In a twist of fate, the growth in Michigan’s population that occurred as a result of high paying jobs back in the good ol’ days is the same thing that is hurting us now.
The auto industry’s growth was driven by a few very large companies which have a tradition of being very bureaucratic, political and non-agile. People employed in Michigan over those darling years naturally adopted a big company type of culture—high expectations from the establishment, low sense of individual impact, and a low tolerance for risk and growth.
Contrast this environment with that of today’s typical start-up company, where each employee quickly comes to understand that their contribution can make or break the company.
In the new model, it’s about the employee who is delivering the most value for the least money. Information is now more important than seniority—you get paid for what you know, not how long you have been around or if you went to college.
Michiganders should be ready to adapt to this change. But we will need to make some major changes, and make them quickly.
The world has changed drastically in recent years. We are entering a totally different phase of economic dynamics: the “experience” economy. This new economy is driven by talent, and combines products, servicesand a unique customer experience.
Talent and knowledge are the currency of this new economy. Some people call it the “Starbucks economy” where, as a company, you have to sell more than the features and benefits of your solution. You have to stage an experience!
Staging an experience requires everyone involved coming up with out-of-the-box ideas. Knowledge workers are expected to think, innovate and present new ideas that help their company innovate.
In Michigan, entrepreneurship is not in our fabric anymore. We lost it a long time ago. It will take us at least a decade of rebuilding to regain the throne.
I believe we can do it. I also believe it will be very hard and painful. Hard work and pain are good. We learn more from pain anyway—it’s the best tool for motivation.
As an illustration, picture a child that grew up in an environment where getting two, bare-bones meals a day was a huge accomplishment. When such child is in an environment where there is plenty, he or she is very likely to hold on tight and do everything to not go back to the past.
This may be why a lot of foreigners tend to be very successful when they relocate to a new country. America was built this way. It is because their past is full of pain, inconvenience, sometimes poverty. When they come to a new environment, they have an open mind. They have no expectations; they are completely free of the baggage of entitlement. And this helps them to think and succeed.
This kind of thinking is what most entrepreneurs possess.
In order to rebuild, we must all think like entrepreneurs. To neutralize any biases that we have in this region because of our history, we must embark on a journey that involves parents, mentors and focuses on our youth.
We must show our young people that it’s okay to think big and take risks. From a young age, Michiganders must come to understand that by developing and relying on their individual abilities, they can shape their economic future.
This is what the new economy is about—it is driven by an entrepreneurial way of thinking.
Employees must think in “value-add” terms—it’s not about what the company can do for them, nor is it about the effort they put in from 8 a.m. to 5 p.m. It’s truly about the unique experiences and innovations they candeliver to propel the company to new heights.
We have to expect opportunities only when we deliver value to others. If we can be successful at ingraining this thinking, especially at a young age, we will be ready to lead the next wave of economic success globally.
Our future is in the hands of a new breed of Michigan entrepreneurs. They will understand the new economy way of thinking. Their products will target a global audience. They will compete and win globally.They can adapt to change at a pace that the world has yet to experience. They will have a unique ability to spot the diamond in the rough. They will be relentless, and will never take no for an answer. To them, “impossible is nothing.”