There is no finish line.
Nike Corporation motto
One of the striking consequences of the Wall Street financial debacle is that the companies that we work for as employees or contractors will have to become more competitive.
In the last recession, many companies gave this lip service. OK, they said we’re going to be competitive by outsourcing or cutting head count. These were easy fixes. Now, things are for real. Stupid risk/loss decisions were made. Imperial bosses flouted governance and transparency rules. Now, fundamental business models are being scrutinized.
The logic for most companies including ours goes like this: We need to be profitable and competitive. We are in an era of hyper-competition where short term gains and share price gains rule. Our revenues will grow if we can develop new products, develop new revenue streams, and control costs. We need people to develop and commercialize products. Along the same line, we need to reduce headcount so the company can reduce fixed costs. This is the conundrum of all companies.
What does this have to do with us? We need to understand how our services and products make life easier or better for our customers and client-companies. If we can’t say how we add value, then we may be without a job if we’re an employee or a client if we’re a contractor.
Life Lesson Earned: Start understanding the paradigms that affect your company or clients. If you want to stay employed, know what drives your company or client and know what keeps executives up at night. I’m surprised how many employees and contractors don’t know their company’s or client’s business models. I often ask in our workshop: “Who knows your company’s business model?” I’m usually shocked. About 10% do. Not good!