The business world in the 21^st century is very different from the way it was as recently as twenty-five years ago.  The availability of instant information, the ability to communicate with anyone anywhere in the world all the time, the use of the internet to network and engage in transactions, the increasing empowerment and expectations of customers, the impact of computers and information technology, the globalisation of business, and many other factors, all come together to create a new paradigm for doing business.

This world is a world of opportunities.  But it is also a world that deals very harshly with those who are not prepared to adapt to it.

So, what is it that we need to know and, more importantly, what do we need to do, to win in the new global economy?  There are essentially seven factors.  However, before I get to the seven imperatives, it is important to consider the changed role of management.

In the twentieth-century economy, management generally took a ‘command and control’ approach.  In other words managers typically decided what products/services were needed and they made things happen by controlling the chain of events from production to delivery.

Under this model, employees carried out policies, procedures and instructions to deliver to the customer the required products and/or services.  There was very little collaboration between employees and management, between employees and customers and between customers and management.

It was a top-down approach that may be illustrated as follows:

In the shape of things to come this way of operating will no longer work.  Customers have information, they are well educated, they are no longer limited to a few suppliers, they demand value, they want their specific needs addressed by the product or service, and they are prepared to switch allegiance very quickly.

In the twenty-first century business will be done in a different way.  Customers and employees need to be seen as partners, with employees listening to their customers and giving them what they want.  Thus the relationship between employees and customers is one of involvement in order to identify and satisfy specific needs.

The role of management in the new economy is also very different.  Instead of dictating, managers need to collaborate with customers as well as employees to create the infrastructure, products and services that will engage customers to fulfill their requirements.

This new paradigm may be illustrated like this:

With the changed role of management in mind let us now turn to the seven essentials for succeeding in the new world economy.

1. Reinvent yourself frequently

Succeeding in the business world necessitates a constant re-evaluation of the environment as well as ones products, services and delivery.  A continuous review of every facet of operations is the only way that a business can successfully defend itself against global competitors.

In the past, there was a time lag between innovative new products/services and the introduction of competitive products.  This was largely due to the time it took for competitors to obtain detailed knowledge of what was happening.  By the time a new product or service hit the streets considerable infrastructural development had taken place.  This put competitors at a disadvantage.

Historically, many companies went to great lengths protecting themselves against rogue traders by taking out patents and relentlessly pursuing those who infringed their rights.  Today many companies are not even bothering about patents.  They reason that the time and resources spent on protecting a product are better served producing innovative new products and providing better services.

The CEO of a very successful technology company put it this way.

“We never give much thought to going for patents.  Instead, we put all our efforts into constant reinvention of our product line.  Let our competitors haunt the halls of the patent office.  We’ll spend our time creating increasingly better products for our customers at a rate that our competitors can’t match.”

(The shape of things to come by R. O. Oliver,
Business Week Books 1999, pp 108.)

2. Be customer focussed

Since the 1960s, customer focus has been a central theme that has been spoken about ad nauseam.  Again and again pundits have sung the virtues, and even the necessity, of interpreting customer needs and defining product and service requirements in terms of those needs.

Up to the 1990s this approach worked fairly well when it was applied, and it became the specific responsibility of the Marketing Department to ensure that customer needs were analysed and met.

In the present and future world, however, this is not enough.  The marketing department is too far removed from daily contact with customers.  The shape of customer focus in the 21^st century is to integrate customer requirements into every part of organisation.  This means letting the customer dictate how value is defined and delivered.  It also means continuous contact with customers at all levels and listening to what they have to say about your products and services.

Customer focus, taken to its logical conclusion, suggests that the marketing department no longer decides what to promote – customers do that.  This requires constant attention to what customers have to say, uncompromising stand to give each customer what he or she wants, and a commitment to continually change, adapt and upgrade products and services.

3. Provide personalised products and services

Following on vigilant customer focus is the need to deliver products and services that meet individual rather than group needs.  This is a major paradigm shift for most companies and one that may be difficult to digest.

In the new millennium, customers want to be treated uniquely.  Each person has a distinct set of preferences and people will support those companies that acknowledge this and delivers value accordingly.  Thus there will be less reliance on standard or ‘off the shelf’ products and services and much more emphasis on products and services tailored to meet individual needs.

It is easy to see how services may be customised.  But how does this apply to products manufactured at a central point, such as a plant or factory?  Surely it is not possible to make a different product for every customer?

The astounding fact is that with the proper use of technology and product engineering, personal products will become the norm in the future.

Take Dell, a computer supplier for example.  Unlike some other suppliers,  Dell delivers computers to meet the individual specifications of customers.  So if you need ten computers for a small business venture, instead of having one or two standard models to choose from, Dell is able to supply equipment according to the specific configurations of each user.  This makes the acquisition of computers far more flexile and cost effective.

