Over the past few days I’ve read a few articles explaining why Eastman Kodak got into such a pickle, eventually filing for ‘Chapter 11, bankruptcy’.
Read them and it points out some very important failings that senior management seemed blind to.
— Having an enterprise mind-set that is open to change
— Thinking and acting holistically
— Being able to adapt the business design to changing conditions
— Making decisions interactively using a variety of methods
So what made Kodak’s senior management abruptly appear so ‘out of touch’ with the industry? The once water tight business model going belly up was purely down to the speed of which the industry transformed. Kodak simply failed to run fast enough and lost the race. Unlike some reports, it was NOT the rise of cheaper technology from the East or the fall of an industry, Kodak essentially failed to modernise and adapt fast enough.
Corporates need to change and transform fast! Today’s businesses face daily challenges that they’ve never seen before. The most important question on the lips of a CEO should be ‘Are we changing as fast as required, remaining fresh and relevant?’. The truthful reply, mostly ‘No’!