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Here is an excerpt from our Retooling Methodology:
Preface:
“Since the turn of the millennium, there has been a tendency in some firms to revert to a simpler strategic structure. This is being driven by information technology. It is felt that knowledge management systems should be used to share information and create common goals. Strategic divisions are thought to hamper this process. Most recently, this notion of strategy has been captured under the rubric of dynamic strategy”.
The nature of the competitive landscape for organizations is in a state of perpetual flux. The new service based economy continuously increases competition as a result of globalization, business/technology integration requirements, and the pace of technological change. To compete in the 21st century, organizations have begun to realize that the fundamental nature of business competition has become the development of “hyper-competition” and the need to develop sustainable competitive advantage. The new law of the global jungle has caused all organizations (and ultimately the individual) to “Re-tool” their capabilities and evolve: From an industrial organizational model of above average returns where the external business environment drove the utilization of static strategic processes and exhaustion of natural resources, to a resources-based model of above average returns where the organization’s resources and capabilities are a balanced- sustainable, dynamic-strategic set of business processes that create value internally for shareholders/stakeholders and externally for the public by reducing the depletion of natural resources as they conduct business.
The re-tooling of the organization is based on utilizing the techniques and methodologies from the business disciplines of: Strategic Leadership and Planning, Operations Management, Sales/Marketing Management, Corporate Social Responsibility, Information Technology and Information Systems (IT/IS) Management, and Knowledge Management. Re-tooling involves the development of organizational analysis, strategy development, and implementation processes that utilize IT/IS architectures as a major cost reduction driver and implementation platform in order to develop organizational knowledge (information, intelligence, and expertise). Re-tooling leads to the incremental development of organizational strategic flexibility and sustainability. The resulting re-tooled organization creates a new organizational culture based on learning, reducing waste to produce products, and moving beyond compliance to becoming ecologically proactive and sustaining. For the individual, re-tooling means updating one’s skill set and capabilities to enhance their abilities to compete in the new service based economy; the same retooling techniques utilized for the organization re-tooling should be applied by the individual because each of us acts as an individual corporation competing in the global economy.
Once re-tooling of the organization is complete, the organization becomes customer focused and the creation of a value chain model occurs. The value chain model enables the organization’s products and services to generate value for their customers and creates a brand image the customer is willing to own and support, based on sustainability. The brand image that is developed must be maintained through the use of corporate, business, and operations strategic leadership management techniques and processes in conjunction with IT/IS systems/architectures. The resulting ambidextrous organization supports its brand image because it creates a social architecture and organizational operating system through re-tooling itself. The results of re-tooling, a value chain, are illustrated by the organization attainment of a sustained competitive advantage through cost reductions, which create above average returns for the shareholders/stakeholders and the planet.
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