In the 1950s, Kutol’s wallpaper cleaner business was on the brink of bankruptcy due to the rise of natural gas as a primary heating source, resulting in cleaner walls and lower sales. However, Kay Zufall, Joseph McVicker’s sister-in-law, suggested rebranding the product as a kids’ toy, which became Play-Doh. This pivot not only saved the company but led to spectacular success, with sales reaching $3 million by 1958.
The story of Kutol highlights the importance of embracing failure and crises as opportunities for growth. By leveraging short-term failures, businesses can ensure long-term success. In reality, most companies are structured to avoid failure rather than learn from it.
Amy Edmondson, a Harvard Business School professor, has studied “the science of failing well” and concludes that learning from failure is crucial but rare in organizations. Instead, successes are celebrated, while failures are avoided due to social capital and the sunk cost fallacy.
However, companies like Kutol that adopt an “extremophyte mindset,” viewing crises as opportunities for growth, can find new pathways to success by rethinking and reinventing their strategies and products in response to challenges. This mindset is not unique to business; extremophytes, plants that thrive in harsh environments, use stressors like salinity or drought to trigger growth mechanisms.
By embracing failure and crisis, businesses can transform adversity into a catalyst for new opportunities. The story of Kutol serves as a powerful reminder that lasting success often requires a willingness to take risks, experiment, and learn from failures.
Source: https://bigthink.com/the-long-game/why-the-extremophyte-mindset-is-crucial-to-lasting-success/