Monday, August 26, 2013

The Way Back

The Way Back

About 86% of all wage earners in France enjoy "contrats a durée
indéterminées," permanent contracts that make layoffs extremely expensive
and time-consuming.

France now has half as many exporting companies as Germany or Italy.

German industry benefits from 19,000 robots, five times the number in France.

French spending on R&D has also dropped 50% in the past four years.

The result is a steep fall in French manufacturing and the services that
support it, everything from consulting to logistics.

What is the way back up?

Lets take consulting for example:

The business model for management consulting is based on selling knowledge and skills by transforming these two intangibles into tangible best practice and case studies.

This business model can open the door to "disruptive innovations" at the bottom of the market. An innovation that is disruptive allows a whole new population of leaders, innovators and consumers at the bottom of the market pyramid get access to new "knowledge and skills" that was historically the previlege of a few firms with deep pockets.

If you take professionals in the developed world, chances are that many of them will create less wealth than their parents as oppose to professionals in developing countries and emerging markets, who are probably going to generate 100 times the wealth of their parents.

Some of the best engineers and scientists working for top innovators are actually located in their offshore technical centers in the BRIC countries; these are often called "captive" R&D centers or offshore R&D locations. Engineers from emerging countries will play an increasing role in global innovation. While Some will continue to work for their current western employers, others will lead startups that will become an invaluable index to the innovation value chain

For example, many notebook computers are designed and built by Compal Electronics of Taiwan. The company's clients include Hewlett Packard, Fujitsu, Siemens, Sony, and Toshiba.

Innovation often happens away from the centers of organizations in emerging countries that can help transform the society and organization as a whole.

In France it's actually possible to recruit, engage, motivate, and retain the very best talent, by creating a more purposeful, collaborative, ethical, and diverse company with a clear mission and purpose.