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I found the following commentary interesting. It’s goodbye, perhaps good riddance, to concepts like re-engineering or total quality management even if many of us haven’t yet learned what they fully meant ("re-engineering" meant layoffs?). Given the expected shrinkage in the growth rate, it’s hello to trying to run rivals out of business ("taking market share away from competitors") unless they manage to run you out first; to forgetting why you are at work ("skills amnesia"); and squandering the freshest 90 minutes at work by reading email first (does it really take that long?). Those of you who are fortunate (?) enough to watch Canadian TV may have encountered Mike from Canmore and his dog Norm. I wonder what they would make of all of this. Ed
Managing trends for 2001 Technology, privacy and mergers will be key this year, GORDON PITTS writes GORDON PITTS At the start of any year, companies and the consultants who advise them have big ideas on their minds -- concepts that will consume their interest for the next 12 months and beyond. A year ago, it was e-commerce. In the past, it's been re-engineering, strategy, or total quality management. What are the prevailing trends in 2001? Working Life asked some management consultants about their state of thinking: Show-me time. Mark Smith, managing director of strategy consultants Johnston Smith International in Toronto, says corporations tried a lot of things on-line in 2000. "Bricks" players rolled out their new "clicks," often to mixed receptions. This year, the pressure is on to determine the real future of e-commerce, what will work and what are the smartest long-term investments. Ken Smith, a vice-president at Cap Gemini Ernst & Young in Toronto, says that in late 2000, businesses were starting to get beyond the hype. In 2001, they'll be settling into the reality of how to create growth and profitability from their on-line positioning. Back to basics. Many companies could quite easily ramp up their revenue when the economy was humming along at annual growth rates of 4 to 5 per cent. But you can't rely on that rising tide forever, warns Paul Inglis, a vice-president with A.T. Kearney Ltd. in Toronto, adding that there are clear signs of a cooling period. The emphasis this year will be on creating value-based, profitable and sustainable growth, Mr. Inglis says. That means getting the fundamentals of the business right. In a slower economy, continued growth will depend increasingly on taking market share away from competitors who, you hope, are handicapped by less effective processes. Tech stress. It isn't going away. The proliferation of personal digital assistants and Palm Pilots is feeding the frustration, says Dan Stamp, chairman of Priority Management Systems Inc. of Vancouver. People are experiencing "skills amnesia," which means they are unable to plan their day properly. For example, they open their e-mails right away in the morning, thus squandering their freshest 90 minutes at work. Chief privacy officers. The e-business explosion of 2000 is breeding a backlash among consumers and employees, who feel their privacy is under attack. Mark Smith expects to see more companies designate senior officers who carry the responsibility for a range of duties, such as certifying Web sites for privacy. As large organizations flex their e-commerce muscles, there will be demand for wide-ranging privacy policies that cut across both on-line and traditional areas of the enterprise. Customer Relations Management. Known as CRM, it's one of the reasons privacy advocates are furrowing their brows. These are systems that allow companies to track customers' past and current orders along with the complete history of contact with any customer. Mr. Inglis says CRM systems have generated a lot of hype, but in 2001, they will be moving into the stage where companies will be looking for ways to leverage this information. IT extension. The aim of information technology is to move from the collection of raw data to real knowledge, and then to act smartly on this knowledge. Companies are at different states in this process; even departments within companies are at different stages, Mr. Inglis says. The trick is to move the knowledge out along the curve, so that it's maximizing the impact. Upgrading boards. Mark Smith figures this year will see a step-up in corporate governance in Canada. Corporations will put more emphasis on assessing individual directors, and upgrading the board based on this information. Bank of Montreal is one of the most advanced, with an award-winning director evaluation process. "It puts the cat among the comfortable pigeons," Mr. Smith says. Mergers as a way of life. The flood of deals continues in 2001, says Ken Smith of Cap Gemini. Increasingly, companies will be looking at how to integrate acquisitions on an continual basis, rather than as one-off events. They will approach it as a competence, in the same way that Cisco Systems has developed processes to manage its frantic acquisition program. The employee brand. It's the buzzword these days -- any company searching for good people has to establish a brand for its talent relationships, as well as for its products and services. In 2001, expect more of this, Mark Smith says. Companies will emphasize not just "the employee value proposition" but their brand characteristics as an employer, he says. The art of the spinoff. Large companies often seem flummoxed by what to do in the face of quick innovation cycles in evolving markets, such as biotech and computers. Increasingly, they are breaking off small focused spinoffs from their organizations that are mandated to just innovate and see what happens. In a sense, Mark Smith says, they are saying: Let strategy follow structure. "The premium is put not on strategy but on being very flexible organizations." Business buddies. You can't find all the ingredients to be successful within your own organization, Mr. Inglis says. So expect even more emphasis on alliances, or to use today's buzzword, "ecosystems" of organizations. That means a key executive from one of many companies that band together will be the alliance manager -- in many cases, a chief alliance officer, ranking with senior financial and marketing types in importance. Visit my rebuilt website at:
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