The Economic Dialectic in a Time of Turmoil Wrought with Contradiction
For companies facing the challenges during economic turmoil that is wrought with contradiction, the discourse to find truth is paramount for these companies to emerge stronger than their competitors. It calls for dispassion when developing strategy and making the decisions about the future of the organization; yet this calling must be fueled by one’s passion to succeed. It demands one must acknowledge the reliance on the strategies that got them to this point in time may be an impediment to finding the next path/direction to reach the company’s potential. It requires seeking out people outside their comfort zone to assist them in this journey and the recognition that there are people inside their organization who once helped them get to where they are who are now resistant to change and throw up obstacles to acceptance and implementation of new strategies. It is the dialectic imperative as company executives grope to plan and implement new strategies in the post-pandemic economy.
The reaction of laying people off and suppressing spending is the triage of the economic battlefield. These actions are not the answer or treatment to addressing current economic challenges. The next three to six months will test your courage. The impact of the Coronavirus is one of several factors impacting the economy. There is the national debt and protectionism in the wake of a global economy. The willful ignorance of these factors is another element of the play that is about to unfold. The economic turmoil and contradictions will demand business transformation.
A study from the John M. Olin School of Business at Washington University estimates that 40% of today's Fortune 500 companies on the S&P 500 will no longer exist in 10 years. It is no surprise as 90% of Fortune 500 companies vanished since 1955, but the latest estimate is in 10 years, a fast decade away. This study from 2016 did not consider the impact of the current pandemic, the current debt of $22 trillion, and the contradiction of protectionism in a global economy. There is no doubt that this ‘vanishing act’ will hasten. The question is whether your organization will join them.
Companies, their management teams, and employees suffer from a malaise of inertia. There is talk and meeting about the need to change; followed by falling back to “what we have always done.” Ironically, management teams create excuses about why changes cannot be implemented. Employees set up roadblocks to accommodate their comfort levels. The seeds of the organization’s demise were planted in its inception and company culture. The fear, risk and discomfort of change or business transformation in a time that demands action; the organization’s inaction will doom the organization to oblivion – and it is the true economic dialectic.
Your passionate search for truth with dispassion will lead your organization to:
Adopt new thought leadership and strategic planning
Identify new business metrics for its success tomorrow
Build a synergistic marketing, sales, and financial plan to fuel the growth of your company in today’s new normal
Develop a new value proposition that is on the lips of every employee
Recruit new talent and weed out employees adverse to change; and ensure every going-forward employee understands how their role impacts the business
Implement professional development plans to ensure your employees acquire the skills and expertise to make them successful
Stop promoting people to levels beyond their incompetence
Develop a culture where no one is allowed to devalue the work of others
Train its people to an inch of their lives
Develop a culture that embraces change
The economic dialectic requires new vision, new discipline, brainstorming, questioning, and finally – decisive action.
