I was privileged recently to attend an evening of New Orleans jazz featuring Wynton Marsalis and Eric Clapton playing together in Manhattan's Jazz at Lincoln Center. Each of the principals noted that in spite of all of their years of experiences, they rehearsed several days together to create an innovative and smooth concert. You might think that jazz is ad hoc and does not require rehearsals. It does, just like business performance benefits from rehearsing and preparing. Knowing what your colleague will do and the context of performance will change what you do.
On a macro level, business men and women must understand the signals that exist today shaping the direction and scope of innovation necessary to thrive. The more macro or demographic trends you know, the better you will be able to anticipate what happens next.
Vivian Reifberg, a director at McKinsey & Company, spoke about the five forces that will shape the coming decade. (She gave me permission to share the research with others through my newsletter.) As we think about these major economic, social and political changes, we must also make sure that our co-workers and business partners become better prepared to execute our business strategies.
- The great rebalancing between emerging and developed markets is occurring. More workers and fewer mouths to feed create more disposable income in many emerging markets. During the next 10 years, more people will exit poverty than ever before. Emerging markets will account for more than 50 percent of the global economic growth over this decade. Companies need to figure out how to win with both cutting-edge products as well as ultra low-cost products to address the demands of different market places.
The enormous transformative effect from these forces will be huge. We must innovate to master these fundamental shifts occurring in our interconnected world. Even the most experience leaders need to develop the skill to place more and bolder bets with their employees, investors, suppliers, customers and communities in order to be prepared and to create a harmonious result. Using jazz as a metaphor helps me understand that predictability and success does not happen by accident.