What globalization means to the rep

'If globalization were a sport, it would be the 100-meter dash, over and over again."

That's how Pulitzer-Prize winning author Thomas L. Friedman described the phenomenon of globalization in his 1999 best-selling book, The Lexus and the Olive Tree.

We've referred to this book in the past in the pages of Agency Sales, but what the author described two years ago is even more pronounced today than it was then. According to Friedman:

• "Globalization is not static, "but a dynamic ongoing process: globalization involves the inexorable integration of markets, nation-- states and technologies to a degree never witnessed before - in a way that is enabling individuals, corporations and nation-- states to reach around the world farther, faster, deeper and cheaper than ever before...."
• "Globalization has its own defining technologies: computerization, miniaturization, digitization, satellite communications, fiber optics and the Internet."
• "The symbol of the globalization system is a World Wide Web, which unites everyone."
• "The defining measurement of globalization system is speed: speed of commerce, travel, communication and innovation."

With Friedman setting the stage and his words serving as an introduction, manufacturers' representatives and consultants all over the world maintain that the concept of globalization is currently - and will in the future - impact their lives.

Importance of Change

Taking issue with some of the best-selling author's views is Arthur Weiss, AWARE, a United Kingdom-based management consultancy that offers competitive intelligence services with an expertise in the United Kingdom and European markets. Weiss maintains that Friedman misses the point. At the same time he emphasizes that reps and their principals had better be cognizant of the importance of change, and adapting to change is paramount to their future success. He argues that Friedman "looks at the globalization phenomenon in isolation and as something that is linked to recent technological advances, rather than other more deep-seated factors." Weiss continues that "As I see it, the technology is, in fact, just a symptom of an underlying change in the world as our fathers knew it. Globalization is also just a symptom of that change. We have not yet seen the final result - but it is important for everybody in business to understand that change, and major change at that, is coming. The assumptions that business as it used to be conducted will continue - with the only difference being that it will now be global is dangerous. Business leaders who take this view will find themselves side-stepped by competitors who are more willing or able to change."

While Weiss isn't bold enough to venture into the world of predictions when it comes to describing how business will be conducted in the future, he does point a finger in the direction of some trends that are already evident. "Yes - things will become global," he says. "Manufacturing will migrate from high-cost centers to lower-cost areas, which, in turn, will become developed. As a result, companies that fail to take advantage of global sourcing will lose out. At the same time, the role for employees, especially in what are now the industrialized countries, will change. There will be fewer factory-type manufacturing jobs and jobs will tend to be in service sectors. Service and customer relationships will be key. And the customer truly will be king - expecting product flexibility at low cost but willing to pay for quality, design and image."

Weiss admits that these ideas are hardly new - and are not confined to Friedman. "For instance, Charles Handy, Alvin Toffler and many other management thinkers have written about the changes that will appear as economies shift from a mass-- manufacturing / industrial based to a niche production information base. Toffler describes this as a new industrial revolution -- which he dates as starting around 50 years ago. The process is still not over. Globalization, computerization and the importance of knowledge are some of the signs. Other signs include disillusionment with political systems, where individual citizens are more willing to question the established order. This impacts the power of the state itself as a guiding force. Economies become inter-linked, and many people take a global outlook. In this, computerization is just a facilitator - with the World Wide Web acting as one of several methods for communication."

He adds that all these developments can conceivably have a down side, however. "Among the `have-nots,' globally and locally, dissension and jealousy are likely to increase, leading to strife that will slow down the overall globalization process. In the end, however, I believe that knowledge cannot be constrained. Although, you will still have a `have-not' class, most countries will eventually catch up - creating a fully global economic infrastructure, where the nation-state as we know it is less important to the lives of individuals but where regional groupings of countries will become more important."

What remains is the question of how all these developments will impact the lives of manufacturers' representatives? According to Weiss, "All this will have an impact on the sales process. Some reps may find that they will be expected to serve a global marketplace, serving a particular vertical market segment only. Communication with customers will be by e-mail, videophone and similar messaging systems. Other reps may serve a local customer base, but the products they sell may be manufactured on the other side of the world, with their direct management in a third country and time zone. So, the rep will also need to take on a customer service role if he is to maintain customer loyalty and communicate with headquarters and customers outside the traditional 'nine-to-five' working slot. All in all, an exciting time lies ahead -- for those prepared for it."

... (Article continues)