World Class Organization …means

• Global consideration, in which the decision is taken to be

the premium provider in all sectors served
• Locally, in which global business is developed using a cost
advantage, focus, or differentiated approach to each
market.
• Establishing, sustaining and developing the desired
presence in the particular markets. This requires strategic
decisions on whether to seek to be the only or
overwhelming player in markets (e.g. Microsoft); the largest
single player (e.g. Coca Cola); or fitting the presence to the
precise locality (e.g. McDonald is the main provider in USA,
a niche player only in Russia)
• Using the existing basis as the platform on which to base
further growth, either through developing existing products
& services into fresh areas, or looking for new opportunities
potentially available as the result of physical presence or
resources combined.
 Traits of World Class Organizations

• Are characterized by power and influence

• Have absolute and actual attitudes to
responsibility
• Achieve a global presence in different ways
• Have a position of economic strength, but
also attendant responsibilities; and
• Have different attitudes to globalization and
have varying worldwide influences.
 Prerequisites for being World Class

• Size, scope and scale of resources to enable activities to

be established anywhere in the world
• Recognition of full range of collective and individual
responsibilities that this capability brings
• The Capability to think globally
• The capability and willingness to develop a global set of
values
• The capability and willingness to understand, and be
comfortable with, the demands and expectations of any
part of the world in which business is sought.
 11 Steps to create
World Class Organizations
Mergers & Takeovers
(Assets Management)
Strategic Thinking
(Philosophical & Theoretical) Additions & Subtractions
(Purchasing)
Leadership Responsibility
(Team Work) (Accountability)
Market & Location Understanding Management Style
(Customer Needs Analysis) (Maintenance)
Investments Management Development
(Inventory Mgmt) (Training)
Technology & Expertise Reinforcement
(Change) (Proactive Maintenance)
 1. Strategic Thinking
• Thinking Globally
 adopting a perspective that envisages the organization’s
products and services on sale in the axis economies and also
remote locations
• Thinking Locally
 Requiring investments in cultural, social, behavioural, and ethical
understanding of the particular areas where business is
envisaged
• Thinking Locality
 In terms of the nature of the business relationship that is to be
developed and its basis in spending and consumption patterns,
 propensity to buy and consume local products and services,
position and reputation of present providers; and forecast and
projected investment level and returns.
 1. Strategic Thinking
• Thinking Locality …
This then needs developing into the basis of
a mutually profitable relationship
answering the questions:
– What do we gain from them?
– What do they gain from us?
 1. Strategic Thinking
• The thinking mix required, forms the basis on
which particular opportunities and organizational
resources are brought together.
• It also ensures that subjective elements of strategy
and policy formulation are identified as such at an
early stage for both good and bad reasons:
• The Good - we want to work here and not there;
because we can develop business here
• The Bad – We want to work at ….because the
market is waiting for us (Arrogance) or we don’t
want to work there because it’s impossible to do
business there (Prejudices)
 2. Leadership
• Truly Global Leadership transcends prejudices
and preconceptions; acknowledges subjective
elements and matches and harmonizes these with
drives and investment levels.
• Requires exceptional qualities in:
– INTEGRITY
– HUMILITY
– ENTHUSIASM
– RESPECT – must be earned
Leaders must be prepared to travel, visit and
understand as well as act and accept advice
and guidance from those on the group in
particular locations.
 3. Market/Location Understanding
• Analyzing new and proposed areas and locations of
activity is essential. The primary techniques for this
are:
• Customer Analysis – Advocates, Loyal..etc.
• Porter’s Five Forces and Competitor Analyses
• A broader approach is given by Cartwright which
identifies 10-Pt Approach (SPECTACLES):
– Social – Political – Economical – Cultural –
Technological – Aesthetic – Customer – Legal
– Environmental – Sectoral
• Assumption that because things are socially and
aesthetically acceptable and pleasing to the global
organization’s country of origin, they will be so, or can be
imposed, on all locations.
3. Market & Location Understanding
 4. INVESTMENTS
• Investment appraisal requires a behavioural and
managerial perspectives as well as drives for
financial returns on investment
• Ventures fail sometime because analyses and
forecasts (about what might happen) are taken as
statements of facts rather than projections.
• Assumptions become preconceptions.
• World class organizations maximize and optimize
long-term investment and returns on the basis of
commitment to the organization of an enduring
presence in the location
 4. INVESTMENTS
• From this is developed a range of corporate,
collective, and individual relationships with
potential suppliers, customers, politicians,
lobbies and other vested interests.
• Once activities are commenced, customer
and supplier liaison is then engaged form
the same point of view as on more familiar
ground with recognition of the prevailing
cultural, social and commercial customs and
norms.
 5. Technology & Expertise
• No World Class organization will ever
compromise with infrastructure, use of
technology and the best fit in people’s
competency and responsibility
• Technology is used extensively to
maximize efficiency and productivity of
machines and people.
 6. Mergers & Takeovers
• This route is attractive because it’s
quick.
• Going concerns can be bought up so
that the economic size of the global
organization and its local reputation of
the local company can be synergized.
• Caution: if insufficient attention to
cultural fit is not paid, there is a danger
of the merger/acquisition failing.
 7. Addition & Subtraction
• Organizations entering new markets and
locations know what they expect to
achieve, why and how, and what the
market expects form them and why.
• World Class Organizations know what
matters are outside their own control:
– Cosumer goods & Fashion/taste can never be
imposed
– Controls about the defence products
– University & Education Norms in each society
 8. Responsibility
• Corporate Social Responsibility
• Specific World Class organizations
extend their responsibility to present and
future generations :
• Responsibility for:
• S
• P
• I
• C
• E
 9. Management Style
• The need to balance integrity and openness with
market, social and cultural expectations.
• WCO can take advantage of its dominant
position to oppress staff, suppliers, customers,
which can gain importance and profits to the
competitors; do they?
• They usually establish patterns of regional and
local managers who carry developed authority,
responsibility and accountability.
• They set operational standards in accordance
with their overall strategy, policy and direction
 10. Management Development
• Ability to acquire and apply the required
behaviour, attitudes, skills, knowledge, expertise
and technological proficiency is constantly and
continuously encouraged and maintained.
• Effective global management development is
based on the premises that securing long-term
profitable and effective presence means
harmonizing organizational objectives with local
habits, and that a basis of partnership is required
between the organization and its suppliers, staff,
customers and community.
 11. Reinforcement
• Being World Class is never an end in itself.
• Markets have to be developed
• New Products and Services must be made
available
• Quality of delivery and support need to be
constantly upgraded.
• Current good performance is not a guarantee
for sustenance.
• Hence, World Class organizations provide
sufficient autonomy and indepedence to the
locations.