The New Economics of Profits The difficulty lies not so much in developing new ideas as in escaping from old ones. - John Maynard Keynes
Multiple forces - globalization, technology, demographic change, and now shifts in the political/regulatory landscape - are converging to fundamentally change the rules of competitive advantage. Both separately and together, these forces are having a profound effect on how organizations survive, compete, and prosper. At the same time, a technology-enabled shift in consumer preferences is beginning to convey increasing advantage to organizations that foster stewardship of the world's environmental, human, and financial assets.
As a result, organizations around the globe - but most especially in high-wage, developed nations - are being pushed along a "worthiness continuum." A worthy organization is one that seeks to create sustainable value through reciprocity: an intentional focus on fostering win-win relationships with all of its stakeholders.
While the essence of the new economics of profits is still based on the age-old law of supply and demand, it now comes with a new twist. The ability to transform zero-sum situations into win-win scenarios will become an essential competence for future economic survival.
Although this capability has served both individuals and organizations well throughout human history, it will increasingly be the defining difference between economic winners and losers.
The capacity for reciprocity is typically most lacking on the "people side" of a business. Organizations that are working to move themselves along the worthiness continuum therefore need to actively seek new ways to commit to, and learn from, their employees.
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Want to Know More?On November 19, 2009, at 3:00 EST, McBassi's CEO, Dr. Laurie Bassi, will be delivering a webinar (sponsored by Learn.com) on "The New Economic of Profits: Lessons from Worthy Organizations." Registration is free - just click here. |