761: Notice Disruption and Innovate Through It, with Steve Blank

Steve Blank: Blind to Disruption Steve Blank is an Adjunct Professor at Stanford and co-founder of the Gordian Knot Center for National Security Innovation. Credited with launching the Lean Startup movement and the curriculums for the National Science Foundation Innovation Corps and Hacking for Defense and Diplomacy, he’s changed how startups are built, how entrepreneurship is taught, how science is commercialized, and how companies and the government innovate. Steve is the author of The Four Steps to the Epiphany and The Startup Owner’s Manual and is the author of his recent article at steveblank.com: Blind to Disruption: The CEOs Who Missed the Future. Leaders may see the future coming, but we aren’t always incentivized to act on it. In this conversation, Steve and I discuss what we can learn from the common patterns of disruption so we don’t miss what’s next. Key Points In the 1890s, there were approximately 4,000 carriage and wagon makers in the United States. Only one company made the transition to automobiles. In each of the three companies that survived, it was the founders, not hired CEOs, that drove the transition. Studebaker recognized that it wasn’t in the business of carriages; it was in the business of mobility. Clayton Christensen taught us that disruption begins with inferior products that incumbents don’t take seriously. The real problem isn’t that companies can’t see the future. It’s that they are structurally disincentivized to act on it. Parsing innovation theatre vs. innovation means paying attention to what’s actually shipping. If nothing is and you want to innovate, look elsewhere. Bubbles in the market are normal. Timing may be off, but that doesn’t mean disruption isn’t happening. Resources Mentioned Blind to Disruption: The CEOs Who Missed the Future by Steve Blank Related Episodes How to Start Seeing Around Corners, with Rita McGrath (episode 430) How to Build an Invincible Company, with Alex Osterwalder (episode 470) How to Pivot Quickly, with Steve Blank (episode 476) Discover More Activate your free membership for full access to the entire library of interviews since 2011, searchable by topic. To accelerate your learning, uncover more inside Coaching for Leaders Plus.