Are SMEs ready for digital transformation?

Are SMEs ready for digital transformation?

September 24, 2024 – 1:16 PM

38% of business owners say that their team is not prepared to respond to the changes presented by the context in terms of digital transformation and changes in business processes.

83% say that the decisions made by SME owners are focused on the short term.

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According to a survey of more than 250 SME business owners conducted by Adiras (Association of Associated Directories), 38% of entrepreneurs say that their team is not prepared to respond to the changes presented by the context in terms of digital transformation and changes in business processes.

The survey shows that “the typical adaptability of SME entrepreneurs is easier in matters related to changes in the legal or economic context, which is where local entrepreneurs have developed great versatility, but when it comes to entering a new ocean that they do not know, there are many areas of blindness and in most cases it is difficult to even know where to start,” says Alejandro López Tilli, president of the institution.

In line with López Tilli, for Carlos Contino, managing partner of CONA RH, “the fundamental competence that a CEO must develop in his team is the ability to adapt: ​​change will happen anyway, getting on board with change naturally is the key,” says the consultant for whom it is important that “change is not an inconvenience but a natural attitude. People who resist change delay, hinder, and hinder the evolution of the team and ultimately of the organization.” Contino identifies the main factors of resistance as “fear of the unknown, concerns about loss of control, or simply comfort with the existing routine, all of which have an emotional root and the key is to listen to individual concerns and help them build a bridge between resistance and acceptance.”

Patricio Navarro Pizzurno proposes, on the one hand and primarily, to distinguish the perception of the No. 1 from the real skills of his team. “It is common, and especially in digital skills, that there is hidden talent that is not on the radar of HR departments or general management. Sometimes for purely generational reasons; the mindset of young people entering the labor market is already configured with a dynamic digital logic. It often manifests itself outside the work environment; it is something much more comprehensive and exceeds what we could frame within concepts such as Industry 4.0. It is an interest that we could refer to as the spirit of the times. In other words, it is given and is transversal to all areas of daily life. In these cases, proactive inquiry by the company is key to find out about these skills that are left out of a job description when carrying out a selection process or a formal survey of training needs within the organization.”

The Adiras report is complemented by the following data, which is predictable, but when put into numbers it is worrying. 83% say that the decisions taken by SME owners are focused on the short term. In this regard, Mauricio Rampone, executive director of Ucema Pymes, maintains that “unfortunately this is a purely domestic aspect. Business managers are conditioned by the permanent changes in the situation, and this takes away their chances of focusing on the structural issues of organizations: market strategy, business value and continuity based on people. I think that businessmen are aware of these limitations, but operating permanently in the short term can run the risk of losing the macro vision, and then it can become a mindset problem.”

For Navarro Pizzurno, this short-term tendency may have multiple causes. “The Argentine socio-economic context, particularly in SMEs, often pushes the No. 1 to make rash and circumstantial decisions, which he would prefer not to make or to execute with a higher level of maturity and analysis. Logically, this affects the consolidation of work teams, when these decisions affect both the formal and psychological contract. That is, the decisions that the management of an organization can make regarding the periodicity of adjustments, changes in structure, controlled turnover policies, etc., will undoubtedly impact the volatility or not of loyalty strategies. It is also true that in many cases this short-termism does not respond to socio-economic moments but also to the lack of preparation for cultural changes in the organization. Specifically, in many cases it is also the case in SMEs that their growth is not accompanied by cultural aggiornamento. That is to say, the decision-making process continues to be carried out like a small business, when the complexity of communication channels, involvement of the interlocutors who will make these decisions, preparation times, etc., requires another treatment.”

Carlos Contino interprets this data from the point of view of organizational culture: “It is common for the No. 1s to decide to change people, but that alone does not guarantee the solution.” For the consultant, “the organization is a whole and although 3 or 4 people are enough to generate an impulse for change, for it to be effective and sustainable it requires a new cultural change, vision, new values, objectives, a new climate.”

Source: Ambito

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