What Happens When Business Moves Faster Than Regulations And Rules Allow?

If you think about the success of Uber, it’s quite a fascinating story. Everyone has an opinion for how and why Uber became the company it is and some of those people believe that the success is due to the company’s ability to surpass rules and regulations. Some companies like Uber may have business models that may violate certain directives but they have the money to just settle any lawsuits that are filed against them. Even if their policies and services aren’t orthodox, they have grown so quickly and made so much commotion that it would be very difficult to shut them down now!

So what happens when a business develops faster than what regulations, environments, and scenarios are able to keep up with? This creates quite a chaotic situation. The world is moving faster than the government can adapt. The government needs to be at the forefront of leading innovation so they can create policies, guidelines, and safety nets. Otherwise we are in a dangerous situation where we will see a lot of companies that don’t care just go and do whatever they want. They will have plenty of resources and can penetrate so many markets so quickly that by the time a legal entity can question their legitimacy it doesn’t even matter. Their business will already be established and embedded in our society. They will have so much money and power to settle any disputes that they can shape the world that they are creating. Not that all of these companies are bad… I’m quite fond of AirBnB and Uber myself. We just need to be aware of what is happening when business moves faster than regulations and rules. The government needs to get ahead of things that are developing quickly, like self-driving cars and AI, to ensure that they can create policies to keep everyone safe.

Let me know what you think, comment below to share your thoughts! You can subscribe to the YouTube channel for more videos.

This video is brought to you by Staples Business Advantage, the business-to-business division of Staples, Inc. I recently worked with Staples Business Advantage on their 2016 Workplace Index, which examined the state of the workplace in the United States and Canada. The report identified what employees want and need from their employers, including wellness programs, smart office design, the right technology, and space and supplies for taking breaks. These findings are critical to help companies meet their recruitment, retention, and employee engagement goals. Download the report at go.staplesadvantage.com/workplaceindex2016.

Jacob Morgan is a speaker, author and cofounder of The Future of Work Community. Subscribe to his newsletter or visit TheFutureOrganization.