Tuesday Email: Disruptor, not Disrupted

Happy Tuesday!

Every Tuesday I'd like to offer strategies for the week ahead and a thought to fuel your action.

Dumb ideas are the future of business.

We love to sit comfortably within what we know, reassuring ourselves that tomorrow will mirror today. The narrative we build is linear—steady and predictable.

New ideas appear constantly, only to fade away quickly. We point to their failures as proof that disruption won't occur. But those "failures" are the kindling for future disruption.

Innovators examine these failures, learn from them, and patiently stack the chips. One day, these ideas rise tall enough to topple entire industries.

I grew up knowing only index funds. When I began my career, the industry was already shifting toward passive investing. But this wasn't always the case.

When John Bogle introduced the first index fund, his idea was openly mocked—called "un-American." Media pundits scoffed,

"Why settle for average returns when active managers aim to beat the market?"

In its first year, Bogle's index fund raised under $20 million, far short of the $150 million goal. The naysayers rejoiced, but Bogle persisted.

As the '70s and '80s unfolded, the wisdom behind index funds became clear: fund managers rarely beat the market consistently. Investors began to embrace indexing's simplicity, transparency, and cost-effectiveness. The tipping point had arrived, transforming an industry.

Reading Bogle's journey, I recognized a broader truth: success today guarantees nothing tomorrow. Disruptors run marathons; many of us settle for sprints. Complacency is comfortable, but beneath that comfort lies vulnerability.

Disruption brews silently like a volcano, unnoticed until it erupts.

Consider WebVan, the early 2000s grocery delivery startup.

They failed spectacularly and were mocked as unnecessary.

Eleven years later, with smartphones and rideshare normalizing delivery, Instacart succeeded where WebVan couldn't. The dumb idea of yesterday became today's disruptor.

When things go well, we focus narrowly—accelerating blindly down a highway, missing critical exits. Ironically, success blinds us to disruption. True disruption arises through empathy—understanding unmet client needs so deeply that solutions become obvious.

Empathy is adjusting a blurry lens, bringing hidden opportunities into sharp focus.

Loyalty requires evolution. Our clients' lives evolve continuously, and they expect us to adapt with them. Loyalty isn't built by repetition but through consistent evolution. It's a playlist that grows and changes with your taste, not the same song on repeat.

Avoiding disruption creates a dilemma: should we enjoy today or constantly push forward?

I've grappled with this black-and-white thinking. But avoiding disruption doesn't mean abandoning the joy of present achievements. Instead, it means not letting satisfaction breed complacency.

The business we run today differs vastly from what it was five, ten, or thirty years ago. Why, then, would we expect today's methods to sustain us into the future?

We must constantly refine our ability to evolve. This persistent evolution—driven by curiosity, empathy, and humility—is the only path to building a proactive, sustainable, and thriving future.

The best is ahead!

-Matt