The Onus Is on Business Leaders: The Way To Create Jobs? Create Entirely New Markets While Expanding Existing Markets, a Two-Part Business Transformation
LEXINGTON, MA--(Marketwired - Mar 6, 2017) - The talk of Washington and Wall Street may be "pro-growth" policies aimed at job creation. But government policy is not the real driver of job growth. Businesses create jobs by expanding existing markets and creating new ones: a powerful tool solely in the hands of CEOs and business leaders, not government policymakers.
According to the growth strategy consulting firm Innosight, business and market transformation -- bringing access to a lot more products and services, for a lot more people -- is what creates jobs. The personal computer, for example, opened up the constrained markets for mainframes and mini-computers. Entire new industries and business models sprung up to serve the exploding global demand for "computing" -- creating millions of jobs in the process.
By contrast, policy reforms enacted in Washington -- e.g., revamping America's regulatory or tax systems -- may help improve business operations, or the overall business climate, but they are not sufficient to drive the kind of job creation market watchers are hoping for.
"If all of a sudden America is flooded with repatriated capital, for example, history shows that it will most likely be used for things like stock buybacks and M&A," says Innosight Managing Partner Scott Anthony, co-author of the forthcoming book Dual Transformation: How to Reposition Today's Business While Creating the Future (Harvard Business Review Press, April 2017). "Investors and hedge funds may be happy with higher stock prices or more transaction flow, but that doesn't create jobs."
"Rapid, widespread job growth comes from the creation of entirely new markets and the transformation of businesses, even entire industries, to meet new demand," says Innosight Senior Partner, Mark Johnson, and co-author of Dual Transformation. "But transformations of that sort, occurring at that scale, can only be driven from within by business leaders themselves, not by politicians."
Among the points that Anthony, Johnson and their co-author Clark Gilbert highlight:
"The word 'transformation' should be on the lips of every business leader in America, as well as every policy expert looking to stimulate job growth," says Anthony. "Business transformation is what creates new markets, brings new products and services to more people, and drives the kind of job growth the country needs. But transformation is a strategic business challenge, not a policy challenge. Transformation also requires vision and persistence from today's business incumbents, who have to make a deliberate choice to disrupt the status quo."
For more information, an early copy of Dual Transformation: How to Reposition Today's Business While Creating the Future or to speak with Scott Anthony or Mark Johnson of Innosight, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at +1 (212) 255-8386 or Katarina@sommerfield.com.
ABOUT INNOSIGHT
Innosight, the strategy and innovation business of global professional services firm Huron, helps organizations design and create the future, instead of being disrupted by it. Acquired by Huron in 2017, Innosight is the leading authority on disruptive innovation and strategic transformation. The company collaborates with clients across a range of industries to identify new growth opportunities, build new ventures and capabilities, and accelerate organizational change. Learn more at www.innosight.com and www.huronconsultinggroup.com.
Contact Information:
Contact:
Katarina Wenk-Bodenmiller
Sommerfield Communications
212-255-3836
katarina@sommerfield.com