I wrote about finding talents; but what do you do after finding them? Do you leverage them? Do you beat them into conforming with the system and structures you’ve created? The use of talents is more important than finding them because you’re not going to keep them if you think that the transaction is just about remuneration in exchange for them applying their abilities to your problems.
Conditions need to be created to leverage on our talents better and that can come from remuneration but it also involves the structure of work, processes and the environment created by managers and prevailing cultures.
If you don’t have them, then finding talents might be a waste of time and resources.
There will be a time cuts come when excesses are deemed to have gone overboard. This applies to overstocking, overhiring, and having the wrong structure to deal with a problem. At some point, what is deemed as a correction occurs. Question is how did things get derailed or misaligned? Why do we not know? Should we think something is amiss when governance mistakes can be buffered by growth?
Maybe something to think about as we go through a period of layoffs, cuts and sense of rising prices and real rates trying to make a comeback. As we manage the cuts that has taken place, it would be useful to ask ourselves to what extent do we want to enable growth irresponsibly.
Fast and mindless growth can hurt twice. First when they forsake and leave some behind. Second when they end up with cutbacks that might leave some folks worse off than if it hadn’t happened.
I had some time thinking about feedback; and those who read my writings more regularly would see that I’ve previously championed “giving and receiving feedback” as key skills to be taught in schools.
And it probably take a lifetime to properly master this because both giving and receiving feedback are really hard. Most people can go on defensive when you offer to give some feedback. And the praise sandwich is kind of yucky an approach for some to adopt. There are those who advocate “giving advice” instead.
One of the best way for behavioural change is actually to ask the person who needs improvement for advice on the problem you observed. Surprisingly most people knows the solution to overcoming their weaknesses. So once they discover that they actually have certain problems they’ll get to work fixing it.
Either way I think a large part of the equation is also on receiving feedback; how we are able to process feedback and deal with it matters. That’s why I personally like the approach of making it an encouragement rather than a feedback. An encouragement toward particular aspiration. That way, it is not something you lack but more about moving towards a destination.
Lululemon had a “We made too much” sale ongoing. It is nothing new. All fast fashion brands tend to make too much. Because the strategy for fast fashion and the culture we created is to push out the latest design into the market, make it as widely available as possible in the shortest time pricing with markups that makes construction contractor mouth water and then just deal with the leftovers later.
So how do they deal with leftovers? Sometimes they discount, which is not the most common approach because discounting damages their relationship with customers. Customers would begin to expect cheaper price later and most of them would learn to wait. That is bad for margins and future profit. So the fast fashion brands dump their clothes into other markets which don’t carry their first-to-market goods, and then eventually just dispose of the clothes.
Precious cotton and fabrics that can be used to clothe someone else goes to waste. The world is not better for it but certainly there are people made richer by this model. And so it goes on. The focus on sustainability within the fashion industry is just beginning and hopefully gets to a level when it can start snowballing properly.
So what is the alternative? How about slow fashion that focuses on classic, proven designs, that uses materials in a sustainable way? Where the cost is towards improving material traceability, better sourcing and exploration of newer, shorter supply chains? Instead of fattening corporate wallets and perpetuating the fast fashion culture?
There’s been loads of news of layoffs in tech and it coincided with huge investments made in Artificial Intelligence as well as the launch of a beta version of ChatGPT that somehow took the world by storm. The recency effect led people to think that the layoffs somehow might have something to do with the fact that AI might be taking away more jobs and so on.
For a long time, human labour have been relied upon to move good around, help with loading and unloading from transportation, stock-take and do records by hand. These jobs have gradually been replaced by machines though in rare instances, having a human do the job is still more efficient or effective. Switching human labour for machines is nothing new. And it has been a good thing because machines free up human to take on more challenging kinds of problems.
This is how the ratchet of progress takes place. We invest time and effort in developing machine solutions which would eventually be able to replace human effort. And once the solution is adopted across the board, there are so many people who are freed up to work on further solutions and the ball keeps rolling. From a fundamental perspective, the world is progressing and civilization advances.
It is strange that our economic system, the market system that we have lauded and embraced do not exactly work in the same way. It creates incentives and competition towards progress but the result is a lot of stress, anxiety, and pain when new solutions are adopted and manpower is freed up. This is because firms and businesses are not adapted in our system to focus on innovation for progress but simply innovation for profits. And when this is the case, unemployment is a logical approach towards the adoption of new solutions.
