By John Caslione in Chaotics, The New Normality, Turbulence at June 8th, 2009
In June 6th’s Financial Times article entitled, “Wal-Mart finds turmoil brings more opportunities than ever”, Wal-Mart CEO Mike Duke states, “there is a ‘new normal’ in which people want to save money and are getting smarter about saving money.”
Wal-Mart now also recognizes that fundamental behaviors must change (both their own and their consumers) in the “new normality”, which will be with us for many years into the future.
By John Caslione in Business strategies, Chaotic Strategies, Chaotics at June 8th, 2009
If you haven’t seen it yet, Marshall Goldsmith has a great interview up on his blog with Phillip Kolter on Chaotics.
They discuss what’s wrong with businesses having a “2 playbook” strategy and how to be profitable in a tough environment. The article has some nice specific examples and definitely worth a read!
By John Caslione in Business strategies, Chaotic Strategies, Climate Change, Economic Analysis, New Normality, Recommendations, Turbulence at May 28th, 2009
I was so pleased to read a brief just released by Economist Intelligence Unit http://www.eiu.com/site_info.asp?info_name=orgagility&page=noads&rf=0. The brief mirrors our own Chaotics formula for success stressing organizational flexibility as key to navigating troubled waters. Organisational agility: how business can survive and thrive in turbulent times examines the challenges and rewards of organisational agility, particularly in tough economic times. Their major findings are:
- Organisational agility is a core differentiator in today’s volatile business environment… 88% of global executives surveyed believe that organisational agility is critical for global business success. One-half of all chief executive officers and chief information officers polled agree that rapid decision-making and execution are not only important, but essential to a company’s competitive standing, particularly in these times of economic uncertainty.
- …Yet most companies admit they are not sufficiently flexible to compete successfully. Although the overwhelming majority of executives view organisational agility as a competitive necessity, actual business readiness is more mixed. More than one-quarter (27%) of respondents say that their organisation is at a competitive disadvantage because it is not agile enough to anticipate fundamental marketplace shifts.
- Internal barriers hamper agile change efforts. More than 80% of survey respondents have undertaken one or more change initiatives in order to improve agility over the past three years, yet 34% say they have failed to deliver the desired benefits. The main obstacles to progress are slow decision-making, conflicting departmental goals and priorities, risk-averse cultures and silo-based information.
- Technology can play an important supporting role in enabling organisations to become more agile. Technology should function as a change agent in the use and adoption of best-in-class knowledge-sharing processes, so companies can improve their use of critical data.
You can download the full report on the EIU website. It is a worthwhile read and reinforces the principles we have outlined in our book.
By John Caslione in Business in Society, Business strategies, Chaotic Strategies, Recommendations at May 21st, 2009
Based upon the recent news in the US about the US Treasury Dept mandating stress tests for US banks (with at least 50 percent of the banks failing the tests), so should Boards of Directors of ALL companies - publicly traded or private, large and small - apply their own stress tests and compel the executive management of their companies to be responsive, robust and resilient - a type of “Chaotics certification”. This is especially compelling as many markets (including the US and the EU) attach personal liability to directors who fail to act responsibly in their duties as directors.