Deciphering The Current Economic Situation

I just read a FANTASTIC article in The McKinsey Quarterly called Creative Destruction And The Financial Crisis: An Interview With Richard Foster. It clearly explains our current economic environment.

Foster, who was a McKinsey director for 22 years, does a wonderful job of describing how capitalism creates cycles that lead to economic downturns like we’re in now. It’s not only very informative, but it’s also an easy read — which is a major feat for any discussion about economics. Here’s an excerpt:

The new entrepreneur often seeks ways to innovate outside the scope of the newly established regulations. In the beginning, all that works out fine. We have innovations… the returns are strong… The opportunity starts drawing less savory figures-charlatans who overmarket, cut corners, establish usurious contracts, and do other clever things to generate profit for themselves. They end up bringing the system down.

The bottom line: If you’re interested in understanding economic cycles, then you must read this article.

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I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

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