„Hidden Champions of the 21st Century“. Presentation for the Conference. "Top management: Challenges and Limits of Competition". Harald L. Hidden Champions of the Twenty-First Century (eBook, PDF). The Success Strategies of Unknown World Market Leaders. Hidden Champions of the. Hermann Simon. Hidden Champions of the Twenty-First Century. Success Strategies of Unknown World Market. Leaders. 4y Springer.
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Hidden Champions of the 21st Century. Prof. Dr. Dr. h.c. Hermann Simon. The Success Strategies of Unknown World Market Leaders. Editorial Reviews. Review. From the reviews: “Hermann Simon's detailed study of Hidden Champions is phenomenal in its depth and rich coverage. Hidden Champions of the Twenty-First Century Digitally watermarked, DRM- free; Included format: EPUB, PDF; ebooks can be used on all reading devices.
Jan 17, Harris Perlman rated it it was ok Lessons from the 'Hidden Champions' analyzed in this book could have easily been condensed into a much shorter text. May 10, Turgut rated it it was amazing Excellent book on the characteristics of great companies. The conclusions are well reasoned and documented and the lessons one can gain from this book are easily discoverable. My one complaint is that it is not very readable. It is way too dense and repetitive. I found myself skipping paragraphs because the point had already been made and now was being belabored. It still could be a valuable addition to your business library, but for reference use only.
Kaercher, a world leader in high pressure water cleaners, seriously started its internationalization in the s and since then has added one, two and sometimes three countries to their market presence every year. It has now 75 own subsidiaries all over the world.
Due to this process we see a transformation of Hidden Champions from Transatlantic to Eurasian companies. Because of the stagnating economies in the US and Europe in recent years and the simultaneous growth in Asia, this shift is happening much faster than anticipated. One does not become and stay world market leader by imitation, only by innovation. Even more important is the output. Hidden Champions have five times more patents per employee than patent-intensive large corporations. And with the Hidden Champions the costs per patent are only one-fifth of the costs in large corporations.
What is the driving force for innovation? Market, technology or both? The challenge of innovation is the integration of technology and customer needs. One extremely innovative company is Enercon. And they have exceptional ideas, such as the "E-ship" which uses so called Flettner-rotors to harness the power of the wind.
The efficiency of a Flettner-rotor is 10 to 14 times higher than that of a classical sail. While larger companies throw huge budgets at solving problems, the Hidden Champions devote very few dedicated people to find new solutions. This is why their costs per patent are much lower. Closeness to customer and competitive advantages Closeness to customer is the biggest strength of the Hidden Champions, even ahead of technology.
The biggest overall strength of the Hidden Champions is not technology but the closeness to their customers. This is a natural advantage of smaller and mid-sized companies.
Especially pronounced is the closeness to top customers. Grohmann Engineering makes systems for the assembly of micro-electronic products. Grohmann says: "My market is the top 30 customers in the world". Among his customers are Intel, Motorola, Bosch etc. According to Grohmann these customers are never satisfied. Top customers as drivers to higher performance are a typical aspect of the Hidden Champions' customer relationships. The strategies of the Hidden Champions are value-driven, not price-driven.
Price becomes a central factor only if a company doesn't offer differentiated value. The most important competitive advantage of the Hidden Champions is product quality. In recent years three new advantages have emerged: advice, systems integration and ease of use. They are the attributes with the biggest increases in importance. From a competitive point of view they are different from advantages integrated in the product, because they cannot be easily imitated or reverse engineered.
These advantages reside in the brains of the employees or in the capacity of the organization to manage complexity.
The barriers to entry today are probably higher than they were ten years ago.
Loyalty and highly-qualified employees The Hidden Champions have "more work than heads" and high performance cultures. The Hidden Champions have more work than heads, highly qualified employees and low turnover. The percentage of university graduates among the workforce has more than doubled from 8.
Since global competitiveness today is more and more about qualification it becomes increasingly important not only to hire, educate and train top talent but to retain it. The Hidden Champions have extremely low turnover rates: only 2. Strong leadership The leadership is authoritarian in the principles, but flexible in the details. The last and seventh lesson concerns the leaders of the Hidden Champions. They are the ultimate roots of these unusual successes.
What characterizes these leaders? First and foremost, the identity of person and purpose. Leadership is ambivalent. When it comes to the principles and values, we find authoritarian leadership. There is no discussion about the principles, but strong participation and flexibility in the details of carrying out a job. The Hidden Champions have more women in top positions and a very high continuity with regard to the CEOs.
