What is changing?

  • Globalisation: The economic, social, cultural, and political dimensions.
  • Consumer motivations, aspirations and buying patterns – More sophisticated, better  informed;
  • Enhanced ability to identify and leverage pockets of excellence;
  • Greater development and promotion opportunities;
  • Companies use coordinated (but not necessarily the same) approaches throughout the world;
  • Strategic positioning in one market fundamentally affects position in other markets;
  • Competitiveness on a global scale – outsourcing; offshoring, shared services centers;
  • Value-chain activities are performed at optimal locations;
  • Headquarters are not country-specific;
  • Headquarters management reflects the international makeup of the workforce;
  • Many countries continue to deregulate industries and invite foreign competition, often in the form of alliances;
  • Strengthening of intellectual property laws;
  • Companies rely on inputs sourced from around the world;
  • Companies combine advantages created in the domestic arena with others that result from doing business in many nations (e.g., economies of scale and transferable brand reputation);
  • Best-of-class employees expect greater engagement in business practices – training and development, fair labour practices, monetary and non-monetary reward and diversity acceptance;
  • Strategic importance of speed. Speed and time to market continue to mandate the need for fast competitive response;
  • Easier communication across long distances. The Internet has greatly simplified the ability of firms to communicate;
  • Unbundling of the value chain or “skeleton companies with brains.” As firms continue to focus on core activities, alliances play a key role in allowing them to participate in noncore activities without a wholesale exit from these activities;
  • Increasing Regulation;
  • China’s emergence as the main manufacturer of the world;
  • India’s emergence as an information technology and potential emergence in many other industries;
  • Mergers and acquisitions and strategic alliances;
  • Rapidly changing technology – e-commerce; e-banking;
  • Threat of terrorism;
  • Growing green movement;
  • Changing demographics and an aging population;
  • Declining birth rates and immigration issues in EU;
  • Call for continuous Innovation – product and service improvement; Increased emphasis on competence, authenticity, and responsibility;
  • Efficient production methods and resource utilisation – utilisation of clean technology  and renewable energy sources;
  • Stakeholder / investor expectations – risk adverse and more diligent on risk metrics and ROI potential;
  • Corporate governance
  • Corporate citizenship underpinned by new business models  and practices that explicitly  reflect social consciousness;
  • A call for greater transparency, ethics and accountability  in governance.

 

Your Action Pack

1. Board membership, teamwork, and visibility
2. Clearer, more coherent, inspiring & communicable strategy
3. Better two-way internal communications and engagement of staff at all levels
4. Better engagement with delivery partners, customers, and other external stakeholders
5. More effective, efficient, robust, and standardised delivery models
6. Clearer, more challenging people and performance
management, including the idea that this is primarily a line management responsibility rather than a specialist HR issue
7. More flexible working via project pools and improved project and programme management
8. Improved prioritisation and resource allocation based on clarifying the links between strategic objectives and specific projects, programmes, roles, and outcomes
9. Improved data, systems, and metrics to support the above.