The Value of Competence

There is nothing like a downturn in business to highlight potential weak spots in the level of competence within an organization. It is not that people suddenly wake up stupid one morning and business suddenly drops. What it usually indicates is something is radically different in the marketplace, and people are ill-prepared to do much about it. Sometimes there is a change in expectations, where companies are expecting times to be tough, so they naturally cut back on expenses. And often those companies cutting back are your customers – and the expenses they are cutting are for products and services they have been buying from you.

So what do you do? Do you keep attempting to operate in the same way as before, and hope that business turns for the better? Or do you break free of the box and attempt some very non status quo options. Remember this: when companies are curtailing costs and buying less from you, they are communicating that the old value proposition you have been offering them is no longer valid. To keep or even grow the business, you must find new ways to add value besides simply reducing your prices.

So here is the tough question. Are people in your organization competent enough to think up and deliver entirely new and mutually profitable avenues of value? Are your salespeople basically order takers, or do they have the ability to be innovative problem solvers? Do your customer care people have the skills to recognize a golden opportunity for new business when dealing with a customer, or are they basically a traditional complaint handling or fulfillment center? Does the senior team have the experience to lead a top-line, growth-focused turnabout, or are they only schooled in scrutinizing budgets line by line, or looking for assets to sell off or write off?

You cannot solve a competency deficiency overnight, but you can take two immediate actions. First, take the shackles off those you know are competent, and aid and support them in proposing and implementing new value-added ideas. Let go of the box-ingrained notion that these are always high cost ideas. Many if not most are not. Finally, start right now raising your own capabilities. Make a conscious and deliberate effort to improve on something important, be it skills in customer relationships, strategic thinking, leadership, collaborating, value chain analysis or whatever. There is no box that prevents you from being able to increase your own or your organization’s levels of competence, even in tough times.

No Box at BMW

One of the case studies in our book features Chris Bangle, former chief designer of BMW, and the earthshaking changes he led in the design of BMW automobiles. In their latest ad campaign, BMW's theme is about something unexpected - the word “No.” For example, they say

No, we will not compromise ideas.
No, we will not do it the way everyone else does it.
No, we will not give in to mass market vanillaism.

Today in the spirit of Bangle, BMW goes on to proclaim, that their ideas are uncompromised by bureaucracy or focus groups. By giving their designers complete freedom and autonomy, BMW can foster an environment that protects fresh thinking. They also cite that one of the greatest rewards of this autonomy is the ability to say No to the status quo. Sounds like No Box thinking.

BMW has recognized that old, traditional concepts for car design will not propel them to the future they want. They have chosen to say No to those traditions, and have committed to growth in new, perhaps less tried ways.

About what processes, procedures, mindsets or whatever, must you be saying No, in order for your organization to grow in new, fresh ways? Think about that. Then ask yourself, if you have what it takes, (those important internal characteristics described in There is No Box), to do something about them?

Steve