From stagnation to innovation: Why your business mindset matters

In her influential book, 'Mindset,' Carol Dweck introduced the concept of fixed mindset versus growth mindset, emphasising the hindrance of the former and the expansiveness of the latter. While Dweck primarily explores these mindsets at an individual level, their impact is profound, especially within leadership, shaping company culture and influencing business success.

Classic examples of businesses operating with fixed mindsets are Blockbuster, Kodak, and Nokia. These companies stuck to their original plans despite evolving technologies, changing competitors, and shifting customer expectations, leading to their downfall.

Contrastingly, individuals with a growth mindset, exemplified by figures like Elon Musk, demonstrate an openness to unconventional thinking. Musk emphasises the importance of reasoning from "first principles" rather than relying on convention or analogies to past experiences. He states:

"I think people’s thinking process is too bound by convention or analogy to prior experiences. It’s rare that people try to think of something on a first-principles basis. They’ll say, 'We’ll do that because it’s always been done that way.' Or they’ll not do it because 'Well, nobody’s ever done that, so it must not be good'. But that’s just a ridiculous way to think. You have to build up the reasoning from the ground up—' from the first principles' is the phrase that’s used in physics. You look at the fundamentals and construct your reasoning from that, and then you see if you have a conclusion that works or doesn’t work, and it may or may not be different from what people have done in the past."

At planaria.black, we've observed similar mindsets affecting teams. Conventions within a category can condition teams, and pressure from various stakeholders can hinder change or lead to a fixation on competitors. While benchmarking against competitors is common, it may not drive genuine innovation, especially when the majority within a sector tends to look inward.

To break this habit, consider taking a deep dive outside your category. Analyse businesses overcoming similar challenges through innovative and customer-centred strategies. This is especially important as customers don't always benchmark experiences by category, and focusing solely on competitors may limit your potential. Best-in-class is no longer sufficient; customers compare you to brands that stand out through a deeply customer-centric approach so a next-in-class approach is critical.

Companies adopting an 'out-of-category' approach position themselves for success. These businesses are more likely to foster a growth mindset within individuals and teams, encouraging openness to change and transformation, a desire to experiment, and a drive to continually regenerate their business.

The correlation between a growth mindset and personal, team, and business growth is evident. As Dweck summarises,

"True self-confidence is the courage to be open—to welcome change and new ideas regardless of their source."

By fostering a growth mindset, you not only set your business up for success but also cultivate a culture of continual improvement and innovation. Contact us to learn more about how our rapid Planaria Trailblazers approach can inspire and empower your teams to accelerate business and service innovation. Embrace change, experiment, and move forward with confidence in your readiness to grow.

A provocative thought

If you ignore the issue of a fixed mindset seeping into your culture, you merely exacerbate the problem. This will result, not just in a drop in market share, brand salience, and advocacy but also, in the talent in your teams who possess a growth mindset.