3. Shifts in our mental models enable us to solve
problems and pursue opportunities
New mental models
Change
Time
Old mental models
Mental models, paradigms, or the
way that we think about things help
us shortcut thinking to arrive at
decisions quickly, but they can also
inhibit positive change, keeping us
stuck in old ways of thinking.
Small, incremental change in our
mental models doesn’t always yield
the change we need; we need to
actively challenge our assumptions
to drive meaningful change.
Let’s review some examples.
4. It is up to us to interpret the “facts”
Thought exercise: is a given megatrend an opportunity or threat? It could be either, depending on your mindset.
Threat Opportunity
Aging demographics Aging population New “silver market”
Rising health-care costs Health-care spending
New health-care
services and settings
Urban congestion Urbanization Smart Transportation Solutions
Economic loss and human impact Sustainability
Growing power and
infrastructure needs
Near-term price and energy
volatility
Energy price volatility New Stable energy source
High competition in rapidly
evolving area
Smart devices New software market
6. BIC opened the door to new lines of business
(e.g., lighters, razors) by shifting mental models
New mental models
Change
Time
Old mental models
“We are in the writing
business.”
● Cheap pens, cheaper pens, colored
pens, black pens, etc.
“We are in the cheap,
disposable plastic objects
business.”
● Pens, lighters, razors, etc.
7. Low-cost airlines shifted prevailing airline
paradigms to disrupt the aviation industry
Fill in the blanks.
New mental models
Change
Time
Old mental models
Airlines can operate:
● many types of aircraft
● convenient, major airports
● hub-and-spoke model
● all-inclusive pricing
● pre-assigned seating
● sold via travel agents
Airlines can operate:
● single model of aircraft
● No-frills service
● Point-to-point operations
● Online ticket sales
● Ancillary revenue
● Operational efficiency
● Lean organizational structure
8. What was the problem with the old mental model?
● Many types of aircraft: The use of multiple aircraft types can lead to increased complexity in
maintenance, training, and scheduling. It can also create inefficiencies in fleet utilization and limit
operational flexibility.
● Convenient, major airports: Relying solely on major airports can lead to congestion, delays, and limited
accessibility. It may result in passengers having to travel long distances to reach these airports, causing
inconvenience and additional travel time.
● Hub-and-spoke model: While the hub-and-spoke model allows airlines to consolidate traffic and maximize
connectivity, it can also result in longer travel times and increased dependency on a few key airports.
Delays or disruptions at the hub airport can have a cascading effect on the entire network.
● All-inclusive pricing: All-inclusive pricing models may lack transparency and make it difficult for
passengers to understand the breakdown of fares. Hidden fees or bundled services can lead to customer
dissatisfaction and a perception of unfair pricing practices.
● Pre-assigned seating: Pre-assigned seating can restrict flexibility for passengers, especially in situations
where changes or disruptions occur. It may also limit the ability to accommodate last-minute bookings or
seating preferences, leading to potential customer dissatisfaction.
● Sold via travel agents: Relying solely on travel agents for ticket sales can introduce additional costs and
inefficiencies in the distribution process. It may also limit direct customer interaction and the ability to
provide personalized services or address customer queries promptly.
10. How were the problems solved leading to the new
mental model?
● No-frills service: Low-cost airlines introduced the concept of no-frills service, focusing on providing
essential transportation without the additional amenities typically offered by traditional carriers. This
mental model challenged the notion that airlines must provide various services and amenities during
flights.
● Point-to-point operations: Low-cost carriers often operate on a point-to-point model, where flights travel
directly between specific city pairs without the need for a hub-and-spoke network. This approach offers
more direct routes, bypassing the need for passengers to transfer through major hubs.
● Online ticket sales: Low-cost airlines heavily rely on online ticket sales and direct booking through their
own websites. This mental model disrupted the traditional distribution model, which involved selling
tickets through travel agents or global distribution systems.
● Ancillary revenue: Low-cost carriers introduced the concept of ancillary revenue, where additional
services, such as checked baggage, seat selection, in-flight meals, and priority boarding, are offered at an
additional cost. This mental model shifted the focus from all-inclusive pricing to unbundling services and
providing them as optional add-ons.
● Operational efficiency: Low-cost airlines emphasize operational efficiency and cost optimization
throughout their operations. This mental model challenges the conventional belief that airlines should
prioritize luxurious amenities over cost-effectiveness.
● Simplified fleet: Low-cost carriers often operate a single model of aircraft, enabling them to streamline
operations, maintenance, and training. This mental model contrasts with the previous belief that airlines
should have a diverse fleet to cater to various routes and passenger capacities.
● Lean organizational structure: Low-cost airlines typically adopt a lean organizational structure,
minimizing bureaucracy and reducing overhead costs. This mental model challenges the traditional
hierarchical structures prevalent in legacy carriers.
11. Describe another mental model shift that has
resulted in a major change
Fill in the blanks.
New mental models
Change
Time
Old mental models