Their average tenure is 20 years, compared to 6. Summary: The Three Circles The seven key lessons can be summarized in three circles. The core is the strong leadership with the ambitious goals. The inner strengths are depth, high performance employees, and continuous innovation. The outer circle comprises focus on a narrow market, closeness to customer, clear competitive advantages, all that with a global orientation.
The ultimate lesson: The Hidden Champions of the 21st Century go their own ways, more decisively and successfully than ever. They do most things differently from the teachings of management gurus, from modern management fads, from large corporations.
They are true role models for strategy and leadership in the 21st century. Lessons for Japan and Japanese Companies Japan does not fully exploit its export potential.
It has many more large corporations than Germany. There are 68 Fortune Global companies in Japan and only 34 in Germany. This is not due to deficiencies in technical and manufacturing competencies but to the lack of globalization of Japanese mid-sized companies.
The number of Japanese Hidden Champions is only one sixth of the German number. There are pronounced dissimilarities between Japanese and German Hidden Champions: The vision of the Japanese Hidden Champions is less outward-looking, but rather operational and efficiency-oriented. Corporate cultures, leadership styles, language are still strongly Japan-centered. The German Hidden Champions employ more foreigners and delegate responsibilities to them. The Japanese Hidden Champions are very risk averse.
This attitude extremely limits the organizations to learn new things. A recent study of the Fujitsu Research Institute entitled "Japan's Potential Globalizers" sheds further light on the opportunities and challenges for Japanese mid-size companies whose business is today largely confined to the Japanese domestic market.
The potential globalizers are very strong in their domestic market, but do little international business. Surprisingly the strongest potentials are not in industrial products, but in consumer goods and health care services.
Many Japanese mid-size companies have the internal capacities and technical competencies to go global and to become hidden champions. But they are not fully exploiting these potentials because they are not internationalizing with the same vigour and speed as the German Hidden Champions. This problem is partially rooted in the culture of Japan and an attitude, which is characterized by a certain reserve against things foreign including language 2 , dependency on large corporations, and a preference for working as an employee rather than as an entrepreneur.
These attitudes and predicaments don't change quickly. Due to this self-constraint Japan is missing many of the opportunities an accelerating globalization offers. The Hidden Champions could become role models for Japanese mid-size companies and young, ambitious entrepreneurs to pursue similar strategies.
Japanese firms have the potential to be successful in the world. Going deep inside more than a thousand hidden champions around the world, Simon reveals the common patterns, behaviors, and approaches that make these companies successful, and, in many cases, able to sustain world market leadership for generations, despite intense competition, financial pressures, and constantly evolving market dynamics.
In the tradition of In Search of Excellence , Built to Last , and Good to Great , Simon identifies the factors in business operations, customer service and marketing, innovation, human resources management, organizational design, leadership, and strategy that separate these outstanding performers from the rest of the pack — and from the large corporations of the day. Hidden champions teach us that good management means doing many small things better than the competition—quietly, with determination, commitment, and never-ending stamina.
And in turbulent economic times, the hidden champions represent an antidote to the short-sighted and excessive practices that have brought many corporate giants crashing down.
The hidden champions provide invaluable lessons for all stakeholders in the business community, from entrepreneurs to corporate managers, investors to employees, union organizers to regulators, advanced and emerging countries and may well serve as the new role models for sustainable economic growth in the globalized world of the future.
He is an expert in strategy, marketing and pricing, advising clients and speaking to business organizations worldwide. These mid-size leaders carry lessons for large, medium, and small companies about the importance of focus, quality, service, innovation, and closeness to the customer, lessons that many of our largest Fortune companies have forgotten. This exactly is their success secret. By improving upon the small things every day, a company can ascend to world market leadership.
For decades the best companies have been thriving by eschewing complexity, avoiding diversification and focusing on their core skills. The rest of the world is only beginning to catch up. Hermann Simon has been researching and dissecting these companies and their strategies for over 20 years. The book is written for those who have a good grasp of management theory …. This book was written for those who are interested in international business operations and for mangers of all types of companies ….
Baker, Journal of Customer Behaviour, Vol.
If you have or are planning a business of your own this will definitely give you ideas about looking for your niche and after finding it how to grow in it …. He studies companies which are market leaders and … in many cases secretive companies.
The author clearly knows this subject very well and covers all aspects of it. The topics are well discussed, with summaries and extensive notes for each chapter. The book is mainly written for the enterprise-level decision maker.
A must read for anyone interested in business management — should probably be read by many top executives today.