TEN: How Companies Cope
As I conducted interviews for this book, I kept hearing the same phrase from different business executives. It was strange; they all used it, as if they had all been talking to each other. The phrase was, “Just in the last couple of years...” Time and again, entrepreneurs and innovators from all different types of businesses, large and small, told me that “just in the last couple of years” they had been able to do things they had never dreamed possible before, or that they were being forced to do things they had never dreamed necessary before.
I am convinced that these entrepreneurs and CEOs were responding to the triple convergence. Each was figuring out a strategy for his or her company to thrive or at least survive in this new environment. Just as individuals need a strategy for coping with the flattening of the world, so too do companies. My economics tutor Paul Romer is fond of saying, “Everyone wants economic growth, but nobody wants change.” Unfortunately, you cannot have one without the other, especially when the playing field shifts as dramatically as it has since the year 2000. If you want to grow and flourish in a flat world, you better learn how to change and align yourself with it.
I am not a business writer and this is not a how-to-succeed-in-business book. What I have learned in researching this book, though, is that the companies that have managed to flourish today are the ones that best understand the triple convergence and have developed their own strategies for coping with it-as opposed to trying to resist it.
This chapter is an effort to highlight a few of their rules and strategies:
Rule #1: When the world goes flat—and you are feeling flattened—reach for a shovel and dig inside yourself. Don't try to build walls.
I learned this valuable lesson from my best friends from Minnesota, Jill and Ken Greer. Going to India gave me an inkling that the world was flat, but only when I went back to my roots and spoke to my friends from Minnesota did I realize just how flat. Some twenty-five years ago Jill and Ken (whose brother Bill I profiled earlier) started their own multimedia company, Greer & Associates, which specialized in developing commercials for TV and doing commercial photography for retail catalogs. They have built up a nice business in Minneapolis, with more than forty employees, including graphic artists and Web designers, their own studio, and a small stable of local and national clients. As a midsize firm, Greer always had to hustle for work, but over the years Ken always found a way to make a good living.
In early April 2004, Ken and Jill came to Washington to spend a weekend for my wife's fiftieth birthday. I could tell that Ken had a lot on his mind regarding his business. We took a long walk one morning in rural Virginia. I told him about the book I was writing, and he told me about how his business was doing. After a while, we realized that we were both talking about the same thing: The world had grown flat, and it had happened so fast, and had affected his business so profoundly, that he was still wrestling with how to adjust. It was clear to him that he was facing competition and pricing pressure of a type and degree that he had never faced before.