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The Mother of All Disruptions By Sean Silverthorne March 2nd, 2009 @ 8:43 am The corporation is tumbling through a period of uncertainty it has never seen before, one that will change the nature of business forever. We've been reading sentiments like this since the start of the decade, and a lot more of them over the last six months. But they are hard for old-timers like us to take seriously. We've lived through energy crises, war, technology revolutions, assassinations, Wall Street meltdowns — all of which were to change the natural laws of economics. What in fact happened was, following a period of upheaval, equilibrium was restored and the world went on more or less as it was, like a car sputtering then accelerating before settling down to a steady speed. Now, three very big thinkers argue that we can no longer default back to cruise control. Writing a series of fascinating blogs on Harvard Business Publishing under the idea of The Big Shift, John Hagel III, John Seely Brown , and Lang Davison argue that constant change is now the norm, driven by core technologies — computing, storage, and bandwidth — that are not stabilizing. "They continue to evolve at an exponential rate. And because the underlying technologies don't stabilize, the social and business practices that coalesce into our new digital infrastructure aren't stabilizing either. Businesses and, more broadly, social, educational, and economic institutions, are left racing to catch up with the steadily improving performance of the foundational technologies." This is creating a world in which industry leaders don't lead for very long, where extreme events such as the econ crisis occur much more frequently, and volatility increases in brand equity, stock values, and commodity prices, they write. In a second post, Why Do Companies Exist, the trio propose that institutions jettison the command-and-control structure that defined the pre-digital corporation. "We need a new rationale for our biggest private and public sector institutions — to re-imagine them in line with the world around us. Rather than scalable efficiency, we need scalable connectivity, learning, and performance. Rather than push, we need institutions that pull." My analog-based, equilibrium-loving POV still makes it difficult for me to to buy into This Changes Everything scenarios, but the two Johns and a Lang are laying out a compelling case that will get you thinking and arguing. What's the world feel like to you today? Does your strategy development anticipate quickly changing industry leadership and constant turmoil. Or are your changes going to be incremental, just waiting until the cruise control button regains function. Like always. Sean Silverthorne

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