| Poor managerial performance is viewed more as | | | | level of individual customers is the pre-requisite. Some |
| structural rather than market factors. The mantra of | | | | of the premium car companies have successfully |
| the managements for increasing efficiencies and | | | | adopted customization to meet customers' individual |
| profitability is more often than not structural | | | | needs across the globe and created markets where |
| adjustments within the organization. | | | | none existed. |
| Structural adjustments at best produce short term | | | | Building Non-Core Business |
| results. Many of the change initiatives fizzle out after | | | | Capacities no more being a constraint the |
| the initial spurt in productivity while the management | | | | organizations need to build a strong brand and move |
| grapples with sagging morale and bottom-line. | | | | into unrelated businesses as well to drive revenues |
| Managements initiate more change for the sake of | | | | and survive in a changing market scenario. If you are |
| keeping the trend going resulting in further worsening | | | | focused onto a 'core business only' strategy you may |
| of the situation and employee attrition. | | | | be out of business the moment technology changes |
| The major Change initiative needs to focus on the | | | | make your product or market defunct. Building new |
| market forces and any internal change has to be | | | | businesses makes sense for managements who have |
| specific to orienting the organization and its people | | | | built competencies in human potential and management |
| towards the markets. | | | | resources along with global brands. |
| Some key factors that need to be addressed for | | | | With easy access to capital and ability to move capital |
| market oriented change initiatives: | | | | across international markets, it is very easy to own |
| Globalization | | | | businesses with core management teams running |
| Globalization has created a new scenario where | | | | varied businesses internationally. With change in market |
| capacity is no longer the constraining factor for any | | | | factors business may be exited if the management |
| business. Huge capacities are available across | | | | has the competence to forecast market and demand |
| geographical borders across product categories. | | | | trends. |
| Managements need to focus on the intangibles such | | | | Creating a Customer focus across business divisions |
| as brand building and human resources rather than | | | | Half a century back Peter Drucker said Customer is |
| building capacities to expand markets. The phenomenal | | | | Business. Whether finance or projects every |
| overcapacity available especially in high population | | | | department in your organization must be tuned to the |
| countries with cheap labor creates price pressures | | | | customer and markets. They must be trained to be |
| which makes it detrimental for companies focused on | | | | marketing oriented while performing their specialized |
| capacity expansion. | | | | functions. Businesses exist solely for the purpose of |
| Globalization has also created new levels | | | | customer. |
| competitiveness where price advantages alone may | | | | The necessity for adapting to relentless change should |
| not be able to create the market advantages. The | | | | essentially be a change geared to the external |
| customer value-benefits vary across the borders. | | | | environments rather than internal processes. Internal |
| Organizations need to create products which satisfy | | | | change can create limited results and cannot be |
| the diverse needs of global consumers demanding a | | | | pushed beyond a certain point. On the other hand |
| certain level of ethnic and geographical adaptation to | | | | gearing up change focused on external factors can |
| meet local expectations and needs. The products can | | | | create a constant and never ending momentum |
| no longer be uniform and mass produced. | | | | forward for the organization. |
| Customization to market requirements and even to the | | | | |