Tiger Buford – retained recruiter dissecting orthopedics 
In the orthopedic industry’s push for innovation and differentiation, a prevailing storyline suggests that Big Ortho companies stumble due to being disconnected or poorly managed.
Wrong! That’s off the mark.
In reality, Big Ortho is guided by sharp, rational leaders making calculated moves. This view overlooks a key element of corporate strategy: the innovation dilemma.
Allow me to unpack why, if I were leading a Big Ortho company, I’d likely make the same calls.
Protecting Existing Customers and Revenue
The primary concern for Big Ortho is the impact on their current customer base and revenue streams. Introducing a radical innovation might alienate loyal customers, upset established business relationships, or even cannibalize their own products. For instance, a company known for its combustion engine vehicles might hesitate to fully embrace electric vehicles if it means potentially losing a significant portion of their market.
The Comfort of Established Systems
Big Ortho finds itself at a crossroads where innovation could disrupt their current operations. The reason many big companies don’t leap into new technologies or business models isn’t always due to negligence or incompetence. Rather, it’s because innovation could “break too much glass” — metaphorically speaking, it could shatter the existing framework that has been meticulously built over years.
Responsibility Over Disruption
There’s a responsible side to this conservative approach. Companies with vast infrastructures and employee bases have a duty to maintain stability. The risk of innovation isn’t just financial; it’s also about job security, supply chain integrity, and maintaining trust with consumers who have come to rely on their products or services in their current form.
Optimizing Machines
Big Ortho can be described as “optimizing machines,” fine-tuned to maximize the performance of their existing business models. This optimization is not a sign of poor management but of a system that works well within its established parameters. Adapting to new paradigms can mean dismantling systems that are still profitable, effective, and in some cases, still advancing incrementally.
Conclusion
The lesson here isn’t that Big Ortho should never innovate but rather that they should approach innovation with caution. The narrative that they’re always failing by not innovating overlooks the complex balance between maintaining a successful business and exploring new ventures. Sometimes, not innovating is the responsible choice, ensuring stability for shareholders, employees, and customers alike. Innovation, when it happens, should be strategic, protecting the core while exploring the new, ensuring that the glass isn’t shattered but rather, if necessary, carefully reshaped.