From Here to Where – A Perspective
Dear Colleagues,
Whilst government is best placed to institute immediate societal support, the longer-term impact of the coronavirus pandemic is known to no one, we can only speculate. The uncertainty moving forward, along with the question of sustainability will most effectively be confronted industry by industry led by their peak bodies, a role ACETA has identified and is preparing for.
When it’s over, to assume it is business as usual, would be foolhardy, and represent a total disregard for the suffering endured by many. I would like to share some thoughts on a calamity that has shone the light on a flawed society, referencing observations and experiences in our challenged entertainment technology industry. The following narrative represents my views and not necessarily those of the ACETA board, and is presented here to stimulate reflection.
Setting the Scene
Where to from here?
I offer the hypotheses; people make the world go around, not money which is but a form of exchange in the hands of humanity, and inevitably we are judged by our contribution not our collection, these are the interrelated premise of my narrative. When the pain and suffering caused by the coronavirus pandemic subsides, a new normal will benefit from moderation, and a renewed appreciation for that which really matters. Captains of industry will need to stop leading with their appendage, control their ego, take of the dunce’s hat and adopt a wiser humanitarian disposition as opposed to the greed and self-interest that has driven us towards the bottom, “are we there yet”. There are numerous societal flaws undermining the world, but I will stay in the field of commerce, specifically the ‘growth at any cost’ practice that inevitably damages people, organizations, brands, and the planet, a subject you won’t find on the curriculum at Harvard, or any other Business School.
The Anatomy of Business Growth
And its Impact
Growth does not necessarily equate to sustainability. I would suggest there are two types of corporate growth; that which is natural (healthy) and that which is forced or unnatural (unhealthy) and it is the later that has generally driven contemporary corporate culture. Natural or healthy growth results from population expansion, industry sector evolution, and well considered acquisition. Understanding your capability and playing to your strengths will deliver increased market share by constant upskilling practises, diversification, improving goods, services, and companion support regimes. Natural growth is an outcome of wisdom, strategic planning, and a focus on better rather than bigger.
Unnatural growth ensues from investor appeasement, the quarterly report to the stock exchange, ego, greed, lack of strategic planning or industry engagement, accompanied by a disregard for customers, industry and the long term. A forced growth environment produces unrealistic budgets, over-production, un-wanted or needed shipments, questionable new product to achieve short term sales budgets, homogenous/derivative technology development along with fractured relationships and reputations. Unhealthy growth usually features lower pricing in pursuit of higher volume, and the promotion of rampant consumption. The outcome being unsustainable profit margins, lower quality, service and support, increased landfill, packaging, plastics and general pollution.
However, let’s consider another position that is rarely discussed or undertaken. Just as individuals lose weight to maintain or improve health, business can do exactly the same with a strategically planned permanent or temporary reduction of commercial activity. Reduction can eliminate irrelevant and unprofitable activity, lower overheads and improve the bottom line, in preparation for a new course or to realise greater manageability, corporate health and agility. Think of it in terms of dealing with corporate obesity.
To Summarize
A New Beginning?
Commerce is best driven by the market place not investors, a focus on best not biggest will deliver the most sustainable reward, and there is no substitute for commitment and loyalty. The past month or so has shown us the fragility of globalization and a dependence on others, in particular the supply chain. Individuals, companies and nations, will need to be more self-reliant in the future. Many nations, and Australia is a prime example, have neglected value adding, I’m referring here to secondary industry, namely manufacturing and creating, if we don’t reset our attitude and improve the value add, our future is?
With regard to our industry, we can and will need to improve across the three constituent sectors namely, manufacturers, manufacturers’ representatives and service providers all of whom are equal in their importance. We are aware that the industry mindset is understandably drawn elsewhere at the moment. However, in the coming months when we are collectively ready, we will begin presentation of initiatives to assist recovery and development, in the meantime stay safe and well, in the knowledge that together we will prevail.