But what about big ticket items such as motor vehicles?  In the days to come you will be able to walk into a dealer’s showroom and, instead of being shown the latest models, you will be led into a cubicle.  Inside you will find a computer terminal where you will be required to answer a series of questions to establish the criteria of the vehicle of your choice.  Criteria such as price, performance, colour, accessories, etc.  Vehicles will be engineered to accommodate a wide variety of choices and soon a car will appear on the screen based on your requirements.  Next, you will be asked to strap on virtual reality headgear to experience the car especially designed for you.  If you are satisfied with what you experience, a contract is concluded, finance arranged and in a week or so the vehicle will be delivered to you, licensed in your name.

If this sounds far fetched you’ll be surprised to learn that at least one large motor car manufacturer has made great strides towards this end and it anticipates being ready with personalised vehicles well before the end of this decade.

So we see that, in the 21^st century, customer service is not enough.  Organisations need to be customer focused to the extent that each customer’s unique needs are met.  In other words the customer dictates how value is defined and delivered.

4. Harness the synergy of teamwork

In years gone by it was the norm for people to work on their own, doing that which was prescribed by management and being accountable for the personal results that each employee achieved on his or her own.

When things are relatively straightforward, and problems solved by referring to policies and procedures, this strategy often worked.  However, in a complex world with many variables and constant change, nobody can meet modern-day requirements in an efficient manner.  Individuals and departments on their own simply do not have the resources, intellectual and otherwise, to solve the demands of an increasingly vocal and uncompromising market place.

Instead of fragmenting ones workforce into discrete units, each being responsible for a delineated function, people from all disciplines should come together for the sole purpose of finding ways of being more efficient, cost effective, client focused and value driven.

A clearly articulated vision should be established with very specific indicators revealing when the vision will have been attained.  Then, each division, department and individual need to work together to achieve that vision; anything or anyone that does not contribute to its attainment is waste.  Furthermore, problems need to be solved together and people supportive of one another, each putting the greater good of the group (or company) above itself.

Only in this way can the synergy of teamwork be attained;  a condition whereby the output of the group far exceeds the sum of individual contributions.

Harnessing the synergy of teamwork also means creating a corporate community under-girded by trust and open communication.  Where these conditions exist, staff collaborate with one another, they commit themselves to the well being of all, morale is high and new ideas are generated; ideas that lead the field in product development and service delivery.  This is the hallmark of truly great companies.

5. Think and act globally

With the advent of the Internet, the elimination of barriers such as foreign exchange controls, and with protectionist policies becoming a thing of the past, the world is truly a global market place.  At the press of a button, high quality products and services may be obtained from anywhere in the world, at a competitive price, and no government is able to stop it.  Every person, therefore, is subject to global forces because each company is competing in the global marketplace.

Thinking and acting globally is particularly important when new products and services are created.  Right from the start companies should think of the entire world as their marketplace, not simply local consumers.  With this in mind features and benefits can be designed to accommodate global requirements, including world-class standards.  In response to this imperative, some may think the global thing a bit lofty.  After all, the local market is at hand, it is known and understood.  Also, and this applies particularly to Africa, why should world standards be applied to developing or emerging economies?

The answer to this question is that, contrary to appearances, companies are competing with international corporations.  Customers in their millions are in touch with what is happening throughout the world via the media, satellite television and the Internet.

They know what is going on internationally and more and more, they are becoming increasingly intolerant of companies who dump inferior products and services on them thinking them ignorant.

So, local companies that do not think globally will find business quietly being taken away by international corporations who will target their customers with increasing fervour.

6. Replace rules with roles

During the 1990s the field-cry of many managers throughout the world was to maintain control by establishing rules in the form of policies and procedures and enforcing compliance.  In such a rigid environment, staff had little leeway in interpreting the situation and making a judgement as to the suitability of such a rule.

Today the world is changing so fast, due to technology and competition, that except in the case of absolute necessity, rules become straightjackets that hamper the efficient delivery of products/services.  It is simply no longer possible to devise rules that cover all eventualities.

Successful organisations are rapidly replacing rules with roles.  Managers, together with their staff, set standards and clarify expectations that are in line with the best practices in the world.  Employees are then required to do what it takes (within the boundaries set in terms of authorities, values etc.) to achieve those standards and fulfill those roles.  This liberates employees and encourages them to use their initiative.  The result is greater motivation, a strong sense of commitment, higher productivity and an innovative spirit that addresses needs and solves problems.

However, when replacing rules with roles two factors need to be born in mind:

1. There will still be a need for some rules, though this will be minimal and limited to what is absolutely essential for the survival or well-being of the company.
2. When discarding unnecessary rules, they must be replaced with very specific standards and roles.  Thereafter people should be given the requisite authority to do the job and must be made accountable for achieving standards and fulfilling the roles.

7. Maintain high standards at relatively low costs with quick delivery

This imperative is, in fact, the essence of what success is all about in the new global environment.  To achieve this end all the previous factors need to be addressed.  But it also necessitates the effective use of technology.

Unless corporations have access to the efficiencies and knowledge that can be obtained by technology they will be in the wake of business waves that will either overwhelm or dump them.  Without the proper tools, people simply cannot perform and, today, technology is an essential tool for efficient and high quality production.

To maintain high standards employees must be well trained and highly motivated.  For this to happen, organisations need to see training as an investment (instead of a cost) and collaboration amongst all staff as an imperative.