Why we do what we do
Why are Businesses Poorly Positioned for Transformation
On September 13, 1970, the New York Times published, arguably, one of the most economically destructive articles in history. Milton Friedman's The Social Responsibility of Business is to Increase its Profits, spelled out the Friedman Doctrine, which defined the responsibility of the corporate executive.
“A corporate executive is an employee of the owners of the business. He has direct responsibility for his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible …”.
How Conflicting interests are formed
The Conflict Interests
A problem with the Friedman doctrine is that modern corporations are part of an ecosystem, and if or when each party in the ecosystem (or silos within a corporation) only looks out for its itself (Business Unit, Shareholders...), it cannot result in a Win Win, and thus results are short-term (Tactical).
But that seems to be where we are today! To build or design a sustainable business three key pillars need to be addressed:
The benefit of a Framework
The Resolution
Our Business Change Framework introduces a lifecycle approach to addressing and turning around the conflicting areas, providing approaches, methodologies and tools to facilitate and focus on common denominators.
New times need new approaches and methodologies. Progress and the need for change are constant and businesses need to adapt to the ever changing conditions forced by new:
- Market forces
- Technology trends;
- Industry forces;
- Macro economics.