“The Futility of Size … “Virtualization is the recognition that territorial size does not solve economic problems. … Economic access must become the substitute for increasing domain.” Richard Rosecrance, The Rise of the Virtual State
“In Italy for 30 years under the Borgias they had warfare, terror, murder, bloodshed—and produced Michelangelo, da Vinci and the Renaissance. In Switzerland they had brotherly love, 500 years of democracy and peace, and what did they produce—the cuckoo clock.” Orson Welles, as Harry Lime, in “The Third Man”
Warren Bennis & Patricia Ward Biederman/ Organizing Genius: Great Groups Don’t Last Very Long!
W.A. Mozart 1756 – 1791 HE CHANGED THE WORLD AND ENRICHED HUMANITY
“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0
“The difficulties … arise from the inherent conflict between the need to control existing operations and the need to create the kind of environment that will permit new ideas to flourish—and old ones to die a timely death. … We believe that most corporations will find it impossible to match or outperform the market without abandoning the assumption of continuity. … The current apocalypse—the transition from a state of continuity to state of discontinuity—Has the same suddenness [as the trauma that beset civilization in 1000 A.D.]” Richard Foster & Sarah Kaplan, “Creative Destruction” (The McKinsey Quarterly)
The Three Levels of Innovation Transformational Substantial Incremental Source: Dick Foster, Business 2.0 (05.01) Note: Each level requires totally different processes!
Jane Jacobs: Exuberant Variety vs. the Great Blight of Dullness. F.A. Hayek: Spontaneous Discovery Process. Joseph Schumpeter: the Gales of Creative Destruction.
CountryGuarantee No One Is in NeedProvide Freedom to Pursue Goals U.S.A. 35% 58% Germany 58% 38% France 61% 36% UK 61% 35% Italy 65% 22% Source: Economist/11.08.2003
Eglin Flag: “100% AGAINST ZERO DEFECTS” “General, if you’re not having accidents, your training program is not what it should be. … You need to kill some pilots.” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Perfection is achieved only by institutions on the point of collapse.” — C. Northcote Parkinson
OODA Loop/Boyd Cycle “Unraveling the competition”/ Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Fast Transients” “Buttonhook turn” (YF16: “could flick from one maneuver to another faster than any aircraft”) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.”/ “Arrange the mind of the enemy.”—T.E. Lawrence/ “Float like a butterfly, sting like a bee.”—Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
F86 vs. MiG/Korea/10:1 Bubble canopy (360 degree view) Full hydraulic controls (“The F86 driver could go from one maneuver to another faster than the MiG driver”) MiG: “faster in raw acceleration and turning ability”; F86: “quicker in changing maneuvers” BOYD:The Fighter Pilot Who Changed the Art of War (Robert Coram)
“Maneuverists” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)
II. NEW BUSINESS. NEW TECH.
3. The White Collar Revolution & the Death of Bureaucracy.
108 X 5 vs. 8 X 1 = 540 vs. 8 (-98.5%)
Steel: 75,000,000 tons in ’82 to 102,000,000 tons in ’02. 289, 000 steelworkers in ’82 to 74,000 steelworkers in ’02. Source: Fortune/11.24.03
“The coefficient of friction associated with the grunge of business is amazing!” Michael Schrage
“A bureaucrat is an expensive microchip.” Dan Sullivan, consultant and executive coach
“Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.
“P&G Hires Out Employee Services to IBM” —Burlington Free Press/09.10.03/ on IBM’s 10-year, $400M contract with P&G (P&G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June)
“WHERE IS YOUR JOB GOING”: writing software, designing chips, reading MRIs, processing mortgages, preparing tax returns, managing computer networks (etc: GE Capital’s 15,000 in Delhi), preparing PP slides for McKinsey (350 in Chennai), equity analysis of U.S. companies (Morgan Stanley) … Source: Fortune/11.24.03
“Know we know what all that fiber-optic cable is good for: BROADBAND’S KILLER APP, IT TURNS OUT, IS INDIA” —Fortune/11.24.03
“Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy
“The virtual corporation is research, development, design, marketing, financing, legal, and other headquarters functions with few or no manufacturing capabilities – a company with a head but no body.” Richard Rosecrance, The Rise of the Virtual State
Ford: “Vehicle brand owner” (“design, engineer, and market, but not actually make”) Source: The Company, John Micklethwait & Adrian Wooldridge