A new perspective for business leaders
Leadership methods that subscribe to the traditional, functional structures within
an organisation cause modern-day business challenges to be met with mediocre
s o l u t i o n s a n d p u t t h e c o n t i n u i t y o f o r g a n i s at i o n s u n d e r t h r e a t . I t i s t i m e f o r a n e w
‘ m a n a g e m e n t d a s h b o a r d ’.
H yp e r - c o m p e t i t i o n , i n n o v a t i o n , g l o b a l i s a t i o n , a n d t h e r e s t r u c t u r i n g o f v a l u e c h a i n s
a r e a l l d e v e l o p m e n t s t h a t a r e c h a n g i n g t h e c o u r s e o f t h e b u s i n e s s wo r l d . T o d a y’ s
a d v a n t a g e s i n b u s i n e s s a r e t o m o r r o w’ s p r e r e q u i s i t e s , a n d t h e s p e e d a t wh i c h
changes must be implemented is permanently on the increase.
Distinguishing qualities of products or services merely constitute short-term fire-
p o we r i n t h e b a t t l e t o c o m p e t e . T h e y a r e i m p o r t a n t , b u t o n t h e i r o wn t h e y a r e n o t
s u f f i c i e n t f o r b u s i n e s s e s t h a t s t r i v e t o wa r d s s u s t a i n e d g r o wt h a n d p r o d u c t i v i t y.
T h e k e y i s s u e i s ‘ i n t r i n s i c d i s t i n c t i o n ’ , t h a t i s t o s a y, t h e a b i l i t y o f a n e n t e r p r i s e t o
be constantly competitive in all business matters, and to ensure that this strength
i s r e c o g n i s e d t h r o u g h o u t t h e m a r k e t ( s ) i n wh i c h t h e e n t e r p r i s e i s a c t i v e . T o
a c h i e v e t h i s , a n e w ‘ d a s h b o a r d ’ i s r e q u i r e d u p o n wh i c h l e a d e r s c a n b a s e t h e
management and guidance of their organisation. This dashboard consists of three
c l o s e l y r e l a t e d t h e m e s : v a l u e c r e a t i o n , b e h a v i o u r a n d c r e a t i v i t y.
Value creation
T h e b o u n t i f u l f l o w o f c a p i t a l , e x p e r t i s e a n d t e c h n o l o g y wi t h i n o u r g l o b a l e c o n o m y
a l l o ws b u s i n e s s e s t o r e d e f i n e t h e i r v a l u e c h a i n s . C o r e c o m p e t e n c e i s s t i l l t h e
f o r e m o s t c o n c e p t wi t h r e g a r d t o h o w m u c h a n e n t e r p r i s e wi s h e s t o d i s t i n g u i s h
i t s e l f . H o we v e r , t h e c o n c e p t i s c u r r e n t l y d e v e l o p i n g n e w d i m e n s i o n s . C o n s i d e r t h e
c o m p u t e r i n d u s t r y a s a n e x a m p l e . W i t h i n t h i s m a r k e t yo u c a n f i n d a c o m p a n y s u c h
a s H e wl e t t P a c k a r d t h a t p o s i t i o n s i t s e l f a s a s u p p l i e r o f i n n o v a t i v e I T s o l u t i o n s ,
a s we l l a s c o m p a n i e s s u c h a s I B M t h a t a l s o s u p p l y t e c h n o l o g i c a l s o l u t i o n s , b u t
focus specifically on the integration of IT and business processes/people in order
to increase business performance. Both types start from similar backgrounds (IT),
b u t d i s t i n g u i s h t h e m s e l v e s f r o m e a c h o t h e r wh e n i t c om e s t o c o r e c o m p e t e n c e s
and positioning (‘Invent’ versus ‘On Demand Business’) and added value for
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clients. The differences in vision and strategy lead to a different arrangement of
that particular organisation’s value chain.
