The transformation game – evolution vs. revolution

Business is in constant motion. Our operating environment is continuously morphing, competitors rise and fall, fashion changes, technologies emerge and become obsolete, laws and taxes are modified. Successful corporations must follow the trends and be agile in order to adapt to the changing environment.

The transformation game – evolution vs. revolution

Another article co-authored with Péter Lakhegyi about transforming businesses.

Perils of transformation programs

Dunning-Kruger effect is based on the study of a sociological phenomenon, that has won the Ignobel prize in 2009. The theory, in layman’s terms states, that the less a person knows about a subject, the more he is convinced, that he’s an expert about it.  We joked about it at that time with friends, and didn’t take it seriously at all.

Interestingly enough I started noticing the effect, but not on personal, but on enterprise level. More specifically on transformation programs.

tl;dr

The companies starting transformation programs are usually showing the Dunning-Kruger effect in motion, as they progress.

They start with ignorant goal setting, and as the understanding increases, fear sets in. Too bad it’s always too late to do anything about it then. By the time the company overcomes the effects of the program it’s ignorance raises high enough to start a new program.

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