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Darwin and the Natural Selection of Companies

May 27, 2020 · Josué Gomes

Darwin and the Natural Selection of Companies

Charles Darwin, famous for his theory of the evolution of species, once said: "It is not the strongest species that survive, nor the most intelligent, but the ones most susceptible to change."

From a very early age, the Theory of Evolution of Species through natural selection caught my attention. I have always enjoyed reading about it and observing the characteristics that brought us to where we are today.

But in recent times, I began to see a very strong connection between the Theory of Evolution and entrepreneurs, companies, and startups. It is impossible not to draw this parallel, and I will explain why.

In the animal kingdom — and in companies — evolution never happens in a single direction. The long-necked giraffe as we know it was not the only evolutionary option. It was the one that worked.

Dozens of other alternatives failed for primitive giraffes. But when one evolutionary hypothesis proved viable, life moved forward in that direction.

Giraffes needed to reach the green leaves at the tops of trees during dry seasons. Those were the only ones left. It was a matter of life or death. So the viable path was the evolution of neck length.

For elephants, in a different way, what worked was a disproportionate growth of the nose. The trunk is used especially to reach the same leaves that giraffes seek.

In companies, everything happens the same way.

To take the next step, countless hypotheses will be tested, and the vast majority will fail. But the hypothesis that proves true will guide the company to a higher level.

However, just as with the giraffe and the elephant, companies are distinct organisms. Not everything that works for one works for another. And the validation of hypotheses is what determines the future of the business.

That said, it is important to recognize that evolution does not happen by chance. It arises from a vital need for change and adaptation. In other words, it stems from a strong desire to move forward.

At the stage we are in, with new technologies emerging constantly and generating new business models that were unknown until recently, the speed of evolution must be immense.

It has never been more important to test hypotheses.

Dozens, hundreds of hypotheses… until the right path is found.

And it is the ability to do this very quickly that makes startups more adaptable to new models than traditional companies.

Except that unlike what happens with living beings, for whom evolution takes thousands or even millions of years, in the "new economy" it must happen every single day.

After all, entire markets are being disrupted 2 or 3 times within a single decade.

 

Source: Starse