Knowing how to optimize business processes and technology only takes companies so far. Success in volatile environments requires learning how to apply data compassionately in response to new opportunities and risks.
AS BUSINESS ENVIRONMENTS become increasingly tumultuous and volatile, building a strategy entirely around business process optimization is often too rigid and inflexible.
We have seen many established Western companies, including Wal-Mart, sometimes struggle to apply their optimized models in unfamiliar markets.10 We have also seen examples of younger companies (including startups and franchises) falling short in their efforts to scale into large, multisite corporations.
We believe that in most unpredictable business environments, successful growth will hinge on the combination of optimization, emotion and empathic use of data.