Really good New Yorker story from James Surowiecki on the “performance revolution” and how it’s gone from sports to the rest of the world. I particularly liked the way he connected sports to business:
A key part of the “performance revolution” in sports, then, is the story of how organizations, in a systematic way, set about making employees more effective and productive. This, as it happens, is something that other organizations started doing around the same time. Look at what happened in American manufacturing, a transformation that also has its origins in the nineteen-seventies. At the time, big American companies were in woeful shape. In the decades after the Second World War, they had faced almost no foreign competition, and typically had only a few domestic rivals. That made them enormously profitable but complacent about quality and productivity. The result was that, by the early nineteen-seventies, American productivity growth was stalling, while American products were often defect-ridden and unreliable. One study, in 1969, found that a third of the people who bought a new American car judged it to be in unsatisfactory condition when it was delivered.
Reminded me a bit of a great piece I read a few weeks ago on the “responsive enterprise” and how software changes this conversation around performance and improvement. A little snippet from that:
Software promotes agility by dramatically speeding up the feedback loop between output and input. In the past, companies could measure their performance every quarter, making it difficult to adjust quickly to changes in the environment. In contrast, Facebook ships new versions of its product multiple times a day, with enhancements and fixes determined by realtime feedback from actual use of the Web site. Companies such as Amazon and Booking.com continuously perform A/B testing or multi-armed bandit experiments on users to optimize purchase rates on their Web sites.