Both in countries and in companies, culture is what generates results. We may talk about “measures”, provisions, laws, processes, systems, but all of this is less transformative than changing the habits of the people who make up the organizations, which are what constitute the culture.
In Argentina, due to changes at an economic level, the time has come for companies to transform quickly, which requires working on their culture, because something is happening in “the functioning” of consumers. This applies to companies and all types of organizations.
I am traveling through Asia, different countries, all are a great example of how culture influences results, culture being generalized behaviors. In one of the countries, there are many well-educated people, but the result “country” is one of great poverty. The other comes from behind but the result “country” is greater development for its population.
Why would it be? I developed an indicator, which is the culture in transit: how it is handled is an indicator of the culture and therefore of the possibilities of progress of a country. Because? Because in transit we observe the capacity of a society to act as such for the collective benefit. Let’s look at Argentina, a country with many intelligent and educated people. But if there is a narrowing of the path, we all want to get as far forward as possible, creating a funnel that takes us much longer to pass than if we were getting back on track from kilometers behind as they do in developed countries. By winning as individuals, we lose as a whole, the Society.
The same in these example countries that I visited, in a much more extreme way. In one, no one respects the other on the street, and everyone wants to move forward, slowing down the group. In the other example country, the rules and traffic are respected and so is society, they advance more quickly and have a higher level of development. Societies that abide by rules of coexistence progress more quickly than those where “anything goes” prevails. Since what is “worth” reflects culture, we see the impact of culture on “country” outcomes.
And what happens in companies?
We read today that there is recession in many areas. The consumers “they don’t have money” to pay what companies think they should charge for their products or services. The model of raising prices to compensate for inflation is failing.
There is a pressure that has not been seen for a long time for companies to find a way to be able to offer their products at a more competitive price and only those that achieve this will be the winners. What is the way to lower costs quickly? If a comprehensive project is undertaken, by the time it is finished, the company will have already closed. Nor will it be the effort of a single leader to achieve it. To act quickly, the results will be the fruit of collective action in each company. A collaborative culture in which all team members contribute their own. Each person, each day, seeing the detail of what surrounds them, can propose improvements whose sum is high impact. This participation of everyone in uniting under a clear slogan, where efficiency and good management are a priority, is a cultural change.
Management schools teach how to manage efficiently, but in an inflationary environment this is forgotten and relegated. The results are not obtained through the usual management techniques but through the management of other variables. Not calculating costs, but compensating with prices, not lowering stocks but speculating with their increase in value, not generating margin, but working with suppliers’ money, for example. These possibilities are likely to end. We are seeing that there has already been an impact on how they think and people operate, who are clients and consumers. A couple of months ago we anticipated a dramatic change in habits and it is happening.
Most companies will have to review their strategic plan to fully understand the upcoming impact on their business and anticipate decisions. Many will have the need to have the highest possible level of professionalism in all critical functions. Crossing all functions will be the use of the latest technology available, which today clearly includes the use of Artificial Intelligence.
In Production (or operations), because productivity will have to be maximized to reduce costs. In Administration and finance, because cost analyzes and the impact of each penny will once again be important, including the analysis of data and alternatives to be able to set competitive but profitable prices, and to be able to apply to new financing instruments. In the area Commercial, due to the need to fight more strongly in the local market and to open external markets or investigate more the global offer. In Human Resources due to the need to attract and keep motivated resources who have a mentality and knowledge in line with new times and an open mind to learning and using technologies. And, at the CEO level, being a good lobbyist will not be enough. You need a mindset that ensures you are able to think about and execute that strategy based on efficient resource management. And understand these cultural factors, because I see that there are many who still “don’t see it.” To achieve real transformation quickly, it is not necessary to undertake a gigantic and expensive project. You must ensure that you have the appropriate leadership to, with great speed, understand and transmit the impact of the new context and adapt companies to it.
Lastly, make sure that the directory have the capabilities to evaluate all these factors with a global vision, and make decisions in the company in the right direction. Even questioning whether it is not necessary to incorporate independent directors who provide the strategic vision adapted to the new context, and a way of making decisions that is independent of pre-existing bad habits that are sometimes less professional and more familiar.
Founding Partner of Backer & Partners. Consultant specialized in Searches for Senior Executives and Cultural Transformation of Organizations, coach in Neuroleadership.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
