MANAGING in the

NEW WORLD

Corporate Strategy

The world is now richer than ever before, but it is also more unequal than at any time in the past. The top tenth of the world’s population controls about eighty- five percent of the wealth. That is why, more than ever before, companies need to take the lead in having a purpose beyond mere profits. This needs to be enshrined in the corporate strategy itself. The concept of shared value is now being promoted across the board. This was first coined by the management thinkers Mark Kramer and Michael Porter. There are four common attributes to this concept. The purpose needs to be authentic, serious, significant and even profitable.

Source:https://fortune.com/2019/08/19/change-the-world-shared-value-purpose/

Uploaded Date:29 August 2019

In the ongoing ecosystem economy, each company is trying to evolve its own corporate strategy, in order to survive the transformation. Some of them have developed a penchant for helping other firms creating value, as has been the case with Google’s Nest. Many assume that in case they are the platform creators, then need to also be its chief architect, but this is wrong. A superior product or service will automatically place one as the prime mover or orchestrator of any ecosystem. Two major terms exist for allowing the participation. One is access. This refers to the system being open, closed or managed. The other is attachment, implying the ability to co- specialize with others, who act as complementors in the system. Trade- offs need to be a part of this stage. Some organizations will also need to adapt according to the changing tide. A question remains on how many ecosystems, must a single operator manage. Uber for instance has diversified in to a lot. But this is a clever strategy being adopted by many. Facebook for instance now has an edge in digital marketing thanks to its grip on its platform of social media. Several competitors could also turn in to collaborators in a parallel ecosystem.

Source:https://hbr.org/2019/09/in-the-ecosystem-economy-whats-your-strategy

Uploaded Date:29 August 2019

Purpose now needs to be central to the corporate strategy for any business. This involves the leadership playing two critical roles. On the one hand, the playing field requires redefining. On the other, the value proposition needs reshaping. For this, authentic business intelligence has to be captured, so that companies can act on the trends identified, as perfectly well done by the Swedish company Securitas AB. And like the case with Mahindra Finance, trust building has to be at the root of all service executions. Pain points need specific surgical focus, as done by Mars Petcare. Developing a purpose isn’t easy and won’t happen in a single day. But it has undying benefits to the soft side, such as in unifying the organization, motivating the stakeholders and in broadening the overall impact.

Source:https://hbr.org/2019/09/put-purpose-at-the-core-of-your-strategy?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:29 August 2019

We Work is on the verge of being listed in the stock exchange and has received a heavy valuation, in spite of the consistent quarterly losses. Interestingly, the company sees itself as part of the technology sector, and uses financial indicators likewise. Several experts have denounced We Work’s claim as unsatisfactory, instead claiming that it is a modern real estate company. As a result, these people do not believe in an EBITDA- induced valuation as is being the standard now. Experts though need not brush aside We Work’s tech credentials oh so quick. This is because like Google, Yelp, Uber, Twitter, Facebook and even Airbnb, We Work too has lower variable costs. The capital investments are likewise, pretty low. This does not apply to We Work as its depreciation concerns would be significant. Neither does We Work have the level of data warehousing capability that the likes of Apple, Yelp, Tesla etc. possess. The network effects of such companies is also significant. We Work also comes out short in the last of the factors that states that the expansion in ecosystem can take place without incurring too large a cost.

Source:https://hbr.org/2019/08/no-wework-isnt-a-tech-company-heres-why-that-matters

Uploaded Date:29 August 2019

CEOs from one- hundred and eighty- one companies have come together on a Business Roundtable (BR) to reiterate their views on how their businesses are much more than mere profits. The conventional business theory on profit maximization has come under much attack from society. So, these companies are making changes to their corporate strategy documents, thus taking a break from the Milton Friedman worldview. The latter held that social initiatives by corporates were designed primarily to somehow in the long run, help boost their profitability. This brand of stakeholder capitalism has come under fire, due to its excessive focus on one stakeholder group alone- the shareholders. A thorough study led by some academicians has clearly outlined how with time, those that have a higher purpose, tend to outperform the others, when it comes to their profits.

