Leading in a disruptive company

When email was first invented – and then effectively packaged and sold by Microsoft – it heralded a new era of professional and personal communication. Looking back on it now, it’s hard not to feel that one of the most efficient technologies ever created has made our working life less efficient. Some would call it an unforeseen consequence, and most new technology eventually encounters them. E-books are another example. Rather than killing the publishing industry, as was widely predicted, it meant that people actually bought and read more books, and the lower margins for publishers and retailers were offset by savings in production and distribution. It was an outcome no one saw coming.

What is so interesting about the so-called disruptive industries is that their products are fundamentally consistent with existing behaviour and consumer demands. Netflix did not invent TV; Uber didn’t invent the cab; and people were getting take-out from restaurants long before Just Eat made it possible to eat Himalayan food while streaming House of Cards. However, the foundations of these hugely-successful global services rest, quite simply, on a sound principle: connectedness. They made things better and easier. That they’ve done so well is really nothing more than a testament to how good the original business plan was. People watch a lot of Netflix; they take a lot of Ubers; and they order lots of meals on Just Eat. Equally, people still watch cable TV, drive their cars and cook for themselves. Disruption is not a zero-sum game.

We’ve been wondering if leadership or executive roles in disruptive companies have any special dimensions – does being a CEO or CFO in a company known for trailblazing require any sort of special traits? What sort of skill sets and personalities are assets to these businesses?

One of the common themes on our blog is the idea that senior roles in finance and accounting require the ability to think beyond the numbers. This is especially true in companies which have been innovative right from the start – they need to stay innovative, the executive positions within these organizations require at the very least a willingness to think differently. It goes without saying that you still want your CFO to be a safe pair of hands, predictable and rock-solid. But you also need a natural problem solver who can deal with people, the press (if necessary), the CEO and the board when called upon to do so. You need someone who can steer a course through uncertainty; who knows that things change quickly and you can’t always see them coming.

The point of disruption is that it happens slowly, then all at once. How you handle the consequences – foreseen or unforeseen – is where the competitive advantage lies.

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