History Tutorial
Prof Albert Ball
21st-_century_challenge.docxRunning Head: 21st CENTURY LEADERSHIP CHALLENGES 1
21ST CENTURY LEADERSHIP CHALLENGES 9
21st Century Leadership Challenges
Student’s Name
Institution affiliation
MEMORANDUM
TO: John Smythe Heathering, the Executive Director of Corporate Services,
CC: Company Directors.
FROM: ………., Leadership Consultant
DATE: Nov 23, 2016
SUBJECT: TACKLING THE 21ST CENTURY LEADERSHIP CHALLENGES
Today’s business world is greatly dynamic. The challenges faced by the business leaders and organizations in the 21st century greatly vary from the ones experienced in the past decades. As organizations face continuous uncertainty, ambiguity and strategic discontinuities the ability to effectively respond to environmental changes has become an important success factor for organizations (Homburg, Grozdanovic & Klarmann, 2007). Thus, in the twenty-first century, adaptability has become a key factor in achieving competitive advantage. Adaptability refers to the capacity to adjust to the changes in the external environment so as to maintain the organizational long-term stability. Adaptability enables the business to anticipate challenges and keep up with changes and new ways of doing things. Moreover, adaptability enables the organization to adjust to changes quickly and to cope with uncertainty and crisis efficiently. In this way, the organization will be better able to handle the tough market pressures and thus remain competitive in the increasingly volatile business environment.
Research has shown that sustainability is closely associated with a company’s level of profitability (Homburg, Grozdanovic & Klarmann, 2007). Sustainability refers to business structures and managerial decisions based on financial, environmental and social concerns. Achieving sustainability is a crucial challenge that the 21st-century leaders have to handle. Compared to companies that focus on short-term earnings and make decisions based entirely on the bottom line, sustainable companies think long-term. They foster robust relationships with employees and members of the community. Companies that embrace sustainability also find ways to reduce the level of consumption of natural resources while at the same time reducing the waste and pollution they produce. As a result, sustainable companies gain a more competitive edge as they are better able to thrive and survive unavoidable shocks such as global recessions, employee strikes, executive scandals and boycotts by environmental activists.
Sustaining continuous innovation is another crucial challenge that modern business leaders face. Leaders have a direct influence on the level of employee innovation. Innovation is a key driver of growth and profitability in the increasingly competitive business environment. Successful innovative leadership is reflected in how individuals and teams think innovatively as they redefine complex issues, generate new ideas, discover solutions, and mitigate risks. Furthermore, today’s increasingly sophisticated challenges require innovative thinking. Fostering innovation increases the company’s competitive advantage as it enables the company to find new ways to produce goods at a lower cost through the perfection of production methods or by the utilization of resources more efficiently as compared to the competitors ("Four Methods of Competitive Advantages | Chron.com," n.d.).
All businesses leaders have a vast variety of staff under them with an extensive pool of knowledge. Moreover, the leaders have access to a wide range of valuable information sources within the company. These leaders are however, often faced with the challenge of effectively utilizing the vast knowledge to ensure optimum productivity. A great business leader should be able to utilize the various knowledge capacities within his disposal to be able to attain the best result for the company. To increase its competitive edge, organizations need to facilitate open access to information among staff. Competitive success is not only based on how efficiently the physical and financial resources are allocated but more on how the strategically significant intellectual capital is managed; from capturing, coding and disseminating information, to acquiring new competencies through training and capacity development, and to re-designing the business processes ("Four Methods of Competitive Advantages | Chron.com," n.d.).
Globalization is the next crucial challenge faced by business leaders today. The ability to conduct business internationally is an absolute necessity if a business is to remain competitive in today’s marketplace. Furthermore, in order to satisfy the increased consumer demand many businesses strive to expand their geographic presence and extend their value chain to an international level. Expanding the geographic footprint of the business through globalization is a crucial way of securing the customer loyalty and brand recognition and at the same time, tie-up key partners and distribution agreements (Reeves and Deimler, 2011). Failure to effectively manage and execute globalization will give room for competitors and thus in the process reduce the competitive advantage of the business.
GDD’s current status regarding the leadership challenges
GDD is currently facing increased competition from stronger rivals and thus resulting in falling sales and losses. It is thus imperative that the company strives to remain competitive. The efforts to remain competitive will be largely reliant on the kind of efforts that GDD makes in solving the 21st-century leadership challenges. The first step towards tackling these challenges would be to explore GDD’s current status regarding these challenges. First, GDD’s four founders demonstrate an innovative acumen when they are able to identify the opportunity presented to them by the three retired World War II cargo planes. They purchase the planes and started a new successful shipping company. However, as the company continues to face new operational and market challenges, more innovative measures are indispensable.
The company initially concentrated its services to Europe. However, in its efforts to increase its customer base, the company has embarked on globalization. It has expanded its services first to America, later to Canada. Furthermore, the company experienced sizable growth in the Asia Pacific market by expanding its services to Australia. There is, however, a need to demonstrate a high level of adaptability. This means that the company, in the wake of the rapid expansion through globalization, has to customize its services to suit the conditions of the subject market. Currently, the company has made some efforts towards enhancing adaptability. The American Division, for instance, has come up with the business first policy that has proved valuable as it helped reduce the expected losses from 6.5% to 3.8%.
Sustainability is another key leadership challenge that the company has to deal with. Sustainability entails making business decisions and plans that ensure that the company continues to succeed in the future. The company has a vision that promotes sustainability as it focuses on the customer and employee satisfaction. As a result, GDD’s customers remain loyal to the company. This is seen through the fact that its European customers remained loyal to GDD despite the presence of the American competitors. The company, however, has to invest more on streamlining its operations and cutting on costs to increase its sustainability. The company uses retired British World War II cargo planes. There is a need to obtain newer and more efficient ones to improve on this. GDD needs to take more measures to better manage its knowledge base. There are minimal knowledge management practices demonstrated. It is thus essential that the company leadership adopts efficient ways of solving this challenge to be better able to improve the performance of the company.
