Strategy Amidst Change

Developing Strategy in the Age of

Constant Technological Change

By Terry L. Brock

Let’s suppose you’re an entrepreneur. The year is 1860. You see how long it takes to get information from the East to the West. With the possibility of a War Between the States emerging, fast access to information is more critical than ever.

So, you come up with a system to send information using riders that will ride a horse as fast as possible for a short distance (usually between 10 and 20 miles). Then with new, fresh horses along the way, you expect to complete your journey from St. Joseph, Missouri to San Francisco, California, a distance of over 1,800 miles, in about 10 days.

Let’s suppose that you, in 1860, as a horse delivery company entrepreneur wanted to become more efficient. You would hire consultants. Now you can imagine the consultants of the day, trained in horse-knowledge and horse matters. They would, of course, recommend that you get faster horses. They might recommend better hay for the horses. They might have recommendations to put your drivers on a diet so they would be lighter, thus making the trips faster. After all, you’re paying these drivers the priestly sum of $25 per week!

However, all that information from the “efficiency experts” of that day would mean nothing.

If you’ve studied your American history you know that such a company did exist and was called the Pony Express. What most people don’t know is that the Pony Express lasted for only 18 months. It was displaced by new technology. That technology was called the telegraph, perfected by Samuel Morse who also invented Morse Code. Well, actually the telegraph came about in 1843 but didn’t emerge strongly till the War Between the States.

So what does that mean to us in the 21^st Century and what does it have to do with strategy? In a word, plenty!

Being more efficient is not always the answer. Entrepreneurs have to take a strategic view of what is most important. Sometimes just getting more efficient won’t solve the problem. You have to catapult your thinking into a totally new dimension. You have to see things as you’ve never seen them before.

To develop a strategy in our day requires several steps. Among these include:

1. Realize things change. We can’t hold onto the “good old days” no matter how cozy they seemed to be.

2. Realize things are changing at an accelerated pace. To borrow from a calculus example, we are increasing at an increasing rate. Get used to it. We can fight it or learn how to turn that into our advantage.

3. Embrace learning. In Miami, Florida today, even minimum wage truck drivers are required to have three important skills, 1) Fluency in English, 2) Fluency in Spanish, and 3) Fluency in Computers. That industry requires the driver to be aware of computers, how to use them and not be afraid of them. This is for a job that starts at minimum wage and increases to $7.50 to $8.00 per hour. Check your local paper and notice how many jobs are available that don’t require a knowledge of computers. Not many!

4. Create very flexible strategic plans. The old days of Soviet-style 5-year plans went out with the Soviet Union. Long range planning today requires general concepts and “True North” principles as taught by Stephen Covey. Embrace the sound principles that have lasted for centuries and will be here for centuries. Embrace discipline, learning, kindness, loyalty, honesty, integrity and other sound principles. However, don’t be locked into any given technology because it can and will change; probably faster than you think or want it to!

5. Re-evaluate your plans every six months. This is the typical lifespan for computer products today. Since September, 1997 we have abolished Moore’s Law which held that computer speed doubles every 18 months. Since September, 1997, we have seen it doubling at a rate of every nine months! This calls for a constant re-evaluation of what you produce, how you do it, what markets you now serve and which ones you should embrace for the future and even who your competitors are. The banking industry sat smugly for years in the old way of doing things. Now we are seeing a revolution as more and more banks embrace Internet banking, PC-based banking and a full deluge of new technologies to better serve their customers. The auto industry is also being shaken as customers choose to select their new cars over the Internet and avoid the car dealership hassle, too often associated with buying a new car. Employees are viewing themselves as free agents. No longer do we see people working all their careers with one company. Instead they view each company as a stepping stone to the next one. Skill-building, relationships, flexible work schedules and especially how much fun they can have are all factors as important as or more important than the paycheck in choosing and staying with a particular job.

In short, our world is continuing to change at a rapid pace. There are enormous profits and benefits awaiting those prepared. Those unprepared will be sorely disappointed and longing for “the good old days” when things were different.

There is always change. That is the way of nature. Whether you’ve living in 1860 with the Pony Express or today with the Internet, be flexible and adapt quickly. That way you won’t wind up in horse mess, but instead will telegraph a message of success to all who meet you and deal with you.

Terry Brock is a marketing coach who helps business owners market more effectively leveraging technology. He shows busy professionals how to squeeze more out of their busy days using the right rules and tools. He can be reached at 407-363-0505, by e-mail at terry@terrybrock.com or through his website at www.terrybrock.com.

Copyright © 2005, Terry Brock, All Rights Reserved Internationally. No portion may be reprinted or used in any way without prior written permission. Permission granted to Biz Journals to use in regular publications.