“It’s an environment the likes of which managers have never seen—a Great Disruption in which the old rules for success become recipes for failure, and ‘doing more with less’ will not be nearly enough to survive.”—Scott D. Anthony, The Silver Lining: An Innovation Playbook for Uncertain Times, Harvard Business Press, 2009
The inevitable constraints this tough economy imposes on companies provide fertile ground for innovation because necessity truly is the mother of invention. Companies that learn to innovate more quickly, cheaply and with less risk will emerge from the downturn stronger than ever.
To succeed, smart executives will need to adopt a different mindset and effective frameworks to determine what to start doing, stop doing and do differently. Consultant and author Scott D. Anthony, who earned his MBA at Harvard Business School, prescribes a disruptive-innovation mindset. His book is well-worth the read for historical perspectives and inspiration.
Over the last decade, technological improvements have made starting and scaling businesses easier than ever. Brazil, Russia, China, India and other emerging markets prove U.S. leaders have more competitors at home and abroad. Industries are frantically converging and colliding.
These changes make it more difficult for great companies to maintain success—a problem that has caused leaders to lose sleep for some time (even before the 2008 financial market collapse).
Tough business environments force companies to take a hard look at innovation. While output may shrink and unemployment is sure to rise, companies that master these challenges have a chance to thrive. Those that don’t are sure to struggle.
A Historical Perspective
While no one can predict with certainty how the global economic crisis will play out, many companies face serious challenges:
- Should they cut costs and streamline innovation projects until business picks up?
- Should they play it safe until the current storm passes?
If history is a guide, the answer is a definitive “no.” We can restore hope and gain a better perspective by taking a step back and considering how past downturns were resolved.
Many successful companies have been launched during recessions. Grim economic times can highlight previously hidden problems or cause old problems to intensify. When a deep-seated customer problem emerges, search for novel ways to address it.
A number of game-changing products, services and business-model innovations were developed or launched in daunting economic climates.
Thirteen of the 25 companies on the Dow Jones Industrial Average, as of December 2008, were formed during an economic downturn, including 3M, General Electric, Microsoft and Walt Disney.
Disruptive Innovations
Instead of trying to best their competitors, disruptors change the game. They typically transform existing markets or create new ones by focusing on convenience, simplicity, accessibility or affordability.
——————
This is a brief synopsis of a 2000 & 1000-word article suitable for consultants’ newsletters for executives and leaders in organizations. It is available for purchase with full reprint rights, which means you may put your name on it and use it in your newsletters, blogs or other marketing materials. You may also modify it and add your personal experiences and perspectives.
The complete 2,000 word article includes these important concepts:
- A Historical Perspective
- Disruptive Innovations
- Bad Times, Good Times
- The Transformation Imperative
- Disruptive Guidelines
- The Executive Challenge
——————————————————————————–
If you are a Content for Coaches client and your account is current, no need to order. Send me an email to confirm that you wish to use this article as part of your subscription.
All others please use the order links below.
Order Links to purchase this article:
a. Text, 2000-word Article with Full Reprint Rights, $79 –
Disruptive Innovation Sept09-93a- 2000 word Article -
Click HERE: http://snipurl.com/sept09
b. Text, 1000-word Article with Full Reprint Rights, $57 –
Disruptive Innovation Sept09-93b – 1000 word Article -
Click HERE: http://snipurl.com/sept09shrtv
We need a better way to evaluate our business leaders, assert James O’Toole and Warren Bennis in a recent Harvard Business Review article (“A Culture of Candor,” June 2009). It’s no longer prudent to judge American corporate leaders’ performance solely on the extent to which they create wealth for investors.
Moving forward, a new metric is proposed: the extent to which executives create organizations that are economically, ethically and socially sustainable.
The short-term thinking that Wall Street typically rewards no longer seems wise. Are these new ideals too much to strive for? Will they be forgotten once profits return?
Unless corporations extend their thinking and strategies beyond short-term profits, they will miss crucial opportunities and find themselves unable to survive a rapidly changing environment.
Wise leaders must recognize that increased transparency is a fundamental first step to accomplishing the tasks required for economic, ethic and social sustainability, Bennis and O’Toole conclude.
The standard business definition of transparency usually means full disclosure of financial information to investors. But such a narrow interpretation produces an unhealthy focus on legal compliance, which usually means over concern with “the letter of the law” to the exclusion of others’ needs.
Inside and Out
Broadly defined, transparency should mean the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders.
A company cannot be transparent to its shareholders without first being transparent to its workforce.
A January 2009 Harvard Business Review survey revealed that, over the last year, readers reported having 76% less trust in U.S. companies’ senior management and 51% less trust in non-U.S. companies. (Of the 1,000+ respondents, 60% were based outside the United States.)
That’s a significant drop in confidence levels.
Roughly half of all managers don’t trust their leaders. Exact figures and study results vary, but no data compiled over the last 7 years have shown more than 50% trust for company leaders.
Companies that foster a culture of transparency and trust clearly have a competitive advantage for sustainable success.
Companies cannot innovate or rapidly respond to new challenges unless all employees have access to relevant, timely and valid information.
Easier Said Than Done
The obvious question remains: Why wouldn’t companies promote openness and a free flow of information?
Several issues seem to arise:
• Can people communicate upward and do so honestly?
• Are teams capable of challenging their own assumptions?
• Can boards of directors communicate important messages to company leadership?
=====================================
This is a brief synopsis of a 2000 & 1000-word article suitable for consultants’ newsletters for executives and leaders in organizations. It is available for purchase with full reprint rights, which means you may put your name on it and use it in your newsletters, blogs or other marketing materials. You may also modify it and add your personal experiences and perspectives.
The complete 2,000 word article includes these important concepts:
Inside and Out
Easier Said Than Done
Knowledge Is Power
7 Steps to Transparency
1. Tell the Truth
2. Encourage People to Speak Truth to Power
3. Reward Contrarians
4. Practice Having Unpleasant Conversations
5. Diversify Information Sources
6. Admit Mistakes
7. Build Organizational Support for Transparency
Board Vigilance
Trust
Transparent Communications
——————————————————————————–
If you are a Content for Coaches and Consultants client and your account is current, no need to order. Send me an email to confirm that you wish to use this article for your next newsletter.
All others please use the order links below.
Order Links to purchase this article:
a. Text, 2000-word Article with Full Reprint Rights, $79 –
Click HERE:
Transparency & Trust- Aug09- 2000 word Article -
http://snipurl.com/aug09transparency
b. Text, 1000-word Article with Full Reprint Rights, $57 –
Click HERE:
