Change Your Business Model Beliefs

by Jay Deragon on 01/13/2014

social chasmBusiness dynamics are being changed by new models, mindsets and beliefs.  New business model beliefs are redefining how markets behave.

There are those who do not believe nor see any value in changing the way they do business and continue doing what and how they’ve always done it.

The difference between the two beliefs represents the “social chasm“. The “social chasm” represents the pronounced difference in beliefs about what creates the most value and how value is created.

What creates the most value in the 21st century are reflected by how an organization views value.  The challenge is helping leaders “cross the social chasm” is to convince them to believe in something they don’t understand or yet believe. The problem is business leaders believe in getting results from beliefs in old business models and not learning from new business models and believing they will produce improved results.

Old business models are inadequate in a technically advanced, global world where rapid change is normal. The old models view treated organizations as well-tuned machines. However, like old machines, they were not flexible enough to move with rapidly changing markets and emerging technology. They were rigid, doing just what they had been designed to do and nothing more. The structure of the 21st century organization has become much more biological than mechanical and is behaving more like an organism in an ecosystem than a punch press in a factory. These organizations are able to learn, adapt, and adjust rapidly –and time and again, to master new survival skills in a changing environment.

Crossing the Social Chasm

Since the markets are still influenced by old business models everyone is trying to fit “all things social” into those old business models. The “social” gurus suggest that the common mistake people make when pitching social media to senior management is:

  1. Lack of strategy.
  2. Lack of vision.
  3. Lack of execution skills.

Notice that the above list fails to discuss having the wrong philosophy, beliefs. Why would you try to form a strategy without addressing the beliefs? How can you envision something of value if your visions are stuck in old business models or the wrong beliefs? You can execute all day long but if execution are aimed at chasing the wrong things for the wrong reason then the odds for success are slim.

It is not About Social Media

Social pundits are trying to convince  companies how to use social media as a new marketing channel.  Social pundits are catering to the existing marketing beliefs of the corporations.  Traditional marketing beliefs are the wrong focus.

Social media are communications reflecting the shifts in consumer sentiments about everything including the beliefs that corporations control people and markets.  Social media also reflects the beliefs of an organization based on what you say and do and how you create and convey value to your stakeholders.  Social media are merely an output of what people and organizations believe.

The social chasm represents a large ravine between the beliefs of “the people” and that of “the corporation“. Crossing the social chasm is no longer a compromise for the people rather a needed shift in beliefs for the corporation and all its leaders have believed for many years. If you don’t think this is true just ask the people.

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