‘Beyond Disruption’ challenges the conventional wisdom that businesses must disrupt to innovate

Ever since Clayton Christensen published The Innovator’s Dilemma a quarter century ago, “disrupt or be disrupted” has been a byword of business. But a new book out this week, Beyond Disruption, challenges that conventional wisdom. Written by W. Chan Kim and Renée Mauborgne, authors of Blue Ocean Strategy, it argues business has become too focused on disruption. Why attack well-entrenched incumbents when the world offers so many opportunities to create value in undefined markets? CEOs would do better for themselves and for society if they pursued nondisruptive innovation. Their examples: Go-Pro, Square, Kickstarter, or—one of my personal favorites—Mick Ebeling of Not Impossible Labs. To those who argue such opportunities are few and far between, Kim and Mauborgne say nonsense. All that’s missing is creativity. And by avoiding disruption, companies can assure they create more value for society than they destroy.

“Our idea is meant to complement existing theories, not replace them,” Mauborgne told me last week. “Theories help us see, but they also act as blinders. You don’t have to disrupt to innovate. There is an alternative path that is often overlooked, where business and society can thrive together.”

Also, out this week is Oscar Munoz’s book, Turnaround Time, about his effort to revive United Airlines. Munoz had an eventful five years at the helm, punctuated by the heart attack he suffered just days into the job. But history may better remember Munoz as the first CEO to confront the full power of social media. On an April Sunday in 2017, Dr. David Dao was dragged off a United plane by security officers in Chicago for refusing to give up his seat—an event that was videotaped and posted on social media. What followed was a series of public relations disasters that within 24 hours had turned the unfortunate incident into a global crisis.

Munoz told me last week the incident changed the way he led the company. “We quickly stood up an organization that monitored social media and a quick-response team. Every time I was in the office, I would stop by. Social media has a reach beyond your wildest dreams. And it moves quickly. You need to take it seriously.”

By the way, both books illustrate the rising importance—and increasing difficulty—of maintaining trust with workers, customers, and society at large in today’s fishbowl business world. That’s what led Coins2Day to launch The Trust Factor newsletter. This week’s note, out yesterday, focuses on the trust challenge faced by A.I. As it rockets into adoption. You can sign up here. 

Other news below.

Alan Murray
@alansmurray
[email protected]

TOP NEWS

First Republic collapses

Bank regulators seized and sold off troubled First Republic Bank to JPMorgan Chase. JPMorgan will take on First Republic's $92 billion in deposits, along with $173 billion in loans and $30 billion in securities. The FDIC will share losses with JPMorgan on the loans. Wall Street Journal

Back to the office

One day after laying off more than 1,000 employees, new Lyft CEO David Risher told remaining staff they must work in the office Mondays, Wednesdays, and Thursdays, with Tuesdays recommended. Just a year ago, the Uber rival proudly announced that employees could choose where to work. Coins2Day

Sitting it out 

Berkshire Hathaway vice chairman Charlie Munger warned about all the “bad loans” in bank portfolios stemming from the commercial real estate crisis—a big reason Berkshire Hathaway has stayed on the sidelines rather than invest in troubled lenders. “There’s a lot of agony out there,” he said. Financial Times

Time savers

Corporate leaders, under pressure from investors worried about a recession, are increasingly focusing on efficiency. Many are homing in on the minutiae of everyday work—however mundane. Wall Street Journal

AROUND THE WATERCOOLER

Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. A year later, 3 grads share how it changed their lives by Jane Thier

‘I was born an entrepreneur, but I had to learn how to be a CEO.’ These are the 2 things that a 9-figure founder did to step up by Orianna Rosa Royle

‘It makes no sense’: Activision CEO Bobby Kotick slams U.K. Blocking of $69 billion Microsoft deal as ‘clearly irrational’ by Chloe Taylor

Elon Musk not ‘singular solution’ for Twitter after all, says Jack Dorsey in reversal of earlier support by Steve Mollman

Jamie Dimon says he understands workers’ threats to not return to the office, but ‘they can not do it elsewhere’ by Jane Thier

This edition of CEO Daily was edited by Steve Mollman.