TPP’s demise a reminder that old order does not hold

Since the United States’ withdrawal from the Trans-Pacific Partnership (TPP), there has been anxiety in many of Asia’s capitals about the repercussions this decision can have.

While the pull-out is a shock, it should be viewed in the context of recent disruptions happening globally.

Mr Donald Trump’s ascension to the American presidency comes in the fashion of Uber: An outsider with a new mission and approach to challenging the incumbents.

It is also an example of how established players are ill-prepared to manage the new threats — a new norm with broad implications for how companies are run and how children and careers are developed.

Business as usual, or trying to push back the changes amid these disturbances, is insufficient for surviving in this era. It calls for new, bold leadership from the incumbents to renew their missions and approaches so that things can be done differently.

From various responses to the TPP’s demise, however, the usual touting of globalisation’s benefits appear to be making the rounds again (“TPP brings vast benefits, and remaining members should keep it alive: Experts”; Jan 25).

This may not work as well as it did in globalisation’s early years because the dynamics have changed with the new White House’s aspirations and its approach to diplomacy: A fairer deal that benefits bilaterally or, alternatively, benefits only the US.

What are appropriate responses for organisations and individuals to adapt to this environment? First, there is a need to evaluate whether old missions are still relevant in the market.

In the transport industry, is the mission of an incumbent aspiring to be a leading service provider effective against Uber’s commitment to customer experience and stakeholders, as represented in its mission to “make transportation as reliable as running water, everywhere for everyone”?

Second, a great mission needs the right approach to make it happen. In the case of Uber, the use of a marketing-driven, customer-centric and collaborative approach powered by disruptive technologies is the differentiator.

This approach enables the organisation to be agile in expanding globally and quickly, instead of the usual fleet expansion.

This is unlike its traditional competitors that are still hanging on to their sales-oriented method: More wheels on the road mean more drivers and ridership. In a disruption-inclined generation, this formula of the past may not work as effectively in future.

Third, leadership is a key to ensuring that the mission is executed as intended. Without this drive, commitment, courage, vision and effective communication to inspire stakeholders, the road bumps may derail the mission.

Finally, while the TPP’s demise may be a disappointment, it may have a silver lining in serving as a timely reminder that we are living in a disruption-prone era, which calls out organisations and individuals to start doing things differently.