II Interlude

Kurt Lewin argued that ‘nothing is as practical as a good theory’. The obverse is also true: nothing is as dangerous as a bad theory. Sumantra Ghoshal1

Digital business demands new mental models and new reflexes. Management models and reflexes that originated during the industrial era are poor guides in the digital age.

Less sooner is worth more than more later. Technology is not something that happens off to the side: it is an integral part of business. Ceasing technology enhancements is nonsensical; requests and opportunities to enhance technology need to be welcomed just as new customer opportunities are welcomed.

Simply exploiting economies of scale will no longer work. Much digital work exhibits diseconomies of scale.

Higher quality is cheaper and faster than low quality.

Before exploring the Continuous Digital model in more detail, some foundations need to laid.

8. Diseconomies of scale

Whenever a theory appears to you as the only possible one, take this as a sign that you have neither understood the theory nor the problem which it was intended to solve. Karl Popper, Philosopher, 1902–1994

9. Diseconomies and risk

Only those who will risk going too far can possibly find out how far one can go. T. S. Elliot, poet, 1888-1965

10. Living with diseconomies

It is difficult to get a man to understand something, when his salary depends upon his not understanding it! Upton Sinclair, American writer and politician, 1878-1968

11. Schedules

85% of companies do not quantify cost of delay. Reinertsen, 20092

Six months’ delay can be worth 33% of lifecycle profits. McKinsey/Reinertsen, Electronic Business, 1983

12. Time-value profiles and elastic deadlines

Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less. Marie Curie

13. I need it yesterday!

Yesterday all my troubles seemed so far away,

Now it looks as though they’re here to stay.

Oh, I believe in yesterday.

Lennon and McCartney.

14. Theory X, Theory Y and strategy

There is a great deal of talk about loyalty from the bottom to the top. Loyalty from the top down is even more necessary and much less prevalent. General George S. Patton

15. Planning

Failure to plan is planning to fail. Project manager maxim, source unknown

Our conclusion is that planning is a centralizing process, discouraging the very commitment it claims so earnestly to require. Mintzberg3

So the real purpose of effective planning is not to make plans but to change the microcosm, the mental model that these decision makers carry in their heads. de Geus4

16. Piecemeal growth

Gall’s Law: A complex system that works is invariably found to have evolved from a simple system that worked. A complex system designed from scratch never works and cannot be patched up to make it work. You have to start over with a working simple system. John Gall, 19755