You Don’t Need to Be a Silicon Valley Startup to Have a Network-Based Strategy

Research has shown that companies with platform and network-based business models are exponentially better at creating value. They grow faster, make more money, and are more valued than companies organized around products and services. While might think that you have to turn yourself into a Silicon Valley startup and reinvent your business model, the good news is that you can harness the power of platforms and network effects without turning yourself completely inside out. The place to start is with your mental model. Value in a network is not about what you make, but what you connect. Change how you think, and you will naturally change what you do. Then change what you measure to align incentives and track your progress. Everyone on the leadership team has a role to play in making this pivot. The CHRO can be working on networking employees and locations; the CMO on networking customers and partners; the CFO on networking funding and payments; the CIO on software and data; and the COO on products and services. The job of the CEO should be changing the KPIs and shifting the capital allocations to reinforce a culture of collaboration and realign the business for exponential growth.