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Escaping the zombie economy

August 1, 2009

Umair Haque yet again demonstrates thinking that’s pushing the envelope with regards to strategy and economy. 

Umair Haque at BRITE ’09 conference from BRITE Conference on Vimeo.

Umair’s presentation centers around the problem with corporations that generate value by exploiting resources in an unsustainable manner.

He picks on TV networks ad creep as an example; with TV ads clocking in at 20 minutes an hour, there’s a big fiscal benefit for the networks, but not much for the viewer.

His pathway to future positive value involves corporations embracing five principles.

1. Stewardship
2. Trusteeship
3. Guardianship
4. Leadership
5. Partnership

Umair’s highlights Wal-Mart who are using sustainability as a platform that transforms their value creation model from purely cost saving to sustainable advantage and Starbucks who are building closer alliances with their farmers in the effort to create true differentiation.

I am sure incumbents will have a challenge to think about this new world, especially those that have enjoyed a monopoly position thanks to favorable government legislation and the power of distribution. Until, they see massive damage to their market share, they have no incentive to change. It’s the new entrants that have the power to change the system be integrating this core elements of behavioral change. It then becomes a race to see how fast the new entrants can grow until they threaten the incumbents and once they become a threat, what’s the next play. For many, it appears that the only strategy once they’ve challenged an incumbent is to be acquired by that incumbent and the cycle repeats itself.

Posted by Ed Cotton

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