We Say We Want Change, But The Status Quo Almost Always Wins Out. Here’s Why:
In 1984, Michael Dell launched his eponymous company in a college dorm room with a simple idea: Bypass the dealer channel and sell customized computers directly to customers. It not only gave Dell a cost advantage by eliminating reseller’s markups, but also allowed him to receive payment before paying suppliers, achieving negative working capital.
This direct model was a simple idea and a clear competitive advantage, but none of the incumbent industry giants, such as Compaq and HP, were able to adopt it. It wasn’t for lack of trying. The advantages of Dell’s model were highly publicized, well known and understood and there were a number of initiatives to copy it.
Yet change is never just about selling an idea. It is always a strategic conflict between that vision and the status quo, which has sources of power keeping it in place. That’s why efforts that rely primarily on communication and persuasion usually fail. To bring genuine transformation about, you need to understand the forces that are supporting the status quo.
Internal Sources Of Power
Theoretically, switching to a direct model shouldn’t be that difficult. You set up a website, make deals with logistics companies and design a marketing program. If a college kid…
