Complacency Breeds Failure


Once they are making a lot of money, many salespeople, for instance, tend to get complacent. They get lazy and sloppy and stop attending to the basics. The same thing happens in many different areas when people or teams are successful. Success, is the goal, the finale, the reward, the finish line. Because it is viewed as the end and not the means, there is a tendency to think we’ve got it made when we achieve our goal. We think we know the basics, have the skills and drills down, and start taking success for granted. The result is, we get killed into complacency and slack off.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Creating Strategic Slack


In considering strategies for supporting or protecting core distinctive competences and growing new ones, the issue of resource demands has to be considered. One means of releasing resources is to review those distinctive competences that are no longer central to the strategic future. As is often the case in organizations, competences and distinctive competences emerge, and become embedded into the culture/conciousness of the organization. However, as organizations change their strategic direction, the utility of these competences may reduce, sometimes with them becoming completely irrelevant. Identifying these will free up resources—creating strategic slack. Where competences (or the activities supporting them) are to be withdrawn, careful considration of how this is to be achieved is necessary (who needs to be consulted? What needs to be put into place?) so as to ensure that the resources are freed up rather than covertly protected.

 

An obvious means of freeing up resources is through outsourcing. Through building the business model, those areas that are considered potential candidates for outsourcing will have been scrutinized. Often organizations outsource units, departments and tasks without considering the overall impact on the business model, or on a distinctive competence. Understanding how the particular area or task to be outsourced fits in with the overall model can thus ensure a more sustainable and coherent approach.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Increasing Knowledge Intensity


Knowledge (information, intelligence, and expertise) is the basis of technology and application. In the 21st Century competitive landscape, knowledge is a critical organizational resource  and is increasingly a valuable source of competitive advantage. Because of this, many companies now strive to transmute the accumulated knowledge of individual employees into a corporate asset. Some argue that the value of intangible assets, including knowledge, is growing as a proportion of total shareholder value. The probability of achieving strategic competitiveness in the 21st Century competitive landscape is enhanced for the firm that realizes that its survival depends on the ability to capture intelligence, transform it into usable knowledge, and diffuse it rapidly throughout the company. Firms that accept this challenge shift their focus from merely obtaining the information to exploiting the information to gain a competitive advantage over rival firms.

 

Conditions in the 21st Century competitive landscape shows that firms must be able to adapt quickly to achieve strategic competitiveness and earn above average returns. The term strategic flexibility describes a firm’s ability to do this. Strategic flexibility is a set of capabilities firms use to respond to various demands and opportunities that are a part of dynamic and uncertain competitive environments. Firms should develop strategic flexibility in all areas of their operations. Such capabilities in terms of manufacturing allow firms to “switch gears—form, for example, rapid product development to low cost—relatively quickly and with minimum resources.

 

To achieve strategic flexibility, many firms have to develop organizational slack. Slack resources allow the firm some flexibility to respond to environmental changes. When the changes required are large, firms may have to undergo strategic reorientations. Such reorientations can drastically change a firm’s competitive strategy. Strategic reorientations are often the result of a firm’s poor performance. For example, when a firm earns negative returns, its stakeholders are likely to place pressure on the top executives to make major changes. To be strategically flexible on a continuing basis, a firm has to develop the capability to learn. The learning continuously provides the firm with new and current sets of skills. This allows the firm to adapt to its environment as it encounters changes.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight