| If you are thinking that your company will glide | | | | that one needs to function in modern life - that is, |
| through this first decade of the 21st Century | | | | these devices will contain cellphone capability, flash |
| without engaging in any full-blown, organizational | | | | drives, health monitors, microphones, recorders, |
| changes, I encourage you to think about this | | | | maps, laser pointers, remote controls for cars and |
| more carefully. These are the reasons why you'll | | | | houses, passports, make-up kits, burglar alarms |
| need to consider changes - sooner, rather than | | | | and so on. |
| later. | | | | To think seriously about what new technological |
| To survive in the 21st Century, today's | | | | developments will mean to businesses requires |
| companies must make changes in:o Their | | | | that we ask how these advances can best be |
| organizational direction to ensure competitive | | | | used to access customers. With the wealth of |
| value;o Their orientation to globalization to | | | | marketing and interactive opportunities that are |
| understand its meaning to the organization;o Their | | | | on the horizon, we must plan for their reality and |
| technologies and other methodology to ensure | | | | use them well for future gains. |
| currency and relevance;o Their customer diversity | | | | Diversity of Customer Base in the 21st Century |
| both in the U.S. and in other countries;o Their | | | | Customers are not only diverse in their |
| productivity and work ethic because those efforts | | | | knowledge, use, and preference of technical |
| and meanings are changing as new generations | | | | devices, but the important customer bases of the |
| enter the workforce; ando Their market share | | | | future will, themselves, be highly diverse - from |
| for a new understanding of the meaning of profit | | | | generational diversity to |
| margins, as these factors radically alter in new | | | | global-racial-ethnic-demographic and geographic |
| market environments (excerpted from my book, | | | | diversity. All of these will require both |
| ALL THE MOVING PARTS: ORGANIZATIONAL | | | | comprehensive and specific marketing strategies |
| CHANGE MANAGEMENT). | | | | that have never been done before. |
| Organizational Direction for the 21st Century | | | | As companies have become more global, there |
| Unless you have recently taken your organization | | | | have been great learning experiences related to |
| through full-blown strategy development, the | | | | the buying public of other countries. Wal-Mart's |
| direction in which your organization is currently | | | | experiences in the global marketplace have been |
| going will be one of the first areas in which | | | | instructive. When Wal-Mart entered Mexico its |
| change strategies must be adopted. Mike | | | | strategy was to form a 50/50 partnership with |
| Zafirovski at Nortel Network Corporation knows | | | | an established Mexican company, thus gaining the |
| the challenges of changing directions for a | | | | expertise to later enter Latin countries as a |
| company. He has within the past year taken his | | | | wholly-owned subsidiary. One of the interesting |
| company backward in order to go forward, | | | | lessons learned was that store design and lay-out |
| effecting changes of direction along the way. And | | | | changes were necessary to accommodate the |
| he acknowledges that those directional changes | | | | custom of whole families shopping together. |
| have not been achieved without some adversity. | | | | While it is unlikely that there will be many |
| But Mr. Zafirovski's challenge is to turn the | | | | companies prepared to assume Wal-Mart's global |
| company around and head in a completely | | | | positioning, the experiences like these are |
| different direction in order to remain "in the game" | | | | informative for those who seek either to enter |
| in the current operational environment. | | | | the world market or simply to attract a more |
| Another new CEO, Alan Mulally at Ford, has radical | | | | diverse customer base within the U.S. All |
| changes-of-direction to effect, as well. What the | | | | organizations who stay in business through the |
| Wall Street Journal calls his "gut-wrenching agenda" | | | | first decade of the 21st Century will need to |
| will mean that in order to turn around Ford's North | | | | attract a more diversified customer base, either in |
| American market share, trim its 8 brands, and | | | | the Continental U.S., or abroad. In the U.S., the |
| turn out cars that have a "Ford feel," there will | | | | new growth in the numbers of African Americans, |
| need to be a radical restructuring that will be | | | | Latinos, Asian Americans, and Native Americans |
| accompanied by downsizing. | | | | definitely require that a business focus be directed |
| To hasten the pace of change, processes should | | | | toward these groups and their members. |
| be clear and understandable. A clearly delineated | | | | Businesses that are ensured future success will be |
| path always makes it possible to achieve clear | | | | those who can understand the preferences of |
| measurements of the progress and to chart a | | | | these new consumers and find ways to |
| straight and unvarying course to achieve change. | | | | incorporate their needs into business offerings. |
| Globalization in the 21st Century | | | | Work Ethnic, Productivity in the 21st Century |
| Wal-Mart is one of the world's largest companies | | | | While productivity has been increasing in the U.S. in |
| and a clear global competitor. They've learned a | | | | recent years, it is being achieved in ways that are |
| lot through the years about the vagaries of the | | | | far different than was formerly the case in |
| global market and the company has expanded in | | | | American business. Computers, technology, and |
| some countries and reduced efforts in others in | | | | mechanization have, of course, assisted with this |
| recent years. Even if your company does not | | | | process, but it's also become a growing orientation |
| engage in overt global practices, you will, | | | | toward "doing the right things and doing things |
| nevertheless, be affected by the global markets | | | | right" which has forged the American workforce |
| and their requirements. In my company, a | | | | that, today, produces far more, far faster and far |
| 40-person management consulting firm, we now | | | | better than any other country in the world. The |
| send team members to work in foreign markets | | | | quality of the product that can be achieved in the |
| when our client corporations have interests there. | | | | U.S., as opposed to qualities derived from |
| We, ourselves, are not marketing products in | | | | manufacturing outsourced to other countries in |
| these markets, but we, are nonetheless, engaged | | | | the world, is one of the dilemmas of globalization |
