Management - 12manage

Re-defining Comepetition?





Other Views by this Author:

What advances are being made to progress our thinking on competitive forces, is there a need to define how we look at competitive process?


Micheal Porters work on competition has featured high in making sense of behaviour that at times seems non-sensical.

Indeed, my recent efforts to make sense of emergent behaviour with the health care sector in the UK relied heavily on the Harvard School Model of competition, or Structure-Conduct-Performance, and Porters Five Forces, not least as this meta framework still holds sway as the thought sytem defining a relevant market in EC law.

This said other models do exist, and of particular note is the Post Chicago Model, which provides for analysis of competition at the level of behaviour, and by this I mean at the level of the individual and organisation; personality still has much to do with determining success factors in the development and management of immature markets like health care,and as we've seen has given rise to commentary on neuro-organisational techniques of change and leadership, Peter Senge's work on the Fifth Discipline being the most noteable of late.

But. and this is the rub or choke point, something is missing - the obvious.

Re-hashed popular truths about public services in the UK do not stand up to testing; Applying the Kraljic Matrix alongside a Resource Based View of Effectiveness has shown an alternate way of thinking about these emegent markets and is, I have found, more closely aligned to the EC definition of 'effective competition'.

Nevertheless, current thinking convention ties analysis of competitive behaviour to either the Harvard School or Post Chicago School. The case illustration attached is an attempt to make sense of this dilemma, suggesting that the application of the pigou-daltion priniple of transitivity may offer up an economic rationale to meet with both the priniple of solidarity and prioritisation.

It does however, require a fresh understanding of the defining attributes of competition and I would suggest that this may be achieved by the application of the Kraljic Model and Value Net Parts - my own stab at this is called Kion (greek word for meaning) which is a conceptual model that integrates Kraljic and Value Net Parts as part of a Road Map that places democratic processes at its very heart.

To see more I invite you to go to the link provided, my work is far from complete or comprehensive but I am certain that unless our thinking shifts then the much needed efficiencies needed in UK health care will be absorbed by the costs of running the 'new back rooms' which will absorb the confusion and uncertainty as the newness of these issues in this sector take away energy needed at the sharp end.

The UK is poised to lead Europe in this complicated area, it is now a question of where are we being led to.

  |  More on this Interest Area   |  More on this View
-2
Copyright 2009 12manage - The Executive Fast Track. V10.4 - Last updated: 22-11-2009. All names tm by their owners.