I am watching FIFA World Cup 2014 in Brasil. It is really fantastic! There are many lessons for manufacturing industries from the World Cup!
I remember well! Raks Music was one of the best company in Turkey and abroad in the music industry. They were producing records for Turkish and export markets. But they failed in time.
There was a famous food brand and it does not exist in Turkey now.
Kodak created and dominated in the photographic film market in the world for a century. They have been the first to invent in digital camera but they failed in commercializing the digital camera successfully.
Other best example is Xerox (pioneer of copy machines). They invented in the desktop PC, email, Ethernet, printer, mouse, etc. but failed to commercialize any of these inventions
Both, Kodak and Xerox failed to focus new markets and technologies because they committed to existing markets and technologies.
Other best example is Xerox (pioneer of copy machines). They invented in the desktop PC, email, Ethernet, printer, mouse, etc. but failed to commercialize any of these inventions
Both, Kodak and Xerox failed to focus new markets and technologies because they committed to existing markets and technologies.
When I look at Fortune 500 after 1955, many of them failed.
All of these companies had well-known leaders, organizations, business, brands and products. But the result was not good for them.
Of course, country, geographic location, economy, the number of population, education, the culture of business, culture of innovation, applying short-termism and/or long-termism, sources, climate, skilled people and talent management policy etc. are very important parameters in business success today.
What are the reasons for these failures? I know this issue and focused on how we can create sustainable growth and profitability in a hypercompetitive business world. I provide a master blueprint for companies to design the organization of the future.
True Leadership and highly skilled people:
I see that many companies are failing to find the right person as a leader and skilled talents.There are many reasons for this!
The world economic forum had a survey in 22 countries and 12 industries in 2013. The survey revealed that more than 35% of nearly 40,000 employers are experiencing difficulties in filling vacancies. One of the three employers in the USA has talent shortage.
This shows that American and European companies are facing serious skills shortages. At the same time; there is a high unemployment in many industries in these countries. Talent shortage will be a problem of the next decade.
Many countries are failing to produce enough people with the level of education and skills that companies and organizations need to remain competitive.
I have to say that business and jobs are becoming more complex and companies are increasingly looking for people with different range of abilities, special experience in services or technology or broader functional area or different geographic markets.
I know that competition will increase for skilled staff and there will be hypercompetition between companies to find right leaders and talents for their business.
The success of the business will become increasingly dependent on the ability and skills of its staff and company knowledge in strategic agility and innovation management.
They have to develop and implement a new talent management strategy to be outside of the war for talent.
I am sure that you are watching football matches in FIFA World Cup 2014 in Brasil. It contains amazing and fantastic business lessons for companies!
When I look at to the business of football, we can see the war for managers (leaders) and players to become competitive and create highest customer value. I say this as ’’ the business of being perfect”. When I look at top soccer clubs they have true football managers and players and highest number of supporters (customers). They are in war of managers (leaders) and players (skilled talents).
Therefore companies should find the people with the right degree of experience, know-how and skills (including high EQ) to fill the necessary positions. Otherwise they will fail to create excellence in long-term. Because human capital is creating the success.
Developing and Implementing a Winning Business Strategy:
I know that business strategy is applied to create greater growth and profitability. Therefore the resources are devoted to the customers to retain their loyalty and get them to buy the company’s products and/or services. We have to note that if a strategy is not providing benefits to customers, this strategy will not be successful and drive company out of business.
A well planned, developed and implemented business strategy is crucial for a company to create growth and profitability. This requires leadership, employee engagement and avoiding common pitfalls.
Therefore companies should have the capability to make successful strategic decisions. These can be achieved by ;
1- Managing knowledge and information from internal and external sources.
2- Creating a right company culture.
3- Fostering continuous creativity and systematic innovation through internal and external sources.
4- Continuous reconfiguration or improvement.
5- Recognizing and empowering people.
6- Changing or reconfiguration of business strategy if there is a need and fitting operational decisions with the business strategy.
7- Understanding the nature of competition.
8- Building competitiveness using practical techniques.
9- Developing customer focused assessments.
10- True pricing strategies.
11- True sales force and policy.
12- True marketing people and write strategic marketing policy.
13- True power branding policy.
14- Managing effectively finance and risks.
15- Establishing a business in multi-geographical locations.
Developing and implementing a Sustainable Innovation Strategy and Performing Strategic Marketing & Innovation Management:
Innovation is an important parameter for company strategies to move to a new better position in growth, profitability and creating high customer value.
I know that we can identify individuals as a key component of the innovation process.Their experience, knowledge and skills are very crucial to manage innovation. Firms should effectively manage innovation. Bill Gates confirmed this in 2008:
“The share price is not something we control. We control innovation, sales and profits.”
I have to note that the purpose of a business is to create and retain a customer.
Peter Drucker defined this well:
“Business has only two functions -- marketing and innovation. All the rest are costs.
“Customers pay only for what is of use to them and gives them value”
“Who will do strategic long-term marketing and innovation?”
“People with good experience, know-how and high EQ!”
“Who will have the highest contribution with these products or services?”
“Who will have the highest contribution with these products or services?”
Consumers!”
Therefore business should invest in people at first. These people will create a long-term sustainable growth, profitability, transient competitive advantage, and high customer value through systematic marketing and innovation.
Therefore business should invest in people at first. These people will create a long-term sustainable growth, profitability, transient competitive advantage, and high customer value through systematic marketing and innovation.
Companies should create an innovative culture. They have to be super agile, make continuous reconfiguration, systematic innovation and perform extraordinary closeness to customers.
Excellence in the hypercompetitive business world requires an organization and its customers. It is the intersection of marketing, innovation and the power of human resources and their culture.
When I read the books; “The End of Competitive Advantage - Harvard Business Review Press” by Prof Dr. Rita Gunther McGrath and “Innovation Management - Oxford University Press" by Mark Dodgson, David M. Cann, Nelson Phillips; I found their approaches very effective and correct for innovation management and business success in a hypercompetitive business world for now and future. Therefore companies should have dynamism and it has to be linked to stability. They have to apply innovation as a continuous systematic process.They have to have the capability to make healthy disengagements on time. So that companies can create a transient competitive advantage. Therefore they have to reconfigure their technologies, services, leaders and employees in a high speed or faster than competitors to create growth, profitability and high customer value. Firms have to build a separate innovation management team from business as usual.
Companies should also make a long-term sector analysis and competitive intelligence to plan, develop and implement strategic decisions faster than others.
FIFA World Cup 2014 shows that the most important driving force in business success is the presence of right people having strong experience, know-how and high level skills and capabilities in multi-culture and multi-industry and also applying long-term marketing and innovation strategy, agility and change management in alignment faster than others in a global hypercompetitive business world.
How do you evaluate FIFA World Cup 2014 as a business leader? What are the lessons for your business success?
No comments:
Post a Comment