For sustainable success, companies must build the business and organization in tandem. It cannot be one and leave the other for later.
That season towards the closing of one year and the beginning of a new one is an auspicious time to take stock of the past and gear up for the future.
For business leaders, looking back and forward means asking: Where are we now as a company and how is the environment in which we operate? The corollary question would be: Are we future-ready?
Regardless of the industry you are in, the future will become more and more digital than it is now.
And in this digital age, we are seeing the emergence of a new generation of consumers, workers, and leaders who are deeply immersed in technology. They are the Millennials and Generation Z, born between the years 1981 and 2012.
This population segment — now in their teens to early 40s — grew up and are living with digital technology seamlessly integrated into their everyday. For them, navigating a smartphone is instinctive. The millennials and, more so, the Gen Zs default to being digitally enabled.
On the other hand, the older Baby Boomers and Generation X came of age, worked, and became successful without all of the conveniences or even the mere availability of digital tech. They know of an ‘offline’ world. They have a way of getting through the day and achieving the outcomes they want without the internet of things.
The gap between these two sets of generations goes beyond the capability to operate devices and navigate apps; differences also lie in terms of world view, mindset, values, and ways of working.
Among Philippine companies, Acumen Strategy Consultants has seen that age divide adversely impact the organization and the business as most decision-makers still belong to the older generation set.
Many of these top executives still have some reluctance towards digital transformation, both for the internal development of their organization and the evolution of their business and marketing operations to meet the needs of changing consumer segments.
But no company could hope to be future-proof without embracing digital transformation in more ways than one.
At the same time, adaptations should be taken with caution by keeping a reality check on technological trends that, more often than not, tend to be hyped.
There is so much conversation going on, for example, on artificial intelligence (AI).
But before using generative AI as part of a company’s strategy to be future-ready, they have to take a really close look at which applications of AI — and any technology upgrade for that matter — would best serve their business and the organization.
Companies should avoid falling prey to aggressive vendors who sell software or tools that are either over-engineered, customers do not really need, or the organization is not really ready for because the data required to run the system first needs sorting and, more importantly, the human resources are not equipped and culturally-prepped to adopt.
THE INDISPENSABLE YIN-YANG
In ensuring a company’s future-readiness, one key principle that Acumen has proven and been putting into practice for its clients over the years is: A constant and enduring growth for any corporation entails building the business and the organization in tandem.
It cannot be just one and leaving the other for later.
Working with clients across various industries throughout Acumen’s more than two decades of operations has shown that this credo is truly the yin and the yang of sustainable success.
There are a good number of Philippine companies that focus on just growing their top line, ensuring that they are profitable, their market shares are up, the stock price is up, and continuously expanding the business.
Such single-sightedness often means a failure to invest and put in the same passion in building their organization — the workforce’s capability, the tools, and the overall human resource management system.
Acumen has seen that such folly never leads to sustainable success.
Ultimately, the most important resource of a company is its people.
On the flip side, corporations cannot just build the organization by going on a recruitment frenzy and giving out all kinds of perks — essentially implementing a robust attraction, retention and rewards system without having the right business strategies.
This represents an oversimplified game plan wherein decision-makers say: We believe we got some very good products, so let’s employ a lot of people, then launch and penetrate the market, and scale up right away!
Without stepping back, defining the corporate strategy, and laying out a very strong customer value proposition, the business will eventually tank.
Failing to maintain good business health will soon enough mean an inability to sustain a good organization — because the company simply cannot afford it.
Embracing and putting the yin-yang of business into practice is, of course, easier said than done.
In applying the environmental, social and governance (ESG) framework, for instance, companies fall into the trap of just logging in how many people have been sent for related training.
The more important metric, however, is whether those training hours actually translate to enhanced capabilities, which then contribute towards achieving the corporation’s ESG goals in line with business values and growth targets.
The balancing act could prove daunting for corporate leaders. But external guidance can provide clarity and direction towards the business strategy and organizational development needed amid an environment of continuous digital transformation.
Acumen’s collaborative approach and range of services — strategic business planning, commercial road-mapping, human resource rationalization and transformation, and customized training programs on leadership and marketing — are designed to help Philippine companies achieve the vital two-fold objectives of building the business and the organization. — Pauline Fermin, president and CEO, Acumen Strategy Consultants (acumen.com.ph)
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