In an Ambiguous World, Cherish the Beauty of Impermanence
In Uncertain Times, Adopt an Imperfectist Business Approach
In today's rapidly changing business landscape, traditional strategies may no longer suffice. Henry Petroski, a renowned engineer and author, suggests that the key to success lies not in the pursuit of perfection but in the ability to accommodate and minimize imperfections. This approach, often referred to as imperfectism, can provide invaluable benefits for businesses seeking to navigate uncertainty and foster growth.
Operating under an imperfectist philosophy, companies can grow through frequent experimentation, gaining invaluable knowledge and capabilities incrementally. In uncertain times, traditional strategies may be insufficient. The accelerating pace of change, disrupted business models, and emerging technologies necessitate a fresh perspective.
In such a volatile environment, conventional strategies may leave companies in a state of waiting and seeing. Alternatively, a new player with a radically different strategy could disrupt the industry with their innovative approach. Standard planning and strategy sessions may become obsolete, leaving companies at a disadvantage.
One example of successfully embracing imperfectism can be found in Amazon's expansion into financial services. Instead of acquiring a financial institution, Amazon took a more gradual approach by investing in innovative technology companies, hiring from fintech firms, and developing internal schemes. By simultaneously launching multiple schemes, Amazon learned what worked and what didn't, building valuable capabilities and creating a solid foundation for future growth.
To thrive in today's dynamic market conditions, real-time problem-solving with incremental adjustments should become an integral part of strategy development. An integrated approach that considers multiple perspectives—from suppliers to customers—can provide a comprehensive understanding of industry opportunities and threats.
Collecting data through experimentation and external sources can offer a more independent and accurate picture, enabling a company to navigate uncertainty and seize opportunities. By taking small steps, gathering information, and adding to assets and capabilities, businesses can create a robust foundation for future success.
Embracing imperfectism can empower companies to weather volatility and thrive in uncertain times. By focusing on adaptability, experimentation, and learning, businesses can cultivate resilience and position themselves for growth.
In "HBR 2023/07," Charles Conn and Rob McLean explore this approach in more detail, offering insights and strategies for implementing imperfectism to foster resilience and growth in the face of uncertainty.
An entrepreneur adopting an imperfectist approach in finance, such as Amazon within the financial services sector, can leverage multiple strategic avenues to navigate uncertainty, foster resilience, and facilitate growth through experimentation and learning. Concurrently, a strong business leader must embrace leadership styles that emphasize adaptability, real-time problem-solving, and the integration of diverse perspectives to successfully navigate the volatile and unpredictable nature of today's business environment.
