Tag Archives: Flexible

How Do You Survive a Maelström? Seven Strategies

Situation: Edgar Allen Poe’s “Surviving the Maelström,” is a tale is of three brothers whose fishing boat is caught in a monstrous whirlpool, and how the reaction of each brother determines his fate. Similarly, in times of uncertainty, our ability to react with either panic or a rational, reasoned response determines our fate. How do you survive a maelström?

Advice of the CEOs:

  • Based on Poe’s story, you need to replace fear with assurance, uncertainty with boldness, and doubt with conviction.
  • There are several potential financial bubbles forming including student loans and negative interest rate loans to sovereign governments. Both, in their own way, pose a threat to the international and domestic financial systems and could rapidly impact borrowing costs for companies. The solutions are to stay in ongoing contact with customers, and to stay light and flexible as companies so that you can adapt to market changes.
  • For Internet companies, the shift to Freemium offerings (a base product for free with pay as you go functional add-ons) makes it more difficult to design viable business models, and means new competition for established companies in low capital cost businesses. Again, a solution is to stay in ongoing contact with customers, constantly reinforcing your value proposition and the reality of switching costs.
  • Creative Destruction – particularly the emergence of new companies that threaten large customers and can change the value perception of suppliers’ core competencies. Solutions include ongoing communication with customers seeing what they see as “the next big thing,” focusing on continually improving our own core competencies, and possibly teaming with the more promising emerging companies.
  • The illusion that advertising will pay for everything – in reality, advertising dollars are a scarce resource like all other resources. Solutions include testing our own value-adds as an ongoing process, and creating fast-fail models to cost-effectively test our own promotions.
  • Definitions of value and productivity are no longer stable; all depends on the method of measurement. A solution is to remain aware of the innovator’s dilemma and to continually renew our value propositions.
  • A workforce in flux where young people don’t want to work for what they perceive as “old line” companies, as well as early-retiring baby boomers who may learn in 3-5 years that they can’t afford retirement. Solutions include focusing on employee engagement, building more flexible and “liberating” business models, and teaming younger with more experienced workers to cross-train each other.

How are You Planning for Baby Boomer Retirements? Six Considerations

Situation: A company has a number of key employees who are nearing retirement. These employees possess software skills and company knowledge which will be difficult to replace. How are you planning for baby boomer retirements, and what advice would you have for this company?

Advice from the CEOs:

  • Following the loss of investment value after the 2008 market crash, Baby Boomers may retire very differently from their parents. Many don’t have the savings to support themselves during retirement and may well work 10 years later than their parents did.
  • Brute economics will force Boomers to continue to work. However, Boomers may want to work their own hours and on their own terms as they age. The focus may switch to part-time jobs just to maintain cash flow.
  • One solution is to offer more flexible working arrangements that allow individuals to keep working but with more freedom to work as they wish.
  • To replace in-house talent, develop mentor and apprentice programs now to pass your knowledge base on to younger workers.
  • The Internet has significantly changed the picture. People considering retirement may relocate to less expensive regions but virtual employment or virtual office solutions can keep them working.
  • Rising health insurance costs and questions about the viability of Medicare under the Affordable Care Act are concerns for Baby Boomers. This is another factor that may keep them working.