World Class Organization …means

• Global consideration, in which the decision is taken to be the premium provider in all sectors served • Locally, in which global business is developed using a cost advantage, focus, or differentiated approach to each market. • Establishing, sustaining and developing the desired presence in the particular markets. This requires strategic decisions on whether to seek to be the only or overwhelming player in markets (e.g. Microsoft); the largest single player (e.g. Coca Cola); or fitting the presence to the precise locality (e.g. McDonald is the main provider in USA, a niche player only in Russia) • Using the existing basis as the platform on which to base further growth, either through developing existing products & services into fresh areas, or looking for new opportunities potentially available as the result of physical presence or resources combined.

Traits of World Class Organizations
• Are characterized by power and influence • Have absolute and actual attitudes to responsibility • Achieve a global presence in different ways • Have a position of economic strength, but also attendant responsibilities; and • Have different attitudes to globalization and have varying worldwide influences.

Prerequisites for being World Class
• Size, scope and scale of resources to enable activities to be established anywhere in the world • Recognition of full range of collective and individual responsibilities that this capability brings • The Capability to think globally • The capability and willingness to develop a global set of values • The capability and willingness to understand, and be comfortable with, the demands and expectations of any part of the world in which business is sought.

11 Steps to create World Class Organizations
Strategic Thinking (Philosophical & Theoretical) Leadership (Team Work) Market & Location Understanding (Customer Needs Analysis) Investments (Inventory Mgmt) Technology & Expertise (Change) Mergers & Takeovers (Assets Management) Additions & Subtractions (Purchasing) Responsibility (Accountability) Management Style (Maintenance) Management Development (Training) Reinforcement (Proactive Maintenance)

1. Strategic Thinking
• Thinking Globally  adopting a perspective that envisages the organization’s products and services on sale in the axis economies and also remote locations • Thinking Locally  Requiring investments in cultural, social, behavioural, and ethical understanding of the particular areas where business is envisaged • Thinking Locality  In terms of the nature of the business relationship that is to be developed and its basis in spending and consumption patterns,  propensity to buy and consume local products and services, position and reputation of present providers; and forecast and projected investment level and returns.

1. Strategic Thinking • Thinking Locality … This then needs developing into the basis of a mutually profitable relationship answering the questions:
– What do we gain from them? – What do they gain from us?

1. Strategic Thinking
• The thinking mix required, forms the basis on which particular opportunities and organizational resources are brought together. • It also ensures that subjective elements of strategy and policy formulation are identified as such at an early stage for both good and bad reasons: • The Good - we want to work here and not there; because we can develop business here • The Bad – We want to work at ….because the market is waiting for us (Arrogance) or we don’t want to work there because it’s impossible to do business there (Prejudices)

2. Leadership
• Truly Global Leadership transcends prejudices and preconceptions; acknowledges subjective elements and matches and harmonizes these with drives and investment levels. • Requires exceptional qualities in:
– – – – INTEGRITY HUMILITY ENTHUSIASM RESPECT – must be earned

Leaders must be prepared to travel, visit and understand as well as act and accept advice and guidance from those on the group in particular locations.

3. Market/Location Understanding
• Analyzing new and proposed areas and locations of activity is essential. The primary techniques for this are: • Customer Analysis – Advocates, Loyal..etc. • Porter’s Five Forces and Competitor Analyses • A broader approach is given by Cartwright which identifies 10-Pt Approach (SPECTACLES): – Social – Political – Economical – Cultural – Technological – Aesthetic – Customer – Legal – Environmental – Sectoral
• Assumption that because things are socially and aesthetically acceptable and pleasing to the global organization’s country of origin, they will be so, or can be imposed, on all locations.

3. Market & Location Understanding

4. INVESTMENTS
• Investment appraisal requires a behavioural and managerial perspectives as well as drives for financial returns on investment • Ventures fail sometime because analyses and forecasts (about what might happen) are taken as statements of facts rather than projections. • Assumptions become preconceptions. • World class organizations maximize and optimize long-term investment and returns on the basis of commitment to the organization of an enduring presence in the location

4. INVESTMENTS • From this is developed a range of corporate, collective, and individual relationships with potential suppliers, customers, politicians, lobbies and other vested interests. • Once activities are commenced, customer and supplier liaison is then engaged form the same point of view as on more familiar ground with recognition of the prevailing cultural, social and commercial customs and norms.

5. Technology & Expertise • No World Class organization will ever compromise with infrastructure, use of technology and the best fit in people’s competency and responsibility • Technology is used extensively to maximize efficiency and productivity of machines and people.

6. Mergers & Takeovers • This route is attractive because it’s quick. • Going concerns can be bought up so that the economic size of the global organization and its local reputation of the local company can be synergized. • Caution: if insufficient attention to cultural fit is not paid, there is a danger of the merger/acquisition failing.

7. Addition & Subtraction
• Organizations entering new markets and locations know what they expect to achieve, why and how, and what the market expects form them and why. • World Class Organizations know what matters are outside their own control:
– Cosumer goods & Fashion/taste can never be imposed – Controls about the defence products – University & Education Norms in each society

• • • • • • • •

8. Responsibility Corporate Social Responsibility Specific World Class organizations extend their responsibility to present and future generations : Responsibility for: S P I C E

9. Management Style
• The need to balance integrity and openness with market, social and cultural expectations. • WCO can take advantage of its dominant position to oppress staff, suppliers, customers, which can gain importance and profits to the competitors; do they? • They usually establish patterns of regional and local managers who carry developed authority, responsibility and accountability. • They set operational standards in accordance with their overall strategy, policy and direction

10. Management Development
• Ability to acquire and apply the required behaviour, attitudes, skills, knowledge, expertise and technological proficiency is constantly and continuously encouraged and maintained. • Effective global management development is based on the premises that securing long-term profitable and effective presence means harmonizing organizational objectives with local habits, and that a basis of partnership is required between the organization and its suppliers, staff, customers and community.

11. Reinforcement
• Being World Class is never an end in itself. • Markets have to be developed • New Products and Services must be made available • Quality of delivery and support need to be constantly upgraded. • Current good performance is not a guarantee for sustenance. • Hence, World Class organizations provide sufficient autonomy and indepedence to the locations.

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