The competitive global marketplace shows little mercy for organizations that are slow to raise the bar for their customers and their employees. Business value tied to external marketplace drivers tend to be strategically focused and is created by:
- Anticipating changes in the marketplace.
- Building decision alternatives based on a variety of implications (i.e., financial, cultural, geographic).
- Considering risk in strategic decisions.
- Taking action that has broad and long-term implications.
Realistically, fewer roles within your organization will be focused on external marketplace drivers. These roles are focused primarily on strategy – looking around the corner to see what is coming before it comes, and knowing where to go before others get there. These roles possess some degree of individual value, as all roles do, and some degree of business value tied to internal financial drivers. Yet, the majority of the focus of these roles is on broader, long-term outcomes.
External marketplace drivers are typically segmented into two core areas:
- Economic drivers – inflation, interest rates, insurance rates, unemployment, new housing starts, and retail sales.
- Competitive drivers – strategies of competitors, buyer alternatives, and advances in technology.