The message is clear: playing it safe is no longer safe.
In business, making small, incremental improvements can keep things running smoothly—but it won’t future-proof an organisation. According to PwC’s 28th Annual Global CEO Survey, 42% of CEOs believe their companies won’t be viable in ten years if they stay on their current path.
“The electric light never came from the continuous improvement of candles.” – Oren Harari
And yet, most companies are still relying on small, predictable changes rather than the bold moves required for reinvention. Only 7% of revenue in the last five years has come from fundamentally new businesses. While 63% of CEOs report taking reinvention actions, the majority focus on low-risk strategies like product tweaks and new customer segments. The tougher, high-impact shifts—rethinking business models, pioneering new revenue streams, or forming unexpected collaborations—remain rare.
The companies that are thriving aren’t just improving their existing models. They’re rethinking them entirely. Consider for instance:
1. Starbucks: Reinventing by Returning to Its Roots
Reinvention doesn’t always mean tearing everything down. Sometimes, it means getting back to what made you great in the first place.
Starbucks, once a pioneer of the premium coffee experience, found itself struggling with market saturation and shifting consumer preferences. But instead of chasing every new trend, it decided to refocus on customer value and the core coffeehouse experience.
By doubling down on what made the brand special—quality coffee, personalised service, and a focus on in-store experience—Starbucks is proving that reinvention isn’t always about radical transformation. Sometimes, it’s about remembering who you are.
2. Southwest Airlines: Staying Ahead by Evolving Its Model
While Starbucks rediscovered its roots, Southwest Airlines has thrived by constantly evolving.
Since its launch in 1971, Southwest has disrupted the airline industry with a low-cost, customer-centric model. Its playbook—flying a single aircraft type (the Boeing 737) and operating a point-to-point route system—helped it slash costs, maximize efficiency, and keep fares low.
But what truly sets Southwest apart isn’t just its strategy—it’s its culture of continuous self-disruption.
The airline refuses to be complacent. Leaders regularly challenge industry norms, from experimenting with new boarding processes to considering premium seating options. And while many airlines nickel-and-dime customers with extra fees, Southwest’s “bags fly free” policy remains intact—even at a financial cost—because it reinforces the airline’s commitment to customer value.
The key takeaway? Reinvention isn’t just about changing strategy. It’s about fostering a culture that embraces change.
3. Goldman Sachs: Reinvention Through AI-Driven Decision Making
Some reinventions are cultural, others strategic. But increasingly, technology is the biggest driver of transformation.
Goldman Sachs is leveraging agentic AI to redefine decision-making in the financial sector. Unlike traditional AI, which requires human oversight, agentic AI can proactively analyze data, assess risks, and optimise strategies in real-time.
For an institution that thrives on making complex, high-stakes decisions, this kind of automation is a game-changer. It allows Goldman Sachs to stay ahead of market shifts, identify new opportunities faster, and operate with unprecedented precision.
The lesson? True reinvention isn’t just about adding technology—it’s about using it to fundamentally change how decisions are made.
4. Mondelez: AI-Powered Product Innovation
Goldman Sachs is using AI to optimise strategy. Mondelez is using it to reinvent how products are created. Because playing it safe is not longer safe.
The global snack giant is leveraging AI to analyze consumer preferences, predict emerging trends, and develop entirely new products. This allows Mondelez to move faster, reduce risk, and stay ahead of shifting market demands.
By embedding AI into its innovation process, Mondelez isn’t just adjusting to market changes—it’s anticipating them.
5. Levi’s: Harnessing AI to Stay Ahead of Consumer Trends
Staying relevant in fashion has always been a challenge, but Levi’s is proving that data-driven reinvention is the key to staying ahead. Rather than relying on gut instinct or slow-moving trend reports, the company turned to AI and machine learning to predict shifting consumer preferences—allowing it to anticipate trends rather than chase them.
Partnering with Google Cloud, Levi’s integrated data from purchases, web activity, retail partners, and its loyalty program into a centralized system. Machine-learning algorithms analyzed these insights daily, giving Levi’s real-time visibility into what customers were gravitating toward across 110 countries and 50,000 distribution points.
This strategy paid off in a big way when Levi’s detected a growing demand for baggy and loose-fitting jeans—not just among younger consumers but also older demographics and men. Instead of waiting for this shift to become obvious in sales figures, Levi’s acted early. It launched targeted marketing campaigns like “Live Loose” and adjusted inventory and design strategies to meet demand. The result? A 15% increase in sales of loose-fit jeans in a single quarter.
Levi’s reinvention wasn’t about rolling out a brand-new product or making incremental tweaks to its existing lineup. It was about leveraging technology to stay ahead of consumer behavior. In an industry where trends move at lightning speed, the ability to predict and adapt is what separates leaders from those left behind.
The Data Is Clear: Bold Action Drives Profits
If CEOs need a final push to move beyond incremental change, the numbers tell a compelling story:
Companies that take multiple reinvention actions consistently achieve stronger profit margins.
The businesses that are thriving aren’t just making small improvements—they’re fundamentally rethinking how they create, deliver, and capture value. They’re embracing new technologies, challenging old assumptions, and investing in long-term reinvention instead of short-term gains.
Reinvention isn’t optional. It’s essential. Playing it safe is not longer safe.
The businesses that will lead the future aren’t the ones making safe, incremental improvements. They’re the ones bold enough to rethink everything.
The question isn’t whether your business needs to evolve. The question is: are you doing enough to stay ahead?
Article supplied with thanks to Michael McQueen.
About the Author: Michael is a trends forecaster, business strategist and award-winning conference speaker. His most recent book Mindstuck explores the psychology of stubbornness and how to change minds – including your own.
The post The Most Dangerous Strategy in Today’s Business Climate? Playing It Safe appeared first on CMAA Syndication and has been reproduced with permission.
