TECHNOLOGY AND THE CULTURAL BLIND SPOT

Significant change is affecting all of us as we learn to cope with a new normal.

How we see these changes and react to them will determine how successful the companies that we work for become as well as how successful we are perceived as we work for these companies. Our leaders are often blinded by the solutions of yesterday and they also have difficulty moving to a new paradigm.

It is interesting to look at these changes and see how each of us reacts as well as how our organizations, and leaders react. There truly is a series of steps that we all go through when moving through change. This usually starts with disbelief, frustration, anger, and then acceptance. It takes each company or person a different amount of time to work through these stages but ultimately we all must go through them.

As I look at our current situation I see that the cost structures in our organizations don’t support the revenues we receive for our product. We as an industry have enjoyed high margins and lucrative employment which has led us to complacency and many forms of entitlement. I hear and see us hoping for a change in prices that will bail us out. I also hear us saying if only we can hang on until the next cycle we will be ok.

The traditional way that we look at these problems is to reduce spending starting with non-essential spending, followed by administrative spending and then we look at reducing the individuals that find and develop the resources. This sequence of events is all about cutting costs to the bone but not really changing the overall cost structure. Yes, we will have lower costs for the short term, we will build sweat shops for people that want to hold a job, but we will not fundamentally change the sustainability of the organization because if and when prices grow we will see costs grow as well. I would also suggest that with this cycle we may never see prices return to the heady days of peak oil which means that we will see organizations begin to show strain and eventually go out of business because the cuts we have taken are non-sustainable.

What does this mean for us and what should we be doing and our leadership be looking for?

Sustainable change.

What is sustainable change? This is a change that creates a new cost structure that is more efficient and effective and permanently reduces the cost of doing the business while recognizing the added requirements of good resource management and environmental responsibility.

In my opinion this means recognizing the value of every person in the organization and getting the most out of them. Processes need to be streamlined, standardized and automated, Excel spreadsheets replaced by databases (big data, small data), and systems integrated. We need to recognize that the whole is worth more than the parts. Collaboration and alignment among employees, governments, vendors and stakeholders is an area that will permanently reduce costs and drive improved results.

Technology can help us do this but we must not be afraid of it but embrace it and use it to drive the imperatives of the day.

Let’s invest in the future by identifying what is important and finding ways to work together more effectively.