Stop Treating Business Model Innovation As Change Management

There’s plenty of time for change management, once we’ve demonstrated new business models worth changing into. Exploring and testing new business models is strategy development before it’s change management. Business model innovation is a persistent and generative exploration of entire new ways to create, deliver, and capture value. Leaders vested and working in the core must be prevented from leaning against and blocking ongoing R&D for new business models. When we treat business model exploration as change management, we are too likely to squash any concept that feels transformational or disruptive. We have to make business model reinvention safer and easier to manage.

It’s urgent because business models don’t last as long as they used to in the Industrial Era. The Netflix, Airbnb and Uber stories are everywhere. Too many industries and companies are playing defense, trying to lean against disruptive business models. No effort to strengthen and protect the core will prevent it from being netflixed or uberized! The only way to play offense is by doing R&D for new business models, even those that might disrupt the core. New business models are coming, whether we like it or not. Why not be proactive? Business model innovation is a strategy question before it’s a change management question.

We have to make it easier to move business model concepts off the white board and to prototype and test them in the real world. If you screen early stage business model exploration with the same…