At the height of the dot-com boom, I joined a few academic colleagues in a meeting with senior executives of a large insurance company to discuss how they might respond to the challenges posed by the Internet. The group was glum—and for good reason. Founded early in the twentieth century, the company had laboriously built its preeminent position in the classic way, office by office, agent by agent. Suddenly, the entire edifice looked hopelessly outdated. Its several thousand agents, in as many brick-and-mortar offices, were distributed across the country to optimize their proximity to customers—customers who, at that very moment, were logging on in droves to purchase everything from tofu to vacations on-line.
The Fruitful Flaws of Strategy Metaphors
Reprint: R0309F
The business world is rife with metaphors these days, as managers look to other disciplines for insights into their own challenges. And metaphors can—despite their somewhat flaky image—be powerful catalysts for generating new business strategies.
But metaphors are often improperly used, their potential left unrealized. We tend to look for reassuring parallels in business metaphors instead of troubling differences, the author contends. In fact, using metaphors to come up with new strategic perspectives begins to work only when the metaphors themselves don’t work, or at least don’t seem to.
Take the following case in point. An insurance company’s corporate headquarters put together a team of experts to discuss ways the firm might respond to the challenges of conducting business via the Internet. Once the team drafted a master plan, the idea was that it would be promulgated to the individual agents and offices of this widely dispersed organization.
In a meeting with the company’s top managers, the author talked about Charles Darwin’s conceptual breakthrough in formulating the principles of evolution. As his overview of Darwin’s theories about variation and natural selection gave way to questions, a heretical notion took shape: Those far-flung agents’ offices, instead of being strategic liabilities in a suddenly virtual age, might instead be the mechanism for achieving an incremental but powerful corporate transformation in response to the changing business environment. But it was only when the evolutionary metaphor began to break down—when the elements of Darwin’s theory clearly were at odds with the besieged insurance company’s situation—that real strategic insight occurred.
This anecdote offers, in a compressed form, an example of how the process of using metaphors can play out and what managers can learn from it.