Changing my role
I have just accepted a new role inside TietoEnator as part of a small team tasked with building growth and profitability strategies at a group level. This is a great opportunity to see and understand the wider workings of the company and I really excited about the year ahead.
One of the first things I discovered was the important “z-axis” for profitability strategies. I now know that there are three dimensions for a global enterprise seeking profit improvement. The x-axis is EBIT level – this is the absolute return from the business. The y-axis is the growth level – this is the pace, speed and energy of the business that helps it to be future-proofed. The elusive z-axis is interesting though – sort of the glue that keeps x and y moving in the right direction – and today it is global sourcing for a global company.
Global sourcing drives more than just cost level improvements. I believed it creates the creative friction that is needed to stimulate organic growth, and drives profitability not through cost reduction, but through speed, efficiency and enthusiam.
So the full colour picture for the modern global business is really made of RGB – offshore Resourcing, organic Growth and increasing the Bottom-line. If you can focus on the full colour picture, the future for your business will be more vibrant, more interesting and ultimately more rewarding for all that are involved. Why watch the world in the black and white, when you can have full colour with RGB?