TATA INFOTECH OFFICES	…AND LET THE MARKET IN The fact is, what's happening in the outside world permeates every company. Connectivity attaches everyone to the marketplace. The result is that the "factors of production" that companies use to make their stuff raw materials, plant and equipment, and labour are increasingly obtained "just in time" in the marketplace, rather than owned "just in case." You have no idea who the guys at the water-cooler really work for. Whoever they are, your company is more efficient because, when you deal with outsiders, you are operating by marketplace laws of supply and demand, which is not the case when your transactions are internal. Contract out a part, service, or function, and competitive market forces will allow you to gauge such factors as price, time, and quality. Even if you have no intention of buying outside, you should still look beyond your own borders. Each element of the organisation must be competing in an external marketplace, not just supplying internal customers. Why would any company think that it can run a peripheral cost center better than an outside firm can run that same activity as a full-time business? Then, make sure that the competencies you keep in-house are competing in the market for what they do. Think of them as separate companies. If your people can't sell their services outside, then either the market doesn't want your people's services or someone outside is outperforming your people. You should scrutinize capital allocation stringently. Each project that is seeking capital should behave like a start-up, competing with all the other great ideas for the attention and backing of venture capitalists. Economics, not politics. business, not organisation. build an ass-kicking culture, not an ass-kissing one. In the world of future wealth, everyone inside an organisation is also outside, subject to marketplace forces. That's as it must be. Extracted from FUTURE WEALTH by Stan Davis & Christopher Meyer Published by Harvard Business School Press Marketed in India by Tata McGraw-Hill <<<back
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