Building Effective Relationships With Today's Consumer Market - Nu Leadership Series
21st century organizations can no longer create values for their employees independently of others and without market input. Hamel, author of Leading the Revolution, argues that these turbulent times are forcing organizations to adapt. He advocates industry revolution by innovation and corporate renewal, meaning to reinvent the organization's mission as well as it processes. One of the clear changes is value formation.
Prahalad & Ramaswamy, authors of The Future of Competition, explain that companies cannot conduct value formation internally without market input. What happens if companies exist in amoral framework where individuals care little about the environment? This situation can easily develop. For example, a big business decides to expand its operation overseas. The company finds a nice third world country with little environmental regulations. Does that company have the green light to pollute the environment if the government says it is alright?
Creating shared valued with the customer is a remarkable concept in today' competitive climate. What social change has stimulated this process? Consumers have access to information, display a global understanding, and have become more active buyers. Organizations cannot rely on advertising and persuasive slogans. Business must develop values that support the supply chain environment.
Traditionally, organizations create their own set of values. These values are reflected in their products and services provided to the market. Customers had little input. Prahalad and Ramaswamy argue that an individual-centered co-creation of value between the customer and company is being generated. Clearly, a check and balance system is needed because powerful people don't always do what is right in the absence of accountability.
Today fewer organizations are embracing co-creation of values in hypercompetitive environments. Can you afford to be last behind? Only time will tell if this is a fatal mistake.
References:
Hamel, G. (2002). Leading the Revolution. New York: Penguin Group. Prahalad, C.K. & Ramaswamy, V. (2004). The Future of Competition: Co-creating Unique Value with Customers. Boston, MA: Harvard Business School Press.
© 2006 by Daryl D. Green
Related Tags: values, leadership, business, management
Daryl D. Green has published over 100 articles in the field of decision-making (personal and organizational), leadership, and organizational behavior. Mr. Green is also the author of two acclaimed books, Awakening the Talents Within and My Cup Runneth Over. He is a columnist, lecturer, professor, and management consultant. Mr. Green has a BS in engineering and a MA in organizational management. Currently, he is a doctoral candidate in strategic leadership. For more information,visit his website at www.darylgreen.org.
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