What do the events in Egypt mean for business?

Many have been astonished to see first Tunisia, and now Egypt, ride the modern wave of global interconnectedness into a new awakening of community. What do these events mean for business?

Some analysts have focused on the volatility in the price of oil and the potential for political unrest if extremist movements gain a foothold in the Middle East.

More discerning observers detect a deeper message for the managements of all large organizations, both political and business. The message is simple: imperial administrations are an endangered species.

What kills imperial administrations: economics

The process of rooting out imperial administrations in the political sphere has been under way for centuries, as far back as Magna Carta in England in 1215, the Revolution in France in 1789, and on to the fall of the Berlin Wall in 1989.  What eventually brings them down is not simply the people’s unquenchable love of freedom, but rather economics. It’s the inability of these administrations to deliver the economic results necessary to keep them in power.

Imperial administrations can create an outward semblance of prospering, even for extraordinarily long periods, but meanwhile the economics is eating away at the foundations. Imperial administrations lack the agility to cope with an increasingly complex, rapidly changing world. Frustration builds. Then some event sparks the collective consciousness and the intolerability of the situation becomes apparent to all. Abruptly, the imperial administration collapses like a punctured balloon.

Thus for decades, I gazed at the vast and somber edifice of the Soviet Union. Grim, impregnable, and despotic, it seemed as though it would last forever. Yet economically—unperceived by many—it was rotting from within. When the Berlin Wall came down, the edifice abruptly collapsed.

For decades, imperial administrations in the Arab world also appeared to be impregnable. Then the self-immolation by Tunisian street vendor who had his vegetable cart confiscated by the government sparked a national uprising of all the others who were frustrated. Egypt quickly followed, while Jordan, Yemen, Syria and Saudi Arabia now wait nervously in the wings for their turn.

The advent of social media has made the situation infinitely more combustible and accelerated the pace of change. What used to happen in decades and centuries is now happening in days and weeks. Suddenly people can communicate and organize horizontally on a mass scale. There is little that even powerful dictators can do to prevent it.

Imperial administrations in business

Meanwhile imperial administrations in business still stand. These vast and somber edifices also have an outward semblance of flourishing, even registering record profits. Like the political dictatorships, they appear impregnable and even give the appearance of being destined to last forever.

Yet like the political dictatorships, they are rotting from within. The return on the assets of U.S. firms is only a quarter of what it was in 1965. The life expectancy of firms in the Fortune 500 is already startlingly brief—now less than fifteen years and heading towards five years, unless something changes. Executive turnover is accelerating. Only one in five workers is fully engaged in his or her work. Firms older than five years contributed zero net new jobs for the U.S. economy in the period from 1980 to 2005. By and large, the private sector is no longer providing a good livelihood for all the country’s citizens. Frustration is building.[i]

The top-down command-and-control management practices that are causing the decline are anachronisms from a former era. They are incapable of coping with the complex rapidly shifting marketplace of today. It is only a matter of time before they come to be seen as uneconomic and intolerable as dictatorships in the political sphere. Once again, it is the economics that will drive the change.

Just as in politics, the heads of imperial administrations in business often claim that the only alternative to their rule is anarchy.  Yet just as in politics there is the alternative of democracy, so in business there is an alternative to anarchy—a different kind of management that focuses on delighting its customers with continuous innovation and draws on the full talents of those doing the work.

Mastering the art of continuous innovation

The exemplars of this reinvented management—firms such as Apple, Amazon and Procter & Gamble—are showing the way. They have mastered the art of continuous innovation.

As The Power of Pull  points out, these firms proceed “by setting things up in short, consecutive waves of effort, iterations that foster deep, trust-based relationships among the participants… Knowledge begins to flow and the team begins to learn, innovate and perform better and faster.”

The stock market is already recognizing the gains that are made when firms get into the new mode. Look for example at the extraordinary gains in the ten-year stock price of firms like Apple [AAPL] and Amazon [AMZN], with increments of ten to fifteen times, compared to the imperial stalwarts like Walmart [WMT] and GE [GE] that struggle even to stop losing value.

 

The revolution will also be accelerated by the decisions of talented young people who are not willing to spend their lives in these command-and-control bureaucracies . They are voting with their feet and opting to work elsewhere. As Umair Haque shows in The New Capitalist Manifesto, they prefer to work for organizations that create meaningful work and thick value for society.

