An Indian Civilizational Perspective

Competitive Advantage May be Driven by the Type of "Interactions"!

A Mckinsey Quarterly article on the Competitive Advantage will be defined more by what kind of jobs is a company strong at?

Companies that make these (Tacit Interaction) employees more effective and efficient stand to reap huge gains.

The authors say that the rub lies in making the “Tacit” – or value added interactions more productive:

Although companies have long tried to raise their productivity by automating production, competitors can easily imitate such innovations. But it may be harder to emulate efforts to boost the productivity of workers who mainly interact with customers, suppliers, and other employees—particularly now that so many of them undertake complex (or “tacit”) interactions, such as managing supply chains, rather than routine (“transactional”) ones, like recording shipments to warehouses.

Tacit interactions demand that employees make judgments based on experience and be comfortable with ambiguity. Those who undertake these interactions, such as salespeople and managers, command higher salaries and have a disproportionate impact on the organization. Companies that make these employees more effective and efficient stand to reap huge gains.

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