I was recently sent an article, by a business associate, called Challenges for Business (in 2009). The article covered by the magazine eucommerz, lists the top 10 challenges identified in the Business Risk Report conducted by Ernst & Young. Here are the top 10:

1. The credit crunch
2. Regulation and compliance
3. Deepening recession
4. Radical greening
5. Non-traditional competition
6. Cost cutting
7. Managing talent
8. Executing successful alliances and transactions
9. Business model redundancy
10. Reputation risk

A few things about this list are of interest. It’s obvious that the recession and credit crunch would top the list of concern, but what is surprising is that people elements of business are low down on the list with talent management only coming in at No 7 and customer service or satisfying customers not even cracking the top 10. When will business leaders realise that sustainable competitive advantages are now more about who you are and not about what you sell. Who you are is about the people you attract to your business, both talented and engaged staff and valuable customers. It would seem a lot of the problems businesses face today are the result of obsessing with cost cutting and being product, not people focused. Which makes it interesting that Business Model Redundancy, a new entrant on the list, makes it in at No 9. There is a concern that long established business models are becoming obsolete. Is there now a glimmer of hope that companies will start to realise that business models in the new world of work are about being people centric?

TomorrowToday Global