The Wall Street meltdown is an extreme example of economic creative destruction. The challenge is this once in a generation event is now occurring frequently and in almost all businesses, professions, and jobs.
Think about it! Your employer with tens or even hundreds of thousands of people may not exist in 15 years. Moreover, this is more pronounced in Europe. The life expectancy of a typical European and Japanese company is less than 13 years.
Competition, as a creative destroyer, hopefully results in nimble, dynamic organizations. They must adapt and prosper or they soon die. Most companies have a lifecycle. Companies are conceived, prosper and die. The numbers are stunning. The life expectancy of a typical multinational is between 40 to 50 years.
Let’s look a few industries that have changed. The Swiss watch, buggy whip, automotive manufacturing, Yellow Book publishing, high tech manufacturing, banking, real estate, and other industries often illustrate dramatic competitive and business paradigm shifts. The buggy whip industry totally disappeared, as the automobile became the favored method for moving people. Now, it’s happening to all forms of education, government agencies, and many others.
What does this have to do with you? It’s critical that you understand how your company and its senior executives think about their business risks and the competitive landscape. Do you work or do you consult for a company that has a buggy whip technology, process, product, or attitude?
Life Lesson Earned: If you work for a company with obsolescent ideas, processes, and products, it’s time for a little personal risk analysis. Ask yourself: “What are the likelihood and consequences of your company or client losing its competitive position and becoming a buggy whip company?”