This quote urges companies to embrace continuous innovation and self-disruption. Instead of protecting a cash cow, leaders should actively seek the next breakthrough that will replace it. This mindset is crucial for long-term survival in a changing market, as customer needs and technologies inevitably evolve.
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Product-market fit is no longer a stable milestone but a moving target that must be re-validated quarterly. Rapid advances in underlying AI models and swift changes in user expectations mean companies are on a constant treadmill to reinvent their value proposition or risk becoming obsolete.
Steve Jobs' hero, Polaroid founder Edwin Land, operated under a powerful personal motto: "don't do anything that someone else can do." This principle forces extreme differentiation and a focus on creating unique value, rather than competing in crowded spaces. It's a guiding light for innovation.
PMF isn't a one-time achievement. Market shifts, like new technology or major events, can render your existing model obsolete. Successful companies must be willing to disrupt themselves and find new PMF to stay relevant.
To avoid decline, managers of mature 'cash cow' products must operate on two tracks. They should rapidly test solution-based iterations to optimize the existing product, while simultaneously dedicating resources to high-level problem discovery to identify the company's next source of growth.
LEGO maintains its market leadership by replacing half of its product portfolio—around 450 products—every single year. This aggressive renewal cycle forces the company to stay deeply connected to current trends and continuously innovate, ensuring they are "no better than the creativity we are coming out with right now."
Many founders become too attached to what they've built. The ability to unemotionally kill products that aren't working—even core parts of the business—is a superpower. This prevents wasting resources and allows for the rapid pivots necessary to find true product-market fit.
Contrary to the stereotype of being 'dusty' or resistant to change, companies that last for centuries are masters of adaptation. Their longevity is direct evidence of their forward-thinking ability to navigate crises, from wars and pandemics to technological disruption.
According to Atlassian's CEO, companies like Microsoft and Adobe thrive for decades not by defending one moat, but by being perpetual creation engines. They must be willing to destroy old products and embrace new paradigms, making a creative culture their most important asset.
To lead in the age of AI, it's not enough to use new tools; you must intentionally disrupt your own effective habits. Force yourself to build, write, and communicate in new ways to truly understand the paradigm shift, even when your old methods still work well.
To combat complacency, Dell manufactures a crisis. He instructs his company to imagine a new, faster, more efficient competitor will put them out of business in five years. Their only path to survival is to proactively become that company first.