Thus in business the revolution is happening, not through demonstrations in the streets, but more quietly in decisions by investors and by the talent that business needs. As a result, the days of these imperial bureaucracies are already numbered.

The events in Egypt and Tunisia are thus part of a larger story, an emerging process of societal change, in which imperial structures everywhere are being replaced by arrangements that enhance rather than strangle the living part of people’s lives.

To learn more:

To learn more about the new way of managing, read books like The New Capitalist Manifesto by Umair Haque, The Power of Pull by John Hagel, John Seely Brown and Lang Davison, Reorganize for Resilience by Ranjay Gulati,  Leadership in a Wiki World  by Rod Collins, The Responsible Business by Carol Sanford and my web article, The Reinvention of Management.

For a comprehensive review of the principles and practices involved in reinventing management to elicit continuous innovation, read my book: The Leader's Guide to Radical Management: Reinventing the Workplace for the 21st Century.

 

---

[i] Sources: Deloitte’s Center for the Edge: The Shift Index; The Kauffman Foundation.

Comments

[RalfLippold]

Excellent article!!!

Even though the very personal events and experiences are shaping us personally we are embedded in a larger carpet of movement.

Sensing the shift in emergence and talking about it via various communication streams, is what brings people together to get in action.

Glad to be part of it in the moment. Almost 10 years as part of a flood crisis.

... great and disrupting times are closely ahead of us, we as individuals and communities (whether in business or society in general) will have to adapt or otherwise we are doomed to fail. Collective action and knowledge will count more than in the past.

[Bernd Nurnberger]

Yes. Quite the natural progression, for those that have seen the power of self-organization at work. Wonderfully inspiring case studies at http://worldblu.com
See also Wave Riders by Harrison Owen, the finder of open space technology that grew into the unconference format.

[supra vaider shoes]

It's so nice to have you do all of the research for us. It makes our decision making so much easier!! Thanks.

[moncler shop 2012]

i went to the same school as patrick. i remeber those girls from my school who wrote in. they were white trash...i always felt so bad for them.

[Home Security]

I can see that you are spending a lot of effort into your website!I am deeply in love with every single piece of information you post here (there are not many quality blogs left.By the way if you are looking for link exchange with quality Estate Agents Directory,please drop an email-I will be glad to add your link.

Regards,
John

[Houston Home Security]

Lately I came to your website and have been reading along. I thought I would leave my initial comment. Keep writing, because your posts are impressive!

[Coach Outlet]

The greatest interest was in a learning event in which participants would acquire techniques and skills

[nsk handpiece]

sulla cima delete marchio di lusso delete mondo, ha Prada è una gioia for every chicago vita, electronic ora, prada ha aperto l'era dello searching su Net, t lyj

[DonFol]

http://omnicef250mg.webs.com/apps/blog/show/14767448-omnicef-cap
omnicef and breastfeeding
http://omnicef250mg.webs.com/apps/blog/show/14767493-cefdinir-300mg
omnicef prescription dosage for toddlers
http://omnicef250mg.webs.com/apps/blog/show/14767372-cefdinir-vs-amoxicillin
cefdinir pneumonia

[chanel eyeglasses]

But in a sign of the possible danger ahead, the poll found that Cain slipped to third place among those who see the accusations as serious, and Republican women were significantly more likely than men to say the allegations make them less apt to support the businessman.

http://www.chanelsunglassesdu.com chanel eyeglasses
http://www.seikowatchesdu.com seiko watches
http://www.rogerviviershoesdu.com roger vivier
http://www.ferragamoshoesdu.com ferragamo shoes
http://www.chanelsunglassforcheapdu.com chanel sunglass

[fendi]

http://www.fendisitoufficialeborsedu.com fendi
http://www.hoganinteractivescarpe.org outlet hogan
http://www.hoganoutletscarpedu.com hogan scarpe
http://www.fitflopssaleukdu.com cheap fitflops
http://www.mbtschuhegunstigoutlet.com Mbt Schuhe

His ability to achieve what he did is what Bob explains in this program, and much more. We all have such power of ability but get caught up in the day to day stuff and aren't aware anymore. Bob Proctor thinks we are waking up to this in large numbers, and is hoping to help through his work.