Source:https://hbr.org/2019/08/181-top-ceos-have-realized-companies-need-a-purpose-beyond-profit

Uploaded Date:26 August 2019

It is a common misconception that technology is the main fuel behind digital transformation. Companies thus spend a lot in order to procure the best of new technology. Likewise, they spend a lot on the talent recruitment of the best of technology pros. However, it has time and again been observed, that a cultural transformation is the first step before any such game- changing technology is introduced in. This has been discussed at the length in the new book launched The Technology Fallacy, written by several academicians from the management field. Companies need to focus on several non- technical drivers such as talent, corporate strategy, leadership and organization structure. Humans are the real stars of this evolution and not technology.

Source:https://sloanreview.mit.edu/article/transformation-without-technology/

Uploaded Date:21 August 2019

There is much value to be derived from building relationships with those who are lower in the organizational hierarchy. While connections with peers and seniors are often highlighted, this aspect gets ignored. Recruitment and business research firm Career Builder made a shocking, though expected revelation, by stating that in the US alone, seventy- eight percent of the working population survives on a paycheque to paycheque basis. Its repercussions towards the bottom of white- collared jobs is unexpected. Contrary to popular perceptions, there is actually lesser fear of job loss at the bottom, as even unemployment will not have the devastating effects that will affect those in the middle, who tend to be older, with families to support. Those lower can easily switch from one position to another. Genuine respectful conversations need to be had with entry- level professionals, but not with a purely transactional end- point in view.

Source:https://www.strategy-business.com/blog/The-fortune-at-the-bottom-of-the-org-chart?gko=c88fb

Uploaded date:21 August 2019

Collaboration has become even more crucial in the modern business world than it used to be. This is because it allows aggregation and for platforms to develop. Unfortunately for a lot of companies, they have decided to go it alone, to reduce their dependence on others. This leads to certain complications. Accidental adversaries are created even when relations would begin well. Initially, they tend to share leads, which lead to even bigger deals being cracked. Individuals as a result panic, on not being able to meet their own goals. So, leaders drive their team members to higher targets. This leads to a drop in the referral count, and a subsequent decline in results for all the stakeholders. Talent management experts claim, that right at the first stage when the professional relation was budding, boundaries need to be drawn out as this will help identify the side effects, hidden from view thus far.

Source:https://www.strategy-business.com/blog/Turning-Accidental-Adversaries-into-Allies?gko=dfba4

Uploaded Date:20 August 2019

A sense of shared responsibility is one that can help any organization present a compelling vision about itself. The USA’s moon landing mission was one such case of the whole team coming together for the one final shared goal. Building empathy is one of the crucial preliminary tasks before gets about setting this whole process up. To begin with, the company needs to draft its corporate strategy based around the problems one feels most passionate about for solving. The team members need to be practically demonstrated early on, how shared responsibility, actually drives an improved performance. Without this display, good words may merely remain theoretical. The shared responsibility needs to receive buy- in from the group.

Source:https://sloanreview.mit.edu/article/how-shared-responsibility-can-shape-a-compelling-vision/

Uploaded Date:16 August 2019

The word pivot has now become very popular across business cycles. The term seems to signify the desire to move to the next level of business for the firm. But before one pivots, finding a pillar is important, so that one may ground oneself within the company’s original philosophy. This has been described in the latest book titled Big Pivot,written by Andre Winston. There is a substantial stasis that is experienced in the stage just before a brand may take off to the next level. To ensure this happens, a brand needs to display consistent values in its outreach. The core principles need to be intact, and work almost like rules to the firm. A clear corporate strategy needs to be showcased to the general audience. None of this though may succeed, without a solid leadership from the very top. Emotional intelligence and clear communications will be traits the leader needs to possess for this.

Source:https://www.strategy-business.com/blog/Find-your-pillar-before-you-pivot?gko=1fa31

Uploaded Date:16 August 2019

A number of companies are now in the process of planning for the long- term. This is because they can see massive changes on the horizon. These changes may be due to technological or macro- economic factors. That is where consultants need to behave like futurists, and avoid drafting the strategy for too long a timeline. This is to avoid the trap newspapers fell in the early 2000s, as several newspapers shut down and the overall advertising revenue diminished significantly. Instead of using time lines, one could rather use time cones. This will have four categories. Those will be tactics, corporate strategy, vision and systems- level evolution. Each will have individual time lines, staring with just a year or two for the tactics to take shape, but more than ten years needed for the systems- level evolution.

Source:https://hbr.org/2019/07/how-to-do-strategic-planning-like-a-futurist?utm_source=twitter&utm_medium=social&utm_campaign=hbr

Uploaded Date:16 August 2019

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