Bestselling Author, Researcher, Entrepreneur and Business Adviser Michael Treacy shows leaders how to look at competition, customers, people, finance and markets in a new way – laying out the pathways for global growth and market leadership. Globalizing markets is an opportunity of a lifetime. The size of the middle class is about to triple worldwide due to increasing standards of living across the globe. Companies that lean into the future and focus will dominate and increase scale, scope and power. Those who don’t are at risk. Treacy is a veteran voice on such issues.
In the 1990s he showed how to gain a competitive advantage through value leadership in his bestselling book The Discipline of Market Leaders. A decade later in Double Digit Growth he proved how rapid, steady and profitable growth can be dialed up on purpose.
Now Treacy’s radically different thinking is again leading the way – helping leaders assess the global opportunity and face an unprecedented globalizing marketplace that brings with it an assault by upstart competitors who are smart, motivated and who take the long view. Treacy’s clear strategies help leaders in businesses large and small. He draws on over 30 years of experience as a researcher and adviser – he has helped some of the world’s best known companies achieve growth and innovate their way to greater profitability in unpredictable times.
Treacy also takes his own medicine; the venturing arm of his consulting and research firm, Treacy & Company, applies his strategies to its portfolio of seven fast-growing companies. Each year they fund and launch at least one new start-up that has the prospect of being a game-changer in the markets they target.
A former professor of management at the Sloan School of Management at Massachusetts Institute of Technology, Michael Treacy has published numerous articles over the past two decades in magazines and journals and is a frequent contributor to the Harvard Business Review.
MARKET LEADERSHIP IN A GLOBALIZING ECONOMY
Globalization is a relentless march that affects every industry, every job function, every market segment and every company. Globalization of competition is both a threat to established leadership in developed markets and a once-in-a-lifetime opportunity for dramatic growth in developing economies. This is an overview of this new environment:
- Understand how upstart competition from developing markets look at the world differently and what it takes to blunt their inherent advantages.
- Recognize the signs when your market is about to globalize and what actions your firm must immediately take to get on an offensive footing.
- Explore the hidden costs of opportunistic dabbling in a developing economies and what it really takes to commit to market leadership in these markets.
- Discuss how local markets are shifting toward common standards of value and how that trend is shifting the optimal balance of locally customized vs. globally standardized offers.
- Understand how low cost upstart competition will reshape the customer value equation in domestic markets and make it more difficult to obtain traditional price premiums for superior products and services.
- See the potential to create a globe-spanning operating model, where the best capabilities from around the world can be lashed together to create advances in product innovation, demand generation, and product supply.
- Recognize the challenge of leaning into the future, all the while balancing the opportunities for greater short term profits in developed markets with the imperative of long term market leadership in an evolving world.
- Learn to avoid the five common mistakes companies make:
- Placing short term profit opportunity ahead of BRIC market leadership
- Targeting value propositions for where the market is today rather than where it is going.
- Organizing for where the business has been rather than where the market is going.
- Delegating international responsibility to foreign nationals.
- Not learning and progressing at the speed of the market.
STRATEGY, INNOVATION & GROWTH IN A GLOBALIZING ECONOMY
Globalization of markets will bring broadly different companies into direct competition with each other all around the world. To win against this competition, a company will need to harness its know-how and reach to rebuild globe-spanning capabilities for product innovation, demand generation, and product supply. This presentation provides a framework for moving forward:
- Explore how rising transportation efficiencies and coordination capabilities are tearing down market boundaries.
- Recognize the four stages of market globalization and how to avoid getting caught flat footed when your market transitions to the next stage.
- Gain the experiences and learnings of companies in naturally globalized markets, including travel, payments, and freight.
- Discuss the four capabilities along which markets globalize—product supply, demand generation, product innovation, and customer demand—and what will be the next driver of globalization in your market.
- Evaluate the rise of common customer demands for value worldwide and whether it is occurring in your market. The biggest variation from market to market is in the mix of customer segments, not the customers themselves. While some important local customs and traditions will endure, we are all more alike than we care to believe.
- Explore how to disable the Rise from the Bottom strategy employed by Hyundai, Sany, Ranbaxy and other upstart companies challenging for global market leadership; they build a base of demand through low prices, expand market reach with rising product quality, and then use product innovation to go head-to-head with established market leaders.
- Learn how other upstarts Globally Exploit a Local Advantage to achieve hyper-growth – including Wipro, Foxconn, and ICICI Bank – but are in a race against time before their advantages run out.
- Discuss the strengths and weaknesses of the Global Standards of Innovation strategy, deployed by companies such as Caterpillar, BMW and LVMH worldwide, in which the companies offer a common standard of product features and price premium worldwide under the assumption that markets will evolve to their standards. It’s a bet they aren’t likely to win.
- Learn how YUM! Brands and AO Smith have Localized their Global Expertise to gain a rapid advantage in developing markets and what advantages and disadvantages this globalization strategy holds.
