026 Companies loyalty shrink

Unlike the scenario 40 or 50 years ago, companies loyalty to their employees’ and vendors’ has all but declined, as cost efficiency is driving organisations to continually outsource whatever they can to make them smarter and more effective. But where is the employee in all of this? Today’s corporate working environment means that it is paramount more than ever before to develop yourself leadership skills and ensure your continuing competitiveness in the market.

Bye-bye loyalty

Back in the day, loyalty was a key value in the relationships that companies once held. It was the norm back then for a person to join a company as soon as they became of working age, only to stay with the same organisation until retirement. Today we are facing a very different environment. Loyalty has all but shrunk as organisations have developed a big-picture view of how they operate, driving them to outsource more and more tasks to other vendors as they seek to streamline their businesses. IT and Marketing are the prime example of this trend, as companies seek cheaper running costs.

For larger manufacturing businesses, back a few decades ago the decision-making they were taking was centred around best to organise their factories – today that conversation has changed to where in the world shall I run my factory, as overseas options become more attractive for their low labour costs. Whole industries have increasingly scaled back their business divisions, relying on outsourced specialists to deliver their final product to the end-user. The automotive industry is a prime example of this, with almost all parts of a car produced by other manufacturers, elsewhere in the world, to be finally assembled and branded by the likes of a company such as Porsche. Increasingly as more and more companies provide specialised services, whole industries are scaling back entire teams, as company CEO’s drive efficiency as their primary aim.

Smaller businesses too are looking at how they can optimise their own resources, relying on the support of their business networks. If an entrepreneur is successful, then they have a team of people helping them.

So, what now?

So where does all this leave you? Well, the first is that as jobs are increasingly at risk, you need to be more competitive. The second is that to become more competitive, you need to become a leader.

So what is a leader?

To recap on the definition of a leader:

Employees’ do the work.

Managers work the work.

Leaders work the organization.

What’s in a leader?

Being a leader is synonymous with being a visionary. An individual who creatively disrupts entire industries. Elon Musk is a prime example of this with his electric car brand Tesla.

A leader seeks opportunities, changes, and loves disruption – making sure their company stays on its toes and creates more value today than yesterday. In turn, you need to be on your toes, because you too can be outsourced all too easily.

So what does a good leader do that sets him apart? How do you differentiate management from leadership? Listen on for this edition of Live It, Lead IT! to hone your leadership skills are leave your mark where it counts.



Olaf Kapinski