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The Perfect Storm, Neanderthal Companies, and Creativity
April 2008
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In this issue
-- The Perfect Storm
-- So, how's your business? Are you scared?
-- Neanderthal Companies
-- Cro-Magnon and Globalization -- Creativity and Survival
Note: This is Part-One of a two-part issue on
Creativity. Stay tuned for Part Two -
The Perfect Brainstorm -- How to Create Great New
Ideas!
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The Perfect Storm
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- The Perfect Storm. It is brewing in
the business world! The dollar is plunging, as are
the stock market and the housing market, credit is
tightening, prices of commodities (oil, corn, raw
materials, metals) are skyrocketing, inflation is raising
its head again, jobs are disappearing, airlines are
going bankrupt, the wars in Iraq and Afghanistan are
impacting the economy, and companies and
consumers are holding back on spending and
investing.
- Chicken Little. While turbulence and
destabilization affect the economy and the markets,
the Chicken-Little-Talking-Heads of the media are
screaming, "The sky is falling!"
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So, how's your business? Are you scared?
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- Don't Be. If you are willing to be
creative, and
change your products and services to match today's
consumers' tastes and preferences, you will not only
survive, but thrive in the midst of all the turbulence.
- Neanderthal Experience. Today's
spooky trends are
the economic equivalent of the challenges that the
Neanderthal experienced over forty thousand years
ago. The question is, why didn't they survive? The
follow up question is what can we learn from their
experience?
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Neanderthal Companies
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- Axiom. . A well-known axiom says, "If
you keep doing the same things, you will keep getting
the same results." That statement is not true
in nature or business. Species that kept doing
the same things, the same ones that had always
worked in the past, and did not adapt creatively to
change, became extinct. That is something we can
learn from the Neanderthal experience: you have
to change to survive change.
-
Food Supply. The Neanderthal survived Ice
Ages, and other natural challenges By living in caves,
and making use of fire to cook their food and heat
themselves, they survived the harsh environment.
Food was whatever they could hunt. Fortunately, they
could count on an abundant supply of local wildlife to
hunt. So why did they disappear?
- Migration. When the last Ice Age ended,
the landscape and the vegetation changed. Herds
began to migrate as vegetation became seasonal with
foods becoming available in different locations at
different times. Hunting that had been available year
around near the Neanderthal caves, became scarce
when herds started migrating. Bottom line: the herds
migrated and the Neanderthals didn't. Result:
hunger, poorer nutrition, fewer births, earlier
deaths.
- Neanderthal Companies. How does this
relate to companies in today's business world?
Consumer tastes are changing, they are looking for
different products and experiences, purchasing them
from different suppliers, the markets are migrating -
and Neanderthal companies aren't. Bottom line:
shrinking sales and profits, fewer resources, less
growth, and earlier bankruptcies.
- Creativity. Creativity in business and in
nature, share a common intent: survival of the
species. Companies that keep doing the
same things in today's highly competitive markets are
not adapting creatively to change and, like the
Neanderthal, will become extinct.
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Cro-Magnon and Globalization
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- Competition. About the time when the
Neanderthal were beginning to feel the effect of
climate change, Cro-Magnon, our current species,
came along. Having migrated following the changing
climate of Europe, Cro-Magnon were accustomed to
foraging, roaming, following herds for food, and
picking up and moving to keep up with everything
else.
- Globalization. As the Ice Age waned
and the glaciers receded, warmer weather moved
further north and Cro-Magnon followed. Now the
Neanderthal had competition for food supplies and
firewood, as well as local forage. This was the Ice
Age equivalent of Globalization; the Cro-Magnon
chose to go with the flow; the Neanderthal didn't.
- The Danger of Getting Used to Things.
The problem of being in the midst of so much change
is that, after the initial discomfort, we get used to it;
and actually stop seeing it. As a result, we do
nothing about it.
- Parallel. See the parallel between the
forty-plus thousand years ago Neanderthal and those
of the 21st century? Look around you, and you
will soon be able to identify today's Neanderthal
Companies; they are everywhere.
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Creativity and Survival
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- The Age of Abundance. I wouldn't say
that we are facing the end of an Ice Age; the last 200
years since the beginning of the Industrial Revolution
have transformed civilization and humanity
enormously. We are, entering another period, a very
different one in which the basic building blocks of
business and prosperity are changing radically. Some
refer to this as the Age of Abundance. Whether we
call it the Age of Abundance or not, today supply is
greater than demand; this has never
happened before.
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More Choices. Today, people have an
almost endless variety of products and services from
which to choose. Before this age, people had to take
what was, no matter how good or bad, be grateful it
was available. This abundance means that people
have more choices; they don't have to take just
anything because now there are more alternatives.
This means that businesses have to work harder to get
the customer's attention, and to make their products
and services more valuable and distinctive.
- Good Enough? Being good enough
is no longer good enough; we must become more
creative. Our products and services have to be better,
more appealing, attractive, better, reasonably priced,
and valuable in ways that are important to the
customer.
Want to survive and thrive? Don't become a
Neanderthal! Instead of letting your products and
services go on as they are, why not innovate them into
what they could be? While you are at it, why not also
make sure that they become exactly what your
customers want and value?
By the way, don't be concerned about those who do
become 21st century business Neanderthals - they
can always get jobs as cavemen in insurance
commercials!
Time to get your creative juices flowing! Your
business needs to innovate if want your sales and
profits to survive and thrive.
Consider this: how have your customers and your
market changed since your business was started? If it
has been more than five years, their needs,
preferences, and priorities may have changed
substantially, but you may still be trying to reach and
serve them in a way that is no longer as effective as it
was. It's probably time to
update your business model as well as your products
and services.
If you would like some help with these needs, contact
Michael Wynne, president of International
Management Consulting Associates at (530) 420
2605 or at
mykwyn@aol.com. You may also want to
check our website
www.FreeProfitTips.com.
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Contact Information
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phone:
(630) 420 2605
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