I am reading The Great Depression Ahead by Harry S. Dent, Jr, a book given to me by a client of ours. When I mention this book, several people have rolled their eyes. This is my first exposure to Dent but apparently some are quick to dismiss his theories and predictions. I will admit that I admire his scientific and information-based approach to predicting economic trends well into the future, even though I disagree with several of his premises. My intention is not to debate his book here but rather to focus on a statement he makes regarding organizations and companies of the future. Towards the end of this book, Dent states:

“We have been arguing for over a decade that the reengineering trend in corporations was missing the greater principle of organizational change.  Networks are driven by the users or customers.  They operate from the bottom up, not the top down.  They innovate more horizontally than vertically.  Information technologies are now powerful, wireless, and affordable - so that information for making decisions can be put right in the hands of frontline workers or even the customers themselves, who can access and customize products and services from the organization's broad resources of products and services (and strategic alliance partners).  Such an organization can produce more directly to demand (as Dell has done for decades) and operate more in real-time response (like our stock exchanges).  Accountability - including profitability and specifically the profitability of every customer - can be pinpointed to individuals or to small frontline teams.

Our brightest people should be designing and mediating networks of information and relations that allow companies and institutions to run in "real time" with no bureaucracy and from the bottom up or [from the] customer back, like the New York Stock Exchange.”

Dent goes on to say:

“Now information is cheap and plentiful.  We need to use information and real-time network-based production and organizational designs to eliminate systematically all waste in our systems, and that means

1) producing in real-time to meet customer demand,

2) establishing continuous-flow systems,

3) eliminating inventories,

4) sourcing locally,

5) making decisions on the front lines,

6) cutting bureaucracy and unnecessary steps in production and processing,

7) simplifying and right-sizing tasks, and

8) selling long-term services rather than one-time products.

Obviously, some industries are easier to do this in than others.  The reason that the New York Stock Exchange is a real-time network organization today is that it is almost totally information based.  It prices every stock, bond, and commodity every second of the day with almost no bureaucracy.  The users drive the system and get real-time quotes, confirmation of trades, and updates of accounts.  All concerned know how much profit or loss they make every minute and every day at all levels.”

Dent argues in his book that another great depression lies ahead. On the other hand, many business leaders and owners I have talked with recently believe 2010 will be a much better year. Regardless of the short- or long-term economic outlook, I wholeheartedly agree with Dent’s assessment that organizations must reinvent themselves through the utilization of information to make wise decisions. As the founder of iBusiness Solutions, I saw this opportunity 10 years ago and this remains the heart of our mission and our passion: to lead people to make wise decisions.

Dent closes this discussion with the following statement:

"By having more frontline and everyday workers make decisions and operate like small businesses within corporations and companies, their value added will accelerate and be more measurable.”

We have helped a variety of organizations realize value by empowered frontline workers like call center representatives. This value can be measured in the elimination of thousands of hours of work researching data, increased customer retention, and decisions aligned around key performance metrics. Please read our customer retention case study for more information.

Email me for additional information or to talk about ways to accelerate and measure the value your organization can bring to your customers.