By Michael H. Hugos
The relentless pursuit of commercial potency now not yields the earnings it as soon as did since it calls for a degree of commercial predictability that now not exists. as a substitute, the net and international video and telecom platforms offer an incredible and non-stop stream of information that explanations the entire global to act like an enormous inventory marketplace, with all of the volatility and uncertainty that is going besides such markets. Responsiveness now trumps efficiency.By being attentive to the evolving wishes and needs of particular teams of consumers, businesses can wrap their services in a adapted blanket of value-added providers to regularly earn an extra 4 percentage or extra gross margin than they'd another way earn for the services or products on my own. This patron and marketplace specialization is the main promising and the main sustainable resource of gains in our fluid, real-time economy.Part of the Microsoft govt management sequence, Sustainable Prosperity discusses the 3 primary method loops that force an agile company and the way they interact to carry the responsiveness that generates gains in a high-change financial system. supplying ideas for leading edge and pragmatic use of individuals, technique, and expertise to force operations in an agile company, this publication finds the foundations of the agile firm, sponsored by way of real-world case experiences from the author's personal experience.Michael Hugos is a speaker, author, and practitioner in IT and enterprise agility, and agile process improvement tools. He writes a column for Computerworld and a web publication titled "Doing enterprise in genuine Time" for CIO journal.
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Extra info for Business Agility: Sustainable Prosperity in a Relentlessly Competitive World (Microsoft Executive Leadership Series)
People who formerly did these jobs at higher pay rates in first-world countries are seeing their jobs disappear; they need to find opportunities to do work where they can add more value to the products or services they create. Opportunities for higher-value work lie in the responsive organization. It is work related to the continuous enhancement of a company’s existing products and the delivery of new products. As presented in Chapter 1, much of this work is related to the wrapping of commodity products in a blanket of value-added services to customize them for the needs of individual customers.
It seems like Trying-Hard is taking the right steps to jump-start operations and be responsive. But then, perhaps, it might also be doing something that will only make its problems worse. Trying-Hard Corporation is increasing control instead of increasing coordination. It is going for the old industrial approach of cutting operating expenses and reducing the number of higher-paid staff through centralizing operations so as to get better economies of scale. This will make the company more efﬁcient, but now it is in danger of getting even more efﬁcient at doing the same things that got it into trouble in the ﬁrst place.
This is where you focus relentlessly on efficiency and low cost. But resist the temptation to create complex systems to handle the unique or nonroutine activities because that extra complexity will become expensive and will bog you down. 32 GENERATING ALPHA It is also pointless to automate that part of the business since it is the part that often changes the fastest. Thus, even if you do succeed in automating it, the rules and process logic will soon change, and all that work will be for naught.
Business Agility: Sustainable Prosperity in a Relentlessly Competitive World (Microsoft Executive Leadership Series) by Michael H. Hugos