Monday, March 06, 2006

swimming in the Valley

The Project Management Institute is increasingly global – I was reviewing internal numbers, and the largest growth in the 259 chapters are in places like India, Brazil, Taiwan and the Arabian Gulf. While it's exciting to see growth in these parts of the world, I can't help but think of my colleagues who want to get out of engineering to get into project management -- something "safe from outsourcing."

Common knowledge seems to indicate that more advanced high-end jobs such as architecture, strategy, project management and business processes are "safe." Why would anyone in a technology field ever feel like they didn't have to keep swimming to stay alive? Success in technology is constantly learning, creating an edge by putting together ideas which aren't intuitive, but that can create new markets, new directions.

It amazes me how many people in the Valley don't love their jobs. You have to love this stuff, you have to care and be interested, deeply, passionately, just to pull it off. People who went into technical careers because they paid well, or want to find someplace safe to work, where you don't have to work so damn hard at it -- how are they ever going to make it?

Yes, it's a difficult environment, but it's amazing and exciting to be part of such a global shift. Better products, better services, more efficient operations! How do we compete? Michael Porter would be the first to tell you that "Always the low price. Always" is not the only marketing strategy in town. Personally, I would never want to be paid on a cost leadership basis.

A differentiation strategy offers a product which is perceived industrywide to be unique. As Michael Porter says about consumer goods and services, "Differentiation provides insulation against competitive rivalry because of brand loyalty by customers and resulting lower sensitivity to price." This differentiation creates a higher barrier to entry and higher margin. No, it's not a product that price-sensitive buyers will want, but you are an exclusive product.

Porter's third generic strategy is that of focus, which is all around serving a particular target exceptionally well. By narrowing my breadth, I can concentrate extreme depth in one area, serving a very specific target very well.

The ideal competitive position is a combination of factors. How can I differentiate myself? Technology, features, brand image? Where should I focus? Grid computing, Ajax, DNA purification? The same way a firm with no strategic resolve is dead in the water, a worker is left with a "something for everyone" resume, wondering why jobs keep disappearing.

Strategic positions can erode, so keep swimming.