External Developments

• govermental policies
• technology changes rapidly
• environmental concerns
• changes in relationships with customers and suppliers
• shifts in industrial zones
• completition intensifies
• customers take charge

And About Internal Changes

• change becomes faster with ever increasing requirements
• change becomes more complex
• the degree of change in changing

External Development put a lot of strain on the Performance

Performance criteria —– requirement —–> External Developments
| effectivity
| efficiency
| flexibility
| innovation
| quality
*according to external effect

Coping with:
- uncertainty
- variations
- ambiguity
- shorter response times
- improved quality and reliability levels

Coping successfully with External Developments depends on Organizational Characteristics

External Developments

Requirements

Adaptability

Performance criteria — Degree of success— Organizational characteristics

vision and strategy -
structure and functions -
people and culture -
systems and method -

How adaptive and successful is your organization?
Is your speed in performance improvement on the leading edge or is your rate of improvement flat?

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