MY REFLECTION ABOUT "HARVARD
BUSINESS REVIEW" ARTICLE
“Finding the right Path”
by Lauren
Capron and Will Mitchell*
”Most companies default to the same approach for executing each new
strategy “1- we read. Authors of article shows how to acquire a new
resources due to new strategies. Should Executives use internal resources,
external or take some advantages of agreement and relationships?
Research declared that surprisingly
in about 162 telecom companies only one-third uses every methods capable for
them2. It appears that implementation of new technologies causes a
problems like difficulties in conversion or lack of specific peoples or skills.
However deciding whether to develop resources internally or externally,
managers should absolutely consider every possibility not only of luck, but in
particular lack of misfortune. Authors shows three points to cogitate. They
provide a framework to help become a more strategic decision maker in acquiring
resources.
The first question is: “Do you
already have relevant resources?”3 Developing new resources
externally can be to hurt for the company. Internally building resources base
can be more successful. You have to adopt what you already have and what you
possess. It is easier to invest specific in fields in your company. Notwithstanding, using general
insights can let you string resources, but all processess must be established
during the change. It can bring you failure in your own hand. Smart companies
revisit the questions more and more to entertain profits and looses.
The second
question is: „Do you and your provider
have shared understanding of value?”4 Externall licensed
agreement let you avoid many problems with which you could struggle in internal
solutions. Still the main thing is if you share the same goals due to value.
Exchange of resources has unquantiffiable effects. Also, maintaning
coordination of exchange is long process, involving your resources. What you
need before then is to have already certain competencies to aquire new
technology effectively. What is more, you should consider a kind of alliancess,
but if posibble, the simple ones. Laurence Capron and Will Mitchell written
that „alliances are more effective when relatively few people and
organizational units from each need to work together co coordinate the joint
activities.”5
Third
question is: „How deeply involved do you
have to be with your partner?”6
What
to do if partnerships do not brings effects? Too much coordinations in a long
period mustn’t work effectively. You can consider M&A but it should be the
final choice, because of overall risk. Remember to not be overloaded with
excess bagage in long time period. Take example form companies like
Johnson&Johnson, use what you need and shed the margin. Also, don’t be
focused on one mode, because you can become target yourself. Authors also gives
an extra framemark to analyse. (picture nr. 1 from Harvard Business Review, 2010, July-August, page 106)
Above articule can
be real crib sheet to managerial decisions. Using internal and external
resources is interesting and preveiling theme. Nowadays, technology is
developing so fast, that executives must be concentrated on searching and
keeping the goals by making a good decisions due to company products and
supplies.There is no golden mean for every company. The point is to find the
best solutions for your business, even if you have to bind every possible
combination of resources aquiring methods.
Due
to my experience, internal aquring resources is the easiest one. I worked in
two similiar companies, where managers applied own built IT system. There where
problems with it, but having people who built the system was easy enough to
prevent failure. What is more, employees had big knowledge, so value of
customer service and preventing mistakes, in the beginning, was at the highest
level. If there was some mistakes, IT workers could fixed the problem in one
day. For company it was economical and for employees, the way to better
identity with employer (highest level of integrity with employeer tolls). The
main reason to shed the system was it capacity, which couldn’t stand fast
development and growth of amount of customers. Also, new technologies can’t be
adapted to informatic 13 years old basis. In Telecommniaction company every
day, every month, brings changes. Executives had to make decision about
investing in new technology, popular at the market. CRM programms are used by
many others companies, so the best exponent to take a vote is that the other
are succesfully using it.
However the idea
was good, purposes also, today is the second year of „implementation”. The
first approach failed and brought some looses. Second, where executives knows,
how to avoid illogical expenses, is still in progress. Process absorb work of
at least one employee for one department in a week, so about 50 people fall
1600 hours of work. Furthermore
every employee has extra task to do. Additionally, the company needs to pay
licenses and certificates, service expenses and still take on a board this 1600
hours of shed work, which can cause declining of customer service quality.
In my opinion,
the three points showed by Laurence
Capron and Will Mitchel are truly important. Especially, that I know how it
looks on the inside of company. Executives must always take decisions based on
experience and properly calculated. Sometimes using internal resources might be
not ideal idea, but some loopholes can be easily managed and big looses not. In
the other hand, when there is an occasion to make an effort which lead to
success, we can sacrifice something.
Building the great
startegy should let us to swim with the tide. It have to keep some flexibility
to adjust ad hoc some changes and searching resources, to keep up.
*Harvard
Business Review, 2010, July-August, page 102-107;
1. Harvard Business Review, 2010, July-August, page 102
2. Harvard Business Review, 2010, July-August, page
103
3. Harvard Business Review, 2010, July-August, page
104
4. Harvard Business Review, 2010, July-August, page
105
5. Harvard Business Review, 2010, July-August, page
106
6. Harvard Business Review, 2010, July-August, page
106
