How companies to get rid of their strategic constraints

/ this article was first published in Bulgarian language in the Economics magazine in December 2016 /

 

Be the change you want to see in the world, says Mahatma Gandhi. Change is an ongoing process. Every company wants to be efficient and successful, but it is hindered by strategic constraints – internal and external. External ones are related to the business environment, they depend on the political situation, on customer expectations, technology, the global economic environment. External circumstances are more difficult to influence. That is why it is important for each company to focus first on everything that is under its control to develop. The internal change will allow it flexibility against external strategic constraints, says Anastas Gogov, business coach and leading strategic management consultant, founder and chairman of the first business club for strategic development and leadership The Management Board. (www.managementboard.bg)

 

Inside out

If we want to influence the environment, we must first see what is happening in our organization. The way we manage it, the way we make decisions and the way the processes work, also has an impact on the environment. Therefore, the leaders of the organization must realize what key principles they follow, how they work, how they have organized the overall management of the company and the management of operational processes, talents and resources. The more companies create a proper internal organization of work, through the effect of scale they will affect the environment. Thus, the internal change will put an external imprint.

 

Breakthroughs

The good organization in the company and the change depend on the motivation of the leader – manager, executive director, chairman of the board. There must be awareness, responsibility and managerial will. Change is also a matter of time, money and effort. People’s attitudes need to be readjusted, the way things work, and the processes themselves need to be reorganized and realigned, investment in training is needed, and sometimes new machinery and equipment are needed too. A consultant can be hired – one who knows how to achieve higher efficiency and can measure where the weaknesses and breakthroughs in the organization are. However, many large companies invest to some extent, reach certain results, then there is a change in management and the efforts for efficiency stop there, says Anastas Gogov. According to him, consistency is needed.

 

The authoritarian style

There are often managers who completely centralize the management of the company, do not delegate management and decision-making rights. So they forget about their main function – to create work for others. And instead of being a leader and a visionary, the manager becomes an operational officer of the company, losing his strategic focus. Companies with an authoritarian style of management do not produce high results, as they do not achieve the necessary commitment of the employees towards the long-term vision for the business development, do not give them the opportunity for creative contribution and self-expression at the workplace. The business owner does not empower employees and does not allow them to show their entrepreneurship and innovation, show the observations of Anastas Gogov. The winning strategy is for the employer to find a way for people to be as effective as possible, not to limit their initiative and work instead them.

 

Everyone’s commitment

There are companies that do not stop looking for ways for their constant development. They work in Organizational Alignment (OA). They achieve such relationships between people at every level of the organization that they all look in one direction to the high goals of the company. Through the commitment of everyone, the desired results are achieved. People working to realize this long-term global vision can receive, in one form or another, personal satisfaction for their efforts and empathy. According to Anastas Gogov, this model is implemented in four main areas: commitment, communication, corporate culture and cooperation. When there is alignment at all levels, then the organization achieves its highest potential – generating products and goods, achieving more sales and higher financial results, bonuses for employees. The Strategic Management Consultant can help in the efforts to have alignment at all levels. He works with the CEO and the business owner, with the directors of the directorates who influence the various key areas of the organization. It is important to see exactly what communication flow is in the organization, how the vision for success is created, how it is planned, what are the priorities, what is the company culture and work environment, what is the long-term perspective that people should follow, what results should chase. There must be clarity about the importance of each employee and the role of each in the overall process, is the advice of Anastas Gogov. Often this is not achievable because of the Organizational Trauma at the different levels/departments and key employees with the organization.

 

Self-governance

Democratic organizations ensure equal involvement of all employees of the organization at all levels. Decisions are taken unanimously or by majority. The team votes on who the manager is, with what term, what his salary is, what bonuses to be distributed and under what conditions to be given. Employees decide how much to work and whether and under what conditions to work overtime. The team assumes full responsibility for the decisions, with the investor, owner or manager retaining the right of veto when the decisions are beyond the voice of reason. This is a process related to the evolution of employees thinking. But every mistake has its price and funds must be provided for organizational change.

 

Transparency

It is better to have transparency in the organization at every level. In the West, job advertisements have clear fixed salaries, and in Bulgaria the model of non-transparency has become popular. It is caused by the fact that people who receive high salaries often do not have the feeling that they really deserve them. Ultimately, the degree of transparency is directly proportional to the added value that people contribute to the company. However, there is a tendency towards greater transparency. Such a will must be in the manager or the owner of the company who makes the decisions. When the income in an organization becomes transparent, people become more sober and start working harder. And when this model is combined with a form of democratic governance, people begin to be intolerant towards the colleagues who are not productive. Initially, there is resistance for this transparency, but when it is introduced, people discipline themselves and start working harder. According to Anastas Gogov, this reflects the final results of the team as a whole.

 

Sustainability

Restrictions are a consequence of making or not making certain decisions. Problems in the organization need to be identified, but in general they are a direct function of the management model of the decision-maker. With a clear business focus and vision for the path to the set goals, the organization can achieve positive change. It also takes effort. This is the responsibility of the leader, says the chairman of The Management Board. He states that the organization is a mirror of the leader’s decisions. When taking one or another action, one must think about what will be the impact on the development of the company now and in time. Everything must be done through the prism of environmental sustainability. Every organization can change and develop, but with the right measures.

 

Steps to greater efficiency

1. Change is inevitable, it is an ongoing process. It happens regardless of whether we want it or not. The question is whether we will be passive or use every opportunity to get to our end point faster. We need to have an understanding of what exactly is happening and how to use it to our advantage.

 

2. Managing the talents and personal effectiveness of employees is an important moment for any organization. We need people with innovative thinking and self starters. Changing conditions require employees to be adaptable, to learn fast and develop new skills. Fluid intelligence is fundamental in this case.

 

3. Focus on markets and sales, building business strategies, creating appropriate marketing messages. Constantly keep an eye on the development of the market and you competitors. It is better to have the desire to be the market leader, rather than to follow the trend set by others.