LEADERSHIP IN A GLOBALIZING ECONOMY
Achieving market leadership in a globalizing economy is the leadership challenge of a generation. When the dust settles, everything will be different – the composition of the management team, the design of core capabilities, the locus of operations – except the need for a single culture and a single standard of performance worldwide. Global market leadership will demand change on a scale that most organizations have rarely seen. Leaders at every level will benefit from this:
- Explore the need to construct a compelling case for action for moving from a multi-national to a global operating model and the important role of vision in creating and communicating an exciting picture of the organization’s future.
- Discuss alternative organizational structures and whether your structure reflects where the business has been or where your market is going.
- Understand how the globalization of operating models will dramatically change the locus of work and hiring needs around the world.
- Discuss the challenges and solutions to building a unified, high performance culture in an increasingly diverse workforce spread all over the world.
- Explore how to in-country leadership teams can be built that combine local knowledge with global knowhow – two-in-a-box leadership that partners local nationals with rising star expats.
- Understand how people recruiting and development must change as a business evolves from a multi-national structure to a global operating model.
NATIONAL POLICY FOR A GLOBALIZING ECONOMY
Market leadership in a global economy is the fight of a lifetime in which nothing less than the national interest is at stake. What must policy makers and shapers do to create national policies that ensure competitiveness, job gains, economic growth, and international prestige and security? There are new rules for the future:
- Understand how the United States lost market leadership in the textiles industry and with it, almost one million domestic jobs. Explore how national policies contributed to U.S. companies being unprepared to fight for global market leadership.
- Explore the role that wage rates, labor productivity, and fiscal policies play in a nation’s global competitiveness and how labor arbitrage from one country to the next is changing how companies think about where jobs should be located.
- Discuss the importance of innovation in driving labor productivity and how both the business environment and education system dramatically affect a nation’s ability to sustain innovation.
- Explore how four factors determine whether a business environment drives higher levels of innovation – competitiveness of domestic markets, ease of access to capital, labor flexibility, and levels of regulation – and how national policy shapes those factors.
- Discuss the important role that immigration policy and education capabilities serve in producing talent of superior skill and motivation and winning the global battle for jobs.
- Evaluate how corporate and individual tax policy affects where corporate headquarters, operations, and jobs are located.
- Explore the special advantage that the U.S. post-secondary education system provides to our national competitiveness and what we must do to improve that system in a globalizing economy.
Michael Treacy is the President and founder of Treacy & Company. He brings over 30 years of experience helping companies achieve market leadership. Mr. Treacy’s ideas about customer value propositions and growth disciplines have been used by companies across the globe to reshape strategies, bolster competitive positions and dramatically improve top and bottom line performances.
Mr. Treacy’s views have been shaped by his rich experiences as an academic at MIT, as an advisor to some of the most successful firms of the past decade, and as an entrepreneur who has established and led several successful firms. In his career he’s encountered and surmounted almost every obstacle to achieving exceptional company performance and building extraordinary firms.
Michael Treacy’s books have gained international attention. In the 1990s he showed how to gain a competitive advantage through value leadership in The Discipline of Market Leaders a New York Times bestseller. It outlines the principles of leadership in a competitive marketplace – focused on an unmatched customer value proposition delivered through a unique operating model design. Many companies large and small have adopted these principles to drive their own business strategies and build competitive advantage. A decade later in Double Digit Growth, a Business Week bestseller, he proved how rapid, steady and profitable growth can be dialed up on purpose.
Now Mr. Treacy’s radically different thinking is again leading the way – helping leaders assess the global opportunity and face an unprecedented globalizing marketplace that brings with it an assault by upstart competitors who are smart, motivated and who take the long view.
With the size of the middle-class is about to triple worldwide due to increasing standards of living across the globe, they represent the opportunity of a lifetime. Companies that lean into the future and focus will dominate and increase scale, scope and power. Those who don’t are at risk. Michael Treacy’s clear strategies help leaders in businesses large and small – showing leaders how to look at competition, customers, people, finance and markets in a new way and laying out the pathways for global growth and market leadership.
Michael Treacy also follows his own advice; the venturing arm of his consulting and research firm, Treacy & Company, applies his strategies to its portfolio of seven fast-growing companies with extraordinary results. Each year they fund and launch at least one new start-up that has the prospect of being a game-changer in the markets they target.
A former professor of management at the Sloan School of Management at Massachusetts Institute of Technology, Michael Treacy has published numerous articles over the past two decades in magazines and journals and is a frequent contributor to the Harvard Business Review. He is also currently engaged in a major research study to understand the performance discipline that allows certain companies to routinely achieve high performance – in growth, cost control, safety, or other important goals – while other firms struggle with uncertain results.
Mr. Treacy received his PhD. from MIT and his engineering degree from the University of Toronto. He has served as a board member for several leveraged buyouts and new ventures. Mr. Treacy resides in Needham, Massachusetts with his wife and three children.