A. Avoid irreversible commitments. Major capital investments. Multi-year labor contracts. Specialized facilities. High fixed costs. All these things are dangerous in a world where the future is unlikely to mirror the past. Historically, managers have often traded away future flexibility for short-term economic advantage (like temporary labor peace, better long-term lease rates, or larger scale production lines). Going forward, executives will need to ask themselves, “How might this decision reduce our degree of freedom in the years to come?” Continue reading →