You're Walking a Fine Line

Scott D. Anthony begins a post at Harvard Business Online by noting the abundance of one-liner jokes to be found in This is Spinal Tap, the classic mockumentary directed by Rob Reiner. "One of my favorites is the gem from the fake heavy metal band's lead singer and bassist," he writes, "who team up to deliver this wisdom: 'It's such a fine line between stupid and ... clever.'"

Though offered in jest, it's a remarkably true statement—the difference between success and failure is often slight. And Anthony argues that your company walks a similarly fine line each day, in the struggle to leverage core competencies without letting them become core rigidities. "A fixed view of core competencies can cause companies to pass on great growth opportunities, or completely miss emerging attackers," says Anthony. "It is one of the key drivers of the innovator's dilemma."

In other words, the product or service that drives your success can quickly become your downfall if you get too comfortable with the status quo, however excellent that might be. The trick, he argues, is to maintain an entrepreneurial mindset—which means focusing on what a customer needs, not what you bring to the table.

The Po!nt: Writes Anthony, "It's a good bet that over the next five years your competitors will change. Your customers will change. Your markets will change. Your core technology will change. Shouldn't your capabilities change as well?"

Source: Harvard Business Online. Click here for the full post.

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