Old Formulas Won’t Help You Solve Today’s Business Problems

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Formulas may be road-tested approaches to business challenges, but formulas have flaws. What worked yesterday might not be applicable or even plausible today. There are three primary weaknesses to relying on formulas to address business issues in a constantly changing environment: 1.

) they don’t work the same in all contexts; 2) they can be replicated by the competition; and 3) they can have hidden risks. To manage a fluctuating business climate, companies need a different toolkit. Instead of relying on static formulas that worked in the past, organizations need to focus on changing the way people think. This requires focusing on refining people’s cognitive skills, so they can better identify, assess, and solve unique problems in unique ways.

To mitigate this barrage, organizations often turn to the familiar — those formulas that have had a track record of success in the past. However, what worked in the past can’t fully address today’s challenges, as they were spawned in a wholly different environment.Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume.

 

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