So what will they blame next? If the 3rd quarter proves out the highly anticipated 2-3% GDP growth in our economy, many a public company CEO and CFO will need to turn elsewhere to explain their companies’ lackluster performance. The go-to excuse of the last four quarters will begin to fade away and the distinction between high performing companies and also-rans will come into crystal clear focus.
Said another way, the weak performers will need to “pull a Verizon.” In their third quarter earnings announcement, the wireless behemoth reported a 30% decline in profit. But rather than blaming the shortfall on the bogey-man recession, they maned up and admitted that AT&T took a big bite out of their profitability, compliments of the iPhone. Now whether they would have made such an admission if the proliferation of iPhones was not so obvious, is anyone’s guess.
The success of the iPhone is instructive in many ways. First and foremost it underscores the power of innovation, or said another way, the undeniable tyranny of the idea. Secondly, it showcases what a company can do when they know who they are and what differentiates them from the lemmings in their competitive space, who are fast followers at best. Finally it evidences the unstoppable combination of a clearly articulated vision and a well aligned organization. One that can thrive even without one of the most visionary CEOs of the last century.
So to all of those companies who have managed to exploit the air cover of the economic malaise to mask poor results and even poorer leadership, I have some bad news for you. The economy has gotten lots better. For your sake, I hope you have too.