Think of your latest large purchase. Was the technology or production based in the USA? Recently we purchased a Panasonic plasma flat-screen. Panasonic is based in Oaza, Kadoma. The other options were flat-screens from Mitsubishi and Samsung.
Why no USA? It may not surprise you to see that the USA has fallen from 1st to 4th in innovation-based competitiveness according to the Commerce Department. This conclusion prompted the America Competes Reauthorization Act which reported that research, education, and infrastructure has been neglected in the US.
There are many reasons for the poor US showing, but instead of pointing fingers, business consultants should be working with their clients to help innovate. Even though the report list recommendations concerning government commitment, business consultants can play a role on a micro level. Here are a few of the report’s recommendations and the possible role of a business consultant:
- Support regional clusters: Though the report encourages all levels of governments to support regional clusters (like Silicon Valley), a business consultant can facilitate the development of a regional supply chain of a client. “Just in Time” inventory system is one example where a business consultant can facilitate a client’s processes.
- Accelerate high-growth entrepreneurship: The federal government’s Startup America program seeks to match businesses with resources. A business consultant, however, can position a client’s strategically to take advantage of such opportunities. What resources are available in a particular industry?
- Promote exports and access to foreign resources: A business consultant can make a large contribution to a client in the area of exports by advising the client to register with the US EXIMBANK. The government agency insures foreign receivables allowing clients to finance their manufacturing of products to be exported.
Business consultants can play an important role in facilitating business development. Small and medium sized businesses must innovate with the view of creating a market segment where competition is (at least temporarily) irrelevant.
A recurring problem though is that most business consultants can’t implement the strategy. That is where CPA/strategists dwell. An external CPA could implement a strategy that he/she has designed.
The business consultants who are advocating this strategy during the Great Recession are now becoming industry leaders in the Great Recovery. If you, as a business consultant, have not already been promoting an aggressive strategy, then already you are behind the curve.