Therefore, organizations should capture the opportunities faster than others. I have to say that opportunities are changing faster than before and companies should create transient competitive advantages.
Look at around and see the dramatic changes in technology, life cycle of products and customer behaviors! Clearly, the idea of sustainable competitive advantage is increasingly irrelevant according to the strategy expert and professor Rita Gunther Mc Grath.
When I look at Turkish business, I see that some companies are applying short-termism. This short-termist policy creates employee engagement problems, lower productivity and growth. They only focus on the short-term profits. What type of problems they can face in the long-term, they don’t consider. Paul Trott defines that Turkey’s location is very strategic and there are enormous opportunities for being an industrialized economy. Applying short-termist policies delayed economical growth of Turkey, according to Paul Trott, who is Professor in Innovation Management and Entrepreneurship.
According to my experience and knowledge in Turkish business, there are great opportunities in capital creating. I see that these opportunities can easily be found within a firm’s organization, local and global competitive arena, existing customer base, offerings, internal processes, suppliers and networks and so that they can realize a sustained and profitable growth by investing in right fits, employee engagement, development of skills, productivity and innovation.
Therefore, I have established Innovation Turkey to support the companies that want to improve their productivity and competitive innovation ability.
It is clear that businesses can only survive by continually responding to the world around them. They have to use new technologies and knowledge or exploit new global markets to achieve growth. Increasing complexity, uncertainty and competition in business conditions creates seismic shocks to the companies. Companies should take necessary actions if they want to survive. Of course, employers, employees, educators and governments should perform their homework in a competitive manner. Otherwise, companies will face in failures in the long-term and this leads to higher unemployment rates, skills gap, increasing vacancies and decline in growth and productivity.
According to my experience in multi-industry, there is an opportunity to achieve great recruitment cost savings and productivity increase.
Productivity is at the heart of effective business operations and has a direct impact on an organization’s capacity to efficiently create a value. Now, we will study the stakeholders for success in business. These are employers and employees.
If employees are less adaptable to the company operations, there will be loss of productivity.
Queensland Business Innovation Survey Report 2014 shows that innovative ideas can be obtained from different sources and firm itself has 58.8% effect.
A global study carried out by PwC in 2013 and Linkedin has valuable data.
· 63% of CEOs worldwide worry about the availability of the skills of people in the market. This is also relevant for Turkish market. When I visit different companies I see that they have difficulties to find right skills and adaptable people. Their productivity and innovation capability is less. This shows the ability and willingness of employers and employees to adapt to changes in local and global business conditions, customer behaviors, technology, service, supply and demand and align skills with available opportunities. If this alignment is less than perfect, the organization can’t catch the optimum productivity and innovation capability.
· Talent adaptability score is at maximum (85) for Netherlands and minimum (23) for China in 11 countries that studied.
· Organizations can create greater returns through their investment in people adaptability and skills. For example, if they invest in talent adaptability and right skills; 11 countries can totally achieve extra USD130 billion of productivity, USD65.5 billion in China, USD 29.3 billion in the USA and USD11.7 billion in Brazil. These are great capital values.
· Well-matched and right skilled employees are more engaged and their experience and also knowledge are well-suited to their role and short-term resignation rates and recruitment costs are less.
1. Innovation is vital for the long-term productivity growth in the local and global markets.
2. There is a strong and important link between innovation activity and improvements in capital and labour productivity. Therefore, companies should focus on them.
3. There is a great cost saving and increase in productivity potential for businesses, if companies hire and work most adaptable talents, increase engagement, invest in right skills and implement innovation management into their management strategy. This will create competitive growth, profitability and capital.
4. Employees should invest in their careers and skills that they need for the future. This should be a long-termist approach and cover the future local and global market needs.
5. Employers should invest in the right recruitment process, recruiting best adaptable talents, applying systematic and continuous employee training, reskilling the aging people, greater competition and innovation management.
What are the benefits of employee training to the companies? How is your experience?