As globalization heightens and new actors producing service and products enter world markets, enhancing the competitive power of our establishments is gaining more and more importance.
The criteria used in determining the competitive power can be analyzed under the following 8 headings:
- National economy Â– macroeconomic evaluation of the national economy,
- The state of being international Â– participation level of the country in foreign trade and investment,
- Government Â– openness of the government policies to competitiveness,
- Financing Â– performance of the capital market and quality of financial services,
- Infrastructure Â– suitability of natural, technical and communication resources to the basic necessities of the business world,
- Management Â– the state of the companies in being managed in an innovative, profitable and responsible manner,
- Science and technology Â– scientific and technological sophistication,
- Human resources Â– availability and quality of human resources.
Among these headings, we can say that the importance Â– with respect to competitive power Â– of the capacity in science-technology and research-development (R&D), which is its main implementation tool, is higher than the others.
A widespread trend Â– even a belief Â– in this context is that R&D in establishments is the duty of the related department to some extent, and to a greater extent the duty of the government.
On the other hand, in societies and firms, which are assertive in global competition, the trend is completely different and R&D is a part of the work of personnel at every level. One of the absolute duties Â– in fact the most important one Â– of a security officer, accountant, unit director, general director or chairman of the executive board is to investigate into how to perform his/her job better and at lower cost. No doubt, the competitive power of such a firm shall be in a continuous ascent.
What can we do?
We can do the necessary planning in the firm to develop a widespread awareness environment and help its implementation.
“Knowing” Your Organization and Making Known the “Transformers” in the Institution
If we directed the question Â“How well do you know your organization?Â” to the managers of an establishment, most probably, there will not be many individuals to take this seriously, but when we clarify what we mean by the term Â“knowing the institutionÂ”, it will be obvious that the question is not inappropriate.
At least the followings must be known in order to know the institution:
- Human capital and/or load: This means to know who might be considered as capital and who might be considered as load. Actually a better definition would be to know the attitudes and behaviour, which may be assessed as a Â“capitalÂ” or Â“loadÂ”, of the individuals comprising the human resources of the company. Each person Â– may it be deemed ultimately as capital or load Â– may have both capital and load attitudes and behaviour.
Individuals who appear very bright might in reality be a load, and among those who appear as valueless there might be those who should be considered as a human capital.
- Social capital and/or load: The institution may have its own internal cultural values, which can be assessed to be capital or load, just as with human resources.
- Fiscal capital and/or load: This means self-resources or debts.
- Financial capital and/or load: These are the financial tools which are used by the establishments and which may be considered as capital or load.
- Real-estate capital and/or load: These are the immovable, which are a positive contribution to the establishment or on the contrary are a burden.
- Other capital and/or load: Capital or load other than the above.
These are the Â“transformersÂ” of an establishment. Planned or not, accidental or with good or ill intention, they transform the local or global scaled, positive or negative inputs into outputs negative or positive for the concerned company.
In cases where these transformers are not sufficient known, it is clear that the decisions taken might be unhealthy and unexpected consequences should be expected anytime.
What can we do?
We can arrange seminars on this subject, aiming the development of transformer identification, or we may take part in a team to contribute to this identification.