Hidden Imprints: Sony’s Samskaras = Apple’s Advantage
“Our eyes are not viewers; they’re also projectors that are running a second story over the picture that we see in front of us all the time.” — Jim Carrey
Jim Carrey’s words offer a powerful analogy for the concept of “samskaras.” Rooted in Hindu and Buddhist philosophies, samskaras are the mental impressions, memories, or psychological imprints that shape our thoughts, actions, and behaviours. Like a projector casting shadows onto a screen, these imprints can distort our perception of reality, leading to habitual patterns that are often unconscious.
In the context of organisations, samskaras manifest as deeply ingrained cultural norms, values, and beliefs. These collective imprints can shape everything from decision-making processes to communication styles, influencing how employees perceive their roles, interact with each other, and respond to change.
Scaling Up: The Solidification of “Organisational Samskaras”
As companies scale, their operational structures, capabilities, cultural norms, psychological contracts, business and mental models become finely tuned to deliver what makes them successful. This core system, including everything from the personality of the founders to the power balance of different departments, solidifies into “organisational samskaras”. These imprints guide decision-making and resource allocation, often becoming so deeply embedded that they are difficult to recognise or challenge.
The story of Sony is a prime example of how a company can rise to prominence by exploiting the samskaras of powerful incumbents, only to fall victim to those same imprints later on.
Sony’s Rise and Fall: A Cautionary Tale
Its ability to seize an opportunity that entrenched competitors dismissed fueled Sony’s transformation from an electric blanket company to a global leader in consumer electronics. When Bell Laboratories invented the transistor in 1947, industry giants like RCA and GE were slow to adopt the new technology, blinded (and bound) by their investments in vacuum tube-based products.
Akio Morita, Sony’s visionary CEO, recognised this blind (bind) spot and swiftly licensed the transistor technology, leading to the development of the iconic transistor radio that revolutionised the market. Sony’s lack of endowment, organisational agility and willingness to embrace new technologies allowed it to outmanoeuvre its more established rivals.
However, as Sony grew and matured, it developed its own set of samskaras. Over time, the company’s focus shifted from innovation to protecting its existing business model, making it less adaptable to emerging trends and technologies.
Sony’s Samskaras = Apple’s Advantage
Sony’s inability to adapt to the rise of digital music in the early 2000s further illustrates the dangers of entrenched samskaras. Despite having all the required components to dominate the burgeoning MP3 player market–a strong brand, digital rights management technology, a record and movie label internal conflicts and a reluctance to cannibalise its existing business model paralysed Sony.
While Sony hesitated, Apple seized the opportunity, launching the iPod and iTunes, which quickly became the dominant force in the digital music landscape. Sony’s failure to act decisively, driven by its own internal samskaras, allowed a new competitor to disrupt its long-held dominance.
The practices built up over decades of work in one industry make it hard to transition to the new. Successful leaders need to see these challenges coming and know what to do about them. They must anticipate that their greatest adversary is often their own ingrained processes and beliefs. These deeply rooted samskaras can make the greatest companies resistant to the very changes that could ensure their survival and growth in the face of new technologies and market demands.
Rewiring Mental Models
“The hardest part of these decisions was neither the technological nor economic transformations required. It was changing the culture — the mindset and instincts of hundreds of thousands of people who had grown up in an undeniably successful company, but one that had for decades been immune to normal competitive and economic forces.”― Lou Gerstner Jr., Who Says Elephants Can’t Dance
The rise of solid-state electronics and the fall of Sony’s Walkman empire all underscore a fundamental truth: change is not merely about adopting new technologies or business models. It requires a fundamental shift in mental models–the deeply held beliefs and assumptions that underpin organisational behaviour.
To truly transform, organisations must examine, expose, and rewire their samskaras. This involves challenging the status quo, encouraging diverse perspectives, and creating a culture that embraces experimentation and learning. By actively addressing these hidden imprints, companies can break free from the past and build a more adaptable, innovative, and resilient future.
Thanks for Reading
To hear how LEGO got caught in the “Samskara Snare” check out the latest episode of the Innovation Show with Wendy K. Smith in a 3-part series on her book “Both/And Thinking” co-authored with Marianne Lewis. You can be in to win a copy by signing up to our newsletter here:
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