Darwin’s Theory of Evolution Applied to Business

Not sure how to survive an ever changing business world? Darwin might have the answers!

The business world is often referred to as a brutal battlefield where only the fittest survive. Companies like Kodak and Nokia are often referred to as the dinosaurs that failed to adapt to the changing environment. If you think about it, there is actually a striking similarity between how species evolve to survive in nature and how companies and professionals survive in the business environment.

Nature is composed of living organisms that are in a continuous struggle to endure harsh climates, compete for limited sources of food and fend off predators higher up in the food chain. Analogously, the business environment is composed of firms and individuals who compete for limited customer dollars and investment capital and endure a continuously changing landscape resulting from economic, social and political events occurring in the background.

The question is, can we apply some of the principles of Darwin’s theory of evolution through natural selection to help us understand how to build successful businesses and careers that endure the changing economic landscape?

Darwin’s theory of evolution

To get started, let’s take a deep dive into Darwin’s theory of evolution in order to understand what he was on about.

Darwin’s interest in the evolution of species arose when he was on a five-year voyage which involved visiting the Galapagos islands. He was surprised to find a high variation in animal species depending on which island they belonged to, despite the islands not being very far from each other. He found close to 13 different types of finches, one of the common birds found in the islands. He found some of the finches were radically different from the others. Some looked so different that Darwin mistook them for a different species of birds. As a result of these and other similar findings, Darwin was able to infer that species change over time.

After rigorous analysis, Darwin concluded that species change so as to adapt to the environment in which they live. Organisms adapt to the environment by gaining characteristics that aid them in enduring harsh climates, killing prey or evading predators. Changes in the species are gradual and occur over generations. The changes are initiated in a species through random genetic mutations occurring within an organism’s genetic code when the DNA is copied. This explains why children, even though they retain characteristics of their parents, have some differences that are unique to them. These small differences have a big impact over time as beneficial mutations are preserved. Since beneficial mutations aid survival, they are more likely to be passed on to the next generation. Over time, beneficial mutations accumulate and the result is an entirely different organism. Allowing DNA to experience random genetic mutations is nature’s way of throwing spaghetti on the wall and seeing what sticks.

Let us take one simple example – the pocket mice of the Bacardi desert in Arizona. The Bacardi desert has alternate patches of light coloured sand and darker soil derived from volcanic ash. The pocket mouse is easy prey unless it can successfully camouflage itself. As Darwin’s theory would predict, light coloured mice tend to be found on light coloured sand and dark coloured mice are found on the dark volcanic soil.

Initially, mice that have not adapted to the environment will give birth to offspring of different shades. On the darker soil, offspring that are slightly darker in shade will have an advantage and a stronger chance of survival over their siblings. Over a number of generations, a dark mouse that exactly matches the colour of the surrounding soil will be created. That’s how the process of natural selection works. The darker mice are not smarter or stronger than their lighter colored siblings, but have a greater chance of survival in a dark soiled environment.

Applying Darwin’s theory to business

Now that we understand Darwin’s theory, let’s extract 4 lessons that can be used to adapt and thrive in the competitive world of business.

1. Don’t wait for natural selection – proactively identify the rules for survival

If businesses were to evolve by natural selection alone, only those companies that best meet customer demands by chance would survive.

Are you feeling lucky?

Well, if survival were a simple matter of meeting customer demands it might be possible to succeed by mere chance.  In reality though, customer demands are constantly changing. In addition, technological disruption, social transformations and political decisions occurring in the background continuously reshape the business landscape.

While evolution occurs over a span of millions of years, changes in the business environment occur very quickly. Companies hence need to proactively observe the trends and determine the new rules for survival.  Professionals need to analyse the broader trends and anticipate how they will affect job opportunities going forward.  For example, if your job is ripe for automation, you had better be investing in learning new skills and/or transitioning to a new role that require more creativity and decision-making ability before your current skills become outdated and your current role extinct.

2. Experiment – Random mutations are important

An organization should focus on creating a culture that supports new ideas and encourages testing them out without fear of failing. After-all, not all genetic mutations prove to be useful!

Sometimes it is hard to separate the hype from the practical usefulness of a new technology or skill. As a result, it may be difficult to determine whether investing in that direction will bear fruit. If you choose to do nothing, you risk arriving at a point in time when it becomes necessary to bet the entire farm. Instead, keep investing in small scale experiments to see what works. Creating and testing a ‘Proof of Concept’ with a limited budget and timeframe is one way of achieving this.

3. Don’t aspire to be perfect – No organism is the perfect creation

Nature does not create organisms that are perfect but creates ones that are best adapted to their surroundings.

By adopting an agile work culture, organizations can focus on training, collaboration and constant improvement. Do not expect services or products to be perfect on the first go. Build something that works and keep refining it.

Executing a good plan today is better than executing a perfect plan at some undefined point in the future.

4. Small differentiations can mean life or death – Be the slightly darker mouse

Initially, there is so little known about a new technology or skill that even a little bit of knowledge is golden. You don’t have to be the dark mouse to survive the dark soiled environment right away. You just have to be slightly darker than your counterparts!

For example, companies that provide Robotics Process Automation are worth billions of dollars today, but they had very humble beginnings. Initially, the products lacked the scalability and flexibility that are available today. However, since they were the only ones providing that solution, no matter how primitive, the market was willing to give them a chance to improve.

For individuals, this means acquiring the skills that are going to be in demand in the future. You don’t need to be the expert right away.  Start with something small. For example, completing a short course on Udemy could be enough to differentiate you from the rest, leading to further opportunities that will help you to further build your skills.

Conclusion

As the business landscape continues to change at an exponential pace, only organizations and individuals who embrace change will survive. You can increase your odds of survival by identifying the changing trends, conducting small scale experiments, executing good plans rather than waiting for perfection, and starting today with something small.

Mudassar Shaikh is an engineer at heart, management consultant by profession, entrepreneur by spirit, and student by essence. He is passionate about enabling organizations to develop new technologies and make them accessible to the masses, positively impacting the life of many and pushing the human race forward.

Image: Unsplash

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