Digital Tonto

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Jack Welch’s GE Was The Wrong Model To Take From The 90s. Lou Gerstner’s IBM Is The Right One

Digital Tonto

When Jack Welch was named “Manager of the Century” by Fortune magazine in 1999, it was still unclear what his legacy was going to be. Yet all the success belied serious problems rumbling underneath the surface. Welch increased profits largely by “financializing” the firm. Innovation languished. Yet perhaps the greatest indictment of Welch is those he chose to carry on his legacy.

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Pundits Love To Blame Bureaucracy. Here’s Why You Shouldn’t Listen To Them:

Digital Tonto

Over the past few decades pundits have become enamored by the change gospel. We’re told that we live in a VUCA world that is more volatile, uncertain, complex and ambiguous and therefore our only option is to disrupt the status quo, which is bureaucratic and bumbling. We need to move fast and break things. The simple fact is that it’s much easier to talk about genuine transformation than produce it.

Analysis 166
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If You Want To Lead, You Need To Embrace The Basic Human Need For Status

Digital Tonto

A simple truth about status games is that we all play them, whether we are aware of it or not. It is our drive for status that helps us form and signal identity, figure out who we are in relation to others and derive a sense of meaning about our existence, whether that meaning is rooted in achievement, care for those around us or our ability to enforce our will on others.

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We Need To Rethink The Myth Of Macintosh And Xerox PARC

Digital Tonto

In the late 1960s, Xerox faced a problem without a clear solution. With many of its key patents expiring, it was losing its chokehold on the industry it had created. That’s what led its visionary CEO, Peter McColough, to create PARC, which invented breakthrough technologies, incredible profits and saved the company. Yet many see it as a cautionary tale because of all the possibilities it wasn’t able to pursue.

Industry 165
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Why Truth Matters

Digital Tonto

Today, the truth can seem like nothing more than a preference. We pick a side, form a group identity and set out to prove our worth by supporting the party line. In our quest for status, we try to top those around us, leading to a purity spiral in which everyone competes to see who can be the most true to the cause. Yet truth is more than opinion. Facts are falsifiable.

Groups 108
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2024: A Pivotal Year

Digital Tonto

In 2009, it felt like the world was ending. I was still living in Ukraine then and the financial crisis hit there especially hard. GDP would fall by 14% and the ad market, which fueled the media business I ran, fell by 85%. I remember walking past the kiosks that traded currency everyday, tracking Ukraine’s Hryvnia fall heralding an even more uncertain future.

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Change Can Come From Anywhere

Digital Tonto

Discussions about change tend to gravitate to one of two poles: Either change has to come from the top or it has to be grass roots. As I explain in Cascades, transformation isn’t top-down or bottom-up, but happens from side-to-side. You can find the entire spectrum—from active support to active resistance—at every level. The answer doesn’t lie in any specific strategy or initiative, but in how people are able to internalize the need for change and transfer ideas through social bonds.

Change 178