To say we live in uncharted times is embracing a cliché. As we desperately grasp at innovative business, process, and technical solutions hoping for relief, the once commonplace world and domestic markets are continually being altered permanently altered. Our housing value chains and corporations linger at toxic levels of dysfunctionalities. The MBS securitization world has been blown up, the GSE’s have simply become taxpayer sponsored government enterprises, and we’re sick and tired of the continual headlines screaming layoffs, closings, and failures. So what can be done? Is technology the only answer as some suggest? Are we prepared for the medicine and the cures can we aggressively act? Will we know “the answer” if it stared us right in the face?
As the market rants and reels against “old school” technologies and solutions, pundits postulate that that they can be fixed using automation, a reduction in paper, improved controls, and increased data standardization. All good ideas but they should be regarded as the catalysts as part of a much greater innovation dynamic that is becoming increasingly apparent. We need these solutions and the solution sets they represent, but only as much as they support the new markets, changing consumer demands, securitization requirements, due diligence, compliance, and the list goes on.
Like many new ideals that are facing an industry under relentless bombardment, they are foreign. The innovation demanded, if we can call it that, is organizationally widespread. It is best termed architectonic or fundamental redefinition. Repositioning, a subset of business redefinition, was once thought of only in terms of marketing. Today, it involves the quintessential essence of what business, processes, and solutions are sustainable and profitable as shown in the following illustration.So ask yourself, how you are repositioning yourself and business by utilizing technological solutions, data-driven solution sets, or process improvements:
Like many value based financial equations, the ability to be creative and understand the end-to-end operating principles and implications is no small feat when “new school” analysts continue to speak in “tongues” just listen to the financial media talk shows for 30 minutes to get a flavor. The channel noise is so great that for many of us it is nearly impossible to decide what actions are worthwhile when considering “old school” repositioning.
Whereas “new school” may involve many of those ideals or issues, the real challenge is moving beyond the discussions and into iterative, profitable programs in support of critical initiatives aligned with the organizational capability to deliver. When discussing the troubled investment bank Lehman Brothers late last week, an article in the Financial Times stated, “Arrogance and wishful thinking have foreclosed the firm’s options.”
Let us trust that the same will not be said of our personal actions and industry ability to adapt and reposition towards an innovative “new world reality.” Let none of us have a tombstone that reads, “Intelligent, Respected, Stubborn, Failed.” Fundamental repositioning will be demanded it is also unlikely that we will be completely successful deploying a single initiative.
“Old school” is not necessarily the “best school” no matter how much we yearn for the good old days. So as the government reaches its threshold of bailouts Bear, Fannie, Freddie, FDIC (via the failed banks), et al — are we prepared for the aggressive business, process, and technological redefinitions that must be implemented as part of this fiscal year? Will you be a upcoming casualty?
In closing, I was asked why “give away” the drawings in my column since they take a lot of time to devise and create “Why not charge for them?” The answer is simple. I personally believe that we all know what the “end state” should be for the result of our efforts even if we can’t articulate them sometimes.
The drawings help focus our actions via an “architecture for success,” but the methods, techniques, and iterations needed to get there in a given time is an equation of a different class. Let me state this axiom in a more common vernacular, “the answer is easy getting there is hard work.” I guess the latter reality is what keeps me in business.
And yes, if you assemble my many drawings from this column and my reports over the last year, there is a general roadmap that can be utilized to move forward think “Da Vinci Code.” This is the “The KO Professor” saying, “Keep your head up and have a superior week.”
