“Here are two reasons why companies fail: they only do more of the same, or they only do what’s new.” The balance between the two mindsets of “exploration” and “exploitation” is imperative to maintaining continuation of both innovation and growth. It’s possible to have too much of a good thing, using all of your resources for one or the other. Haanaes says that too much of either can halt a company’s momentum and ultimately, lead to complete failure.
“If we take a long term perspective, we explore. If we take a short-term perspective, we exploit.” For your company to avoid doing too much or not enough of either, Haanes suggests living in two schools of thought. “How can I run and reinvent my company” and “How can I transform before we have to?” This talk offers up four lessons that raise awareness of the dichotomy between exploration and exploitation in one’s business- and how to achieve both.