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Professor Lee McKnight addresses the Prestigious Commonwealth Club in San Francisco
By Helena Cerna F’96
Professor Lee McKnight stopped by the Commonwealth Club in San Francisco’s Financial District in October, to enlighten members and guests about his recent book, Creative Destruction. The book was based on ideas discussed at a symposium held at the Fletcher School in the spring of 1999 titled “Creative Destruction –or Just Destruction”. The volume discusses the destruction of traditional industry structures, regulatory structures, competitive positioning strategies, and traditional technological assumptions and recommends some business survival strategies for this environment.
Also presenting was McKinsey & Co.’s Lee Dranakov, who discussed the recently published book
Creative Destruction: Why Companies that are Built to Last Underperform the Market – and How to Successfully Transform Them. Written by McKinsey partners Richard Foster and Sarah Kaplan, this book is based on several years of McKinsey data regarding public companies’ performance and postulates that corporations can outperform capital markets and maintain their leadership positions only if they creatively and continuously reconstruct (or deconstruct) themselves. This is the only way to stay ahead of challengers presenting new ideas to the marketplace.
Both books are based on the idea presented by Economist Joseph Schumpeter
approximately 70 years ago that new ideas and technologies replace obsolete businesses, and that in order to survive, existing organizations must continually innovate or else be replaced.
Professor McKnight’s presentation focused on the business strategies for survival in a Global economy that has accelerated the pace of Innovation and Destruction and made the “business cycle” and the life span of companies, shorter than ever before. Professor Mc Knight highlighted the need for real time feedback and information so that firms can quickly identify the business issue, respond appropriately, and adapt and scale their processes for the future. Internet business requirements in particular are openness, scalability, and privacy/security. Citing recent events, Professor Mc Knight pointed out that our interconnectedness makes us more vulnerable to attack. In addition, the “Opposition” has many of the same tools and advantages of technology such as access to real time information and communication. Out of these events, however, new business opportunities and needs for new technology are uncovered.
Prof. McKnight is an Associate Professor of International Communications and Director of The Edward R. Murrow Center at Fletcher. He teaches telecommunications modeling and policy analysis; international technology innovation and policy as well as field studies in international entrepreneurship.
The event was made possible by the International Business Relations Program at Fletcher.
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