Our customers are
revolting! They are demanding more for less. They want world-class
services as well as total-quality products. They want it all and
they want it now. If we can't provide what they want, they will find
someone who can. Customer loyalty is a myth formed in the mist of
our distant past.
Customers in the
global economy are more demanding than ever before. They can be;
there is more competition than ever before. Customers take it for
granted that you will deliver a low-cost and high-quality product or
service. Now on top of that, they demand it faster and customized to
their individual needs. To be a survivor in the marketplace today,
you must produce world-class quality products and services,
designed to meet the specific customer's needs, and deliver them
quickly anywhere in the world at a competitive price.
Global competition
has emerged in most industries in the last 20 years. This global
competition will only get tougher as time goes by.
UNDERSTANDING THE
NEW COMPETITIVE ENVIRONMENT
According to the
Agility Forum, there are forces that shape the competitive
environment and exist irrespective of the actions of any one
individual, company, or nation. These key drivers of global
competition are
• ubiquitous
availability and distribution of information
• real-time communication from anywhere in the world to anywhere
else
• accelerating pace of change in technology
• rapidly expanding access to technology
• globalization of markets and business competition
• emergence of new trading blocks and international,
government-supported conglomerates
• global wage and job skills shifts
• environmental responsibility and resource limitations
• increasing customer expectations.
These forces, no
matter what industry we're in, no matter what size company we are,
affect us all. We need only to look around us to see their impact.
The wreckage of companies that did not change fast enough is
everywhere. Think about the big companies who aren't around anymore
or who have had to merge to stay in business. Think about how
different things are today compared to just a few years ago. The
impact of these forces is only going to grow stronger as time goes
by. To succeed in the face of these forces, companies must possess
an integrated set of attributes. These attributes describe critical
areas that we must excel at to survive in the world today. Compare
this list to your company. Where do you need to make improvements
to be a strong competitor?
1. Customer
Responsiveness—You must be able to work with customers and in
anticipation of customers, to supply integrated products and
services that fit evolving life-cycle requirements of function,
cost, and timeliness.
2. Physical Facility and Equipment Responsiveness—You must employ
an ever-growing knowledge base of manufacturing science to implement
reconfigurable, scalable, cost-effective production processes,
equipment, and facilities that adapt rapidly to specific production
needs.
3. Human Resource Responsiveness—The entire workforce of your
company must be highly capable and motivated knowledge workers who
can work in a flexible work environment, with substantial
independent decision-making.
4. Global Market Responsiveness—You must develop a production
strategy to anticipate and respond to a continuously changing
global market, with operations and infrastructure tailored to local
requirements.
5. Teaming as a Core Competency—You must be able to team within and
outside the company to acquire and focus needed knowledge and
capabilities to develop, deliver, and support your products and
services.
6. Responsive Practices and Cultures—You must continuously evolve
your core competencies, organizational structure, culture, and
business practices, enabling you to anticipate and respond rapidly
to changing customer demands.
A company can only
possess the attributes required to be competitive through the
efforts of its workforce. To exhibit these attributes, the workforce
must possess the skills to respond to constant change, constant
demand for more, and constant quickening of the pace. The challenge
is to ensure that the workforce, from top management to production
staff, all possess the required set of skills.
The integrated
nature of these attributes cannot be overstated. The attributes
support one another. Remove any one of the attributes and the
competitiveness of the enterprise is seriously weakened. Initiatives
and education that help companies develop these attributes must also
be integrated so effort in one area supports work done in another.
The demands of a
global customer base will require the creation of a Next-Generation
Workforce (NOW). This NOW will have to have specific skills to help
their enterprises successfully compete. There are seven skills
required by the Next-Generation Workforce. The seven skills and a
high-level description of the training required to engender them are
listed below.
To Be Continued