| in the global movement. | | | | that face modern companies. |
| I serve on the U.S. Chamber of Commerce Small | | | | Modern day worker productivity and other |
| Business Council, and at a recent conference in | | | | involvements center on motivation factors |
| Washington there was strong emphasis on global | | | | affecting the worker. And worker motivation is |
| markets for small businesses in the U.S. - it's the | | | | prompted primarily by worker emotions and the |
| wave of the future for U.S. companies. For one | | | | workers' emotional and physical reactions to the |
| thing, the populations of many other countries is | | | | work environment (a discussion far too extensive |
| much more vast than that of the United States. | | | | for the purpose of this article). Modern companies |
| At one time, large populations in these countries - | | | | are adjusting their work environments to suit new |
| such as China, Africa, Asia, India - were of no | | | | generations of workers who are far more inclined |
| consequence for American businesses because | | | | to be motivated by such things as flexible work |
| their populations could not afford our goods and | | | | schedules (as in the recent case of Best Buy's |
| services. But that is changing rapidly. It behooves | | | | corporate office staff), as well as involvement in |
| us, therefore, to pay attention to these statistics: | | | | production and marketing decisions. |
| the U.S. population is currently about 300 million, | | | | Organizational Market Share and Profit Margins in |
| projected to reach 467 million by 2050. In startling | | | | the 21st Century |
| contrast, the Chinese population is currently 1.4 | | | | Today's business world requires new and different |
| billion, expected to reach 1.6 billion by 2050; the | | | | ways of acquiring market share and, thus, |
| Indian population is 1.1 billion, projected to reach | | | | achieving acceptable profit margins. For established |
| almost 2 billion by 2050; the African population is | | | | companies, the exercising of change strategies will |
| 900 million, to reach 2.3 billion by 2050; the Asian | | | | be needed to retool existing processes in |
| population, taken as a whole, is currently 4 billion, | | | | exchange for newer methods of "accosting the |
| expected to reach over 6 billion by 2050; and the | | | | market." Take for example the new practice in |
| Latin American population is currently 600 million, | | | | large law firms of designating a full-time manager |
| to be at over 900 million by 2050. It can readily | | | | to take the helm. Whereas law firms for the past |
| be seen that American ingenuity will be reaching | | | | 100 years have rested secure in the notion that |
| far afield in the future, in order to remain | | | | clients would come to them, new management |
| competitive so that current business growth rates | | | | acquisition practices have them appointing |
| can continue. | | | | managers who operate like CEOs and who travel |
| Technology for Businesses in the 21st Century | | | | the world to acquire and meet with clients. |
| The use of technology to expand one's company | | | | Another market share/profitability decision was |
| is the real challenge for the early part of this | | | | made by a hospital that has gone backwards in |
| century. Opening the door to customers and the | | | | order to go forward. The Virginia Mason Medical |
| general public, and using the latest technological | | | | Center has made aggressive moves to cut health |
| advances (of which there are ever-increasing | | | | care costs in novel ways. Through consultation |
| numbers) allows organizations to adopt a | | | | with one of its largest insurers, Aetna, Inc., and |
| complement of change strategies that will work. | | | | other large, local employers, the hospital |
| A good example of opening the door to | | | | revamped its treatment of some expensive |
| customers is Lego's Mindstorms products that | | | | ailments by cutting down on high-tech tests and |
| became more valuable after the company opened | | | | high-end specialists. However, once the process |
| up the source code and allowed customers to | | | | was instituted, the more cost-effective the |
| respond online. Customers then had the chance to | | | | Center became the bigger its financial hit under |
| contribute their ideas to make the product line a | | | | the pricing/payment schemas. This circumstance |
| much better one, and the company benefited in | | | | prompted establishment of a novel market-share |
| higher-quality products and greater sales volume. | | | | solution, whereby the medical center is paid (that |
| Intel Corporation operates in a similar fashion by | | | | is, rewarded) for advocating cheaper treatment |
| asking university scientists to contribute ideas to | | | | processes. Everyone wins through this novel and |
| its company through a technological "community | | | | forward-thinking solution, but it required thinking |
| of collaborators." | | | | about the organization and its functioning in very |
| Sharing of proprietary corporate information | | | | different ways. |
| certainly isn't for every company but the | | | | Other companies, like United Airlines, have |
| phenomenon is a true 21st Century one and | | | | become aware of a new profits environment that |
| should be seriously considered for the | | | | has allowed them to secure new market share |
| enhancement of processes and products that are | | | | and increased profit margins. A recent win in China |
| either foundering or that could be improved. | | | | to provide the first direct air service to China is |
| There are many other ways to use technology | | | | valued at a $250 million-a-year business addition |
| to ask customers to be involved - through virtual | | | | and one that is highly-profitable. |
| focus groups, marketing and sales groups, and | | | | Summary |
| evaluation approaches, to name a few. Current | | | | To do business successfully in the 21st Century |
| studies show that the average person reads | | | | means that adequate attention must be paid to |
| around ten megabytes of material a day; hears | | | | the organization's direction; its involvement in and |
| reports amounting to 400 MB each day; and sees | | | | interaction with globalization; attention to emerging |
| one MB of information every second. It is startling | | | | technologies; and the need for changes toward |
| information, therefore, that cellphone technology | | | | customer diversity; as well as the company's new |
| within the decade will have enough storage | | | | worker productivity and work ethic (that is, |
| capacity to be able to video a user's entire life. It | | | | motivation); and the new elements affecting |
| is also anticipated that in a very short time there | | | | market share and profit margins of companies. |
| will "remote controls for life" which will contain all | | | | |