The Problem of not creating Problems

The problem of not creating problems

Sometimes success can be a corporation’s biggest enemy. In the case of Henry Ford, he did not continually develop himself as a problem creator. Instead of managing problems he intentionally created, he focused on solving a problem that had, for the most part, been solved. What he experienced next was a big problem.

For example, once most households owned a car, he stayed focused on making the automobile still more affordable. As a result, the window of opportunity was left open for General Motors. GM created the next problem in the auto industry: people could now drive a car in any colour they chose and could select from a variety of new models.

In 1924, GM launched their innovative line of automobiles. As a result, Ford lost tremendous market share. Ford’s market share dropped from 50% in 1926 to 20% in 1950[1]. Conversely, GM’s market share increased from 20% in 1926 to 50% in 1950.

In the case of Sony, they were the innovator of the Walkman. However, Apple dominates the digital personal audio market with 78 percent market share in the U.S today. Could Sony have created the iPod? Or did the possibility of changing their infrastructure to support a new innovative product look like a problem?

In the midst of chaos, there is always the difficulty of distinguishing opportunity from disruption. In most cases, it depends on your mindset/perspective. It is not that chaos itself is inherently a problem. It is the mindset of the individual that will determine how clearly they can see what is in front of them and the actions that ensue. It is analogous to a captain of a boat steering a ship though a violent storm. The captain must always keep his eye on what he is committed to accomplishing – return to shore. Once his or her mind drifts and focuses on what’s wrong, his or her ship is sunk.

[1] Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne, page 195.