organizationalchampions's Webcast

Deloitte has a brand new report called The Shift Index, and today we are going to talk about why you need to know about it.

Show Notes:

Why the report was written:

From the Executive Summary - Paraphrased

What is the Shift?

Deloitte took a look at Return on Assets (ROA) and saw a very disturbing trend. Despite the fact that American companies were making modest but solid gains in efficiency when compared to the mid 1960s, we are getting only 1/4 the return on our investment in assets.  What could be causing that?

Key ideas:

Let's hone in on the Flow Index.  The Flow index talks about what is flowing because of the nearly ubiquitous access to the Internet and wider social networks.

Who is making the most in this shift?

US companies are generating fewer and fewer tangible products.  There is a shift of power from the working class to a new class called the Creative class.

Creative Class

Why is this important?

This marks major disruption occurring in the market right now.  When there are disruptions, there are opportunities.  When everyone is running for the hills, doing the best to protect eroding markets, champions see opportunities to change the game. Right now there is a growing divide between our realized performance and our potential performance.

What are companies to do?

At the turn of the century, we were experiencing the industrial revolution... The most iconic representation of that shift was Henry Ford who looked at the way cars were being manufactured and said there has to be a better way.  He invented the assembly line.  The assembly line worked because it built greater and greater efficiency into the manufacture of cars.  We have squeezed every last penny out of that model, and there is now so much competition, there is little to be made by becoming more efficient than we are.

Companies must shift from scalable efficiency to scalable learning. Our stakeholders and customers are learning more and more everyday, we as leaders of our companies need to invent, reward, and allow learning to happen across the whole organization.  

If a company is going to thrive during this Economic shift, everyone in the organization has to be a learner, and we need to be listening to everyone in the organization as a source of learning.  Learning can no longer be the exclusive role of the creative elites in your company.  The company that will replace yours will be the one that is listening to the guy that pushes the broom around the floor after hours.  

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Mike where can people get a hold of you?

www.championseccho.com