In your book Disrupt Disruption, you challenge some widely accepted myths about disruption. What are the most significant misconceptions leaders face, and how can they navigate disruption more effectively?

We often obsess over disruptors, trying to imitate them. Who wouldn’t want to be Apple instead of Nokia, Netflix instead of Blockbuster, or Instagram instead of Kodak? Yet, we overlook an essential question: instead of solely focusing on what’s going to change, we should also ask, “What’s not going to change?” 

This idea traces back to Clayton Christensen, who coined the term “disruptive innovation.” He pointed out that consumers don’t just buy products; they hire them to make progress in specific circumstances. He called this concept the “job to be done.”

For instance, people don’t buy a power drill just to own it—they buy it because they have a DIY project. The critical insight here is that the job to be done remains constant, even in disruption scenarios. These needs endure over long periods.

A great example of this is Amazon. Jeff Bezos, the company’s founder, highlighted that their retail business thrives on vast selection, low prices, and fast delivery. It’s unimaginable that a consumer, years from now, would ask Amazon to deliver more slowly or raise its prices.

This leads to a key perspective on disruption, which we refer to as “state changes.” Just as in the physical world, where frozen water turns to liquid and then gas—while always remaining H2O—consumer needs stay the same. It’s the way we fulfill these needs that changes.

This is one of the most misunderstood aspects of disruption. Disruption is less about a fundamental shift in consumer needs and more about how those needs are met. It’s a state change, not a change in the job to be done. 

You’ve worked with tech giants like Google and eBay during major transitions. What are some key lessons from those experiences that can help any organisation turn uncertainty into opportunity?

The most important thing for companies successfully navigating uncertainty and ambiguity is their perspective. They don’t see uncertainty as a threat to avoid; they recognize it’s a constant and growing force of nature. Instead of fearing it, they embrace uncertainty as a window of opportunity.

Uncertainty allows us to explore new ideas. In an unpredictable world, there’s more room for experimentation.

We need to better understand and coordinate variability, complexity, and effectiveness. This requires a different approach to leadership, organization, and company structure.

The companies that thrive today are those that have fully embraced these lessons.

With so much information around digital transformation and innovation, how do you advise leaders to focus on what really matters and cut through the noise?

Success comes from focusing on your North Star—being crystal clear about what your organization, and you as a leader, are truly here to do. This involves deeply understanding the real job your customer needs done, not just a superficial or outdated view of it.

Maintaining a razor-sharp focus on this and the core principles of how you run your company, your North Star, allows you to adapt to change far more effectively.

You’ve worked with innovators from various industries. What common traits do you see in leaders who consistently thrive in disruptive environments?

The number one trait I see in successful leaders in uncertain and ambiguous environments is curiosity—combined with the willingness to be wrong and to say, “I don’t know.”

The best leaders guide their teams to explore, learn, and integrate those learnings into their operations. It all begins with an insatiable curiosity about the world—constantly challenging assumptions and returning to first principles thinking.

Looking ahead, what global disruptions do you see on the horizon, and how can leaders prepare their organisations to not just survive but thrive in the next decade?

Without a doubt, AI will be the core disruptive force over the next five to ten years and beyond. The real question is not just how AI impacts your core business, but how it affects every part of your value chain, supply chain, and ecosystem.

Consider sneaker makers. People will still wear sneakers 10, 20, and 30 years from now. But today, if you want to advertise sneakers, you might use Google AdWords. In the future, when someone asks an AI, “What are the best shoes for running a marathon?” the response won’t be a page of ads—it will be a curated list.

And soon, AI will be personalized, knowing the user’s running habits, stride length, and more. Instead of five options, it will suggest the perfect shoe and might even offer to purchase it for you.

The world will shift around you, even if your core business isn’t directly affected by AI. That’s why embracing AI is essential. It’s not just about mitigating threats—it’s about seizing massive opportunities. The companies and leaders that thrive in this world will see AI as a chance to do things differently.

Malta, as a small nation with unique strengths, is positioning itself in the global innovation landscape. What opportunities do you see for a country like Malta to leverage disruption and create a competitive advantage?

