As the organization becomes larger, it grows more complex and requires a higher level of organizational capability to compete.
- S-V – Industry platform, where our enterprise competes using industry standard practices.
- S-IV – Market platform, where our multiple systems integrate with market systems.
- S-III – Single serial system platform, where we see the introduction of warranties as a competitive edge.
- S-II – Process implementation platform (of someone else’s system, like a franchisee).
- S-I – Product or service platform, where it’s all about the product.
At S-V, Industry platform, the organization is now competing with other companies who ALL have become market responsive. How to win? Move to the Industry platform.
I always encourage my clients to join trade associations where we witness the first informal barriers to entry. Once a part of a trade association, I encourage them to become a member of the association board or an officer. Is it such a stretch to imagine that, to be a part of the association, its members should adhere to certain guidelines? The association board might well propose those guidelines, similar to specific standards created by my clients. Competitors may be market responsive, but to be a player, they must adopt and maintain performance standards equal to those of my client. Here is where we see the insistence on ISO standards or other continuous improvement platforms.
Companies at this level, because of their size, often find it difficult to adapt, hence, the barrier to entry. Tied to timespan, for a company to effectively compete at this level often requires more than five years of planning and foresight. Companies struggle to let go of processes and systems that served them well, to adopt a new level of standards that initially add to overhead with revenue opportunities that take years to build.
But if the spec says, ISO, an entire swath of companies may not compete.