labels: celerant consulting, industry - general, economy - general, consulting
New study analyses corporate America''s competitivenessnews
Our Corporate Bureau
23 July 2003

New York: With corporate America in the midst of a fundamental change - driven by the downturn in the US economy, corporate scandals and the events caused by international terrorism - US executives seem to be taking a more pragmatic, sober and in some cases contradictory view of the ability of US companies to compete abroad.

This is one of the conclusions drawn from a new survey commissioned by Celerant Consulting, the global operational strategy and implementation specialist, and conducted by Lieberman Research Worldwide.

According to the survey, senior managers at Fortune 1000-type companies find themselves in an environment that is more global, more competitive, less protectionist, less ethical and ultimately more value-driven than even five years ago.

Most executives (87 per cent) say high taxes bring competitive disadvantage to American companies, and three-quarters (73 per cent) find over-bearing government regulations - particularly "strict environmental regulations" - to weaken their position in competing globally. Nearly two-thirds (61 per cent) cite "tough rules governing trade and investment" as a disadvantage facing American businesses.

The views of these businesspeople, however, are not that straightforward. For example, in spite of their concerns, executives in the study express clear confidence in America's global competitiveness: More than 90 per cent of those surveyed feel they can compete "effectively" internationally, while nearly 60 per cent of respondents believe that domestic businesses can compete "extremely well" overseas.

The survey respondents cited advantages such as the creation and application of the US intellectual property and knowledge base, skilled labour, natural resources and the widespread use of information technology, including the Internet.

An interesting contradiction involving product quality and profitability also emerged from the study. A majority of the respondents (54 per cent) felt that American business culture places profitability ahead of product quality, with US companies more interested in "making a profit" than "making a quality product."

However, nearly two-thirds of these same executives feel strongly that increased product quality "definitely results" (57 per cent) in driving increased profits and a further 37 per cent believe that it "may result" in increased profits. This same group feels that product quality has improved over the past five years, increasing profitability, boosting American business confidence levels and improving their companies' overall ability to compete in international markets.

Quite possibly, it is this connection between product quality and profitability that leads senior decision-makers in the study to give a clear endorsement of performance management systems, such as Six Sigma and Lean Manufacturing, with an awareness rate of 86 per cent for at least one type of performance management system.

These systems involve processes used to increase a company's operational efficiency, particularly around the values of quality, customer satisfaction and profitability. Of respondents surveyed, 87 per cent feel that performance management systems help improve product and service quality and make companies more efficient, profitable and successful.

Dwight Gertz, Celerant's president of the Americas, says: "It is encouraging to see that recent world events have not side-tracked American managers in their self-confidence, and in their conviction that dedication to operational excellence will keep American companies competitive in the global economy.

"The purpose of this survey was to uncover and better understand the competitive issues that senior executives at Fortune 1000-type companies confront daily and reveal what they believe to be the critical success factors to effectively manage and master ever changing business challenges and add value in today's highly competitive and increasingly global marketplace."

Overall, American businesspeople are spending more time at work than they did five years ago. Work hours have increased by nearly a third during this period. Increased time at work is especially prevalent in the transportation, construction and agriculture industries with 85 per cent of respondents confirming that they are working longer hours than five years ago.

The survey was conducted by Lieberman Research Worldwide on behalf of Celerant Consulting during the months of March and April 2003, with a sample size of 201 senior executives randomly selected from Standard & Poor's Corporate Directory. Most of the companies interviewed were Fortune 1000 type companies.

There was a focus on manufacturing companies due to that industry's experience with performance management systems.

Celerant Consulting provides operational strategy and implementation services and prides itself on being the consultant most able to help organisations progress rapidly from thinking differently to acting differently.

Headquartered in London, Celerant Consulting has a 15-year track record and an established presence throughout Europe and North America. The majority of its clients are the top 1,000 companies in the world across energy, process, manufacturing, fast-moving consumer goods and infrastructure industries. Celerant Consulting is an affiliate of Novell Inc.


 search domain-b
  go
 
New study analyses corporate America''s competitiveness