When firms and businesses cannot think broadly enough to embrace what is fundamentally beneficial to society and mankind, then individuals, talents and smart people like you and I, will have to develop the courage to step out and do the work that the world needs. Because in many ways, that is what makes us human. That’s what AI cannot replace.
As I grow older I begin to appreciate the value of a slow start. I’ve written about my bad memory contributing to my better learning. And more importantly perhaps, the people who actually keep reaching only for low hanging fruits fail to develop the skills and expertise needed to reach for the higher ones.
Ultimately, there is some degree of trade off between getting results fast and actually taking the time and effort to get genuinely better at something for the longer term. It’s almost the different between cramming for an examination as opposed to learning for mastery. Examinations were never to encourage or cultivate mastery – it’s just an industrialised version of education, of applying the principles of manufacturing line quality check on people instead.
The problem solvers we need in the future are not the ones who would invest into deeper learning and desire to gain mastery over merely getting good grades. And we need to start building systems and hiring habits that ultimately reflects that.
After penning the End of Oil, I was bothered by my switch of camp. In some sense I had become a new kind of neo-Malthus but yet I resist the analogy. I think the struggle we have today with carbon emissions is different from the issue of resource conservation like in the case of land or other commodities. And the reason has to do with the market system and price signals.
In the past when we are thinking about resource constraints such as agricultural land, we know there is a price on the resource. With subsidies they get over-utilised but overall, because the market system rewards greater productivity of those resources, all the micro-decisions in the economy will encourage discovery of more of the resources or greater efficiencies in utilisation. The economics is working against Malthusian ideas.
Nevertheless, with the carbon emission challenge of today, most emissions still remain unpriced. They rightfully require a negative price but tax systems and enforcement aside, governments around the world are reluctant to even design regulations to create proper carbon pricing. Without this pricing, economics will keep working against the climate change problem, and we can only rely on goodwill or sustainability marketing as motivation which will never be enough.
Many years ago when I first thought about the study of Economics, there was the prevailing concern about oil reserves running out and the world running out of fuel. It was 2005 and the economist even had an issue where the cover page was showing the reflective colorful swirls of oil. The economists would argue that the world will never run out of oil because towards the last drop of oil left, the price of oil would be so high no one would want it. And perhaps many other alternative technologies which were not commercially viable would have become so before oil runs out.
Those were days when we technically already know about greenhouse effect and the global warming potential of carbon dioxide. And I was particularly fascinated with the recurring debates between the Malthusians (and neo-Malthusians) and the others weigh on the hope of technology (and possibly economics).
It is funny how more than 17 years later, I’m in a career to try and reduce (and eventually end) the dominance of oil. Not to promote an alternative technology, not to rail against the political power of oil but to create a future that we all want to step into. Because climate change is an existential danger for us all and the planet as we know it. And because I believe our current economic system can be superceded by one that works for the future and not the tradition notions of wealth and fortune.
If you’re so near to success but then at the last point it failed, what does it mean about your effort and all the time spent on it? It can be for a business, a project, a single deal, or even a relationship. If you had known, would you have gone for it anyways? Or maybe that’s not a fair question to ask; the better question is how you’d value all the progress up to that point. Before the failure.
Would you just walk away and try to forget? Or simmer in anger? Or start gathering the pieces and see what they can be used for next?
I think the last point is particularly interesting because news just came out that Suncable entered into voluntary administration due to the shareholders not being aligned. It was a big and ambitious project. There are people concerned with Singapore not getting enough green electricity. But even if Suncable really failed, there had been expertise built up, teams familiar with the system and processes, plans or ideas that can be refashioned.
Better to think that what brought you close to success but did not get you there has already brought you closer to other successes you’ve yet to see.
Having written my previous post, I think it’s important to say that knowing your competitor is still important after knowing yourself. As you understand you resource pool and how you can serve your customer better, you can start appreciating why some strategies work better than others. Your competitors’ actions or execution failures become an excellent resource for you.
So what is a good competitor analysis really about? It is more about firstly defining the market properly and figuring out how much of your competitor’s business really competes with you. Then there’s the historical lessons of that competitor that you can learnt from.
Finally, focus back on the customer and how they perceive and view various substitutes or alternative where your products and services are concerned. That’s the true current status of “competition” then consider how you can develop strategies to get more of the relevant customer groups’ mind and wallet share.
