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What Darwin Can Teach Business Leaders

January 14th, 2009 @ 1:40 pm

Categories: Leadership, Strategy, Workplace

Tags: Leader, Observation, Leadership, Management, Stuart Cross

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This year marks the 200th anniversary of the birth of Charles Darwin, and the 150th anniversary of the publication of his seminal work, “On The Origin Of The Species”. His theory is now associated with business through the concept of “Darwinian Economics” — which claims that organisations that are best able to adapt are the ones most likely to survive, particularly in a recessionary climate.

In an FT piece by Jonathan Guthrie, he applies Darwinian theory to the current economic crisis. It’s why Waterford Wedgewood failed, and Woolworths; why bail-outs of industry are contrary to nature; and why strength and intelligence are less valuable than responsiveness to change.
But there is another important lesson for you, as a business leader, to learn from Charles Darwin. That is to use the power of observation.

Many managers are so busy making decisions, analysing problems and seeking answers that they pay no attention to simply observing.

Darwin, on the other hand, spent much of his career observing. He spent six years, for example, dissecting and describing — in eye-watering detail — the structure of barnacles.

If you are observing you cannot be analysing, and vice versa. It was Darwin’s observations that formed the basis of his idea — the idea that changed the world.

Observation requires getting out there, suspending your beliefs and simply taking note — Darwin’s five years on the Beagle trip involved him taking thousands of samples of various species. It cannot be done from behind a desk through reports.
How does this translate to business? A retail client of mine grew sales of a complex product range by developing prototypes of many packaging variations, putting them on the shelf in a single store and observing how customers interacted with the product.

He believes that he saved months of time by eschewing normal customer research and simply observing, in real time, actual customer behaviour.
How much time do you spend on the front-line observing your team or your customers rather than analysing second or third-hand data?

(Photo: catr, CC2.0)

Stuart Cross is a founder of Morgan Cross Consulting.
 
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  •  
    1

    abantu66

    01/15/09 | Report as spam

    RE: What Darwin Can Teach Business Leaders

    SPOT ON. I have been telling my friends that Woolworth should have known better. With all the credit they had they had enough time to morph into a viable institution. Take for instance M&S, and the Co-op Supermarkets in the UK, They realized their trusty clients mainly Old and middle aged, where dying. The stores did not appeal to the Generation X group and the were the ones with the money. So what did they do. Well they re branded, brought in more appealing products to appeal both young and old, a far cry from the past. when they were associated with a the word Tired or as I remember the street slang then Fossils. No Pun intended.

  •  
    2

    emmettr

    01/16/09 | Report as spam

    RE: What Darwin Can Teach Business Leaders

    As a marketing researcher I couldn't agree more--this is the essence of research, observation and listening. But it takes time to observe customer behavior and many companies are not willing to make that resource commitment.

  •  
    3

    hmmm...

    01/16/09 | Report as spam

    RE: What Darwin Can Teach Business Leaders

    Eek! Be careful not to repackage a hundred-year-old corruption of Darwin's ideas!

    One should be careful when one cites a major figure-- that one is citing him correctly. Yes, Darwin was a scientist, and he observed the heck out of things. His methods were exacting and scrupulous, and we should emulate his approach-- point well taken. But once we try to use not only his methods, but also to apply his concepts to economics, we run the risk of repeating Spencerism.

    Darwin's work was titled The Origin of Species (not THE Species). Using "the" was a popular late 19th century corruption of Darwin's work wherein Herbert Spencer, among others, tried to apply Darwin's concept of Natural Selection to human social conditions. It was Spencer who coined the phrase, "survival of the fittest," thereby corrupting Darwin's theories.

    As the above article says, Darwin observed and described-- he did not extrapolate the idea that those whose genetics were passed to the next generations were better (more "fit") than those whose genetics did not continue.
    Spencer's corruption, called Social Darwinism, was used to validate class differences, racism, violence against labor organizations, dangerous working conditions, overcrowded cities, environmental damage, and all manner of social ills we think of when we think of the late nineteenth century industrial revolution. People are poor? Starving? Uneducated? The reason is that they are not "fit;" in fact, if one tries to remedy the conditions, one is doomed to failure because these people are meant to die off, to end their genetic line. Working to help them is working against a grand plan.

    Those who engaged in what Thorstein Veblen called "conspicuous consumption" were soothed to know that it was part of the grand plan to build mansions and hold grandiose parties a few blocks away from the tenements. No guilt.

    This is all ironic, because those who most espoused Spencer's ideas were the same folks who opposed Darwin's ideas of the origin and evolution of species.

    Let's be careful not to embrace a misreading of Darwin-- one that gave validation to conditions we do not want to perpetuate.

  •  
    4

    Mercytown

    01/16/09 | Report as spam

    RE: What Darwin Can Teach Business Leaders

    Yes, observation precedes analysis. That is the essence of this article and it is correct.

  •  
    5

    dclose

    01/17/09 | Report as spam

    RE: What Darwin Can Teach Business Leaders

    Whilst observation can be useful, the context in which observation is employed is critical.

  •  
    6

    Mercytown

    01/17/09 | Report as spam

    RE: What Darwin Can Teach Business Leaders

    What do you mean? Your sentence starting with "whilst..." suggest an opposing meaning in the second part of the sentence, is meaningless.

    The article does says that employing observation is critical.

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