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April 27, 2011
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About Nolan
The Robert E. Nolan Company is an operations and technology consulting firm specializing in the insurance industry. For 38 years, we have helped insurance companies redesign processes and apply technology to improve service, quality,
productivity, and costs.

Our staff members are all senior industry experts with 15+ years in the industry. Visit www.renolan.com to download our insurance industry studies, white papers, and client success stories.

Positioning for Change: Learner vs. Learned
Steve Callahan
Senior Consultant and Practice Development Director

Renowned philosopher, author, and 1983 Presidential Medal of Freedom winner Eric Hoffer broke new ground in his time. His insights into the human condition covered the impact of low self-esteem on well-being, the role of fanaticism in mass psychology, and, relevant to my topic, society's adaptation to change and modernization. A self-educated man of simple background, Hoffer spent years on Los Angeles' Skid Row doing odd jobs, then sold fruit door-to-door, did migrant work across California, and finally settled into a life as a San Francisco longshoreman. An avid reader, Hoffer's own perspective on societal movements was shaped by the classics he read.

Hoffer offered hundreds of quotes throughout his books and other writings. Of particular note to today's challenges:

"In times of change the learners will inherit the earth, while the learned will find themselves beautifully equipped to deal with a world that no longer exists."

Like many insightful quotes, there is depth to be found in the simplicity. Take the changes we face in the following:

  • Technological innovation, where Moore's Law has led to the proliferation of computers in the home; virtual worlds like Second Life, where business is transacted between avatars; networks like Facebook and LinkedIn, which provide global connectivity; and "Googling," which gives everyone tremendous knowledge at their fingertips.
  • Globalized economies where the ripple of credit defaults in the U.S. or a famine in India is felt across nations, with 24/7 financial markets arbitraging exchange rates to leverage the slightest price differentials, and a competitive landscape no longer limited to the companies down the street.
  • Dramatic shifts in workforce demographics, a huge deficit in expertise created by retiring intellectual capital, globally low birth rates reducing the talent pool, increasing cultural diversity, and a series of political and societal firsts brought about by recent elections here.

Peeling the onion further and looking within our industry, we find:

  • Expanding regulatory oversight crossing operational boundaries, introducing personal accountability and liability to responsible executives.
  • An increasingly complex marketplace consisting of demanding and diverse consumers who bring individualized expectations paired with a wealth of competitive information.
  • Converging product portfolios translating into a smaller competitive advantage from features and price, putting immediate pressure on service delivery and brand quality.
  • Technological anchors in the form of legacy systems that impede progress and absorb investments that compete with advances in analytics, automated processes, electronic data exchange, and enhanced connectivity.

All of the preceding are layered on top of the normal operational and strategic considerations prevalent in competitive environments. No news to those in leadership roles attempting to navigate these turbulent times. Yet Hoffer was clear that the secret to succeeding in a changing world was not to rely upon existing knowledge, but to pursue new knowledge and new practices.

An excellent example of succeeding in change can be found in Inc. magazine's December 2008 article "Education of a CEO," which focuses on the transfer of ownership from father to son of the Koeze Company. What worked in the world of the founding father was not adaptable to the changing environment when the son took control. So through trial and error, the son became a learner who did not act on established practices, but built new expertise based upon new learning. The article highlights the experience gained by this entrepreneur, lessons that apply to any leader facing change.

  • Trust your instincts, even when they conflict with current practices.
  • Don't let your company's history become your destiny—be aware of what runs beneath the surface.
  • People resist change, even if that change might be for the eventual better. Change requires effort.
  • Change often starts at the top; in other words, sometimes the boss needs to change.
  • How you run your life affects how you run your business. It's hard to swallow but true nevertheless.
  • Critical thinking will win over time if applied consistently and diligently to the decision-making process.
  • A smart business is more than just profitable; it has a coherently attractive culture and greater purpose to serve.

We are clearly facing change of a monumental nature, significant in both breadth and depth. To succeed, we must be willing to learn new practices, releasing the hold of tried-and-true habits. In 1532, even Niccolo Machiavelli, author of the political treatise The Prince, recognized the importance of adaptation when he stated, "Whosoever desires constant success must change his conduct with the times." Or, as Bob Dylan's title track to his third studio album proclaimed, "The times, they are a changin'."