18/8/2014

Only the paranoid survive

From Asymco

The underlying implication is axiomatic as far as investments are concerned.: Being under threat all the time is undesirable.

But is this true?

One of the issues with monopoly/monopsony is that it leads to business practices and strategic priorities that are tainted by hubris. In contrast, the stress of competition leads to paranoia” and to a sense of urgency which is blessed by innovative insight.

This is a corollary of Grove’s only the paranoid survive” or Jobs’ rant on why Microsoft was unable to come up with breakthroughs. Grove and Jobs looked at dominance of a market (as either buyer or seller) and saw a curse. Their understanding of the human condition went beyond what the arithmetic of markets would suggest. Running a business and managing people who are asked to create things leads to this insight. Peering at spreadsheets doesn’t.

The world of social services in Australia is changing. With NDIS for disability and CDC for Ageing and increasing competition and focus on outcomes from funders the landscape is shifting.

I have done this for X years is not going to work. The new world will require us to be paranoid as Grove suggests. To be on our toes and understand where the market is going, what the customer wants and how to create value.

It will move away from raising grants to creating paying customers.

This is how value will be destroyed and created.


Humanomics


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