The
rapid changes in technology have compressed the world
and brought together people who have been isolated for
centuries. We are living at the end of one world and
the beginning of another which no longer responds to
mere tactics. During the last two decades, the world
has changed in many ways. For the first time in economic
history, the supply of almost everything has begun to
exceed demand, in a way that is not cyclical and it
is not temporary. It's a world of permanent excess supply,
and it is not simply the result of an economic recession
- surpluses are here to stay. As a result, everything
is becoming a commodity. It's not happening to everyone
in the developed world, somewhat as a result of the
dominance of free enterprise. Products are now available
with ever lower costs. As a result, people may choose
to buy products at their will.
Accordingly,
the world of business has changed in dramatic ways.
So, in this global village, organizations must find
new ways of doing things. They have to adapt to an endless
of changes as they adjust to the new competitive realities.
Competition is no longer just around the corner, but
may come from any corner of the world. The organizations
must adapt to and be in tune with the changing environment
- in a way that is honest and accountable to customers,
employees and shareholders.
At
this juncture, the way the world is transforming, the
face of leadership has to change in order to face the
ever competitive markets. They are more visible and
are dealing with more challenges than ever before. In
the past, the CEOs were very much focused on the management
of business. Jack Welch, in his letter to shareholders,
says, "in the old culture, managers got their power
from secret knowledge: Profit margins, market share,
and all that... In the new culture, the role of the
leader is to express a vision, get buy-in, and implement
it." To achieve these goals, Jack Welch suggests,
"that calls for open, caring relations with every
employee, and face-to-face communication. |
