Reinventing your business
Try to rebuild it from scratch
Some years ago, I conducted a strategic workshop for a DIY retail chain. The company suffered from the competition with the local online stores, some of which were growing frighteningly fast. The DIY chain launched its own online store in an attempt to benefit from the omnichannel.
But I wouldn't call this venture successful. The rivals from the Net were gaining a customer base much faster despite offering fewer options.
Experts have written many articles and even books on the topic. When a company needs to change radically (for instance, to go online), too many internal forces resist shifts. Managers are afraid of losing their jobs or status. Executives and board members are afraid of a temporary decline in revenue.
So, they prefer to "change without changing," making some insignificant alterations.
But that's only a part of the problem.
Endowment effect
A couple of months ago I moved to a new flat. When packing my belongings, I was unpleasantly surprised…