Operating In Uncertain Environments

I'll be on vacation for a few weeks, but wanted to share a few articles I've been reading. If you like these kinds of article summaries, please subscribe to my newsletter.

"Companies operate in uncertain environments. In order to confront unexpected challenges and seize emerging opportunities, they need to have a culture that balances freedom with responsibility. That is a lesson that Netflix learned as it developed rapidly as an organization where employees know how exactly they create value for customers and for the company. In doing so, it built an innovative culture – as described in the well-known Netflix Culture Deck — with practices that went beyond conventional notions of employee retention, annual performance reviews and bonuses, says Patty McCord, former chief talent officer at Netflix, in her book Powerful: Building a Culture of Freedom and Responsibility."

"Companies like Digital Equipment Corp. and Ericsson were once considered leaders in their industries, and thus likely to stay on top. But they failed because they lacked the ability to think and act differently from their pre-conditioned ways. They either did not anticipate imminent technology changes or did not have the flexibility to respond to disruption. Others, like electronics and home appliances maker Haier of China, have retained the nimbleness of their startup days. In order to manage and surmount uncertainties, companies need to become intelligence-driven, and that is achieved by understanding and acting upon five types of agility, notes Baba Prasad, CEO of the Vivékin Group, a management consulting firm in Durham, N.C., and in India."