A Business Renaissance: A Common Sense Look at the Future of Business
When I wrote @YourService, I actually had a different book in mind called Common Sense for Business, based on Common Sense by Thomas Paine. As you many of you know, Thomas Paine's pamphlet helped to inspire the American revolution and a new way of thinking about our relationship to government. Today we need that same inspiration for business. Earlier this year I started to write the book I always intended but I am finding interesting turn along the way, some of which have caused me to rethink my own views on so many levels beyond business.
Thomas Paine's Common Sense starts with a look at the history of government. In keeping with that theme I started with a history of business dating back to the first Industrial Revolution. As I went through history I hit writers block for a few reasons. One of the biggest reasons is for as much as we like to think the world has changed, the business world is often still run the same way as it was 150 years ago. We have the same greed at the highest levels, the same treatment of the lowest levels, and often a disrespect for the Customer. We seek out ways to produce goods at the lowest prices. Even the most respected companies, seek out the lowest cost by producing goods in often terrible conditions in other countries. The world has already changed but business has not changed with it.
In 2001 Jack Welch, the well respected, often imitated, former CEO of General Electric released his book Straight from the Gut. At the time many companies were focusing their efforts on mimicking GE's success with Six Sigma. One of the key concepts behind Six Sigma is measurements, not human thought. This belief is still prevalent in the business world. In his book Mr. Welch wrote a chapter called "The People Factory." The chapter highlights his view of constantly moving out the lowest 10% performers out of the organization each year. This sounds great, but in reality I am not sure it achieves the results companies desire. Performance is such a tricky measure, and even if based on unbiased metrics, the fact is companies often lose strong performers because of so many factors, including people not in the right role or paired with the right leader. The other key factor is we are not factories anymore and we need to change the mindset, but looking at the history of business, I am not sure we can.
Winter is Coming
I often watch HBO's Game of Thrones with a business mindset. It often feels like business are fighting in a similar way, treating their employees like subjects. Some of the kingdoms seem to be better than others, but I am not sure I would be a good subject in any of them. The big ongoing theme is "Winter is Coming." Dark times seem to be ahead. Some can make the case that the same is true in business. Others will make the case that the best is yet to come. I am personally in the later camp, but I can easily see the former as a strong possibility. In my view we will see a renaissance in business, but if we do not allow this to flourish, we could just as easily see a revolution.
In the coming years I expect the following trends to take place:
- Increased use of technology, including machine learning and robotics
- The world will continue to become smaller and more connected challenging some of the low cost manufacturing in far off places
- Barriers of entry for new businesses will continue to come down
I have seen statistics that we could see 40% or more of employees displaced because of technology. Many would celebrate this fact. I am sure many CEO's would be thrilled to reduce the expense. But this is an old mindset at growth through expense reduction. In doing so we would also displace any potential marketplace. Many would say they should be displaced if they do not have the skills. This may be true, but I can also tell you in looking at history which is often a strong predictor of the future, it would easily create the basis for revolution. I personally believe we already have such a basis today due to certain political and socioeconomic conditions, but that would be a post for another day.
The business world in the future must include a portion of humanity and artistry that is often missing in large businesses today. We do see these attributes in small start-ups, but as these companies grow these basic human attributes seem to be the first thing to get displaced. We have to ensure that are business operate in a highly ethical, human manner that contributes not just to quarterly earnings but to the good of society globally. As employee we have to first encourage each other to be human. We have to be accepting of the differences each of us have, and the greater benefits we bring to the table when we work together to achieve goals.
I personally believe the best days are ahead of us, but I think it is imperative that we start to think differently about all aspects of society. The past week has highlighted shifts in society, shedding of the past and building a new world together. If we respect one another, and build bridges to those we may not understand as well, together we will bring a new world order that benefits us all. Do not fear the coming technology, but instead focus on what is possible and how together we can create this new renaissance.
If you enjoy reading about the future, check out "A World Without Work" from the Atlantic Monthly.
Director, GM Ireland - Peru Consulting
9yFrank, That's a really good piece. Well done. At a purely commercial and pragmatic level your argument stands up as we would kill our own marketplace by going too far down the technology at all costs route. However your bigger more fundamental point about understanding our differences and humanity is even more compelling. I would defy anyone to argue a good case against it. 'Business world in the future must include a portion of humanity and artistry that is often missing in large businesses today'.
VP of Sales - Engage PEO | Partner To Commercial P&C Insurance and Employee Benefits Brokers & Agents | HR Compliance | HR Platform | Cost Effective HR Solutions | Talks about #HR, #HRServices, #Compliance, #HCM #HRIS
9yThe changing world and dynamics are going to demand that individuals be more self-reliant and capable of "fishing for themselves". The pressure to produce more cost-effective goods and services and shifting jobs from one country to another in search of that leaves gaping holes in the job market and a bloated government isn't the answer. Jobs and more people taking accountability for themselves through creating their own opportunities as a "business of one" seem to me to be a better answer. We should be encouraging higher levels of entrepreneurship, collaboration and innovation. I agree with your points.
Transformational Content Marketing Director | Mastermind Behind 40% MQL Increase | B2B, B2C, Non-Profit | Marketing Communications and Social Media Pro | "Mr. Ambassador"
9y"As employee we have to first encourage each other to be human." This. Double-underlined this. When people talk about how they fear robots taking their job, I sometimes will mention that the robots have already arrived. They don't look like C3PO or R2D2, though. - They look like the managers too paralyzed by fear to make a forward-thinking decision. - They look like the VP's that talk about the need for teams to execute a strategy, and then toss it out two days later when customers don't line up in droves to buy. - They look like the 20-year veteran who has seen CEO's come and go, and is so disillusioned that she will only do the absolute minimum until she can retire in a few years. - And of course, the robots have already taken over in "Human" Resources where power and responsibility were ceded long ago to automatic screening software that filters out candidates that don't follow the exact pattern they've been peogranmed to find. A litte common sense would help a great deal, Frank. Of course, Thomas Paine was later arrested when he tried to export his revolutionary ideas to France.