MEASURING THE COMPETITIVE FITNESS OF GLOBAL FIRMS 2001 LARRECHE J.C. Księgarnia

MEASURING THE COMPETITIVE FITNESS OF GLOBAL FIRMS 2001

This 2001 Report on the Competitive Fitness of Global Firms updates and extends the first three reports published since 1998.

It presents the results of a survey among the members of the International Executive Network , based on a methodology designed to monitor the fundamental capabilities which influence the effectiveness of a firm in its markets. This methodology builds upon management inputs and has been developed specifically to address some of the key leadership challenges encountered in the creation of sustainable long term growth in shareholder value.

The 2001 report is based on information collected on 309 of the largest American and European global firms. It contains a number of significant additions to the previous editions, including:

the E-Business capability, a new measure of Corporate Competitive Fitness

trends over the last 4 years, for a better understanding of changes in the fundamental capabilities of firms.

In a world of intense competition, the modern firm wins or loses its main battles in the market place. Usual business indicators such as financial ratios, market share, innovation indices," or employee turnover depend on information gathered after the battles are over. Because of the time lag between these external measures and the present capabilities of the firm, these indicators are not optimal measures of a firm's present or future competitive position.

The MECA (Market Effectiveness Capabilities Assessment) methodology has been designed to evaluate the fundamental business capabilities driving the success of modern firms. It is based on management inputs and has been developed specifically to address some of the key leadership challenges encountered in the creation of sustainable long-term growth in shareholder value.

The MECA methodology offers a comprehensive framework composed of twelve fundamental business capabilities and an associated measurement tool to assess the situation of the firm at a given point in time. Its two key contributions are: an integrative monitoring instrument, the Corporate Competitive Fitness Dashboard, allowing top management to monitor the evolution of the firm on key capabilities detailed analyses to help business unit managers, functional managers, and strategic planners to better understand how these capabilities vary across the firm.

Two Types of Corporate Transformation

One can distinguish two different types of corporate transformation.

The first deals with a rapid change in the assets of the firm and includes rationalization, focusing of resources, or acquisitions. In such situations, changes in market share or financial results can occur so fast that one may appear to be driving the business 'on sight'.

The second type of corporate transformation consists of shaping the firm to deliver sustainable long-term growth in shareholder value. This is a very different situation and requires building fundamental capabilities, most of which are intangible and difficult to measure. For many dimensions of leadership, it is more like 'driving in fog' than 'driving by sight'.

Our personal experience in advising leaders of multinational corporations is coherent with a more general observation of the evolution of corporations around the world in the last decade. The first type of transformation is painful, risky, and requires strong leadership talents, but the second type of transformation is an even stronger and broader test of the leadership talents of the executive. It requires a broader understanding of the capabilities of the firm relative to its environment and its competitors and demands a greater alignment of the vision of top management, and shareholders. It takes patience... and is never finished.

Executive Summary

Part I: Competitive Fitness of Global Firms

Part II: The New E-Business Capability

Part III: Sector View of Corporate Competitive Fitness

Part IV: Capability View of Corporate Competitive Fitness

Part V: Key Drivers of Corporate Competitive Fitness

Appendix 1: Indicators of Competitive Fitness

Appendix 2: Methodology

Index of World Class Firms

309 pages

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czy wybrany tytuł polskojęzyczny lub anglojęzyczny jest aktualnie na półce księgarni.