The Courage to Change

It’s been said before: brands are most successful when they focus on a single, core purpose. This singular identity helps establish expectations and provides a roadmap for action. It sets a foundation for future business strategy, employee commitment and customer loyalty. But what happens when the product becomes the brand, acting as both a strategic asset and hindrance? 

Encyclopedia Britannica confronted this question exactly one year ago. After years of internal shifts and product diversification, it finally announced it was discontinuing its 32-volume print edition encyclopedias. The world was shocked. Britannica was so well known for its print collections that ending their production seemed unthinkable, even if subscriptions to the encyclopedias represented less than 10% of revenue. 

In actuality, this decision was aligned with Britannica’s mission to be an essential reference and educational aid. It was also necessary in an industry that’s been in a downward spiral for over a decade. One year later, it’s clear this was the right call. The company is profitable, growing and as beloved as ever. 

But how did it successfully evolve its businesses, and how can other brands ensure they evolve successfully, too? 

Britannica seems to have followed three rules to keep its standing: 

1. Listen to relevant warning signs

The media pit Wikipedia against Britannica because of perceived similarities. However, their audience, purpose and business model only slightly overlap. The real warning signs lay in the potential of digital and changing consumption patterns. By focusing on the right signals—threats and opportunities—Britannica successfully matured into an educational partner from a traditional publisher. 

2. Work iteratively and be ready to cut ties

Every industry is looking for the next disruption, but most companies know they won’t create it on the first try. Those that get closest are the ones that work iteratively, learn to bounce back quickly and build on failed attempts. Britannica implemented a variety of business changes and suffered the corresponding amount of flops before finding the right balance of services. Its willingness to both shut down underperforming businesses, like printed encyclopedias, and invest in new products has been vital to its success.

3. Maintain a culture of learning and development that emphasizes flexible uses of talent rather than pigeonholed expertise

Early on Britannica realized its talent stretched beyond editing and publishing and restructured its offerings accordingly. With constant changes in technology and consumer mindsets, it’s more important to have a workforce that knows how to learn and respond to real-time needs than one that’s set in its ways, hanging on to outdated processes.

Time to let go

Britannica’s choice to leave behind its printed encyclopedias was definitely a risk. It had achieved a feat shared with only a handful of brands: the product was synonymous with the brand. However, such a significant change also signaled the strength and trust Britannica has in its remaining offerings. With so much volatility in and across industries, agility and awareness have become brands’ most important assets. The brands that can reinvent themselves by capitalizing on talents to create new, relevant value are the ones that’ll stick around.