MOST PRESCIENT COMPANIES NOW REGARD QUALITY, TIME-TO-MARKET AND CUSTOMER RESPONSIVENESS AS BASIC ENTRY REQUIREMENTS INTO AN INDUSTRY, AND NOW FOCUS ON THEIR ABILITY TO CREATE FUNDAMENTALLY NEW PRODUCTS AND BUSINESSES AS A MAJOR DRIVER OF COMPETITIVE ADVANTAGE.
When a company’s short-term priorities mirror its top management’s unique competitive perspective about the future, when it smartens up to become a rule-maker rather than a rule-taker in its industry, when it frequently defines new ways of doing business, building new capabilities and setting new standards of customer satisfaction, and when it rises up to challenge the status quo instead of protecting it, then, the top management of the company is fully in control of their company’s future. To their company’s benefit, they have become a true driver of competitive advantage.
To be fully alert to the potential threats to their current business model, to nurture a keen understanding of the urgent need to reinvent their current business model, to place a balanced emphasis on the task of regenerating core strategies and the task of re-engineering core processes, to pursue new business and growth with a passion comparable to that invested in pursuing operational efficiency and downsizing, to create advantages new to the industry and positioning them in front of their competition: quality improvements, cycle-time reduction and improved customer service, to spend more energy to imagine the future rather than to maintain the present or status quo, and to elevate the sense of optimism about personal and corporate survival, all indicate that the top management of a company is balancing its thinking and acting, and devoting enough energy to create their future. As a true driver of competitive advantage, the senior management focuses on a prudent strategy that embraces all the aforementioned crucial elements.
The expected upshot of downsizing is often to correct the mistakes of the past, not to create new markets. Smart companies shun the dead end of restructuring and embrace re-engineering, which aims to dispense with all needless works and orient every process in the company towards customer satisfaction which hallmarks any plans or actions geared up as a driver of competitive advantage.
Most prescient companies now regard quality, time-to-market and customer responsiveness as basic entry requirements into an industry, and now focus on their ability to create fundamentally new products and businesses as a major driver of competitive advantage beneficial to them.