Innovation begins with identifying and banishing the bad practices damaging your business. Here’s how.
When South African bank Captec first came to the market, it was standard practice for banks to link their customers’ access to products to their salaries. The company CEO said: “When I go to Nando’s, they don’t ask me for my salary… and get me a different menu with different prices and food.” By offering one basic account, Captec could offer 50% better rates, was profitable by year two, and now has nine million customers.
When someone says, “everyone in our industry has always done it this way”, you know something is wrong, says the London Business School’s Freek Vermeulen. Interviewed by Strategy+Business’s Jeremy Grant, he says reevaluating business practices to find and eliminate those which no longer work not only improves productivity, but also inspires game-changing corporate innovation.