Keys to Success: The 3 Dualities.

The Future Does Not Fit in the Containers of the Past. Edition 188.

Successful leaders, teams and companies that endure over the long run seek to find ways to balance, unite and integrate opposing dualities into a harmonic and flexible approach that leverage opposing tendencies without merging or averaging them.

Here are three key dualities we should all become masters of managing whether it be personally or for our organizations.

1. Roots and Wings.

2. Story and Spreadsheet.

3. Centralized Control and Edge Power.

Roots and Wings

Between 1962’s Lawrence of Arabia and 2020’s The Mandalorian there is much in common including each being an innovative use of a new film technology. It was 70 MM wide screen for Lawrence of Arabia and high-definition streaming for The Mandalorian which brought Disney into the future.

But in world view they are completely different.

In Mandalorian we sense a force and a code best captured in the line “This is the way” repeated throughout the series. There is a code of conduct almost religious. A way of doing things handed down over time. A deterministic march forward.

In Lawrence of Arabia a key theme is of old ways and traditions being challenged best captured by the line “Nothing is written”. The desert is empty, and the sands are wiped clean with the winds of change. The past is not an anchor, and one must write, sculpt, and invent the future.

Most individuals and firms must balance both the roots (history, legacy, anchored costs, reputation, provenance, rule of law and expectations) of “this is the way” with the wings (leaps of faith, casting of on a new journey, challenging the status quo) of “nothing is written”.

We must balance roots and wings.

Roots provide stability, a place to stand, a passed along tradition and a sense of history.

But roots alone which are important to ensure one does not get blown away by the winds of change might anchor one too much to the past and to a status quo which may no longer be relevant.

Thus, the importance of wings.

The ability to raise oneself and see above the horizon, to look down with new perspectives and to ensure that the roots which feed us do not wither by failing to adapt to a new world.

Roots nourish via what we were and where we came from and what we did.

Wings encourage us to go where we need to and to blaze new trails which will lay down tomorrows roots and are a highway to what we will accomplish. 

If every individual and company is a story with a place we came from, every individual and a firm is also about a place we are going to.

We all integrate the dualities of roots and wings.

Too rooted and we may wither way as changing times and climate bring drought to the place and way we were.

Too winged and we may be blown away in the gusts of change.

Too rooted and we may be seen as old school, hide bound to tradition and inflexible.

Too ready to fly with change may find us painted as unreliable, undisciplined, and short-term oriented.

Transformation is twisting ourselves and companies into new shapes with the clay of what we were and new skills and pieces we acquire.

Story and Spreadsheet.

Today we live in a data driven, silicon based, algorithmic powered world.

As we all fixate on forging things with the scalability, math and plumbing of data, a case may be made that true wealth and joy are being sculpted with the specialness, magic, and poetry of creativity.

A story is “data with a soul” and “we tell ourselves stories in order to live”

Humans seek the magical, choosing with our hearts and then using numbers to justify what we just did.

If humans made ROI decisions, we would not have children since on a financial and other numerical criteria they do not compute.

Disney has the “Magic Kingdom” and not the “Algorithmic Kingdom” and Disney+ invests in data and technological capital to ensure competitiveness but they differentiate using creative and intellectual capital.

Netflix stock price fluctuates on its ability to attract new subscribers which is directly co-related with its ability to launch new creative endeavors and its true difference today versus other competitors is not necessarily just it’s celebrated data but it’s ability to harness global creative talent versus most competitors who focus on creative national talent.  Eg. Squid Games.

Until Novo Nordisk (maker of Ozempic and Wegovy) the most valuable company in Europe was LMVH (now number 2) the owner of Louis Vuitton and Tiffany and the most valuable company in the world was Apple. Both found ways to be spreadsheet operators at the highest level while differentiating on story telling and creativity.

Both companies have amazing supply chains and foundries/technologies, but they differentiate versus competitors and have an ability to charge significant premiums (they manage to get their buyers to forgo data driven decision making that many marketers fixate on) by focusing on provenance, materials, design, innovation, and storytelling.

Wealth and Brands are created through combining story and spreadsheet. Today when a new dawn of creativity and making is being unleashed and data and tech is being commoditized and offered as ingredients and service, we need to make sure we are focusing on our ability to attract, retain, train, re-aggregate and unleash talented creators and makers. And to do so in a flexible way, in fear free innovative cultures that modern technology and the new unbundled distributed workspace of tomorrow are enabling.

Let us stop fixating on the Arrows (how they are made, how many big lakes full of them we have and how cheaply we can buy them) and instead let us focus on the Archers.

Getting the arrows is not too difficult but attracting and motivating the archers is.

Centralized Control and Edge Power.

If one studies the history of any firm you will find it oscillate from being centralized to decentralized every few years.

A firm may begin decentralized but then find some combination of issues with quality control, duplication of costs, complexity or a legal snafu results in a massive centralization drive.

Now centralized the company finds itself ossified and process driven. It is now too slow to move in a rapidly changing world with a one size fits all approach that is rejected by different types of firms that the company is comprised of or a lack of sensitivity to different geographies. The center is too far removed from the day to day reality of business trench warfare and and so the pendulum swings the other way.

Stay in a company for a decade or more and you will go on a round trip ride from one dogma to the the other.

The reality is that successful companies combine both of these tendencies at the same time rather than swinging wildly from one side to another.

There are significant advantages driven by the scale of spending ( combined they give a buyer leverage), quantity of data ( in a world of large language models one needs firm wide access to data) and emerging challenges (responsible AI) which require a centralized approach either at a country, regional or global level calling for a co-ordinated approach as a starting point for legal, data, account/client management and procurement services which are then adapted and tailored for local realities of culture and law.

On the other hand innovation and experimentation occurs on the edge and many accounts and clients are deeply idiosyncratic in the way they do business and expect to be serviced uniquely in customized ways. In these cases the edge drives the interaction and innovation which is then reported back to center who a)create new best practices by identifying patterns across markets and b) modify any central edicts in response to the twitchy signals from the edge.

World class technology that enables information to flow freely and a culture of open communication and collaboration with a focus on excellence are the key factors that allow the combination of center and edge.

If the tech and data enables but the teams are engaged in a civil ware it will not work.

If every body gets along but there is no data and tech sensitivity to calibrate and implement changes in real time will also fail.

The debate of center versus edge is so twentieth century.

It is now combining the duality of center and edge.

Roots and Wings. Story and Spreadsheet. Center and Edge.

Duality wins.

Paintings by Rene Magritte.

Rishad Tobaccowala helps leaders and companies see, think and feel differently about how to grow themselves, their teams and their business.