Belligerent Butterfly Beliefs: Ghost Mountains and Business Blind Spots

Many many of our subscribers asked me to narrate the Thursday Thought, I have found a way to do that efficiently, see YouTube here: https://www.youtube.com/watch?v=eCY9cQKNDfs

“In all affairs it's a healthy thing now and then to hang a question mark on the things you have long taken for granted.”?—?Bertrand Russell

“The greatest danger in times of turbulence is not the turbulence. It is to act with yesterday's logic.” - Peter Drucker

Monarch butterflies are famous for their awe-inspiring migration from Canada to Mexico, a journey that spans multiple generations. What's particularly intriguing about their trek is a curious eastward detour they take as they pass over Lake Superior. This odd deviation is a relic from an ancient migratory route that once guided them around a mountain—one that has long since eroded away. Despite the mountain's disappearance, the butterflies' genetic memory, a legacy passed down through countless generations, compels them to follow the same path, turning eastward over a lake where the mountain used to be.

The Perils of Unquestioned Mental Models

"Mental models can be good because they allow us to process information and make decisions quickly. However, very strong mental models can hinder active thinking and the adoption of new ideas because they act as filters that screen incoming information... It is therefore essential that we routinely question our mental models."?—?Constantinos Markides

Mental models, those deeply ingrained frameworks that shape how we perceive and interpret the world, can become powerful barriers to change. When a particular approach or business model has been successful, it becomes even more difficult to let go. These models act like "phantoms" in the mind, much like the monarch's eastward turn—persisting long after their original purpose has faded.

The story of the monarchs is a perfect metaphor for this human tendency to hold on to old, familiar patterns. While their ancient migration route once led them safely around an obstacle, today it sends them unnecessarily off course. Likewise, many businesses continue to follow outdated strategies and practices because "this is the way it's always been done," even when the environment has changed dramatically.

Just as monarchs instinctively follow a now obsolete migratory path, organisations too can get trapped in old habits. Corporate rituals, policies, and best practices often live long beyond their original usefulness, codified into processes and rulebooks. Managers pass these "lessons" down from generation to generation without ever questioning their relevance to current conditions.

What's particularly dangerous is that organisations often don't realise they're stuck. The mental models that once worked so well now serve as blinders, filtering out new ideas that don't fit the old narrative. This inertia stifles innovation and leaves companies vulnerable to disruption.

Blockbuster: A Case Study of Clinging to the Old

“The deeply encoded lessons of the past that are passed from one generation of managers to another pose two dangers for any organisation. First, individuals may, over time, forget why they believe what they believe. Second, managers may come to believe that what they don't know isn't worth knowing. A failure to appreciate the contingent nature of corporate beliefs afflicts many companies. Yesterday's ‘good ideas’ become today's ‘policy guidelines’ and tomorrow's ‘mandates.’ Industry conventions and ‘accepted best practices’ assume a life of their own.”?—?Gary Hamel

One of the most notable examples of a company's failure to reframe its mental models is Blockbuster. In the early 2000s, John Antioco, then CEO, recognised the need to shift away from the traditional rental model, which relied heavily on late fees. He introduced?Total Access, a hybrid service combining online DVD rentals and in-store returns to compete with Netflix's digital-first approach. Antioco's attempt was an effort to "scrub the windows" of Blockbuster's assumptions and update the business model for the new digital era.

However, Blockbuster's reliance on late fees and its franchise-based physical store model hindered this shift. Activist investor Carl Icahn, more focused on short-term profitability, opposed Antioco's strategy and pushed for cuts rather than digital investments. These internal conflicts, coupled with the financial pressures of the 2008 downturn, created a perfect storm that stifled the company's ability to embrace a new mindset.

After Antioco was ousted, Blockbuster doubled down on its old ways under the leadership of Jim Keyes, a retail expert who focused on physical stores rather than the digital transformation that was necessary. Instead of moving forward, Blockbuster reverted to its old model, unable to fully recognise that the world had changed. The company's ultimate collapse stands as a stark reminder of the dangers of clinging to outdated business models and failing to reframe mental models in time.

Lessons from Nature: Rethink, Reframe, Renew

“Your assumptions are your windows on the world. Scrub them off every once in a while, or the light won't come.” - Alan Alda (often misattributed to Isaac Asimov)

We can learn much from the monarch's misguided migration. While instinct and tradition have their place, survival in a changing world requires adaptability. Businesses must develop the ability to "scrub the windows" of their assumptions and mental models, as Alan Alda suggested, to let in the light of new ideas and perspectives.

Like the monarch butterflies following an obsolete migratory route, Blockbuster followed its traditional model to the point of extinction, despite clear signs that the environment had changed. Antioco's?Total Access was an attempt to alter course, but internal resistance and a reluctance to abandon the old ways ultimately led to the company's failure.

The monarch butterfly's eastward detour teaches us that without questioning our assumptions, we may go in the wrong direction. The ability to reframe, to question old patterns and rituals, is essential for growth, innovation, and survival in an ever-changing world.

Conclusion

The ability to adapt and evolve is critical in today's rapidly changing business landscape. By recognising and challenging our "ghost mountains" – those outdated mental models and practices that no longer serve us – we can unlock new possibilities, drive innovation, and ensure our continued success. Just as the monarch butterfly would benefit from adjusting its migratory route, organisations must be willing to re-evaluate their ingrained patterns and embrace new directions to thrive in the face of change.

Join us in scrubbing assumptions and reframing our mental models at The Reinvention Summit in Dublin on April 29-30, 2025. It's a fantastic opportunity to learn from other innovators and disruptors who are challenging the status quo and shaping the future. We are scrubbing assumptions of what an event should be, certainly it should deliver impact. Many businesses are using it as an opportunity for the C-suite offsite. https://www.thereinventionsummit.com/

Don't miss the latest episode of The Innovation Show!

This week, I had a fascinating conversation with Brian Dias who dives deep into the world of epigenetics and how it impacts not only individual organisms but also organisations. We explore how experiences and environmental factors can create lasting changes that are passed down through generations, and what this means for adapting to change and fostering innovation. From Rats to Wolfspiders to Worms, join us at the link below:

https://youtu.be/Jqqky30WOUE?si=NfpFcgUnelhAKitC