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Finding Your Place in the Global Game

Finding Your Place in the Global Game. Leadership for Competitiveness, Competence and Change Milenko Gudi ć Economics Institute-Belgrade IEDC-Bled School of Management. Starting Point 1. Gause’s Principle of Competitive Exclusion

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Finding Your Place in the Global Game

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  1. Finding Your Place in the Global Game Leadership for Competitiveness, Competence and Change Milenko Gudić Economics Institute-Belgrade IEDC-Bled School of Management Saltillo, Mexico, 3-4 March 2004

  2. Starting Point 1 Gause’s Principle of Competitive Exclusion In 1934, Professor G.F. Gause of Moscow University, known as “the father of mathematical biology”, published the results of a set of experiments in which he put two very small animals (protozoan) of the same genus in a bottle and adequate supply of food. If the animals were of different species, they could survive and persist together. If they were of the same species, they could not. This observation led to Gause’s Principle of Competitive Exclusion. No two species can coexist that make their living in the identical way. Each must be different enough to have a unique advantage. The continued existence of a number of competitors is proof for that their advantages over each other are mutually exclusive. Source: Saltillo, Mexico, 3-4 March 2004

  3. Starting Point 2 Aren’t We All (Like) Protozoan? • Individuals • Groups • Organizations • Institutions Living and acting in this complex, highly competitive, increasingly cooperative and, above all, interrelated and interdependent world Saltillo, Mexico, 3-4 March 2004

  4. Preliminary Conclusion Leadership for: Exclusive Diversity and Inclusiveness • Individuals (but also groups, organizations, institutions) are, and need to be, exclusively diverse and distinctive • Organizations (but also institutions, groups, individuals) need to be inclusive, since • Diversity is both our destiny and our hope Saltillo, Mexico, 3-4 March 2004

  5. Why to Compete? • Changing World • Changing Competitors • Changing Rules of the Game Saltillo, Mexico, 3-4 March 2004

  6. The Changing World • Current megatrends reached a “no return” point • Development paradoxes • New paradigm Saltillo, Mexico, 3-4 March 2004

  7. The Changing World … with the Increasing Role of Culture … • Will culture (replace ideology and) determine the destiny of corporations and societies? • F. Fukuyama: from “The End of History” (1989) to: “Trust: The Social Virtues and the Creation of Prosperity” (1995) • S. Huntington: “The Clash of Civilzations and The Remaking of World Order” (1996) Saltillo, Mexico, 3-4 March 2004

  8. Changing Competitors • Diverse players • New players • Intergrations (M&A, political) • New partnerships (private, public, private/public) Saltillo, Mexico, 3-4 March 2004

  9. Changing Rules of the Game • Deregulation • Liberalization • Privatization • Supranational Regulation • Global (WTO) • Regional (EU, NAFTA) Saltillo, Mexico, 3-4 March 2004

  10. Arenas of Competition • Regional • Sectoral • Company Saltillo, Mexico, 3-4 March 2004

  11. Main Actors • Regions (USA / NAFTA vs., EU) • Corporations (within sectors and/or regional markets) • Individuals (within or outside their corporations) Saltillo, Mexico, 3-4 March 2004

  12. Different Phases • Early with multiple competitors • Mature with beginning consolidation • End game with growing oligopolies Saltillo, Mexico, 3-4 March 2004

  13. Sources of Competitive Advantage • Internal within corporations/regions • Out-sourced within (business) partners • Exogenous from (business) model • Increasingly less resource based • Increasingly more knowledge based Saltillo, Mexico, 3-4 March 2004

  14. Developing and Sustaining Competitive Advantage • Be better than the others • Inclusiveness • Be different from the others • Exclusiveness •  Be better than yourself • Grow and Improve • Be different from yourself • Change and Innovate Saltillo, Mexico, 3-4 March 2004

  15. Where to focus •  Products • Low cost • Different position • Customer Satisfaction • Reducing customer costs • Increasing customer profits/benefits • Systems • Complementor lock-in • Competitor lock-out • Proprietary standards Saltillo, Mexico, 3-4 March 2004

  16. What Competencies • Operational excellence • Customer service • Creativity and innovation • Values and attitudes Saltillo, Mexico, 3-4 March 2004

  17. How to Develop Competencies • Imitate • Integrate • Innovate • Create Saltillo, Mexico, 3-4 March 2004

  18. The Role of Leadership • Managing Change • Leading Change • Each in Its Season • From MBO to MBO Saltillo, Mexico, 3-4 March 2004

  19. The Role of Leadership • Focus on people • individuals • teams • stakeholders • Communication is the key • mobilization • motivation Saltillo, Mexico, 3-4 March 2004

  20. The Role of Leadership • High Aspirations • High Achievements but also • High trust Saltillo, Mexico, 3-4 March 2004

  21. The 7 Cardinal Principles of TrustCharles Handy • Trust is not blind • Trust needs boundaries • Trust demands learning • Trust is tough • Trust needs bonding • Trust needs touch • Trust requires leaders Saltillo, Mexico, 3-4 March 2004

  22. What Kind of Leaders • Transactional leaders • Transformational leaders • Emotional intelligence • Spiritual intelligence • Entrepreneurial / Intrapreneurial attitude • Leaders creating and leaving legacy • Other leaders • Successors Saltillo, Mexico, 3-4 March 2004

  23. A thing to avoid “The One Firm – Firm” Controversy • Efficiency (standardization, unification) versus • Effectiveness (creativity, diversity) • “Critical Mass”(needed for problem solving, or making breakthrough in a known direction),versus • “Critical Brains”(defining what the problem is, or making breakthrough in defining the direction) Saltillo, Mexico, 3-4 March 2004

  24. Lessons from “Gazelles”… The Jazz Band Metaphor The Seven Rules of Improvisation • At any given time in a performance, know who my leader (soloist) is and where you are in my piece. • The soloist should listen to and build off of the work of the band. • Know the rules in order to know when to break them. • Experiment as a group (e.g. by changing or eliminating structure) or as an individual (e.g. by overblowing or fiddling with your instrument). • Expect occasional train wrecks. Recover and move on. • Do not play the same solo over and over; practice new approaches and styles in familiar pieces. Incorporating the unexpected is the essence of jazz. • Regularly add some visiting players or visiting bands to develop new techniques for playing or new tunes and styles. Source: Saltillo, Mexico, 3-4 March 2004

  25. … and from the Balkans The Wedding and Funeral Band Metaphor Saltillo, Mexico, 3-4 March 2004

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