These are not simply private sector realities. Not-for-profits, hospitals, schools, and governments all experience these environmental challenges as the world shrinks and the seeming pace of change accelerates and increases in complexity. Not-for- profits or NGOs (nongovernmental organizations) and various governmental bodies respond to hunger in war-torn Somalia and Syria; public universities and hospitals respond to for-profit competitors. Governments around the world deal with issues related to enhancing their economic competitiveness and attracting employers, hopefully in sustainable and socially responsible ways. No one is immune.
Sometimes organizations are caught by surprise by environmental shifts, while other organizations have anticipated and planned for new situations. For example, management may have systems to track the perceived quality and value of its products versus its competition’s. Benchmarking data might show that its quality is beginning to lag behind that of a key competitor. These environmental scanning and early warning systems allow for action before customers are lost or provide paths to new customers and/or new services. Toyota had such systems in place, but management appears to have responded inadequately.
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