Day 15 of 21 days with Chuck’s new book, Why Employees Are ALWAYS a Bad Idea
“You will get all you want in life if you help enough other people get what they want.” Zig Ziglar. You either live in a world of abundance or in a world of scarcity, and whichever one you choose effects every decision you make.
Companies that live in a world of abundance will flourish in the Participation Age.
Conquest Destroys the Conqueror
The 21st century Industrialists are wrong. Business is not a zero sum game. They believe there is only so much to go around, so the game is to get yours before the next guy gets his. And in its worst form, the objective is to get it all and leave none for anyone else, as the early Industrial Age monopolies demonstrated.
Industrialists also believe there are only so many good ideas or great potential products out there, and after that, it’s over. So if we have to buy out or destroy the other guy who invented something cool, we’ll do it.
Cash Cows, Not Creativity
Rather than being built to create, innovate, and move us all forward to the next great thing, Industrialists build companies to take over the world by living off the creativity of others. To do so they build incredible cash cows that squeeze every last dime out of existing products and services.
And because they are so heavily invested in the present, they naturally resist change. They work hard to maintain the status quo, especially if innovation threatens their status quo products. It’s no wonder that people don’t like Industrialists, they just need to stop mistaking them for Capitalists.
Crony Industrialists, Not Crony Capitalists
Banks and most financial institutions on Wall Street suffer from the attributes of an Industrialist. Scarcity is a powerful driving force amongst them. They are not “crony Capitalists”, but “crony Industrialists.” Nobody hates Capitalism, which has driven local economies for centuries. They despise the scarcity-minded Industrialists who abuse Capitalism for their own gain.
It is unusual for one Industrialist to learn from the downfall of another, and the fact that the publishing industry has not yet seen their future in the demise of the music industry or similar Industrial giants being dismantled in front of them is not at all surprising. The drive for world domination, eliminating competition, and maintaining the status quo are so ingrained in some industries that they will be arranging the chairs on their various Titanics even after the water is over their heads.
For the Capitalist, Big is a Result of Great
True Capitalists live in a world of abundance. They focus first and foremost on creating, innovating, solving problems and moving the world forward through their creativity. They get big if that serves them in being creative and making a contribution. But for a Participation Age Capitalist, getting big is a RESULT of being driven to create, it is not the main motivation, as it is with an Industrialist. Capitalists have no fear of destroying the present for the future, and regularly introduce advances that make existing products and services obsolete.
Where You Start is Where You End Up
GM, which at one time was the largest company in the world, almost all through Industrialist acquisitions, has struggled to find an innovative way to move into the future and would have gone bankrupt if it were not rescued by another Big, the government. At the same time Ford reached back into it’s creative Capitalist DNA and innovated its way to profitability without outside assistance.
The lesson is that companies which focus on being creative and innovative (two attributes of abundance) are much more likely to build a lasting presence than those whose founding DNA is scarcity. GM, whose DNA is more Industrialist than most other modern companies, has been stuck like a fly in a spider trap, while Ford has moved on ahead.
Scarcity is a Mirage
Most Industrialists truly believe they sell in a limited market with finite boundaries, and that since there is not enough to go around, they have to get theirs before the greedy people do. It’s a Darwinian world, and the scarcity-minded intend to be the last man standing. It has to be that way. If someone else is left standing, their presence might destroy ours. It’s a zero sum game.
But the scarce world the 21st century Industrialists are so afraid of doesn’t exist. The markets are always expanding and new products and services are being created at a dizzying pace. Scarcity thinking is just a lousy excuse for being lazy, uncreative and boorish in a world constantly expanding with new ideas, new markets and new generations of people.
The slow and long-term decline of companies like GM, United Airlines, and other stolidly Industrialist companies is a direct result of this scarcity thinking. It causes them to focus on acquiring the other guy’s creativity, eliminating him, and then maintaining the status quo so they can milk the existing market, instead of creating the next market. When you think about it, it’s actually a lot more childish than macho. The “great Industrialists” were doing a lot of compensating.
Abundance – Hard-core Capitalism
Abundance isn’t kum-bah-ya stuff. It is a hard-core Capitalist success habit. It builds a culture of trust, credibility and service to the world around us. People want to work with those companies, and will go out of their way to find them.
Do you live in a world of abundance? Are you committed to helping others in your industry get to their goals so you can get to yours? Whichever one you choose, scarcity or abundance, effects every decision you make.
Which do you choose?
This is a summary of a chapter from Chuck’s new book, “Why Employees Are ALWAYS a Bad Idea (And Other Business Diseases of the Industrial Age)”. Click here to pre-order this new ground breaking book at a discount on IndieGoGo.com until July 28.