According to a study sponsored by Gemini Consulting, to succeed in an increasingly complex and competitive marketplace, business leaders are creating regenerative organizations that address a spectrum of issues simultaneously and develop people who are transformational leaders. The study indicated that in contrast to the 1980s, when businesses were internally focused and their emphasis was on downsizing, quality, and customer service, today's companies are focused on multidimensional growth by being organized around customer requirements and being flexible enough to meet new market conditions.
Operational excellence is no longer a source of sustainable competitive advantage.
Businesses are not prepared for the future. The study found that critical gaps in performance, trust, and effectiveness exist between top management and the rest of the organization. Senior executives' perceptions of organizational performance excellence in almost every key capability area, including customer focus and flexibility, were more positive than mid-level managers' perceptions. The new leadership challenge is to engage the entire organization in continuous regeneration. Businesses are less globally minded that what might have been expected.