"He who stops getting better has stopped being good. " Hans Schneider, General Manager of the Siemens Amberg Electronics Factory, Industrial Excellence Award overall winner 2007 There is a general perception that inflexible labor markets and high labor costs are contributing to a massive displacement of manufacturing jobs and investment from Western Europe to Eastern Europe and Asia. The debate in Western Europe is highly charged, but sometimes ill-informed. It is true that some low-skilled jobs are moving into low labor cost countries. On the other hand, many more highly skilled jobs are actually being created in the highly developed countries. The total impact on Western economies is much more complicated, and there is some evidence of important benefits. In this book, we showcase examples of excellent industrial management that has managed to create substantial job growth in manufacturing. This book is based on 14 years' observation of the Industrial Excellence Award (IEA) in Germany and France, the first ten years of which we summarized in our previous book, Industrial Excellence (Springer 2003), and on an additional five years of obser- tion between 2002 and 2007. We have seen that management's first and noble responsibility to society is to achieve competitiveness. Competitive organizations create growth and jobs, even in Western Europe. Competitiveness requires clearly articulated strategic positioning, together with excellent execution, and mobili- tion of all employees to apply their abilities and to pull in one direction.
This book showcases examples of excellent manufacturing companies who have succeeded in creating value and job growth in Western Europe. The examples show managers of industrial firms how a clearly articulated strategic position can be combined with excellent execution to achieve competitiveness in Europe, in spite of the usually cited disadvantage of high labor costs and rigidity. Not every company is alike - strategic positions differ, and the means of execution differ, but what is common is a clear plan together with mobilization of all employees to apply their abilities in supporting this common plan. The book is indispensable reading for all managers that are interested in improving competitiveness.
