While The Second Century discussed the automotive industry, a new book brings it into focus for everyone else. The World Is Flat: A Brief History of The Twenty-first Century (Thomas L. Friedman; Farrar, Straus and Giroux, 2005) asks the question, "Where were you when you discovered the world was flat?" By flat, the author means, the elimination of the usual barriers separating countries: cultures, education, skills, even language. Mr. Friedman describes three globalization eras since Columbus' discovery in 1492. The first, referred to as Globalization 1.0, started when the world was shrunk to something more medium-sized than the previous huge unknown. Around 1800, Globalization 2.0 began, lasting until around 2000. During this period, the key agent of change was the development of multi-national companies that went "global". The world became smaller as transportation costs fell in the first half and communication costs fell in the second half. Around 2000, the world shrank again, to a size "tiny" and the playing field for individuals became level. The dynamic force behind Globalization 3.0 is the new found power of the individual to collaborate and compete globally. Most of the examples cited refer to the ascension of both China and India in a variety of markets throughout the world and the ways they have transcended the old time and distance barriers.

The challenge we face is: How can we in North America compete in this new globalization era? The author offers this suggestion: "If you want to grow and flourish in the flat world, you better learn how to change and align yourself with it."

He also provides a glimpse of how some successful companies have done it. These companies have developed some rules and strategies for operating in the new, flatter world.
Rule # 1- When you are feeling flattened, dig inside yourself. Don't try to build walls. Don't try to protect your current practices. Adapt and differentiate.
Rule # 2- Small companies should act big. The key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper.
Rule # 3- Big companies should act small. One way to act really small is by enabling your customer to act really big.
Rule # 4- Be a good collaborator. In the flat world, more business will be done through collaborations because the layers of value creation are becoming so complex that no single firm is going to be able to master them alone.
Rule # 5- Stay healthy by getting regular checkups. The goal is to constantly identify and strengthen the niches served while re-examining the outsourcing possibilities for those things that don't differentiate your company. It is partly about finding ways to lower costs in line with strategy. It is also about reviewing strategy in light of new competitive pressures.
Rule # 6- Outsource to win, not shrink. Being more competitive allows you to grow your business by emphasizing your differentiation.
Rule # 7- Outsourcing isn't selling out. A level playing field is a good thing for everyone. Friedman predicts that China will never attack Taiwan and risk upsetting a successful supply chain balance. Suppliers don't want to shoot customers; customers don't want to shoot their suppliers.

Mr. Friedman's study of the flattening world is uplifting and encouraging and one of the most compelling books I've ever read. It also is sobering because there are still a number of non-flat areas of the world: many parts of Africa, North Korea, and parts of the Middle East. One of the major differences that separate the flat world from the non-flat is perspective: in the flat world people have dreams and in the non-flat, they have memories. Being motivated by dreams focuses you on growing. But, if all you are motivated by are memories of the way it was, it stifles you. Whether you are functioning in a non-flat region or a non-flat company with "this is the way we've always done it" attitudes, recognize that the world is flat. Be a dreamer!