It’s a Flat Earth. Can Your Business Stand Up?

In a world that technology has made flat , where do firms find a competitive edge?
Patrick Foster The Times February 11, 2008

Klaus Kleinfeld, president and chief operating officer of Alcoa, the world's biggest aluminium producer, said that the internet and advanced communications had “made the world flat” and had led to such a free flow of information that the only way that companies could get ahead of competitors now was by having a better workforce.
It actually holds true for most industries that ... they have changed in such a way that the only sustainable competitive advantage, probably, is the type of people you have and the way they work together.”
He added: “If that is so, the biggest question becomes: how can you attract the best and brightest around the world? Coming from the pockets of excellence, how do you make yourself, your company an interesting company, the one that they'd love to continue to work at?”

Here we have an all too rare example of a business leader who really understands that the key to Competitive Advantage is Excellence. Indeed, if you look at the dominant position of Alcoa, and if you have heard some of the stories (over 20 years or more) about their extraordinary internal performance improvement culture, it is not too surprising. Klaus Kleinfeld is telling us that the modern communications environment is removing the “Our Knowledge is Our Capital” intellectual property differentiator and that therefore something else is needed. Interestingly, if you spot it, he takes “excellence” as a given; he is looking beyond excellence. The very fact that he is raising this question signals a company with exceptional Competitive Strength.

Our Competitive Strength Analysis suggests that Alcoa may be in the highest level, which we call Free – and that is above Excellent. Typically, they are thinking ahead creatively, looking for further ways to sustain their Competitive Advantage. Alcoa will be well aware that their current Comparative Competitive Strength is open to threat – not least from the energetic Chinese.

How high is the Competitive Strength of your organisation, or your Suppliers or your Customers? Will you still be in business if they weaken? What other threats are out there? How resilient are you and your people, really? How far ahead are you thinking? How much time can you afford to think about these things?

Not much, if you are typical, there is too much else to do and no one is making that situation any easier, especially with such a micro-management obsessed bureaucratic Government continuously dipping its nosy teaspoon in your cup of tea.

The Competitive Strength Report Process with its web based survey and 60 page Report will provide you with a completely objective and independent assessment of your Comparative Competitive Strength and the financial implications of that result. It will enable you to work your way through all the key issues that influence your future. It is highly affordable, will take very little of the valuable time of your management team and can be completed in 3 weeks.

To find out more about the Competitive Strength Report, please see the website