Luxury Coach & Transportation

May 2019

Magazine for the professional limousine, charter and tour industry.

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2019 INTERNATIONAL LCT SHOW: KEYNOTE Forty percent of businesses may not be relevant much longer by failing to change, authenticate, customize, and 'eat the slow fish.' By Martin Romjue, LCT editor L AS VEGAS — If your business has been disrupted, stop whining about it. It's your fault, so you need to deal with it. e older your company, the slower it moves, and the more likely you'll be irrelevant. If you think you have nothing to worry about, you're done. If you do worry, there's hope. Attendees heard such blunt, hard-core statements March 27 from Michael Dominguez, the chief sales officer for MGM Resorts Inter- national. His presentation spanned the new dynam- ics and behavioral trends changing the world of business, including luxury ground transportation operations. Playing off a series of business and inspi- rational quotes, Dominguez outlined the harsh realities of change, disruption, and constant distractions, and how businesses must adjust to survive. Don't Let Plans Slow You Down Quoting Klaus Schwab, the founder of the World Economic Forum, Dominguez said, "In today's world, it is not the big fish that will eat the small fish, it is the fast fish that will eat the slow fish." "And the question is, how fast are you moving and how quickly are you changing? Because change is coming to your life and there is nothing you can do about it." Businesses waste time trying to plan beyond three years, given the rapid and unpredictable changes, most of it driven by technology, Dominguez said. e tradition- al five-year plans should now be viewed as aspirations or wishlists, serving as a "North Star" guide. "Speed is the new cur- rency of business," he said, quoting Marc Benioff, the founder and chairman of Salesforce. It's not to your advantage if you are bigger and older. "Disrupt or be disrupted, the disruption is coming to your life. Your only choice is to disrupt, or you will be disrupted,'" he said, quoting John Chambers, CEO of Cisco for 25 years. "'If you were disrupted, quit whining about it because you had the chance to be the disruptor. You let them disrupt you.'" Start-Up And Over If you plan to succeed today in any business, you need to think like a startup, Dominguez said. "e larger the company, the older the company, you move really slow, and you're risk-averse." Based on Chambers' research he shares with top customers, Domin- guez warned the operators: "Forty percent of you in this room will not be relevant in any significant way in the next five years because you can't change fast enough. It doesn't mean you won't be around. It doesn't mean you're not going to have businesses. You're just not going to be relevant to the conversa- tion because you can't change. And I know that sounds rough. It's the reality of the world today." He showed data on the rates of how companies fall on and off the S&P 500 list. In 1920, companies stayed on the list an average of 67 years. In 2010, listed companies are expected to stay only 15 years. "You get slower as you get older. And you get slower at the decision process. Do you know all of us end up with reading glasses at some point because, literally, the lenses in our eyes harden? ere's science behind it. at's why all of us end up with reading glasses or Lasik. And some people say, 'I don't need reading glasses.' Yeah, but you had Lasik surgery. It's the same thing. You still have a correction." As with eyesight, the longer you're in business, the more your lens hardens, he said. "e way you look at the world, the way you are adamant on how you think it is; it hardens the longer you're doing it. We get a little bit jaded the longer we've been doing this. And the interesting part is the world is moving fast enough that you can't afford to be jaded." Luxury Is Alive In a reassuring trend for operators, Dominguez refuted the widespread view retail is dead. "Middle retail" is dead, but not luxury and discount. "You're either in the luxury market or the discount market, but you're not going to be in the middle. You will have to pick a side at one point and know where you're headed." RadioShack, for example, should 2 2 WWW.LCTMAG.COM How To Plan On Still Being Around LUXURY COACH & TRANSPORTATION MAY 2019

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