Run OverNote from Art: this post is written from the perspective of U.S. industry and business.   For my many overseas readers, I suspect that you face similar issues with slightly different context. Also, I’ve endeavored to not stray too far into the political arena on this topic, although in my opinion, the politicians and their policies are at the root of many of the current problems.  Of course, we as citizens hold the key to solving that issue.  However, that’s another post for another day.

Consider this post as one of robust encouragement versus a scolding.

Too many of our businesses, business leaders, citizens and politicians fail to understand, pay attention to or even appreciate the impact of the ever-changing global business environment. Or, if they do appreciate the impact, many are caught like the proverbial “deer in the headlights,” staring as the global competitors approach at an accelerating rate.

We’ve all known for a long time that the world is flattening and the advance of global trade in large part through the elimination of historical trade barriers has created a rising tide effect. We also know that for some countries, the tide has risen and continues to rise faster than for others.  Consider the emergence of South Korea, India and China as economic powers over the past two decades as three prime examples.

In my own career experience, embracing the creeping globalism and leveraging the powerful forces behind it to compete and profit have been and continue to be much like breathing.  However, step outside of the walls of your global giant or innovative tech start-up and spend some time in one of thousands of little industrial parks around the country, and you are liable to find very different circumstances.

Much of my work now occurs inside smaller firms that sprouted from entrepreneurial seeds and specialized know-how.  These firms lived and thrived for a time and many have grown considerably during the past twenty years.  A good number of these firms are specialized manufacturers or packagers and instead of expanding and adding to the job rolls in their communities, many are on the brink of extinction as a result of failing to adapt to and embrace a global world.

Disturbingly, instead of searching for solutions, adapting their strategies or even taking on the tough task of reinventing their businesses, many of these firms and individuals are standing in the road staring at impending collision and death. Often, their first response is to reach out to the politicians for “protection,” but the reality is that artificial barriers do more damage than good.

In part, I believe a root cause of this seeming inability to move and adapt stems from a still very-much-alive global ignorance on the part of U.S. business owners and operators, as well as everyday citizens. Whether it is ignorance or arrogance or, as I suspect, a bit of both, many of us lack context for anything outside of our own culture and language.  Some of my clients are puzzled at how quickly their businesses have declined and didn’t see it coming.  Much of this stems from a “head in the sand” view of the world.

Wake up people! It’s a big, competitive, inter-connected world filled with firms that want to eat you for lunch and spit out the bones.

While there are no easy or quick cures for coping with global competitors or having to serve customers that demand the lowest prices, you can certainly improve your chances of survival by challenging yourself and your team to become citizens and competitors of the world, not just American business-people and firms. You need to consider the future of your business armed with the context of a much bigger picture than the one from your office window in the suburbs of Chicago or Detroit.

A Few Starting Suggestions for Improving Your Global Awareness:

  • Instead of glossing over the World News sections of the Wall Street Journal, study it closely.  Subscribe to publications like The Economist and The Financial Times, where much of the perspective comes from outside the U.S.
  • Watch carefully and monitor as the new global economic battleground is increasingly shaped by countries other than the U.S.
  • Support the global education of your team and hire talent with a global experience.
  • Identify partners to help extend your reach or improve your ability to source and compete on the global stage.
  • Seek out the many resources available from the U.S. Government, local Business Development Centers and of course, qualified consultants.
  • Constantly rethink your business strategy from a global perspective.
  • If you don’t have a strategy, it’s time to get one.
  • Pay attention to the manipulations and machinations of our elected officials on global trade issues.  That special interest they are protecting today might sew the seeds of your industry’s doom tomorrow.

The Bottom-Line for Now:

There are no easy answers or simple solutions to playing and competing successfully in this fast changing and very, very tough global world.  However, you might start by jumping out of the way of that oncoming global competitor.  It’s time to raise your game by raising your team’s global IQ and then doing something with this knowledge.