He-Man can Teach You Powerful Lessons about how to Successfully Manage Continuous Innovation

The story of Mattel's He-Man and the Masters of the Universe provides valuable insight into how organizations can manage continuous innovation. Mattel was facing financial difficulties in the late '70s due to the success of competitors' Star Wars toys, and in response, they turned to innovation. They adopted Design Thinking, Lean Startup, and empathetic research to understand their customers' needs and desires. Mattel created a successful product line that captured 19% of the male action figure market but failed to sustain its success because they fell into organizational narcissism. They assumed the market was not evolving, and they could produce whatever they wanted, leading to a demise within five years. The story is a cautionary tale of how organizations can fail when they don't listen to their customers, continue to innovate, and stay agile.