Top Class Competitors

Three decades ago competitiveness was unheard-of; today it has taken the world by storm. But what is it? And will it last? In Top Class Competitors Stéphane Garelli - professor at IMD business school where he is also head of the World Competitiveness Centre, professor at the University of Lausanne, and former managing director of the World Economic Forum - defines competitiveness as the ability of a nation, company or individual to manage a set of disparate competencies to achieve prosperity. For instance, along with traditional policies a nation must tackle education and security to sustain economic development. Companies must manage soft issues such as brands to beat the competition. And individuals must reinvent themselves to survive. These fields of research did not exist until recently - now, competitiveness makes the link.

Top Class Competitors is a journey through the brave new world of competitiveness. What are its historical origins? How does it impact the management of a nation? How do companies thrive on it in an international environment? What is the impact on work structures and value systems? Above all, is there a competitiveness mindset? Exploring how competitiveness works, Stéphane Garelli shows why competitiveness is the most powerful tool available to unleash new levels of prosperity for nations, profit for companies and success for people.

Acknowledgements ix

Credits xi

Prologue xiii

1 Competitiveness: Changing the Mindset 1

2 The Long and Winding Road to Competitiveness 31

3 Working out National Competitiveness: The Cube Theory 61

4 The Extended Enterprise 117

5 Competitiveness and Work: A Love–Hate Relationship 153

6 Competitiveness and Value Systems 181

7 Competent People and Competitive People: They Are Not The Same . . . 217

Epilogue: A Beautiful, Competitive Mind 251

References 259

Index 265

"...this book aims to provide the answers to these and much more." (Credit Control, May 2006)

"...a fresh perspective...worth a read." (Gulf Business, August 2006)

"...a forward-looking book...could easily be a reference text for students of economics, business studies .... Well written and authoritative...." (Edge, November 2006)

About the author

Stéphane Garelli is a world authority on competitiveness, having pioneered work in the field for 25 years. He is a professor at the Institute of Management Development (IMD) in Lausanne, Switzerland, where he heads the World Competitiveness Centre, and also an associate professor at the University of Lausanne where he teaches competitiveness of enterprises and nations. He was managing director of the World Economic Forum and director of its well-known Davos Annual Meetings for many years. Besides his academic career he has worked closely with several large global enterprises, in particular as a special advisor to Hewlett-Packard in Europe. He is also closely involved with public management and politics, having been an elected member of the Constitutional Assembly of his local state in Switzerland. He is a member of numerous international institutions and boards, regularly speaks at major conferences on competitiveness, and is chairman of the Swiss newspaper Le Temps.

Competitiveness, is the most used and abused term in modern economics. Three decades ago it was unheard-of; today a Google search produces more than 35 million matches. Competitiveness has taken the world by storm with frequent name-checks from politicians, business leaders, journalists and academics alike. But is competitiveness a fad or for real? And, incidentally, what is it exactly?

Competitiveness, as defined in this book, is the ability of a nation, company or individual to manage a totality of competences to attain prosperity. Success today depends on more than managing a few well-established core competencies. Along with traditional policies, a nation must also tackle education and security to sustain economic development. A company must manage 'soft' issues such as brands and perceptions to beat the competition. And individuals must reinvent themselves and expand their skills to survive. These fields of economic research did not exist a few decades ago. Today, competitiveness makes the link.

Top Class Competitors is a journey through the brave new world of competitiveness. What are its historical origins? How does it impact the management of a nation? How do companies thrive on it in an international environment? What is the impact on work structures and value systems? Above all, is there a competitiveness mindset? Exploring how the concept works and how its issues are intertwined, Stéphane Garelli shows why competitiveness is the most powerful tool available to unleash new levels of prosperity for nations, profit for companies and success for people.