Too well tuned?
Sir, Stefan Stern in “The supply chains that could bind unsuspecting managers”, November 28, argues that when everyone strives to be lean and efficient this could on a global scale create greater risks and vulnerability. He is right though it extends to much more than supply chains.
Martial arts legend Bruce Lee, who died at the age of only 32 is an example of how an organism could be in such a highly tuned and perfect condition that it could not resist a small external shock if the rumors that his death were caused by some sort of aspirin are true. In the same vein companies nowadays, pressured by the stock market’s expectations for the next quarterly results; the latest theories in corporate finance as to how squeeze out the last drop in results; and, perhaps, even some bit of creative accounting, might be so well-tuned (no little reserve fat left) that they would not be able to withstand any minor recession.
PS. Whenever I expose this theory, I can see in my wife’s eyes that she believes this is just my preparing an excuse for my growing—ok, grown—midline.
Stefan Stern supply chains risk
Martial arts legend Bruce Lee, who died at the age of only 32 is an example of how an organism could be in such a highly tuned and perfect condition that it could not resist a small external shock if the rumors that his death were caused by some sort of aspirin are true. In the same vein companies nowadays, pressured by the stock market’s expectations for the next quarterly results; the latest theories in corporate finance as to how squeeze out the last drop in results; and, perhaps, even some bit of creative accounting, might be so well-tuned (no little reserve fat left) that they would not be able to withstand any minor recession.
PS. Whenever I expose this theory, I can see in my wife’s eyes that she believes this is just my preparing an excuse for my growing—ok, grown—midline.
Stefan Stern supply chains risk
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