Why CEOs Behave Like Cowards

“The times they are a-changin'”, as Bob Dylan put it and that’s more true than ever today. Software is eating the world. Every firm is a software company now, whether they understand it or not. We’re in what Steve Denning calls the creative economy, driven by customers with an infinite amount of information at their disposal.

In these times of upheaval you might guess that many companies are going through major internal reflection and restructuring. The general answer is sadly, no. Many companies are still by-and-large acting like product pushers to the ignorant masses. Almost every traditional company is still leaning on tenets of management created in the 1800s. Radical changes are far and few apart. As a result of this fundamental inability to adapt, the life expectancy of firms have dropped significantly, now less than fifteen years and declining rapidly (Fortune 500 companies).

I think it’s fair to say that many existing organisations are in desperate need for major redesign, not just structurally but dynamically, how they work to create value. Nothing happens. It seems to me that CEOs opt for a safe tactic, maintaining the system instead of fundamentally changing it. CEOs are playing not to lose instead of playing to win.

Now this made me curious. I mean, why is that? I mean, are they idiots or just incompetent? Hardly. Perhaps some other forces are at play?

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