Large companies in North America and Europe are now losing over 250,000 jobs each year in IT, finance, and other key business services areas, due to the combined impact of offshoring, technology-driven productivity improvements, and the low-growth business environment, according to a new research update from The Hackett Group Inc.
The list of challenges facing corporate leaders today is lengthy. It includes globalization, rapidly shifting market dynamics, fallout from the European debt crisis, and a potential slowdown in Asia. It is unclear how these economic trends will play out and what impact they will have on industries and countries. Companies will also be faced with unexpected turbulence, whether in the form of adverse changes in their business or the arrival of tough new competitors. All this makes it more critical than ever before for corporate leaders to closely scrutinize the cost side of their income statement.
It is not enough for global businesses to know that in coming years China's economy will move away from an over-reliance on investment and toward more consumption. They also must know that the potential costs and benefits of rebalancing the world's second-largest economy are high and will affect industries not only domestically but also around the world.
Is reshoring (the return of manufacturing to the U.S.) really even a debate? A debate would indicate that there are two compelling sides to the argument, but from what I see, the hard and fast facts of the economy preclude a debate.
This is one of the great barriers to lean implementation: Concepts of lean are both counterintuitive and counter-cultural. Hence, if you wish to be a lean leader, you must go back to the basics and make sure you have a clear understanding before you are able to teach others.