[Nike Free Run 3 Women]

Those terms will help you determine the proper articles plus adjectives to be able to utilize together.

[puma shoes]

There is a common misconception that large is beautiful. This is not absolutely true.

[jokemnHeavema]

I wasn't sure about this source at first but based off the experience of two other friends I decided to give it a shot. I received my package exactly as outlined and as ordered. I immediately commenced my cycle using their Test Enanthate/Deca Durabolin. I began at 500 mg Test E and 400 mg Deca. I later increased it to my max dose of 750 mg Test E and 600 mg Deca. This is about my 4th AAS cycle, and second of test and deca, which is why I took the dose a little higher. I gained 12 pounds on this cycle, which doesn't really say a whole lot, as that could be from many things, however, I also hit 4 personal best's as my strength increased throughout the cycle. One of the best things I got from this cycle is the joint lubrication to my joints as it allowed me to finally squat deep and heavy again, which before was limited to my better days. Sides were minor and consisted of some acne, oily skin, and drop in libido. Overall I am very impressed with the ease of ordering and the effectiveness of the gear itself and will definitely use them again.

[jokemnHeavema]

Using gp d bol 50mg per days for kick start the cycle and test e 750 mg deca 500mg per weeks been 4 weeks and gain 15 lbs and all exercise was improve chest press from 205 lbs to 255 lbs leg press from 1000lbs to 1200 lbs . Using exemestane 12.5 mg per days to reduces all the side , and it work very well ! I will order some pct stuff for coming . Oscaroservice.com is the best way to go !! Thank you Oscaro help me to hit my goal !!

[TUMI 26141]

車やトラックとバキューム石鹸。あなたの家庭内のほとんどすべての場所の場所を介してすべての動きやすさを提供しています。。Norwegia [ostfold、アーケシュフース オスロ、ヘードマルク オップラン県、ブスケルー県、ヴェストフォル県、テレマーク、アウスト ・ アグデル県、ヴェスト ・ アグデル県、ローガラン県、ホルダラン県、スバールバル諸島、ソグン ・ オ ・ フィヨーラネ県、lebih og olahraga ini、ソル ・ トロンデラーグ県ヌールラン、トロンデラーグ トロムス県、フィンマルク]。
TUMI 26141 http://www.cormac.co.uk/js/Tumi-Womens-Bag-c-36001_36010.html

[コーチ バッグ]

それは実際にいくつかの歳を広範なキャンバス休暇を生産サーティ スリー色合いとモノグラム布に係る新たな解釈をするつもりです。2003 年に、村上隆としてルイ ・ ヴィトン モノグラム Multicolore を分泌します。ほぼ間違いなく一つだけは明らかにあなたの目標にタブを配置します。実際には本当に明確なセレクト公共を取得する必要がありますようにあえての害とは何ですか。あなたは、特に素質を見つけたことを知っている。グッチは、シリアル選択見つけハンドバッグに沿ってジッパー縫い目とリンク小さなsetタグを包含する。通常、プロモーションおよび再び革ベースの内側にほこりに位置タグに沿って6個の数字を達成するために4つあります。
コーチ バッグ http://www.charlotterea.co.uk/admin/Coach-Wallet-Accessory-c-101_140.html

[グッチ 財布 メンズ]

でも、小売店で出かける事実にもかかわらず公衆のような？主な理由はない不要な層を介して ado を良いことだ、という事実にもかかわらず財政追加を格納できる領域を作成する記事のディレクトリを取得維持時間オンラインのショッピングはほとんどすべてで、富、終了後。まず第一に、それによって作成された単純なしている作品の産地として有名である流行家も様々 な - プラダの巨大なしかし流行のユニークなハンドバッグを解放します。それはマウイ島のみ基本ハンドバッグのみだけでなく香りを作成、靴、ドレス、ジャケット、スーツ、すべてのあなたの目の肥えたファッショニスタのための項目の他の魅力のホスト。念のために、次に特徴的な市場で必要とする洗浄ジャーナル傾向クレーム賞賛、全体的に快適なを与える能力を持っています。
グッチ 財布 メンズ http://58.137.173.11/board/Gucci-other-c-404_401.html