When civil war made the government an unsuitable partner, an NGO successfully pivoted by collaborating with the church—the community's new trusted institution. In a tech disruption, companies must similarly identify and partner with new entities that hold customer trust.
Founders can waste time trying to force an initial idea. The key is to remain open-minded and identify where the market is surprisingly easy to sell into. Mercor found hypergrowth by pivoting from general hiring to serving the intense, specific needs of AI labs.
For a controversial strategic shift, a co-founder's "moral authority" is invaluable. They can absorb the risk of looking foolish and give up their responsibilities ("Legos") to spearhead a new initiative. This allows them to champion a new direction with a level of credibility that can overcome internal skepticism.
To overcome the cold start problem in a network effects business, especially in a conservative industry like finance, a powerful strategy is to create a coalition or consortium model. By giving early adopters ownership and governance rights, you align incentives, build trust, and transform would-be competitors into enthusiastic evangelists for the new network.
When trying to influence external partners, start with those most eager to collaborate. This 'coalition of the willing' builds momentum, helps set standards, and creates social pressure for larger, slower-moving players to join the initiative.
The Browser Company's pivot required spending the "trust points" they'd built with their team and community. Leaders must be prepared for this painful drawdown and the internal/external backlash, even when they have high conviction in the new direction. It's a necessary but difficult part of a major strategic shift.
Luckey reveals that Anduril prioritized institutional engagement over engineering in its early days, initially hiring more lawyers and lobbyists. The biggest challenge wasn't building the technology, but convincing the Department of Defense and political stakeholders to believe in a new procurement model, proving that shaping the system is a prerequisite for success.
Navigating technological upheaval requires the same crisis management skills as operating in a conflict zone: rapid pivoting, complex scenario planning, and aligning stakeholders (like donors or investors) around a new, high-risk strategy. The core challenges are surprisingly similar.
During major internal changes (e.g., tech refactoring, price hikes), users can feel neglected. Bending Spoons found that monthly video updates for Evernote were crucial for reassuring the community, demonstrating progress, and putting a human face on the company to directly address concerns.
Facing hyper-competitive local rivals, Starbucks is selling a majority stake in its China business. This is not a retreat, but a strategic shift to a joint venture model. It's a playbook for Western brands to gain local agility, faster product rollouts, and deeper digital integration where Western brand dominance is fading.
When hypergrowth causes you to fail internal stakeholders (like Operations), apologies are insufficient. Rebuild trust by going to the CEO and board *together* with the slighted team to advocate for a drastic roadmap pivot that prioritizes their needs, demonstrating true commitment to their success.