“There is great disorder arising from being in a period in which there are no rules, might is right, and there is a clash of great powers.”
Ray Dalio
Earlier this week, I listened to a former diplomat describe the changing world order.
His argument was simple: we have moved from a rules-based world — where compliance, institutions, and established norms created relative predictability — to a world where interests increasingly outweigh institutions. In that kind of environment, he argued, the ability to think like a humanitarian — someone with little formal power who must constantly engage, negotiate, and build alignment — becomes more relevant than simply knowing how to follow the rules.
Suddenly, the skills required to survive and thrive begin to change. Capabilities that once looked like strengths can weaken. Capabilities once overlooked can suddenly matter far more.
In the traditional auto industry, hardware engineering and manufacturing scale were the basis of advantage. In the EV era, software integration sits closer to the core. Companies like BYD were built software-first from the start. Many traditional automakers are still trying to stitch together fragmented software across decades of supplier ecosystems and legacy infrastructure.
Periods of disruption change the basis of advantage.
So, what becomes the new basis of advantage for you — as an individual or as a business?
A few questions to reflect on:
- What is becoming the new basis of advantage in your field?
- If uncertainty is becoming the norm, how are you creating optionality for yourself or your business?
- Beyond discussing the shifts, what concrete moves are you making?
One of the biggest risks in periods of transition is waiting for the old order to return — or worse, correctly identifying the shifts but doing nothing about them.
But nostalgia will not bring back the old order. Neither will discussion alone move you into the new one.
The world has already shifted. The question is whether we are repositioning with it.
Yours in possibilities,
TKO