In

the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most
effectively have prevailed. --- Charles Darwin

Vol. III, No. 9 , 27th February 2015

Darwins Lessons for the Corporate World

In this era of discontinuous change and amidst the contradictions in todays turbulant business scenario,
organizational transformation is the buzz word and Charles Darwins evolutionary concepts are again in the
limelight with minor variations: to survive, organizations must not only be fit but also fast. Economies and markets
are ecosystems and the 21st century organizations are more organic than mechanical, behaving like organisms in an
ecosystem with the ability to learn, unlearn, relearn and master new survival skills failing which they will perish. The
failure of companies during an economic crisis is easier to explain in Darwinian terms; the failed businesses were
weak and had to be selected out. The crux of the idea of natural selection is that experimentation in the form of new
DNA sequences is required to give birth to new traits so as to evolve and survive. From a management standpoint,
creativity is the key to survival. It is ideas that get selected and are passed on. Just like some gene mutations that are
dysfunctional, all ideas may not work. An adaptation strategy may or may not be successful. Every adaptation
involves giving something up, some part of the DNA that the species or the organization relied on in the past.
Key lessons from Darwin on maintaining competitive advantage:
1. Small variations in organizational functioning: Miniscule changes in DNA lead to radical changes in the
capacity of a species to thrive. A less than 4% change in a chimpanzees genetic code was all it took to
become human.
2. Creating micro-adaptations: An organization that clones its business model is bound to fail. Deliberate
micro-adaptations and customization are required on entering new or changed markets. Variety is continuity.
3. Finding the ecological niche: Any survival strategy or adaptation must match with the context viz. the
marketplace, so as to achieve the needed fit and grow.
4. Looking beyond competition and market share: Organizational survival is not just tiding over a crisis but
capitalizing on frequent and disruptive changes by a thorough scanning of the business environment.
5. Focusing on the challenge and response time: The dinosaurs were wiped out because they could not respond
successfully to the challenge of a changing environment. Given their large size, their response time from
head to tail was inadequate and they were wiped out. Agility and a short response time are critical to
survival. Inertia and response time of large organizations, with multiple silos, can be like those of dinosaurs;
hence, these must be split into smaller autonomous units.
Applying Darwinism to human societies and the business world would imply that the human race has still not
civilized. We are still in a jungle, a harsh environment in which only the strong can thrive. But there are a
number of fallacies connected with the theory. Darwins ideas have been applied to business economics in a
crude form wherein all forms of competition and individualism stand justified. His other theory of evolution
has been overlooked. He talks about mutual aid, sympathy, cooperation, and morality in his book The Descent
of Man. Interdependence and ethical conduct, by themselves, are competencies leading to survival. There are
examples of CO-businesses where start-ups and well established companies, and also two or more start-ups come
together resulting in collaboration of ideas, sharing of resources and expertise. This can go a long way in
building positive traits, positive organizations, and communities that flourish, besides innovations in products,
services, and business models. Management literature alludes to the capacity to collaborate an adventure
beset with difficulties as a decisive factor in organizational transformation and sustainability.

Written by: Navreet Kaur

www.chitkara.edu.in

Disclaimer: This Newsletter is prepared to enhance awareness and for information only. The
information is taken from sources believed to be reliable but is not guaranteed by Chitkara
Business School as to its accuracy. Chitkara Business School will not be responsible for any
interpretations, opinions generated or decisions taken by readers.