The responsibility of management is to run the organization’sÂ Sense-Response Cycle (SRC) at, or just a bit faster than, the speed of industry evolution.Â The cycle has four phases (sense, make sense, decide, and act) and an organization has to conduct the work associated with each phase in a timely manner, because the only thing that counts is running the entire cycle “fast enough.” If you run it too fast, you may move beyond your industry’s ability to respond (ask some of the great dot-com companies from 1999). if you run it too slowly, you risk becoming irrelevant (do we need Sears Roebuck today?)
The current economic crisis requires every manager to rethink the speed of their SRC. Some may need to speed it up; others may need to slow down. All we know for sure is that the speed of business is changing for most companies. What’s right for your company and your industry?