We have observed that leaders who thrive and meet the challenges of today’s hyper-changing environment do not follow conventional business models that are based on competitive advantage. Instead they function from the Generative Edge. With this Generative Edge, leaders operate beyond competing to actively seize new growth and opportunities. On the contrary, leaders who use competitive based business models seem to function on the premise that industry boundaries are defined with limited amounts of clients and resources. Those who lead based on competitive advantage accept as true that other businesses in their chosen industry are their competitors and they have to beat those competitors to succeed.
In contrast, Generative Edge organizations have the point of view that there is no short supply of clients and there is no limit to opportunity. Generative Edge organizations are aware that an industry’s structural conditions are neither inevitable nor finite. They are able to perceive and find distinctive market positions and sustainable advantages in a variety of ways. They recognize opportunities and seize them. The Generative Edge is a space where new ideas and innovation are constantly created from a heightened Strategic Awareness of the Board, senior executives and the organization generally.
Generative Edge organizations stand for a more conscious approach that goes beyond maximizing profits or shareholder value. They consciously create value for all of their interdependent stakeholders—customers, employees, investors, suppliers, community, and the environment. Paradoxically, this conscious approach also creates the most long-term value for investors. In accordance with the Generative Edge doctrine, a company no longer puts profits first, but works to a “triple bottom line”, considering the effects of what it does on society and the environment as well. The mould for Generative Edge doctrine was cast in the 1980s and 90s by Generative Edge companies such as the Body Shop and the Co-operative Bank.
What would need to change in your business to move from competitive edge to Generative Edge?
…..Steven and Chutisa Bowman