I’d like to draw a parallel to the startup world. Smaller organizations often outperform larger corporations because they are fast, nimble, and agile. Even resource constraints can drive more innovation, as they push people to think differently.

I believe the same principle applies to a nation like Malta. If done right, Malta has the potential to out-compete much larger, better-resourced countries simply by being smaller, more adaptable, and quicker to implement progressive policies and foster innovation.

I’m very optimistic about Malta’s ability to become a true leader in innovation in a rapidly changing world.

You say Malta’s small size makes it more adaptable and quicker to foster innovation. Are there any specific success stories you think the country should be looking at for inspiration?

When we look at success stories that Malta could draw inspiration from, a few notable examples come to mind. 

First, we should consider Estonia’s remarkable digital transformation. Estonia has leveraged its small size to become a world leader in e-governance and digital citizenship. Their e-Residency program, for instance, allows non-Estonians to access Estonian services and run a location-independent business online. This kind of innovative thinking has positioned Estonia as a global hub for digital nomads and tech entrepreneurs.

Another inspiring case is Singapore. Despite its small geographical footprint, Singapore has become a powerhouse in fintech innovation. Their regulatory sandbox approach, which allows fintech startups to test new products in a controlled environment, has been particularly successful in fostering innovation while managing risks.

Israel, often referred to as the “Startup Nation,” is another excellent example. Their success in cultivating a thriving startup ecosystem, particularly in cybersecurity and deep tech, is remarkable. Israel’s approach to integrating military technology and expertise into the civilian sector has been a key driver of their innovation economy.

Closer to home, Luxembourg offers an interesting model. They’ve successfully positioned themselves as a hub for space resources and satellite technologies, showing how a small nation can carve out a niche in a high-tech, future-oriented sector.

What’s common among these success stories is a clear national vision, strong government support for innovation, and a focus on developing niche areas where they can excel globally. The key for Malta will be to identify its unique strengths and double down on them, while also creating an ecosystem that attracts global talent and investment.

Much of your work has been with business leaders and companies, which operate on hierarchical principles and where leaders have a clear mandate to set the agenda. What advice would you give leaders in other sectors, where north stars are contested and half the battle is in convincing others to endorse your vision?

You are touching one of the, in my mind, most critical and important points why our current (public/political) systems are breaking in the face of a world which increasingly uncertain, ambiguous and where the pace of innovation is accelerating at an unprecedented rate. I fundamentally believe that our political system needs to overcome the increasing polarization and hardening of positions we encounter all around the world. In politics, or any sector where consensus-building is crucial, leaders need to focus on creating an environment where diverse perspectives can be heard and synthesized into a shared vision. This requires a profound shift from a top-down leadership model to one of facilitation, where the leader acts more like a conductor of an orchestra than a soloist. Sadly our politicians globally seem to move into the exact opposite direction.

Moreover, agility is critical. The capacity to pivot, adapt, and evolve the vision based on feedback without losing sight of core principles is a delicate balancing act. Leaders should be comfortable with uncertainty and be able to create structures that thrive on innovation, experimentation, and iteration, much like a startup but within a far more complex and dynamic ecosystem.

In essence, the advice I’d give is: Don’t just set the agenda. Build the framework for others to help co-create the agenda with you.

Pascal Finette is a globally acclaimed futurist, entrepreneur, and author, who has help senior leadership roles at Google, eBay, and Mozilla. He lectures at prominent business schools such as Berkeley, Stanford, HEC Paris, and Singularity University, where he served as Chair for Entrepreneurship & Open Innovation. Pascal also chairs EY’s Wavespace Advisory Board and is co-founder of be radical, helping businesses navigate disruption and drive innovation.

Finette will be the keynote speaker at the EY Future Realised Malta 2024 conference, "Envisioning Tomorrow, Today," held on October 23.

The event will reflect on two decades of EY's FDI research, explore the results of EY's Malta Attractiveness Survey and discuss ways of navigating Malta's future through five key perspectives: Build, Share, Engage, Generate, and Change. 

For further information and bookings, visit: https://www.ey.com/en