Prospering in a global economy

In the rapidly changing business environment, managers have to decide in what direction to change their businesses, and how to effect the desired changes. Benchmarking is one technique that uses the principles of Operational Research OR and, as an example of its power, the results are summarized here of a major Andersen Consulting study of worldwide manufacturing competitiveness. But how business problems and relationships are seen is as important as what is seen. The Hofstede analysis of five cultural dimensions is discussed, together with its implications for co-operation and human relationships within the firm, and even for the formulation of strategy. The four strategy styles distinguished by Whittington reveal the importance of human and cultural factors in the very heart of business. In the battle for future markets, it is vital that the hard and soft techniques work in tandem. This paper was presented as the Blackett Memorial Lecture on 23 November 1994.