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Downsizing, rightsizing and others take a denominator role, focusing on productivity and profitability through drastic cost cutting. By contrast, the 'numerator' approach utilises a company's most valuable yet fragile asset its corporate knowledge. Here lies the route to being different.
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Companies must re evaluate their approach to corporate learning. When cost cutting becomes the priority, training and professional development slip away.
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Yet in many companies corporate knowledge has been on the decline. During the recession of the early 90s, downsizing, lean manufacturing, mergers and acquisitions became endemic. Redundancies were seen as the key to greater efficiency and improved financial performance. Companies became more profitable, but not without sacrifice. With every lost talented employee went a potentially valuable fragment of a company's corporate knowledge.
Future sales opportunities no longer lie in waiting; they must be invented and developed. Employers can only achieve this by sharpening the boardroom's vision, learning strategically and investing in employee capability. There is no quick fix to developing corporate knowledge. It takes time and effort. Companies open minded enough to try will be the ones to achieve future success.
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Improved efficiency has brought its gains, but it's what happens next that really counts. How can lean companies many so lean they're now referred to as anorexic go on to win future markets and sustain anything like a competitive edge?
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Yet learning, it is now widely recognised, is the only form of sustainable competitive advantage. Companies must be prepared to learn faster than the environment is changing. They must use every ounce of their collective knowledge to maximise commercial opportunity.
Being different is the key to future commercial success. Today's work environment is changing faster than most of us care to think. Who'd have imagined, even a short while ago, that Transco would buy the AA or Yorkshire Electricity would be selling gas? We can only master change in business by having the courage to be different and by learning how to create new opportunities faster than our competitors.
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It's time for a new perspective. Like the simplest of fractions, the profitability equation is based on numerator over denominator.
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of course, is a people thing. How often do we hear company directors claim their people are their greatest asset? It's this collective wisdom, experience, know how and qualifications often referred to as 'corporate knowledge' that is a key building block to being different.
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It's the thinking, commitment and passion of the people that make up a company and go on to create new markets.
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To survive in business you must be good. To be a market leader you must be even better. To flourish in the future you must be different.
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