Recommendations for tackling the Leadership Challenges
Effective leaders are those who can be able to identify the need for change and thereafter, be ready to lead the business effectively through the change. GDD faces several leadership challenges. There is a need to take appropriate measures to help alleviate these challenges. This section features some recommended measures that will go an extra mile towards countering these challenges and thus helping boost the company back to profitability.
First, the company should take measures to enhance its adaptability to various market environments. One way is by being able to read and act on market signals. The current business environment is increasingly volatile. Changes are bound to occur. It is thus important that the GDD leaders remain attentive to factors that signal a change and get the company ready by coming up with feasible policies and strategies to adjust to the expected changes. Another possible means of enhancing the company’s adaptability is by customizing its services to suit the diverse clientele (Reeves and Deimler, 2011). Moreover, the company needs to be well conversant with the prevailing set of market conditions in each global segment. This will allow the company to be able to avoid operational hitches in each market segments due to factors such as non-compliance with local regulations.
Solving the sustainability challenge is paramount to ensuring the GDD achieves profitability in the current unpredictable market place. There are several opportunities to enhance the sustainability of the company. First, the leaders need to effectively communicate sustainability goals throughout the company and develop suitable policies to promote sustainability practices. This is to ensure that all employees are privy to the set sustainability goals and they all work towards attaining them ("Ten Steps to Sustainable Business in 2013 •," n.d.). The company leaders also need to engage with business partners and clientele with an aim of advocating for sustainability in their operations. The company should also work towards retaining its customer-base by promoting customer loyalty. Developing a robust relationship with the client-base by establishing reliable communication channels will also enhance the sustainability of the company’s operations as it will ensure that the company retains its customer base. The company should also streamline its operations to reduce costs by adopting modern technology and more efficient machines in its operations.
There is a need to enhance the level of innovation to help enhance GDD’s competitive edge. GDD’s leaders should take effective measures to aid in increasing the level of innovation at the company. First, the company should consider investing in a Research and Development department. The research department is crucial in ensuring that the company identifies new technologies and methods of doing work that will help in reducing the production costs and thus enhance the company’s earnings. The company leaders should also promote innovation in the company by providing the necessary resources and ample environment ("Gap International Voice: The Six Defining Traits of the Successful 21st Century Organization," n.d.). Moreover, the leadership should promote innovation among employees regardless of their position. This employee innovation can be enhanced through recognizing and rewarding innovative employees.
The process of globalization opens up new marketplaces for the company, which otherwise would not have been reached. To be successful in the global market, it is imperative that the leadership cultivate a passion for growth among its employees. This will help open the eyes of the organization to a vibrant view of the marketplace. Furthermore, it will enable the organization to see the realities that need to be adjusted or changed in order to compete effectively. They should however be wary of the risks posed by unplanned expansion into foreign markets. Various foreign markets are subject to varying conditions resulting from factors such as government regulations and environmental conditions that might impact the operations of the business. It is therefore important that the company does a comprehensive background research on the target market to be able to identify the opportunities and threats posed by venturing into the global arena. Successful globalization process will help propel the company back to profitability.
Efficient knowledge management has been a major challenge to the 21st century business leaders. In its broadest sense, knowledge management is the intentional organization of a company's knowledge and information ("Ten Steps to Sustainable Business in 2013 •," n.d.). When the information is properly maintained within the organization, it can be distributed as needed much more efficiently. To enhance the knowledge management process, the company should strive to utilize the knowledge of the experts within the company in tackling the various challenges that may occur. Coaching and mentoring will also ensure that the company maintains a sustainable and productive workforce. Moreover, the company should ensure that the corporate knowledge available is made easily available to relevant staff and clients.
Implementing the sustainability recommendations
Business leaders being change agents should be at the forefront in leading the organization through change. These leaders need to take various measures to ensure that the recommended measures to enhance sustainability are successfully implemented. First, the company leaders should come up with clear policies and regulations that enhance sustainability and ensure that these policies are well communicated to all company employees ("Ten Steps to Sustainable Business in 2013 •," n.d.). These leaders should then ensure that the sustainability practices are integrated to the whole organization and not only left to one department. An effective way is by ensuring that the sustainability goals are reflected in the company’s vision and mission.
Yours Faithfully,
……………
References
Four Methods of Competitive Advantages | Chron.com. (n.d.). Retrieved from http://smallbusiness.chron.com/four-methods-competitive-advantages-32344.html
Gap InternationalVoice: The Six Defining Traits Of The Successful 21st Century Organization. (n.d.). Retrieved from http://www.forbes.com/sites/gapinternational/2014/09/03/the-six-defining-traits-of-the-successful-21st-century-organization/#7ff58e4242f9
Homburg, C., Grozdanovic, M., & Klarmann, M. (2007). Responsiveness to Customers and Competitors:The Role of Affective and Cognitive Organizational Systems. Journal of Marketing, 71(3), 18-38. doi:10.1509/jmkg.71.3.18
Making Strategic Changes for the 21st Century | Walker College of Business. (n.d.). Retrieved from https://business.appstate.edu/events/boyles-ceo-lecture-series/making-strategic-changes-21st-century
Ten Steps to Sustainable Business in 2013 •. (n.d.). Retrieved from http://iveybusinessjournal.com/publication/ten-ways-to-help-companies-become-sustainable-in-2013/
