Impact Of Denial

Denial works against resilience. For many organisations

"...the future was less unknowable than it was unthinkable, less inscrutable than unpalatable......denial puts the work of renewal on hold, and with each passing month, the costs go up..."

Gary Hamel et al, 2003

To handle denial, one needs to understand 3 things

i) need to visit places where changes happen first, ie see changes close-up and experience it for yourself. Based on these experiences, you need to think through the consequences

ii) check the filters in the organisation, ie ensure staff are aware of future challenges and that awareness is not being censored by the custodians of the conventions and/or traditions

" should be wary of anyone who has vested interest in your continued ignorance, who fears that a full understanding of what is changing would expose his own failure to anticipate it or the inadequacy of his response..."

Gary Hamel et al, 2003

iii) face inevitability of strategy decay. There are 4 reasons for this

- replication (as strategies get replicated, they lose their distinctiveness and their power to produce above-average returns)

- supplantation (good strategies often get supplanted. With an increasingly connected economy, there is an increasing trend for new strategies to become old sooner)

- exhaustion (as markets become saturated, customers get bored, or optimisation programs reach the point of diminishing returns, strategies can become exhausted)

- evisceration, ie being deprived of vital or essential parts (with the Internet, customers are reaping the benefits in productivity, ie better value for their money, such as lower prices and/or improved products and services, such as in the travel industry with airlines, hotels, etc)


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