Businesses and New Challenges
The COVID-19 crisis spurred me to write this post. The virus is fatal to the old people more than it is for the young. Likewise; an old business is prone to higher risks than when it was young. Risks include rigidity, increased competition, falling in the trap of the success syndrome, changes in technology and the business environment. This point was re-emphasized by Elena Gabor in her comment on my introductory post “Ageing of Humans and Businesses” on this issue. Elena wrote “Dear Ali Anani that is a great analogy. The point is that the human body is affected by age and by medical conditions and the business is affected by socio-political and financial fluctuations of Economy. We humans can get well by changing the lifestyle or taking a good medical treatment. A tired and unwell business will get well through new, fresh ideas, diversification and a healthy injection of capital. Flexibility and the ability to adjust to change are crucial in business and for the human body. KPIs are subjected to change and adaptability”.
Businesses grow and follow the curve as shown in the image below. As the business grows it forms generates new and expanded activities. These include new suppliers, new customers, new competition, and new entrants with better technologies, changing environments, changing customers’ life style, managerial challenges, new work regulations and the businesses become more complex. The businesses go through the stage of growth and enter the conservation stage in which the businesses try to stabilize the businesses. Consequently, a “rigidity gap” emerges. The businesses then become exposed to the slightest shocks from outside and prone to their devastating effects. The businesses enter the next fast two stages consisting or the release phase and re-organization phase. Most businesses fail to inject new ideas and release their resources to new activities, end up in the darkness of chaos and phasing out.
I want to say that the four phases of growth, conservation, release and self-organization impose different challenges in each phase. The adaptation of businesses to meet those emerging challenges is a must; else, businesses shall phase out.
The introduction of Key Performance indicators (KPIs) was a great idea to monitor the performance of each business. Only, this is valid if the KPIs are relevant to the phase in which a business is experiencing. If not, fitting the wrong KPIs to a mature business is like an old man trying to fit in his adulthood clothes. KPIs then should be called “Key Locked Performance Indicators”, KLPs.
There are other challenges that businesses face in their need to keep talents and hire staff with the right skills for each phase of the business. One example is the image I share below:
Successful businesses grow and mature only if the growth is accompanied by the growth of their wisdom. It is not the age; more it is what we fill it with. @Roberto De la Cruz Utria wrote recently a comment in which he rightly said "Growing wiser every day ... This is the fruit of capacity ;~)
Your thoughts are highly desirable to enrich discussions.
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التعليقات
Ali Anani
منذ 4 سنوات #33
Ali Anani
منذ 4 سنوات #32
Ali Anani
منذ 4 سنوات #31
I love the way you think and phrase your comments dear friend Roberto De la Cruz Utria. I started drafting my next post about control and creativity and which way to go. What I have in mind is close enough to your thinking here. You say that varying experiences are better than being focused on one area. As I shall explain in my next post focused is an orderly system and it is the closest to die. Variety of experiences is chaotic and hence maybe confusing. The same applies when to apply the handle and switch to focusing pr variation. You expanded my thoughts and I thank you for it.
Ali Anani
منذ 4 سنوات #30
Ali Anani
منذ 4 سنوات #29
Sad and I am sure it spreads to other places. No country is immune of such acts.
Ali Anani
منذ 4 سنوات #28
We have a saying here "what I suffer from let others suffer from as well". This mentality finds the spread of viruses cheap and can pass unpunished. This is why I wrote a post today that some behaviors can be riskier than the virus itself. You explained this very well in your comment. Your comment is a call for masses wakeup.
Harvey Lloyd
منذ 4 سنوات #27
"Indirectly", need better editing patience. (We have several cases of people attempting to infect others directly or indirectly here in the USA.)
Harvey Lloyd
منذ 4 سنوات #26
"We have several cases of people attempting to infect others directly or here in the USA."
Harvey Lloyd
منذ 4 سنوات #25
Relativism is the road to Nihilism. We have several cases of people attempting to infect others directly or directly here in the USA. This is nihilism at its strength. "If i have it then everyone should have it!" The concept here is no different than the mass shootings that seemed to dominate the news in recent months. We only exchanged the gun for a sneeze or touch. It is the same psychology. Desperation without values/axioms is the paradigm of nihilistic behavior. This is the Achilles Heel of relativism. Comparing one human paradigm to another will always end this way. Unfortunately it seems to be playing heavy role in response to crisis. One Governor actaully compared his own grandmother to other lives. This is a poor position for anyone in power to state or even use allegorically. Life in and of itself is to be cherished, regardless of the relative nature to the current crisis. To separate out one human, in light of current events, starts the wheel of nihilism. "My grandmother is more important than yours!"
Ali Anani
منذ 4 سنوات #24
In a video published two days ago a woman was videoed intentionally putting her hand on the handles of doors of cars and kept moving her to do the same to all parking cars. Sometimes, when people find no hope they do what I call "social retaliation" out of desperation.
Ali Anani
منذ 4 سنوات #23
Solid reasoning and the Law of Unintended Consequences is plying a dominant role these days. There are reasons for this for people don't realize that if . If one person is infected and in average infects three others soon the problem shall compound because of the positive feedback effect. These three people in turn infect nine others and those infected nine people will infect twenty seven others. The problem compounds very shortly as the graph shows. Only after repeating this process for sixteen times the number of infected people can reach a staggering number of 43046721. Just thinking about these numbers and the associated costs will throw light on all your comments here Harvey Lloyd and the water will drain up. People Media should play a better role than just make people fear each other and realize that one single infection can have drastic effects on society.
