The Emperor’s New Clothes

Probably everyone has heard of the story “The Emperor’s New Clothes” by Hans Christian Andersen. Those who haven’t, the story in nutshell is: Two swindlers arrive in the Emperor's city, claiming to be weavers of magnificent cloth, invisible to anyone foolish or unfit for their office. The Emperor, vain and fearful of appearing foolish, commissions an extravagant wardrobe. The weavers pretend to work, using the finest (non-existent) threads. Ministers and courtiers, also fearing ridicule, praise the invisible fabric. Finally, the Emperor parades in his "new clothes." The crowd, initially hesitant, joins the charade until a child cries out that the Emperor wears nothing. The crowd murmurs, then openly agrees. The Emperor, realises the truth but is unwilling to lose face, and continues the procession, with his shame veiled by his pride.

The Naked Emperor

Andersen's tale resonates with modern corporate scenarios involving top consultancies and system integrators. Like the Emperor, corporations, particularly large ones, can be swayed by prestigious names and buzzwords, like "the invisible cloth." Consultants, much like the swindlers, often present solutions based on Gartner's magic quadrant or Forrester Wave or the latest industry trends, most of the times - irrespective of a client's specific needs. Executives, fearing to appear "unfit" or behind the times, readily endorse these solutions, echoing the courtiers' flattery of the Emperor's non-existent clothes. Middle management, aware of the mismatch, but silent, mirrors the hesitant crowd. Huge investments are made in complex systems that ultimately fail to deliver real value, leaving the organisation exposed – the "naked emperor." Just as the child's innocent observation shattered the illusion, a critical audit or failure to gain customers or brain drain or a competitor's success with a different approach reveals the emperor's (the corporation's) nakedness, exposing the flawed strategy and the wasted resources. The leadership, though embarrassed, often continues the charade, unwilling to admit the mistake, much like the Emperor in his procession.

Why This Happens?

Perceived objectivity – The inputs from top consultancies or industry reports are often seen as independent and data-driven, lending credibility to decisions. But, what organisations ignore is that the industry data is not their data. The organisations resources, capabilities, customers, products, risks, issues, etc are very unique to the organisation. The industry reports will never be reflecting this and therefore more likely to mislead the organisation.

"The map is not the territory." - Alfred Korzybski

Another major aspect that plays here is Risk aversion. Choosing a solution recommended by a reputable firm can reduce the perceived risk of making a wrong decision. They play it "safe" by going with the established leader, even if it wasn't the best actual choice for them. It's about covering their backs and avoiding criticism for a potentially bad decision, even if that bad decision was based on following seemingly sound advice. Think of how many times we have seen organisations going for The top-rated CRM that’s overkill for their needs, is too expensive, and doesn’t integrate well with their existing systems.

"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man." - George Bernard Shaw

The bandwagon effect in decision making plays major role for most of the organisation. Keeping up with trends is a drug that they must have. Think of how many organisations you know who are jumping on AI bandwagon but have strong foothold in their own data. Data is scattered across 30+ systems, they have no understanding of which data is relative or valid and how to clean-up data to be used in machine learning, but they want to spend on jazzy top-class solutions that has shiny “AI” label on it. It's like buying those trendy trainers even if you're not fit for running 1 mile. They just don't want to look out of fashion.

"Be the change that you wish to see in the world." - Mahatma Gandhi

The Dangers

Blindly following the top consultancies or industry reports without critical evaluation is dangerous.

There is huge oversimplification of complex issues. Grouping vendors and solutions into neat little boxes – "Leaders," "Challengers," "Niche Players." - makes it easy to understand at a glance, but it oversimplifies things massively. We have often seen solutions to be terrible fit for organisation’s specific needs, because the report missed the crucial details that make all the difference.

"Any fool can know. The point is to understand." - Albert Einstein

Decisions made purely based on consultancy recommendations or industry reports result in Vendor Lock-in. Yes, remember! you bought that phone which was firstly extremely overkill for your needs, but now it requires special charger and it locks you in its own ecosystem – now you are forced to think you are happy with it – you have no option left but to start fresh or be stuck with it. Similarly at grand scale, the shiny systems are often complex and integrated into their own ecosystem which you don’t need. Switching to a different vendor becomes a huge hassle and expense. I have seen organisations stuck with big brand solutions, which is now outdated, but they can’t easily come off it. Vendors know you're locked in, so they can increase prices. You have less bargaining power. You can't easily adapt to changing business needs or adopt new technologies. Eventually organisation becomes overly reliant on a single vendor, and the mighty resources it once had working on innovative things, are now tied to BAU role, with Vendors picking up the large portions of organisations budgets. Vendor lock-in costs a company a lot of money, limit their options, and hinder their ability to innovate and grow. Organisations become trapped in a long-term contract with a service provider, even if they're not delivering the best service anymore.

"You can't go back and change the beginning, but you can start where you are and change the ending." - C.S. Lewis

Just like the Emperor's New Clothes, relying solely on industry reports can create a false sense of security and lead to costly mistakes. It's crucial for organisations to conduct their own due diligence and critically evaluate the information presented in these reports before making any decisions. A truly wise organisation invests in understanding its own "clothes" – its unique strengths and challenges – before blindly following the latest fashion.

"The important thing is not to stop questioning. Curiosity has its own reason for existing." - Albert Einstein

Share your insights, experiences, and questions in the comments below. And if you found value in this article, don’t forget to like and share.

- Umesh Mehendale