A Dose Of Healthy Paranoia Brings Sound Financial Rewards

"Amazon CEO Jeff Bezos, commenting on his company's recent better-than-expected earnings, noted that the company's eReader, Kindle, is their top-selling item by both unit sales and dollars. During most of the two years since its introduction, the Kindle has enjoyed a competitor-free market. The unit alone has brought in a reported $100 million (with Amazon's exclusive e-books selling for an additional $9.99 each). But the success of the Kindle is no reason for Amazon to sit back and enjoy its good fortune. Instead, John Percival warns, "they should be operating with some healthy paranoia." The Wharton adjunct finance professor explains, "Organizations should be just as worried when things are going well as when they're not. Getting too comfortable means you're not asking two critical questions: what's driving your success, and what will cause it to change."