While many European economies are on the brink of a recession between increasing taxation and mounting loss of jobs and bankruptcy filing rates, there's an understandable risk of losing sight of the deeper forces at play. Yet instead of surrendering to uncertainty and trying to survive in the short term, many organizations are feeling the urge to be better prepared to thrive in these complex times by developing a more articulated long term understanding of both the opportunities / challenges ahead.
For example:
What long-term economic, technological and societal changes are rolling out?
Which foundational dynamics will affect our companies' performance, productivity, competition, and innovative potential in the upcoming decades?
How will digital infrastructure change our business landscape?
What kind of capabilities will be key to compete in a market shaped by growing turbulence, unpredictability and volatility?
Breaking out from a strictly cyclical thinking, studies such as the Shift Index by John Hagel, Co-Chairman of the Center for the Edge at Deloitte & Touche (See Measuring the forces of long-term change - The 2009 Shift Index), depict a worrying performance challenge that affected every industry in the entire US economy over the last 45 years. Amidst a more than doubled competitive intensity of the market, and even with an improved labor productivity, the actual performance of US firms has consistently fallen to 25% of what it was in 1965. Most of this reported value is shifting from institutions and organizations to individuals, whether they are customers or young creative talent.
To thrive in the digital economy and reverse declining performance trends, companies will have to fundamentally rethink their management approach by moving from knowledge stocks to knowledge flows, from scalable efficiency to scalable learning, from push organizations to pull organizations.
Based on the outcomes of the Shift Index and on the book The Power of Pull, the first episode of the Social Business Thought-Leaders features John Hagel to provide strategic insights on how companies will succeed in the 21st century.
