Winds of Change

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This is a totally atypical year, which has made more evident or even precipitated changes that have been blowing for a long time. There are other forces that have acted pressing for significant changes, which are not perceived with the same intensity, but their impact is inexorable. I recently gave a lecture to a group of K-12 educators, a category that was hit severely in this pandemic, and that has been courageously striving to reposition itself in the scenario that unfolded. I have made a short list of the challenges facing us currrently, with some emphasis on the educational context:

  • Time of uncertainty and global threats – insecurity and unpredictability
  • Earthquake in the economy and in the labor market – viability and sustainability
  • Emerging transformations due to Technology – accelerated and disruptive
  • Ideological activism and polarizing conflicts – inconsistent relativism and radicalism

On top of that, I elaborated over key reflexes in life and work, seeking to identify trends and how we can better take advantage of changes without losing the essence of the mission. It was a very uplifting exercise, which I believe all people conscious and committed to relevance are doing in some way. Perhaps you have already thought about the winds of change that are hitting your business, but if not yet, what would your list look like? Based on it, what consequences are expected and what actions could be taken to mitigate risks and explore opportunities?

Monitoring for Achievement

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Every sensible business owner or institutional leader wants his/ her organization to generate the most possible value to all stakeholders involved. After all, that is the core reason for any enterprise to exist: meet needs or fulfill desires of whom relies on it as provider, and reward who invest and work on it. Looking from a simple business perspective, the organization should be effective in satisfying its customers and efficient to operate in a sustainable way. Resources and activities are placed to produce expected results, to balance this dynamic equation is the basic challenge of management, which to be performed requires monitoring.

Monitoring presupposes key indicators, that set expected outcomes as concrete benefits, and metrics to follow up on what contributes to make them possible. The correlation between these two perspectives and its understanding by those involved is key to ensure focus and performance in the organization. Usually the tendency is to pay more attention to means than to ends, like measuring quantities and registering activities, rather than taking the expected results as guide. However, until it becomes clear what are the ultimate goals of our investment and work, we may get confused and face lack of accountability that will hinder the organization from attaining success. By the way, considering the definition of success from the dictionary leads to this very conclusion: “favorable or desired outcome; the accomplishment of an aim or purpose”. Linking metrics, that are meaningful and actionable, is fundamental!

One cannot lead or manage without setting goals and monitoring progress, since both implies learning. Resistance to monitoring is just natural to human nature, so be intentional about it if you really want to succeed, in all aspects.

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Manage the Culture or Get Run Over by It

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Research has shown a growing perception among executives about the importance of Corporate Culture, even greater than Strategy. Other signs of this emphasis are the huge number of books currently available on the topic, and Google returning almost 11 million search results. The main motivations for this in the business world could be:
1. Engage all the employees in the mission and values, for greater collaboration and productivity;
2- Equip the front line team for quick and effective response to customers, in an ever challenging and competitive business environment;
3- Increase appeal for generation Y professionals, who seek identification and purpose in work;
4- Change the game with resilience and innovation, in the face of crises and the disruptive market.

Corporate culture can be perceived by the way people think and act in the company, based on established formal and informal beliefs, and is naturally inherited from the founders. Murals and posters on the walls cannot define culture, but mostly the everyday experiences do it, influenced by example that comes from the leadership. By the way, almost all companies have their mission published, however most of their people are not able to recite it.

If you are looking for very different results and/or understand that your business needs a significant change of direction, it is inevitable having to change the organizational culture. It is the leadership responsibility to manage the organizational culture for desired results, and not end up being run over by it.

Workforce Arrangement

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An organizational aspect that tends to be apparent in a company is its people structure, especially when it comes to a service-based business. Therefore, it is normal for business leaders to present their business through an org chart, which often reflects also how they monitor and act in that organization. Family businesses have a lot of history to tell justifying why certain people occupy certain positions in the organizational structure, based on relationship with the founders and on the trust developed. However, this is not the best criterion for filling vacancies as the company grows and faces new challenges.

A company must systematically deliver superior value to its customers in order to sustain its competitiveness, so the people who work there should organize themselves in a way consistent with the value chain implemented. The allocation of each one in the workforce structure should consider, directly or indirectly, his// her contribution to deliver value to customers and results for the business. Thus, technical specializations are ordered with the levels of responsibilities in areas and positions in the organization (vertical), and allocated as resources according to the requirements to operate the processes involved (horizontal). Grouping of people then can follow a logical orientation that favours collaboration by prioritizing value and results, and not simply to meet demands from functional sectors or hierarchies.

In conclusion, the org chart should not be a “personorg“, reflecting a personal view of organizing people in the company, but rather be consistent with the business value flow and aligned with constituent processes.

Neuromanagement

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There has been great evolution in the knowledge of brain functioning in the last two decades, facilitating access to information and technologies related to Neuroscience. With this, it has proliferated professional areas and technical approaches with the associated neuro term, such as neuromarketing, neuroeducation, neurosales, etc. Not surprisingly, there is a natural fascination in the discovery of this organ that practically controls every experience of the human being.

In the field of Management, with subjects such as communication, resource mobilization, planning, decision making and problem solving, the activities involve people. And studies now prove that people perform better in connected, collaborative environments where trust prevails. Learning and behavioral change, which are fundamental practices for management, have also gained new insights to avoid pitfalls and to maximize positive results.

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In short, the modern manager should know Neuroscience in some way, to select and work productively with people, in a social and business context with changes accelerated by technology. New challenge in an already complex environment, but it brings a great opportunity to develop high performing intelligent companies.

Strategy as a way to go

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Strategy is a term that still evokes a certain reverence, prepared by privileged minds and able to do wonders. In companies it is normally formulated or revised annually by the senior management, off-site and with support from an expensive consultant. Later it is communicated to the others, with a climate of great expectation by the impact it will bring to the business and possibly in the organization, reversing poor performance and building growth. Unfortunately, up to 80% of companies fail to implement their strategic plan! More important than trying to elaborate over the unpredictable future, would be to equip the organization with a collective intelligence and means to systematically learn how to generate more value in the business. Strategy does not need to be an existential rethinking, but more of a reflection on the way as you go

#strategy

Do you have a Management Model?

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A brilliant business idea, implemented with a great combination of resources and organization, should deliver good results. However, results tend to worsen, or may even become unfeasible as time passes by. Inevitable changes on external context and on internal conditions bring misalignment among market, strategy, and operation, as well as resources and activities need coordination to respond effectively to clients and business requirements. This dynamic to stay focused and improve continuously the company’s ability to generate more value, based on principles and purpose established, configures its Management Model. When the Management Model is not defined or appropriate, a culture of performance does not grow in the company, investments are not properly prioritized, stakeholders do not learn how to maximize results, and leaders do not develop.

#enterprisemodeling

The power of connection

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Promoting healthy relationships in the work environment through collaborative values and a set of meetings, with clarity of shared objectives and means for syncronization, conflict resolution, and collective learning, is fundamental to face crises. The power of connection among people who make up the business contributes with positive attitudes and reinforce the company ability to overcome huge challenges. They are the neural pathways of an intelligent organization!