NEW PLAYERS in C#.NET

Recognizer QR Code ISO/IEC18004 in C#.NET NEW PLAYERS

Consider the unprecedented size, complexity, and scale of global companies by 2010: what was once almost unimaginable becomes reality Just to run one of these companies on a day-to-day basis, a number of

new enabling industries will be created and others, mainly in professional services fields, will have to significantly change their business models The roles of the CEO and the Board of Directors will surely change as well How will these trends change the world we ll be working in by 2010 Consider some potential new players and new roles for current players Outsourcing Companies When Sara Lee announced a few years ago that it was outsourcing the manufacturing of many of its products, it shocked the industry But in 2010, this will be the norm, at least for companies in Stage 3 and 4 industries Whole new industries focused on outsourcing manufacturing, product distribution, lending or claims processes, retail branch banking, or automotive warranty administration could all be possible as Stage 3 and 4 companies focus on the true strategic differentiators and outsource their remaining processes As another group of AT Kearney authors explain in their book, Rebuilding the Corporate Genome, leading companies are dissecting their companies into tiny pieces and creating new and innovative ways to make the most of their best assets The authors liken this process to rebuilding the corporate genome because of the similarities we see between a corporate capability (a single element of a value chain, like manufacturing, branding or purchasing) and a human gene 5 Taking this a step further, companies might even outsource certain parts of their line management ranks to management consulting firms to be better positioned to manage complexity, shift resources, and adjust capacity quickly and ensure continual innovation capabilities Or they might outsource the post-merger integration of new acquisitions As a result of an even greater volume of merger activity, they might shift the risk and burden of post-merger integration onto investment banks, rather than assuming the risk themselves in effect, outsourcing this important business process New Financial Scorekeepers As mergers become even more predictable, commonplace, and embedded as a competitive strategy, the role of auditors and compensation consultants seems likely to change as well Taken to an extreme, one could picture an annual

report with an independent section written by a company s auditor on where the company and its industry are positioned on the Endgames curve, the five-year outlook for merger activity and consolidation in the industry, and the major strategic imperatives for the company s management to address Or, one could imagine the role of compensation consultants changing as well Instead of comparisons against industry groups as a key determinant of senior management compensation, one could picture a comparison versus companies in different industries but in similar Endgames stages Management imperatives like creating superior competitiveness, realizing shareholder benefits from megamergers, and achieving economies of scale would become more important drivers of compensation, to the benefit of shareholders New Role of the CEO Finally, the role of the CEO will change dramatically as the size and complexity of a company increases The world s largest companies may very well have The world s largest compamore than one million employees by 2010 or nies may very well have have market capitalization bigger than the gross more than one million employees by 2010 or have domestic product (GDP) of some medium-sized market capitalization bigcountry Right now, GE and half a dozen other ger than the gross domesUS companies have market caps larger than the tic product (GDP) of some medium-sized country GDPs of all but the top 20 countries Strategy will have a renaissance in the CEO suite CEOs will focus primarily on the positioning of the businesses in a company s portfolio on the Endgames curve and assess what the strategic implications and choices are for those businesses going forward Mergers, acquisitions, spin-offs, and divestitures will become routine for CEOs, but embedding creativity, innovation, and organic growth strategies throughout all levels of a company will become more important and difficult to achieve Organizationally, because of the size and complexity issue, CEOs may have to reorient their roles toward coaching and empowerment, just to be able to keep a business going from day to day and to have their messages reach all of their employees Finally, particularly for CEOs in the new Stage 3 and 4 industries, keeping ahead of the technology innovation curve will be critical, so that technology does not render their company obsolete