Name: Two reasons companies fail -- and how to avoid them
Uploaded: 2016-03-31T15:05:43Z
Duration: 10 min 28 s
Description: Is it possible to run a company and reinvent it at the same time? For business strategist Knut Haanaes, the ability to innovate after becoming successful is the mark of a great organization. He shares insights on how to strike a balance between perfecting what we already know and exploring totally new ideas -- and lays out how to avoid two major strategy traps.

Knut Haanaes: Two reasons companies fail -- and how to avoid them

Two reasons companies fail -- and how to avoid them

Is it possible to run a company and reinvent it at the same time? For business strategist Knut Haanaes, the ability to innovate after becoming successful is the mark of a great organization. He shares insights on how to strike a balance between perfecting what we already know and exploring totally new ideas -- and lays out how to avoid two major strategy traps.

Sustainable growth hinges on finding the right mix of refining existing strengths and venturing into new territory. Companies like Facit, once leaders in mechanical calculators, vanished almost overnight because they clung too tightly to what they knew. Only about two percent of organizations succeed at both innovating and optimizing at the same time, but the rewards are enormous. Avoiding the twin traps of endless novelty and comfortable repetition is essential for lasting relevance.