Strategies and skills

'The more volatile the market, the quicker an organisation's success formula becomes obsolete.'
Daryl R. Conner: Leading at the Edge of Chaos.

Traditional approaches to trading may be found too rigid to accommodate the implications of the 'wired world'. The drive towards ever-lower prices puts at risk many historical relationships, which with time have become complacent, while low cost supply markets will generate short-term gain. However, these windows of opportunity will progressively become smaller. They will not offer long-term sustainability, particularly when faced with political and environmental pressures.

Market volatility will increasingly undermine long-term planning and the static interdependence that past strategies have created. As organisations move further towards extended outsourcing programmes, so inherently the risk management profile will grow.

'Top management intellectually understands they need radical change, but they don't have the courage to do what they see and believe they need to do.'
Sumantra Ghoshal co-author Individualised Corporation.

There will be no overnight solutions to this conundrum. Investment must be made to develop the culture and skills needed to manage this environment. Short-term focus has to be replaced with a longer-term strategy, providing a balance between quick returns and more durable propositions.

'The success and the rate of progress in achieving a world class competitive business are directly proportional to the participation of its managers and executives.'
Harry K. Jackson: Achieving the Competitive Edge.

Organisations have to recognise the potential and develop the new skills necessary to exploit dynamic supply chains of the future. They will create a versatile platform of relationships, with greater emphasis on integration. Forward strategies will be built, based on mutual objectives and" targets, combined with an investment in shared resources, skills and knowledge.

'When there are no limits to whom you see, where you'll go, what you'll touch, the results are remarkable.'
Jack Welch, CEO GE.

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