{"id":681,"date":"2022-04-21T16:39:32","date_gmt":"2022-04-21T16:39:32","guid":{"rendered":"https:\/\/blog.ims-online.com\/?p=681"},"modified":"2022-04-21T16:39:34","modified_gmt":"2022-04-21T16:39:34","slug":"productive-paranoia","status":"publish","type":"post","link":"https:\/\/blog.ims-online.com\/index.php\/2022\/04\/21\/productive-paranoia\/","title":{"rendered":"PRODUCTIVE PARANOIA"},"content":{"rendered":"\n

Andy Grove, former CEO of Intel, stated that success breads complacency, which breeds failure, therefore only the paranoid survive. This quote has stood the test of time and continues to be relevant in today\u2019s constantly changing environment. Successful leaders have developed this critical leadership skill of \u2018productive paranoia\u2019, which is characterized by looking out for disruptive innovators entering their industry and challenging commonly held assumptions within their organizations. Today\u2019s leaders need to challenge the current assumptions of those mental models you are relying upon.<\/p>\n\n\n\n

Eastman Kodak\u2019s demise provides a cautionary tale for those companies who don\u2019t have this productive paranoia, especially in terms of disruptive technologies.<\/p>\n\n\n\n

Eastman Kodak sold its first camera in 1888, with the slogan, \u201cyou press the button, we do the rest.\u201d George Eastman\u2019s goal was to make photography as convenient as the pencil. And with that goal in mind, he created an empire, making Kodak a household name by successfully bringing photography to the masses.<\/p>\n\n\n\n

By the late 1960s, Kodak developed the first digital camera. Early 1990s, it had created the first digital SLR camera. Fast forward to the early 2000s, Kodak was now the No. 2 in digital camera sales in the U.S. but the profit margins on this part of its business were well below those of its core businesses and as a result, it chose not to embrace this new technology. Kodak also failed to realize the extent of this disruptive change, most notably the speed at which online photo sharing was going to replace printing photos. As a result, Kodak filed for bankruptcy in January 2012.<\/p>\n\n\n\n

Jim Collins states in his best-selling book, Great by Choice<\/a><\/em>, paranoid behavior represents a functional fear that is channeled and coupled with extensive preparation and clearheaded action. Collins explores three dimensions of productive paranoia employed by successful organizations.<\/p>\n\n\n\n

BUILD CASH RESERVES AND CREATE BUFFERS AGAINST UNPREDICTABLE ENVIRONMENTS<\/h3>\n\n\n\n

Don\u2019t wait for the storm to hit. Instead, prepare carefully for its arrival. Collins states, \u201cwhen a calamitous event clobbers an industry or the overall economy, companies fall into one of three categories: those that pull ahead, those that fall behind, and those that die. The disruption itself does not determine your category. You do.\u201d<\/p>\n\n\n\n

TAKE A CONSERVATIVE APPROACH TO RISK<\/h3>\n\n\n\n

With all three types of risk (death line, asymmetric and uncontrollable) identified in the book, those companies who were successful took less risk than their counterparts.<\/p>\n\n\n\n

HAVE A DUAL-LENS CAPABILITY<\/h3>\n\n\n\n

Where you can \u2018zoom out\u2019 to see changes in the broader environment to assess risk. However, you also need to \u2018zoom in\u2019 to focus on internal directives that are determining performance and profitability.<\/p>\n\n\n\n

IMS educator Dr. Kathy Pearson<\/a> in her book, The Perceptive Leader<\/a><\/em>, offers some practical advice to promote productive paranoia at an individual level.<\/p>\n\n\n\n