The U.S. House has found new ways to spend American’s money. Hopefully, this expenditure will provide a good return on investment to taxpayers. The “Sectors Act” would provide grants for public-private partnerships to address training needs for various industries.
If you’ve been following this blog you will know that I have been talking about the need for U.S. businesses to work smarter in this increasingly complex and competitive global economy. At the heart of this need is for U.S. businesses to understand how to identify value opportunities and to use this information to create and deliver superior value. Value is what will win best in market status for U.S. firms regardless of what product/markets, national or international, they target.
A report by SRI that was released in 2004, “Globalization: Trends and Input Factors of Globalization of manufacturing Input Factors on Future manufacturing Capabilities” contrasts two models: a traditional model that has governed the thinking and practices of U.S. manufacturing and a new model predicated on the dynamism of global economic factors. Here is the traditional model:
The traditional model is predicated on a more insular and local focus while the new model, shown below, is premised on the need to capture value and translate this value into winning strategies.
To date, many U.S. manufacturers, based on my experience as a consultant to manufacturing firms and associations, do not have the skill set to identify value opportunities and deploy this information to the key strategic and operational areas of their business that will generate differential value advantages that will allow them to dominate their targeted markets.
U.S. industry has been through a period of cost cutting as a preemptive move to insure their survival. Hard to fault them for this. However, there will be a time when the focus of these firms must be sighted on issues of growth – of growing market share and top line revenues. Value has been shown to be the best leading indicator of market share growth. Understanding how to measure and manage value will be essential to become best in market competitors. Dominance will be won market by market. Forget best in class or world class. The only metric that will matter is best in market – the market share leader and this will come from a superior value proposition.
It is interesting that the U.S. leads in value technology. We have the best measurement technology leading to unique and powerful management capabilities. It’s time to capitalize on this resource, or in the words of Six Sigma Marketing, to leverage our value advantage. Use this money and opportunity to expand training for business by incorporating value measurement and management into their programs. The time is right!