Digital Transformation This is how companies make it to the future

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We live in times of high-speed white water. Digital disruption, unexpected events, and permanent interimism sweep away almost all familiar rules. Only those who understand the trends of the future, get rid of outdated behavior and try better new things, will be ahead in the future. The Starfish Method can be extremely helpful in this regard.

Why do so many companies not make it into the future? The story of a typewriter is symptomatic of this. It looked good and was years ahead of its time: the Smith Corona PWP 40. An ultra-compact typewriter with which you could carry out spell check corrections, enter search/replace commands, and print in laser quality. In short, a compact little office.

Smith Corona was a leading global typewriter manufacturer, had top managers with brilliant degrees from elite universities on board and was always greedy for innovations. In 1989, sales were a hefty 500 million dollars. In 1990, they recognized the trend towards PCs and entered into a partnership with Acer. But just a year later, when the market got tougher and the numbers got worse, it was over.

They wanted to focus on their core competence, it was said. "Many regard typewriters and word processing programs as as outdated as horse-drawn carriages and horse whips. But that's not the case. There is still a strong market for our products in the USA and the whole world", explained CEO G. Lee Thompson this step. This was in 1992. In 1995, the company went bankrupt. Acer, however, became one of the largest computer manufacturers.

The patterns of decline often resemble each other

"The old is still good enough," they say, "why should we innovate?" I hear such statements often. Formerly one was brilliantly positioned, customers liked what one did and suddenly - surprise - it's over. "The future easily makes fools of the incorrigible who cling to old certainties for too long," calls out to us the great management thinker Gary Hamel.

This can't happen to you? Oh, it can happen to anyone. But why? It's quickly explained: The established provider is an expert for a technology, let's say typewriters. He employs all kinds of typewriter experts. If this provider is now being attacked, he will intensify his efforts in his core competency, so he will do more of the old even better because it's the only thing he can do.

At the same time, he will downplay the strengths of the new because he himself does not have them – or, even worse, because he does not even recognize them as disruptive alternatives. Thus, the old winners become the new losers. Everyone knows the story of Nokia. But most managers believe that this could not happen to them. They laugh at Nokia and do not realize that they themselves are becoming the next "Nokia."

We are plagued by cognitive short-sightedness towards the future

Fear of change is human, but fatal in business life. Unfortunately, it is an automatic process of our brain architecture. When things get critical, we retreat to familiar behavior patterns and tested routines. Threat produces the infamous tunnel vision. This narrows the focus of attention, peripheral aspects get out of sight, we prefer to stay in familiar territory.

Another reason is called cognitive future shortsightedness. Future sounds like sometime. "We don't have time for that now," it's said, for example, "the next quarter is upon us, and the future doesn't run away from us." Reactively, people almost only deal with what is currently at hand, always working at full capacity - and novel innovations pass by. How can this be?

One was brilliantly positioned! And suddenly, it's "suddenly" too late. Future technologies arrive "suddenly", now "unexpectedly" there are no the necessary skilled workers and training concepts. Somehow one is always behind. The adaptation span decreases, stress increases, nerves are on edge. While everything outside is moving faster and faster, companies are increasingly lagging behind.

The Starfish tool brings new things into the world

The journey into the future is only successful with light luggage, because the markets, like the hares, always take new turns. Past standards and procedures paralyze progress and annoy customers. That's why a transformation into a future-proof state is necessary first. For this, I recommend a half-day workshop with as many employees as possible. We make the fastest progress with the Starfish Matrix. The columns carry the following names:

• Keep: What should we maintain because it works well?

• More: What should we strengthen or improve in the future?

• Start: What should we start, do completely new or differently?

• Stop: What should we let go of because it's inappropriate?

• Less: What should we reduce, shorten, or do less of?

The Starfish Matrix can be used for many purposes, for example to detach oneself from outdated products, services and procedures or to optimize existing things together. In particular, it is also about exploring new ideas and then trying them out. The result is a triple profit: separation from the outdated, progress is set in motion and you also save costs because unnecessary things are eliminated. This is how you earn the necessary money for innovations.

When building something new that opens the way to the future, it is not only experienced employees who are extremely useful, but above all young talents. They have a clear view and the innate urge to make things fresher, more agile, digital and productive. As billionaire Sir James Dyson says, his company is successful primarily because Dyson products are developed and constructed by talented job starters. "We do this primarily because they are unsullied, so to speak. They have not yet been trimmed by a company." Thus, Dyson increasingly transforms into a lifestyle optimizer with products that are both expensive and desirable.

About the author

Anne M. Schüller is a management thinker, keynote speaker, multiple award-winning bestseller author and business coach. The business graduate is considered a leading expert in touchpoint management and a customer-centered business management. On these topics, she gives motivational speeches at conferences, professional congresses and online events. In 2015, she was inducted into the Hall of Fame of the German Speakers Association for her life's work. On the business network LinkedIn, she was Top Voice 2017 and 2018. Xing named her top writer in 2018 and Top Mind in 2020. Anne Schüller authored the new book, "Meistering the future – The Trend and Tool book for the day after tomorrow designers", Gabal Verlag 2024, 232 pages, €29.90; ISBN: 978-3-96739-181-7.