To get a better idea of how market flexibility works, take note of the following three points:

• Markets change rapidly and unpredictably.
• As a result, managers must constantly adapt their decision models and plan.
• Managers must identify their market objectives and adjust their plans in response to unexpected market changes.

Each point requires some thought. Let’s look at each of them now and work out the answers before moving on.

Let me make it clear up front: market flexibility is not to be confused with market stability. By market changes we are referring to changes that occur within a certain time frame or within a certain geographic region that are driven by the economy or some particular company.

The following are some examples:

• The housing market is up and down throughout the year.
• Some companies are doing well and some are not, so a change in demand for a product caused by this is not surprising.
• Some companies are down while others are up, but these changes don’t occur on a regular basis — a short-term boom or bust.

Market flexibility is an essential part of any market plan and must be put into practice. The same market flexibility that delivers high operating returns (from both the bottom-line, bottom-line cash flows, and total assets) also delivers a great deal of flexibility to the market, thus helping managers meet their goals.

As we have discussed, market flexibility means that the market changes quickly and unpredictably, with no plans or predictability. It involves working through changes that occur unpredictably and as such requires a much greater amount of market planning than we have already discussed.

I hope that you have picked up a few important observations from our earlier discussion of market flexibility:

• Market changes occur very quickly and unpredictably
• In order to anticipate market changes, managers must constantly change their thinking
• Managers should be concerned with what may happen rather than thinking about what is out of their control
• Markets don’t last very long

As a result, it quickly becomes obvious that market flexibility is going to have a significant impact on your plan — both short-term and long-term.

Market flexibility means that there are no specific plans or targets in place. The market changes quickly, so managers have to react and adjust to market changes. It also means that a manager’s plan, target, and plan targets will be set on a short, medium, or long timescale. These timescales need to be considered but should not be so inflexible that they can’t be adjusted as the market changes. Remember, market flexibility is important.

Market Flexibility Requires Much Thought and Planning. This is the point that makes you question the relevance of market flexibility. Market flexibility requires many decisions and a great deal of thought. There is simply no way around it and there is simply no formula for deciding a market plan that will give the best bang for the buck.

Remember that market flexibility is important. However, market flexibility doesn’t happen because plans are not there. There has to be some sort of planning, and you have to know how big you need to be, how long you need to hold it or how long you can retain it.

The United Nations (UN) and other organizations recommend that all countries develop such legislation as required by the international law. In the United States, CSR regulations were first introduced into law in 1947 when the Corporate Social Responsibility Act (CSR Act) was created, and since then many companies have expanded the definition of CSR activities.

In order to be compliant with such act, companies can use a wide range of activities to be included into CSR. The most common of them is to improve the environment as an integral part of CSR activities, for example carbon footprint, recycling, renewable energy, alternative methods of production, etc. Another area of activities that is frequently included into CSR are philanthropic works as well as voluntary environmental initiatives. Many large multinational organizations adopt these kinds of activities because they contribute to the sustainable development of the society and it is possible to use them as a way of raising public support.

The activities related to CSR have increased the demand for qualified human and business talent as well as a variety of professional courses and skills. Nowadays it is often not a difficult task to find companies willing to support the development of the CSR at the different levels from a national to the regional level.

To help companies be successful with their CSR activities the experts in this field propose the following guidelines:

• Make CSR a requirement in the business management system of corporate strategy.
• Conduct corporate social responsibility analyses to gain insight into the environment in which business operations take place.
• Make CSR an integral part of a company’s strategy.
• Organize CSR on a national and global basis.

So what is the right balance between strategic management, innovation and adaptability? Can these be delivered in a single framework? Can these be aligned with the same principles to achieve strategic best practice? Can these attributes be aligned as they are used in different areas of policy to meet specific objectives and set the competitive edge in an industry where change is as standard a process as in travel?

One key attribute that is commonly discussed and referenced in many of these debates is that of risk management, which is a very familiar part of any company’s strategy of getting a competitive edge. In the context of strategy and innovation for travel in particular, we have seen a lot of debate on the question of whether you need to add risk management to your strategic management framework. For example, a popular example given by a leading risk management firm in their most recent white paper on innovation and change within travel was to apply this framework to all of travel, but only use risk management where there is a change in operating model, technology or product.

This approach is, in our opinion, very short-term and highly unwise. In the past, it has probably been more difficult to innovate and create a better product in the travel industry, but many major changes in travel have taken place since the advent of the internet and mobile, and major change is likely to continue. New products and innovations in technology will continue and companies need to invest in R&D to stay up to date. Companies need to think about innovation and how to do it effectively, and not only try to apply this approach to everything related to travel and in particular the travel insurance business, but also in other industries. More investment in innovation today means more competitive advantage tomorrow.

Another commonly held view is that strategic management and key principles such as adaptability, innovativeness and change are aligned to create a single framework in a way that can be applied to the different aspects of strategy and innovation for travel. This point of view is commonly related to the concept of a single overarching framework for the different roles and activities within a company (including strategy and innovation) – which we have outlined in our book, the A Framework For Creating Shared Priorities. We agree that the different aspects of strategy and innovation for a specific industry can be placed under one or more of these overarching structures.

As these four different components, strategies, adaptability, innovation and change, have a very high return on investment, it makes more sense to focus more on using these together rather than putting two or three together as separate factors in the strategy and planning process.

• Creating diversity that is relevant to their job and position.
• Allowing them to become comfortable with diversity and not be afraid of it.
• Delivering results that are relevant to their skill set and positions.

When you include in a diverse team, you are creating a strategic advantage by building loyalty, recruiting new talent and increasing profits. You will have more fun and the people in your organization will enjoy a sense of community. In the end, everyone wins.

The hiring process itself has come to be one of the most difficult aspects of running a business. In this day and age, finding qualified leads can be a challenge. This is true across all industries such as technology, hospitality, healthcare, construction and more. Finding and maintaining diversity in a diverse team is also paramount and will result in a strong and relevant workforce.

No one wants to work for a company that just does a few things better, because everyone else is doing the same thing. What they should be doing is developing a culture that encourages innovation instead of fear. That is what every business must do to be competitive in any industry.

For most companies, what makes them competitive is their ability to be able to attract and retain a diverse workforce. Companies must not neglect the importance of their workforce in the same way that a family member may neglect their health.

The talent and experience of diverse individuals will always be valued throughout their entire lifetime. We have found over the years that there is a much higher rate of retention of diverse employees than that of their non-diverse counterparts.

There are several recruitment tools you can use to acquire a competitive edge.

1. Provide an equal experience.

Diversity equals innovation. Everyone who enters an organization needs to be able to feel safe and welcomed. One method some companies have used to create this is to hire their workforce across diverse backgrounds and cultures. To the hiring manager, there is a higher chance of the hiring decision resulting in a successful culture for the business.

2. Communicate an equal opportunity and give everyone a fair chance.

Everyone must have the opportunity to shine and be judged based on their qualifications. What they bring to the table is their qualifications and how they were handled by the hiring company in the process.