When Legacy Thinking Blocks Business Growth

In a world where business models change faster than strategy documents are updated, unlearning is not an academic idea, but a business necessity. What worked yesterday may be a hindrance tomorrow.

In conversations with CEOs and digital leaders worldwide, a recurring pattern emerges: the real bottleneck is not access to new technologies, but instead clinging to outdated beliefs.

Habit as a growth barrier

What has proven itself over the years enjoys trust, often to the extent that it displaces critical questioning. Past recipes for success become blueprints for the future, even as market mechanisms, customer behavior, and technological frameworks undergo significant changes.

A CEO of a global industrial company recently told me:

“Our biggest challenge isn’t technology. It’s how we think about it.”

This sentence hits the nail on the head. Companies often develop sophisticated plans for introducing new things, but rarely for actively unlearning old ones.

A McKinsey analysis makes it clear: The majority of failed digital transformation initiatives are characterized by cultural inertia and entrenched mindsets. Leaders often underestimate the depth of old patterns and the power they can exert in blocking necessary changes.1

Unlearning: an underrated leadership skill

Unlearning doesn’t mean ignoring experiences, but instead critically examining their relevance in the current context. It takes courage to deconstruct familiar thought patterns and create space for new insights.

In my work with executives, I’ve found that the most successful companies cultivate a strategic memory, but not a rigid one.

They are willing to integrate not only new technologies but also new ways of thinking—even if that means questioning familiar mechanisms for success.

Business case

One example case is Target Corporation (USA), one of the leading retailers with a strategic focus on digitally driven growth:

  • Initial situation: Although Target traditionally had a strong presence in brick-and-mortar stores, the e-commerce channel showed considerable potential.
  • Strategic decision: Outdated warehousing and delivery processes were deliberately abandoned. Instead, massive investments were made in digital infrastructure, including same-day delivery via Shipt, optimized supply chains, and a modernized app platform.
  • Result: Digital sales increased by 195%, reaching 17% of total sales (compared to just 3% in 2019). At the same time, Target gained 11 million new online customers.2

The decisive lever was that Target not only used technology but also consistently unlearned old logic in supply chain management and warehousing. By moving away from rigid, historically evolved processes, the company not only ensured crisis resilience but also significantly strengthened its market position.

Key Takeaways

  • Unlearning is an active leadership decision, not an automatic process.
  • Strategic relevance trumps historical success logic—what worked in the past must be reconsidered in today’s context.
  • Cultural agility is becoming a core competency, particularly in the context of digital transformation.

Conclusion

In times of exponential change, it’s not who knows the most that counts, but who can unlearn what no longer works the fastest.

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”

— Alvin Toffler

Executives who are willing to let go of old ways of thinking create space for new perspectives and real progress.

Sources
  1. TM Forum, “Unlearning inertia to shift to digital culture,” 2024
  2. Vorecol, “Successful Software Implementations for Cultural Transformation,” 2024

Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice—it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.