Stop the Insanity
My first rule of management is to seek and eliminate the insanity. An enterprise will not survive if it fails to do so. Seems pretty logical doesn’t it? But, I look all around and see repeated examples of insanity. We all realize the world continuously evolves and changes. Years ago, I learned business practices and customers evolve more significantly in an economic downturn. This recession, like others before it, forces change and business is not like it was before.
But, the madness continues.
What am I talking about? Insanity, by definition, is to try the same thing over and over again and expect different results. In other words, what worked before this recession, may not be working now.
Two very prominent examples come to mind:
- Newspapers. Ad revenue is off, readership is a fraction of what it once was, and the alternative news sources have grown exponentially. Yet, to survive, the Boston Globe has chosen to extort cost concessions from their unions. All these concessions have done is put off the inevitable demise of the paper. Has the Boston Globe fundamentally changed its offering? Its still arriving at my door step every morning. Its still printed and distributed the old fashion way. Although it is much thinner than in the past. Cost concessions are not going to stop the continued slide in ad revenue and readership, just prolong the inevitable. By skirting the real issues it’s just a matter of time before it disappears.
- The American auto industry. Its taken the brink of death for GM and Chrysler to realize how out of touch they are with American consumers. GM can’t continue to depend on trucks and SUVs when gas is $4 a gallon—customers want greener cars. The escalation of oil prices and a recession has shocked the American public into an attitude of thrift and environmentalism. Even after an embarrassing private plane trip to Washington to plead for cash, they still didn’t get it. GM returned with a plan still heavily dependent on trucks and SUVs to fuel their growth. Promptly rejected by the administration, they had to come back yet again with a plan closer to the government’s demands.
There’s no better time than now to stop the insanity. You probably don’t need to look closely at your business to see what isn’t working. Find out why, and change before its too late.

