Have you seen the YouTube video yet where a man is chasing his
dog, chasing deer in Richmond Park?
The nation seems divided over whether
it is funny or not, but it gives me the excuse to talk about a deer
related subject which has lessons for our business.
Let's talk about Elks. Robert H.
Frank is an economist at Cornell University who has just published
a book about the Darwinian theory of Economics (The Darwin Economy,
Liberty, Competition and the Common Good). Frank argues
against the commonly accepted theory that out and out competition
is good for the nation as a whole because it delivers a stronger
set of businesses.
He illustrates this by describing Elks
(though the deer in rutting season in Richmond Park would probably
work as well).
The outsized antlers of the bull elk
function as weapons in their competition for female elks. At
their largest they extend to more than four feet in width.
Satisfying as this is for the elks with the biggest antlers, as a
whole this severely compromises the ability of the herd to move
through forests and makes them more vulnerable to predators.
"A trait that evolves because it helps the individual prevail in
battle against members of the same species typically constitutes a
handicap for the species as a whole".
The analogy runs that the
characteristics that have made people win status and position in
the economic battles that have been traditionally fought could have
a negative influence on the overall strength and success of
business.
If you have achieved status and
position by stepping on your peers you may have done very well
relatively. But your organisation might not be best placed
for long term survival in the new global and digital economy.
For example if you beat the competition by being cheaper than the
rest it might result in a win for you, but will drive down prices
and profitability in the industry as a whole.
The advertising industry as a whole is
still rife with heritage practices. Is this because the
antlers of the alpha elks have grown too big for flexibility?
This blog was first published here on Sue Unerman's blog.