We are winding down our coverage of Rita Gunher McGrath’s chapter on resource allocation in her book “The End of Competitive Advantage”. Her message in this chapter is simple. The old paradigm of gathering resources around a given activity does not work as well as it used to. If opportunities are floating by more quickly and competitive advantage is more fleeting, firms need to re-think what they own and how they use what they own.
Of course, firms don’t own people. They employ them. Very different, right? Well, some folks think that the difference is less than you think. For the worker, it means getting stuck with a single client. For the emplo7er, it means a lot of fixed costs. Indeed, we are seeing a shift towards “just in time” expertise, or expertise pug ins. Is this the wave of the future? Whether it is or not, there is little doubt that those who can “plug in” more broadly will have a competitive advantage in the labor market.
Bottom line — both workers and managers of workers will be focusing more on opportunity exploitation than they used to. Hang on to your hat!
And what does one do to exploit an opportunity? The word is INNOVATE! What does that mean? That’s next! Stay tuned!