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A Wake-Up Call For Business
Steve Denning: In 2011, I wrote that the Shift Index was the most important business study ever. It’s great to have it updated, although disappointing to see that there has been continuing decline.
John Hagel: Hopefully, it’s a wake-up call. The core message is that technology is creating this mounting pressure to do things differently. It’s creating a world that is very different from the world that businesses have operated in the past. So until they figure out how to reconfigure their businesses and their operations, they are going to face mounting pressure and the deteriorating performance. The positive side is that the situation creates virtually unlimited opportunities if they can figure it out and adapt to the new world.
Denning: That’s a paradox: unlimited opportunities limited exploitation of them.
Hagel. Unfortunately the reaction of many companies when faced with mounting pressure is to do what they have always done, that is to squeeze harder on what they are currently doing, and try to squeeze more out of everybody. One of the most striking contrasts is the metric around labor productivity, which has been steadily increasing, versus the return on assets which has been plummeting.
Via David Hain
