learning. To be allowed to experiment and learn from those experiments is valuable. To learn to stop delivering success is potentially disastrous. Just as dangerous is learning to live with varying levels of failure without doing anything to improve the situation.

It can be too easy for individuals and groups to lower expectations. We're not perfect, people start to say. We can't be expected to do it all, they chorus. Well at least we can learn from our mistakes, they reassure each other even after the organisation is bankrupt. The point is not to learn to fail, but to learn what works from failure.

Learning fast involves moving from knowing change is necessary to figuring out what to do differently and doing what is necessary. It is the complete movement from insight to action that is relevant to adaptability. You may not notice. You might not react. You may react too little, too late. You may under-react or even overreact.

Overreacting? After PepsiCo rebranded their orange juice brand Tropicana in 2009, sales dropped 20 per cent or $33 million in one month. Competitors benefited as consumers switched brands. The objective had been to reinvigorate the product with a historic marketing and advertising campaign that would 'rejuvenate the category and help consumers'. Within two months of announcing the rebranding Tropicana returned to its original packaging design.

The problem was that the new branding was inoffensive to the point of anonymity. It was criticized for looking like a discount store brand and losing any connection to the tropics. Instead of saying sunshine on the beach, the packaging said buy-one-get-one-free. The criticism came months before the launch and it should have been possible to learn from the mistake before the mistake cost $33 million.

Even worse, they changed what didn't need changing and left unchanged the juice itself which was facing increasing competition. To be considered premium, orange juice had increased in quality and the discerning buyer was purchasing a clear plastic container without branding. The new packaging did not respond successfully to any of the changes in the competitive situation. Management reverted back quickly but had they learned?

Perfect reacting? The original Mini rolled off the production line in 1959. It was the culmination of a design project prompted by the fuel shortages due to the 1956 crisis in Suez in Egypt. More precisely, it was provoked by the reaction of the CEO of the company who hated the increasingly popular, fuel-efficient German bubble cars and wanted to build a 'proper miniature car'. A small team of eight people designed and built the original prototype - the orange box - led by Sir Alec Issigonis. Mark I of the Mini - originally marketed as the Austin Seven and Morris Mini-Minor - sold more than 1.1 million vehicles while production of all seven versions totalled nearly 5.5 million cars.

The first Mini was not only a proper car; it was also a proper adaptation to consumer needs and competitor activities. The company used the failings of its competitors to provide a template for its own design. They successfully adapted existing features that customers would expect through innovation, design and engineering. Then they used their extensive distribution network to get their star adaptation out into the world where it was acknowledged as a design classic. Even the eventual world-famous Mini name came from experimenting. First a dull name following on from other products, then some imaginative play on words, and finally someone saw the opportunity and grabbed it. This would be the brand and design that would endure and become world famous.

Under-reacting? Production of the original Mini continued for 41 years. Over that time relatively small changes were made either to save costs or to meet safety regulations. From the 1960s onwards, there was discussion of a modern replacement that would be more practical and refined. Gradually sales fell in export markets despite enduring popularity in its home market.

Internal and external politics delayed a response to increasing and ever-improving competition during the 1970s. In 1979, a prototype was designed by the original team but did not reach production. In 1992, yet another attempt was made to make significant changes to the Mini but the attempt was cancelled by management who felt the investment involved was too high to be profitable.

Perfect reacting? After the BMW takeover in 1994, another project began, this time to design a completely new Mini and benefit from the Mini's fashion icon status around the world. The idea emerged with BMW management who sanctioned first a prototype and a new production car. When the Rover Group was dismantled in 2000, the idea and brand survived in the new ownership of BMW. After a design competition, a decision was made and the first new BMW Mini rolled off the Cowley production line in 2001 with around 2 million produced by 2011.

Rather like the reaction that brought about the first Mini, people at BMW noticed an opportunity to adapt the existing situation. They had realized that BMW needed to increase car sales to stay competitive and that the BMW brand might be damaged if they started production of small cars directly. They saw great potential in existing brands owned by Rover. So they bought Rover and invested in projects that would help develop those brands. And eventually sold everything they didn't want.

BMW were not trying to fail fast. They were trying to learn fast from their acquisition of Rover so that they could achieve their own objectives. Their $2.8 billion investment was not lost since the improvements from the investment went with them. On the BMW side, it was not the failure that some critics have concluded. It was ultimately an impressive demonstration of super-adaptation that has brought in revenues of over £20 billion.

This kind of super-adaptation requires people to try to find ways of transcending the limitations of a particular situation. Those ways may be obvious but generally require creativity mixed with knowledge to discover and put into action. There have to be individual belief and desire to overcome constraints. There have to be opportunities for groups to put their insights to work.

Meet the author
Max Mckeown is an author, consultant and speaker in the strategy field. His list of clients includes many major corporations across multiple sectors, such as Microsoft, Virgin, 2012 Olympics, Sony, Barclays and Vodafone to name just a few. Mckeown is a speaker on subjects such as innovation, engagement and competitive advantage. In addition to Adaptability, Max is also the author of the books Unshrink, and The Truth About Innovation, E-Customer and Why They Don't Buy

ADAPTABILITY: THE ART OF WINNING IN AN AGE OF UNCERTAINITY
AUTHOR: Max Mckeown
PUBLISHER: Kogan Page
Price: Rs 495
ISBN: 9780749465247

Excerpted with permission from the publisher. Copyright Kogan Page India. All rights reserved.