Tap Into a New Source of Growth

Challenge conventional wisdom about industry norms

Much of what we do in our day-to-day life is based on routine. In the supermarket, without knowing the actual brand, we purchase the same detergent and toothpaste, and when we commute, we usually take the same route. Following a fixed routine saves time and frees up our brain capacity to explore new things. In our day-to-day life and in business. This makes sense. End of story? Not quite.

Table the innovation part for a moment. Let’s first understand why industry practices continue to exist, despite the fact that they no longer add value.

When a new idea seems to work, we are quick to claim credit. And once we are invested in the idea it becomes self-sustaining — we convince others of its merits who, in turn, tell more people. And most people tend to focus on short-term success and overlook the longer-term, potentially negative impact.

At the same time, it is difficult to determine the net benefit of a specific practice — our decisions often make things better, and worse, because relationships between various parts of an organisation are complex. Results of actions are hard to predict — especially in the long term.

But even if all of this were true, at some point, an industry practice that doesn’t yield any results would die out by itself, right? Not necessarily. If a certain way of doing things catches on and spreads quickly — much like a deadly virus that quickly jumps from host to host — even a detrimental practice is able to survive.

Now moving on to innovation — how to tap into this new source of growth? Follow these two, simple steps. Firstly, look around and ask, “Why do we do the things we do?”. If the answer is “That’s how we always do this”, you are on to something. Secondly, go back to the core set of customers and ask yourself “Do they really need x, y or z?” If the answer is no, strip whatever it is that no longer adds value from the value proposition. Then, go back and simply repeat the process until nothing is left to strip out.

Since its launch in 2008, CitizenM has expanded to 30+ hotels in Europe, Asia, and the US. A direct consequence of its focus on urban travellers and challenging the conventional hotel industry wisdom? That is up for debate, but it certainly seems to have helped.

Even if you’re not designing a new business based on first principles, asking why things are the way they are seems like a useful thing to do. Listen closely, and if there is no clear answer, there is good chance there is an opportunity to innovate. Listen closely, and if there is no clear answer, there is good chance there is an opportunity to innovate.

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