Harvey Lloyd
منذ 4 سنوات #22
Rumors, misunderstandings and other social constructs we live within tend to find balance naturally. Health, like our children is more a survival aspect as opposed to feelings. A parent considering the exposure to the disease will immediately consider their own survival and secondarily the lives of those they love. Liking/disliking someone may have consequences, but once you consider someone infectious at the level of survival, its no longer social and could be barbarian.
Harvey Lloyd
منذ 4 سنوات #21
The one constant in a leaders life, of successful endeavors, is the law of unintended consequences. What am i missing? I hesitate to second guess leaders who are traversing new territory, we all sail blindly into uncharted waters. Media here is screaming about science and yet the science of economies was pitted against identity politics, relativism. This changed the wind of sound judgement. You are correct, the sustainability of this media driven frenzy is not hopeful. It would appear the lessons of the past have been obscured us from the law of unintended consequences. The foolishness, we knew the consequences, but could not see them for the facade of relativism.
Ali Anani
منذ 4 سنوات #20
Your company sets a great example of what to doing order to manage the virus crisis/ It is a case study on its own.
Harvey Lloyd
منذ 4 سنوات #19
Ali Anani
منذ 4 سنوات #18
I am about to publish a short post on LinkedIn on "Social Alertness and Responses". You reminded me to publish it because of what you wrote " Can the consumer find this level if we are all social distancing, wearing masks and looking at everyone with allergies like they are a loaded weapon". I find many activities that make this worse such as spreading rumors, mocking at the infected ones so that if others get infected they may tend to hide the infection for fear of being mocked at, trading false masks and other activities. Harvey Lloyd you wrote "The media has been successful in terrifying the consumer of other consumers". It is terrifying the people against each other that the ill acts of some people are emergng
Ali Anani
منذ 4 سنوات #17
What a great and visual metaphor this is Harvey Lloyd! Yes, the management of conflicting demands is absolutely challenging so that the water isn't gone. I just wonder what you would do if you were in charge. We see lots of laying offs of workers by businesses to save money. For how long these unemployed can sustain they earn no income I don't know,but surely not for long times. Same with government trying to float the ship. But for how long "So government intervenes with hold over support until the water can be turned back on and float the ship". The governments depend on taxed such as sales tax and income tax. But with people staying at home and with increasing number of people not working the tax revenue is diminishing. On top of that there are emerging needs such as for portable hospitals and medicines. I hope this will not lead to a situation that people would die either of the virus or hunger. It is indeed "climbing back to the precipice takes time and perseverance".
Harvey Lloyd
منذ 4 سنوات #16
Harvey Lloyd
منذ 4 سنوات #15
Ali Anani
منذ 4 سنوات #14
Thank you Chris \ud83d\udc1d Guest for highlighting a key point.It is indicators should have short shelf lives. The other key point is your reasoning why they should evolve. I wonder if we take a new business that turned a big one over the years and compare the KPIs for the business as it started and now- how would they compare?
Ali Anani
منذ 4 سنوات #13
Much in agreement
Pascal Derrien
منذ 4 سنوات #12
conceptually I agree reality on the ground is different at the moment agility is key but not paramount
Ali Anani
منذ 4 سنوات #11
Dear Oswaldo Enrique Diaz Delgado You are right. I agree with your comment this time. You wrote that A steel gear is strong and weak at the same time; it needs a viscous solution called oil to keep it moving between other gears of greater or smaller size. The analogy is simple big companies need all their gears "Big and small" oil comes to be represented from the wills that are wonderfully proportional to generate opportunities for new jobs instead of reducing! This makes lots of sense to me.
Ali Anani
منذ 4 سنوات #10
Pascal Derrien I appreciate your comment. I want to give an explanatory example. I am thinking of an old hospital with old equipment and medical staff. Would I go there> Or, I would prefer one that has modernized itself and trained its staff to absorb new medical technologies, scientific findings, new drugs and so on. An agile business to be able to adapt to changes must be ready for change. An evergreen business looks always young and fresh. if it is agile enough.
Ali Anani
منذ 4 سنوات #9
DearOswaldo Enrique Diaz Delgado You wrote that a simple formula: Whoever has work sustains it from the primary values (Respect, Honesty, Responsibility). These are fixed attributes and should not disappear from an ethical and responsible business. I am discussing here the traits that change with time- dynamic ones. I thank you for giving the opportunity to clarify this point.
Pascal Derrien
منذ 4 سنوات #8
Ali Anani
منذ 4 سنوات #7
John Rylance You spotted precisely why I chose the "evergreen" curve and not a drawn one. This is to say that if businesses are living one then they should learn from evergreen trees. I do appreciate your probing comment.
John Rylance
منذ 4 سنوات #6
Ali Anani
منذ 4 سنوات #5
What a great comment to accompany your re-share of the post my friend Zacharias \ud83d\udc1d Voulgaris. Thank you so much for it.
Zacharias 🐝 Voulgaris
منذ 4 سنوات #4
Ali Anani
منذ 4 سنوات #3
Thank You Zacharias \ud83d\udc1d Voulgaris. Yes, we need diverse thinking that adapts to the new business environment and the threats and opportunities these changes present to us. I look forward for making your worthy endeavors available to the public. Good Luck.
Zacharias 🐝 Voulgaris
منذ 4 سنوات #2
Ali Anani
منذ 4 سنوات #1