If you care about business, markets, and the impact of technology on them, then the following five paragraphs are truly mind bending.
It’s simple: orthodox strategy doesn’t stop at finance. Strategy as shadow-making, moral hazard, and market subversion is rife across the economic landscape, from food, to pharma, to autos, to media. It’s what the industrial-era firm has hardwired into its stale, tired DNA.
If you really want to see the bankruptcy of orthodox strategy in action, click those links – and spend a few minutes thinking about how those industries (and more besides) have spent the better part of a century and countless billions creating more and more elaborate shadows to hide behind.
As in finance, the victimizer is becoming the victim: as interaction accelerates, these industries are increasingly falling victim to the games orthodox strategy so earnestly taught them to play.
Orthodox strategy was made for an industrial massconomy. And that, I think, is the real root cause of the macro crisis: the exploding divergence between today’s economics, and strategy trapped in a distant, faded, rusting past – consigning firms to act out, like mute players on a stage, moves bereft of imagination, meaning, and purpose.
The macro crisis isn’t really just about Bear Stearns and a handful of banks: rather, as we’re all belatedly discovering, orthodox strategy itself is no longer sustainable. For society, for people, and most of all, for the corporation.
Musings of a VC in NYC, The Declining Power Of The Firm