A consistent message coming from visionaries, consultants and experts is, "We will experience more progress (disruption) in the next decade (2023-2033) than we did in the past century (1923-2023)."
Your mindset will determine whether this statement excites or paralyzes you. This statement is about transformation rather than just change management. Is your firm prepared? Are you prepared? Technology revolutions tend to arrive slower than predicted, but faster than we are prepared for them. The simple answer to the questions is, "Probably not," but why aren't you prepared? Let's explore the why and how of these questions.
It is natural for people and organizations to develop immune systems, especially to change and innovation. Success is one of the biggest challenges in their ability to transform. Linear thinking reinforces inertia and promotes a low tolerance level for risk. Linear firms rarely disrupt their own products and services. In fact, firm culture will often sabotage such innovative thinking and activities. While there is significant talk about innovation, few firms are investing in innovation, and most are striving for incremental improvement in efficiency.
Sadly, the conversations regarding innovation are generally an attempt to impress clients and appease more progressive partners. Many firm leaders are happy with their current situation and desire to scale (the old business model), which is the strategy of linear organizations.
Management has historically loved command and control, even more than productivity. This fact is one of the primary reasons most innovation occurs at the edge of a firm or organization, or in startup companies.
Let me provide additional characteristics of linear organizations so there is no misunderstanding. They:
- Avoid risk.
- Need large numbers of employees to scale.
- Are heavily invested in the status quo.
- Are top-down hierarchical.
- Are driven primarily by financial outcomes.
- Lack a shared vision, and strategic planning is based upon the past rather than the future.
While this is an abbreviated list, linear thinking and cultural immune systems put all sizes and types of organizations at risk. Larger organizations are extremely vulnerable in today's environment of exponential disruption.
Mindsets, skill sets and toolsets are all important in business transformation, yet mindset is the primary challenge for most people and organizations. The primary mindsets that must be changed are:
- From scarcity to abundance;
- From fear to optimism; and,
- From linear to exponential thinking.
Granted, this is not an easy task, but firm leaders have little choice if they wish to remain relevant and future-ready. Optimism provides hope and a vision for a better future, while an abundance mindset allows technology to be a force that converts scarcity into abundance. With an exponential mindset, you will not fear the future, but learn to anticipate it with clarity and confidence. Mindset determines with whom and how you spend your time, the decisions you make, resource investments, and what is possible in the future.
With the stage set, let's look into the near future, as well as look over our shoulder at the past. Most readers are familiar with historical ages and the reference to materials … Stone, Bronze and Silicon. According to George Gilder, we are entering a new Carbon Age where we upcycle rather than recycle.
He is referring to a form of carbon called graphene that was discovered in 2004. Graphene is a single layer of carbon atoms bonded together in a hexagonal honeycomb lattice. It is lightweight, the best conductor of electricity currently known, and can be mixed with concrete and metals. The good news is that graphene is now affordable to produce using trash and other carbon-based matter (ocean trash).
Gilder further points out that the cavemen had the same natural resources at their disposal as we do today. The difference between their standard of living and today's standard of living is knowledge. He bases this statement on what he calls the Information Theory of Economics:
- Wealth is knowledge;
- Growth is learning;
- Money is time; and,
- Information is surprise.
Challenges are entrepreneurial opportunities. Upon further review, he said "Money is time", but did not say that "Time is money." There is a huge difference and a mindset that must be changed in the accounting profession. He also points out that money is not the content of transactions, but rather the carrier.
An abundant mindset allows technology to be a driving force in converting scarcity into abundance. Carbon-based graphene, the blockchain and money are all part of our future. Get ready for the surprises that lead to increased learning and knowledge.
Think — plan — grow!