All the best
Frank Hinton
President
ACETA
Whilst government is best placed to institute immediate societal support, the longer-term impact of the coronavirus pandemic is known to no one, we can only speculate. The uncertainty moving forward, along with the question of sustainability will most effectively be confronted industry by industry led by their peak bodies, a role ACETA has identified and is preparing for.
When it’s over, to assume it is business as usual, would be foolhardy, and represent a total disregard for the suffering endured by many. I would like to share some thoughts on a calamity that has shone the light on a flawed society, referencing observations and experiences in our challenged entertainment technology industry. The following narrative represents my views and not necessarily those of the ACETA board, and is presented here to stimulate reflection.
Setting the Scene
Where to from here?
I offer the hypotheses; people make the world go around, not money which is but a form of exchange in the hands of humanity, and inevitably we are judged by our contribution not our collection, these are the interrelated premise of my narrative. When the pain and suffering caused by the coronavirus pandemic subsides, a new normal will benefit from moderation, and a renewed appreciation for that which really matters. Captains of industry will need to stop leading with their appendage, control their ego, take of the dunce’s hat and adopt a wiser humanitarian disposition as opposed to the greed and self-interest that has driven us towards the bottom, “are we there yet”. There are numerous societal flaws undermining the world, but I will stay in the field of commerce, specifically the ‘growth at any cost’ practice that inevitably damages people, organizations, brands, and the planet, a subject you won’t find on the curriculum at Harvard, or any other Business School.
The Anatomy of Business Growth
And its Impact
Growth does not necessarily equate to sustainability. I would suggest there are two types of corporate growth; that which is natural (healthy) and that which is forced or unnatural (unhealthy) and it is the later that has generally driven contemporary corporate culture. Natural or healthy growth results from population expansion, industry sector evolution, and well considered acquisition. Understanding your capability and playing to your strengths will deliver increased market share by constant upskilling practises, diversification, improving goods, services, and companion support regimes. Natural growth is an outcome of wisdom, strategic planning, and a focus on better rather than bigger.
Unnatural growth ensues from investor appeasement, the quarterly report to the stock exchange, ego, greed, lack of strategic planning or industry engagement, accompanied by a disregard for customers, industry and the long term. A forced growth environment produces unrealistic budgets, over-production, un-wanted or needed shipments, questionable new product to achieve short term sales budgets, homogenous/derivative technology development along with fractured relationships and reputations. Unhealthy growth usually features lower pricing in pursuit of higher volume, and the promotion of rampant consumption. The outcome being unsustainable profit margins, lower quality, service and support, increased landfill, packaging, plastics and general pollution.
However, let’s consider another position that is rarely discussed or undertaken. Just as individuals lose weight to maintain or improve health, business can do exactly the same with a strategically planned permanent or temporary reduction of commercial activity. Reduction can eliminate irrelevant and unprofitable activity, lower overheads and improve the bottom line, in preparation for a new course or to realise greater manageability, corporate health and agility. Think of it in terms of dealing with corporate obesity.
To Summarize
A New Beginning?
Commerce is best driven by the market place not investors, a focus on best not biggest will deliver the most sustainable reward, and there is no substitute for commitment and loyalty. The past month or so has shown us the fragility of globalization and a dependence on others, in particular the supply chain. Individuals, companies and nations, will need to be more self-reliant in the future. Many nations, and Australia is a prime example, have neglected value adding, I’m referring here to secondary industry, namely manufacturing and creating, if we don’t reset our attitude and improve the value add, our future is?
With regard to our industry, we can and will need to improve across the three constituent sectors namely, manufacturers, manufacturers’ representatives and service providers all of whom are equal in their importance. We are aware that the industry mindset is understandably drawn elsewhere at the moment. However, in the coming months when we are collectively ready, we will begin presentation of initiatives to assist recovery and development, in the meantime stay safe and well, in the knowledge that together we will prevail.
All the best
Frank Hinton
President
ACETA