In the context of hypercompetition, companies are looking for a competence that may be best labeled as agility – understanding the environment very quickly and coming up with appropriate responses that enable the company to adapt.
Organization & Transformation
Nearly 10 years ago, Richard D’Aveni published an article that challenged the core beliefs of strategic thinking. The conclusion of this paper, titled, “Waking Up to the New Era of Hypercompetition”, is simple but far-reaching – our traditional thinking, in which corporations have to develop strategies that will give them “sustainable competitive advantage”, is outdated. D’Aveni argues instead that the current phase of “hypercompetition” calls for something else. We have to look for a competence that may be best labeled as agility – understanding the environment very quickly and coming up with appropriate responses that enable the company to adapt. At Arthur D. Little we have described this new business paradigm as the “Creativity Era”. Over time we have developed approaches to deal with this challenge.
Specific focus should be put on the human or change management aspects, which are widely recognized as the key obstacles to success. While there are some well-established approaches for managing these aspects, the success rate is still low. The future success of any company – whether it is a large holding company, a subsidiary, a start-up, or a public body – depends on how effectively the organization adjusts to new challenges and continuous change.
Based on Kotter’s logic, Arthur D. Little’s own basic change management model recognizes three key success factors: Motivation, Enablement and Information. Project teams need to score well in these three dimensions to achieve what we would call a positive change culture.