Daily Archives: November 21, 2012

Ferguson illustration

Things got quite exciting in London at noon on Tuesday. First Kweku Adoboli, the rogue trader formerly employed by UBS, was sentenced to seven years in prison for fraud. Then Hewlett-Packard accused the former management of Autonomy, the UK software company, of wrongdoing. The moral appeared to be, as a New York journalist wryly tweeted: “Don’t trust the British.”

 

When your company has been built around a deeply ingrained product development and manufacturing process, it is hard to change. And when that process has given you a world-beating edge through any number of product and technology cycles, it is even less easy to see why you should.

Now add in another complication: Wall Street thinks you have traded away your future and you need to learn a whole new way of doing business. But there is a catch. It does not want you to give up the unrepeatable profit margins you make from your old ways.