Michael Porter's new article on US economic strategy -or the lack thereof- shed revealing light on the limitations of conventional approaches to strategic thinking and planning.
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As we argued in Capital Intelectual, in a globalized world where competition comes from everywhere, strategy internally defined by a single organization is not a viable proposition.
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Strategy implementation depends critically on the quality and quantity of "social capital" available -infrastructure, access to trade, doing business ranking, support to entrepreneurial activity, avialability of high-quality human capital, health, social security- measured by several indexes such as
(a) World Bank's Doing Business Ranking (DBR)
(b) UNDP Human Development Index (HDI) and
(c) Heritage Foundation's Index of Economic Freedom.
Take a look at the Indexes.
Forget for a moment the "ranking" and look at the indicators they measure. Think about your own"ecosystem"
All these indexes show the social support for wealth creation and entrepreneurial activity.
Additionally, organizations must devel,op active strategies to organize value creation chains and adequate social ecosystems for their businesses.
Porter's article shows how past US economic success came from strong regional ecosystems -West Coast media and IT clusters, East Coast bioengineering corridors and Midwest manufacturing infrastructure- and to what extent its future depends on recovering these ecosystems performance with clear government policies.
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Discussion Questions
- How can we at PII develop strong ecosystems?
- What are the areas of the "doing business ranking" we should improve?
- How could we do it at our "cluster", value creation chain level?
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References
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