The human factor in business is more important than ever. Organizations must be responsive to their workers. In another sense the customer is the hedgehog, asserting independence and no longer tied to product loyalty. Power is shifting away from the producers of goods to those who buy goods and services. The health care industry is a good example of how consumer power has altered the way health services are offered to the public.
Customers are more demanding and are aware that they can go elsewhere to spend their money.
The final challenge of change that organizations face today is not only that tools and technology keep moving and changing, or that customers are more demanding and employees want more rewards and power now, but it is also that the very structure of the game itself is changing, the boundaries between industries are blurring and the boundaries between countries are blurring. Top down chains of command will not work in an era of rapid and unpredictable change. Fast - no top down management can respond to change as rapidly as smaller divisions and departments can, so organizations must count on action taken by individuals. The job of the management, then, is transmitting values and priorities to the ordinary people in the organization. Both innovation and speed in processing are needed.