No. 190 · Strategy · Economics
Pivot
Change direction on what you have learned, while keeping what you are good at.
In the Almanac
“Western Union”, 1871–2006 · “Slack”, 2013
Both stories in full, three ways to use it and where it misleads.
Get the AlmanacListen · Watch
Questions
What is Pivot?
A pivot is a structured course correction: you keep your vision and what you have learned, but change a core part of the plan. Slack began as a game company and pivoted to the internal chat tool its team had built, and Western Union grew from telegraphs into money transfer.
How do you use Pivot?
When something isn't working, avoid both stubborn persistence and starting over from scratch. Ask what you have learned and which strengths carry over, then change one key element, such as the customer, the product, or the method, while keeping your underlying goal.
When does Pivot matter?
Pivot is one of the 56 mental models for strategy, the situations where you ask: How do I win when others want the same thing? Within that, it belongs to “Winning customers”, alongside Adverse Selection, Apostle Model and Churn.
What is an example of Pivot?
Two stories show it at work: Western Union (1871–2006) and Slack (2013). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Pivot?
Sunk Cost Fallacy, Preserving Optionality and Generals Fighting the Last War. Pivot itself comes from economics.