The most compelling citation:
... the life expectancy of firms in the Fortune 500, which used to be around 75 years, is now 15 years and declining fast.He also gives a chart of the decline of profitability of 20,000 US organizations from 1965 to 2011 showing a steady decline in the rate of return on assets or invested capital from 6.5% to around 1%.
This, he says, is why the revolution will happen, and it's a true paradigm shift (he goes into detail about the meaning of that term). Traditional management has failed and is even now being disrupted by new companies that are doing amazingly well by taking a radically different approach (not all companies are following all the same practices, though). Here are two tenets of the revolution:
- The customer is the boss, not the shareholder. Put another way, "who are you serving?" Shareholders want short-term profits and they don't care how you get them (Or more commonly, they can't control the process). The customer wants a product that serves their needs. These are two dramatically different goals, but Apple is a great example of what happens when you serve the customer.
- Optimize the working environment, don't control the employee. Happy, autonomous employees are vastly more productive that those who are going through the motions because they are compelled by a paycheck or something like the Random Alligator Initiative.
Companies that produce tremendously more value using these approaches will disrupt those that don't.