Linking Disruptive Change to a Company’s Honored Legacy

As we navigate the rapidly changing business landscape, it’s becoming increasingly clear that every company must now see itself as a technology company, regardless of its industry. This shift is driven by the transformative power of Artificial Intelligence (AI), robotics, and emerging quantum computing systems.

In his classic novel, Charles Dickens wrote, ‘It was the best of times. It was the worst of times.’ This quote aptly describes our current era, marked by both dramatic technological advancements and significant social challenges. To meet this moment, Boards of Directors must find a way to link past and future, embracing the power of founding stories to reduce resistance to change.

The Deere Example: Transforming a Legacy Company

The CEO of Deere, a two-hundred-year-old company known for its farm tractors, has transformed the company into an Agtech leader, empowering farmers to do more with less. By reaching back into Deere’s founding story, the CEO argued that the company has always been in the business of transforming farming. From the introduction of the first steel plow in 1837 to the replacement of horse-drawn tractors with engines in 1918, Deere’s legacy is built on innovation and progress.

Today, Deere leverages AI and computer vision with robotics and machine learning, using advanced sensors and robots to place each seed with precision beyond human capacity. This transformation has not only benefited Deere’s net income but also its public reputation as a trustworthy resource to farmers.

Suggestions for Board Directors and CEOs

Every company is now a technology company, regardless of its industry. Boards should embed ongoing tech adaptation into culture, not treat it as a finite project. This requires a deep understanding of the company’s founding story and its ongoing relevance in the age of AI.

Regular scenario planning helps Boards embrace uncertainty and prepare for peripheral threats. Management should be tasked with preparing ideas for Board discussion, and the Board should be perceived by stakeholders as a vocal supporter of reasonable regulations.

Creating platforms for dialogue is also crucial, as Boards should structure regular dialogue with adversaries through industry-standard setting committees. Taking leadership roles in industry-wide standard setting committees and asking marketing to arrange meetings with companies that have decided not to purchase products/services can also help gain a deeper understanding of the company’s competitive strengths and weaknesses.

By following these suggestions, Boards of Directors can ensure that their company is well-positioned to navigate the complexities of the 21st century and emerge as a leader in its field.

The Importance of Strategic Perspective

Managing the technological and social changes that will occur requires simultaneously reaching back to the company’s origin while structuring future Board agendas to ensure awareness of emerging threats and opportunities. This requires a strategic perspective that is focused on the long-term goals of the company, rather than just short-term gains.

In today’s fast-paced business environment, Boards of Directors must be able to adapt quickly to changing circumstances. By embracing the power of founding stories and staying focused on the company’s long-term goals, Boards can ensure that their company remains competitive and successful in the years to come.