Behaviour
The biggest challenge that company management faces is the creation of a
c o n t e x t wh i c h c u l t i v a t e s t h e c o r r e c t b e h a v i o u r : b e h a v i o u r t h a t f o c u s e s o n t h e
continual development of intrinsic distinction and the encouragement of effective
c o o p e r a t i o n b e t we e n d e p a r t m e n t s , t e a m s a n d e x t e r n a l p a r t n e r s . T h i s b e h a v i o u r i s
d r i v e n b y t h e f l o w o f ‘ e m o t i o n a l e n e r g y’ t h r o u g h a b u s i n e s s . I n i t s o p t i m a l f o r m ,
t h i s e n e r g y c o n s i s t s o f t r u s t , i n s pi r a t i o n , p a s s i o n a n d e n t h u s i a s m .
Encouraging and directing this flow of energy is the responsibility of every
a u t h o r i t y f i g u r e wi t h i n a p a r t i c u l a r o r g a n i s a t i o n . U n f o r t u n a t e l y, t h e a v e r a g e
manager has not been sufficiently trained to develop his/her communicative and
social qualities, nor do they face sanctions for failing to do so. Businesses can no
l o n g e r a f f o r d t o e m p l o y t h i s m e t h o d o l o g y i f t h e y wi s h t o wi n t h e t a l e n t wa r .
Creativity
I n h yp e r - c o m p e t i t i v e m a r k e t s , c r e a t i v i t y i s a n e x t r e m e l y v a l u a b l e c o m m o d i t y f o r a
business to have, second only to high-quality employees. Businesses that embody
t h e wo r d ‘ i n n o v a t i v e ’ , s u c h a s N o k i a o r G o o g l e , h a v e s y s t e m s a t t h e i r d i s p o s a l
that elevate the creation, development and refinement of countless ideas to core
competence status.
C r e a t i v i t y p r e v a i l s t h r o u g h o u t t h e e n t i r e c o m p a n y, f r o m p r o d u c t i n n o v a t i o n a n d
packaging design to the development of smart systems and processes that enable
faster, better and/or cheaper business processes. Much creativity is also
d i s p l a y e d i n t h e e f f e c t i v e c o o p e r a t i o n wi t h i n t h e c o m p a n i e s , a s we l l a s t h e
m e t h o d b y wh i c h p r o b l e m s a r e s o l v e d .
T h e t h r e e a b o v e - n a m e d t h e m e s a r e t h e c o r e e l e m e n t s o f c o m p e t i t i v e n e s s , g r o wt h
a n d p r o d u c t i v i t y. I t wo u l d b e wi s e f o r l e a d e r s t o d e v e l o p a v i s i o n f o r t h e
management of their organisations based on essential issues such as:
- How can we optimally arrange our value chain at this point in time?
- H o w d o we e x p e c t o u r e m p l o ye e s t o b e h a v e ?
- H o w d o we c r e a t e a c o n t e x t wi t h i n wh i c h c r e a t i v i t y i s b e s t a b l e t o f l o u r i s h ?
The dilemma here is that leaders generally run their companies according to the
traditional organisational chart, featuring IT, administration, marketing, sales,
personnel etc. They base their management style on the outputs of these
functional areas, such as quality procedures, debtor management, brand
a wa r e n e s s , m a r k e t s h a r e , p e r f o r m a n c e r e v i e ws e t c . T h e s e a r e n e c e s s a r y a n d
important factors, but they can never lead to intrinsic distinction.
All too often, businesses ignore the relevant questions and demands posed by
b o t h t h e m a r k e t a n d t h e c l i e n t s . T h i s n e g l e c t s t h e n e c e s s a r y c o h e r e n c e b e t we e n
the different business activities. In addition, management according to the
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f u n c t i o n a l s t r u c t u r e o f t h e o r g a n i s a t i o n t e n d s t o l e a d t o b u r e a u c r a c y, r i g i d i t y a n d
c o m p a r t m e n t a l i s a t i o n wi t h i n c o m p a n i e s . I t d o e s n o t e v e n r e m o t e l y a d d r e s s t h e
necessity to modernise and cultivate effective collaboration. Focusing on the
t h r e e a b o v e - m e n t i o n e d k e y t h e m e s wi l l c o n f r o n t l e a d e r s wi t h t h e i s s u e s t h a t a r e
of true relevance in the current climate, and help them to realise a market
position of lasting distinction.
Theo Kroese (theo@kroese-bb.com) ) is a business economist and founder of Kroese
brands & behaviour bv.
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