Writing in the Malta Times Mr Agius Muscat the chief executive officer of the Malta Institute of Management reminds business to seriously think about the goose and the golden eggs.

Many seasoned entrepreneurs share a common belief that success in a competitive business environment is relative to their ability to cause discomfort to others while tolerating it themselves.

There is a moral and legal ‘caution zone’ in which, these business people would argue, it is acceptable to manipulate the rules of the business game. A smart leader will set the fine line and lets everybody know when they are getting close to it, and takes corrective action as soon as anyone steps over it.

All recognise that the role of companies is to make profits, but visionary leaders and managers with a genuine commitment to shareholder value do so in a manner that corresponds to the expectations of our society. There are various ways of doing this according to sector and type of the industry. Many companies in Malta act responsibly, sometimes without really realising it. Local companies play a key role in developing people’s knowledge and skills.

There have been occasions when business owners facing economic predicaments consciously decided to pay a hefty price just to protect the employment of their employees. Ultimately, it is all about sustainability and feasibility.

In today’s business environment the rules have changed and the challenges have become tougher. We are experiencing what may confidently be called a paradigm shift in the way leaders and managers need to manage organisations and, by implication, economies. Cost-cutting initiatives first come to mind in facing such new experiences.

But probably the best manual is the fairytale of the goose which laid golden eggs and was killed because of the unscrupulous greed of the farmer who believed that he could become rich overnight.

Tomorrow, such strategies will lead business nowhere but straight into the lost abysses. Essentially, the solution to the global economic mess is innovation – thinking outside the box – and embracing the principles that set the foundations for the forthcoming industrial revolution: Investment in branding; restructuring to integrate new technology; and embracing the concepts of green business and social responsibility. It is important for organisations to start recognising the need to widen the scope for business management tactics to include initiatives that aim to clarify their identity with a view to stand out in the crowd and face the challenges set by the established globalised brands. There is still scope for local businesses in the manufacturing, services or distribution industries – the trick for success, however, rests in proactively adopting a professional ID that clearly appeals to and is recognised by the target customer.

A new corporate image in the new markets must be reflected in the operations experienced directly by the customer. Knowledge of the global market is increasingly becoming accessible to the customer and only consistent efficiency and effectiveness will buy in their custom and loyalty. For companies aiming to succeed, this implies continuous change with an emphasis on e-business strategies that should integrate the organisational human element.

Success will also be determined by the degree of the company’s involvement in society, which essentially relates to building firm partnerships. We now realise the need to secure the environment and society in which we are doing business.

Notwithstanding genuine efforts on the local scene mainly spearheaded by the government, more awareness must be raised about the role and responsibilities leaders and managers carry in crafting a future for new generations.

All this comes together if it is recognised that when talented employees look to see what is organisationally or commercially acceptable in uncertain times, they do not look first at corporate policy manuals. Rather, they should look at leadership. True leaders in today’s tougher competitive markets must be winners – and winners like winning because they loathe the pain of defeat.

This is an attitude that can be developed, and business leaders need to encourage it in their colleagues. Observers have stated that the recession has ultimately done more good than harm to the business environment. For sure, it has given rise to a new redefined axiom: ‘Show me a good loser, and I’ll show you a loser’.

I like this new business model.

Here is the link http://www.timesofmalta.com/articles/view/20100221/business/managing-tougher-competition-responsibly