Complexity and Fragmentation Kill the Bottom Line
Boeing Drops After Reports Dreamliner Caught Fire at Heathrow: http://www.bloomberg.com/news/2013-07-12/boeing-drops-after-reports-dreamliner-caught-fire-at-heathrow.html?goback=%2Egmp_1982715%2Egde_1982715_member_257663693
Boeing’s understanding of the laws of economics got it wrong. Overextending the capability of a supply chain by adding suppliers with geographic and political dispersion may have looked attractive to marketing and procurement decision makers. But the laws of physics don’t care and the consequences will be delivered through the laws of economics. Risk is real, perception is not.
Too often what we use for decision criteria is a function of the lenses we apply. Lenses filter out an infinity of criteria and amplify the criteria we want.