April 21, 2010

The Physics Behind Staying Competitive 

Sir Isaac Newton’s second law of motion states that the force on an object is equal to the object’s mass multiplied by its acceleration. If we apply this equation to the objects of the world economy and our own businesses, thought-provoking questions emerge around finding the optimum balance of mass and acceleration within our organizations to continue the evolution towards sustainable competitive advantage.

Generally speaking, if either mass or acceleration (or both) goes up, the force of movement increases. From the macro-economic perspective, it is clear that everything is accelerating and companies are looking for the right balance of their mass (size) and acceleration (ability to move faster with the market).  In keeping with Newton’s law, it could be concluded that businesses with less mass can more easily keep pace with this acceleration in order to continue the force that they are bearing on a market.  With this in mind, business leaders should explore strategies for maintaining an optimal “mass” to ensure a company’s nimble adjustments to rapid change. These strategies can include investing full time in core competencies and outsourcing non-core activities, and investing in your management team’s skills to ensure leadership through this dynamic period.