Business management (what we call managementLike other activities, it is undergoing a profound change in the current context. This statement is yet another obvious one within the current situation, characterized by dizzying and radical changes; however, its analysis is not so straightforward.
Madrid, June 29, 2023
In these times, filled with great confusion and a lack of focus in management, a good starting point for getting back on track is to return to business axioms, to the basic strategic principles that, amidst the frenzy of change, remain unaltered. An example would be:
“…our companies aspire to satisfy demand by marketing products or services at a selling price higher than their cost, seeking organic or inorganic growth”
These are axioms and do not need to be proven, nor are they open to debate. They are management mantras to which, of course, sustainability criteria (ESG criteria) are added.
The objectives that any organization entrusts to management professionals are based on the execution of the aforementioned axioms or variations thereof. This is where things begin to get complicated, since changes in management are more complex and profound than in other professions. The reason is that three situations have converged, creating the Perfect storm:
First, the digital revolution which undermines the classic management of resources and knowledge available to managers for decision-making.
As a second situation, the explosion of artificial intelligence, related to the previous one, but with a set of ethical and philosophical nuances of enormous complexity.
Finally, the enormous social change in the labor marketwhich directly impacts the main and most complex activity of management: leading people to achieve the assigned objective together.
The three ingredients that make up the perfect storm of management also represent a complete overhaul of its classic concept based on attributes such as “fill a position" instead of "direct a project”, character “permanent bases" instead of "to limit it in time”, the fact of “prolong an inertia" instead of "transform an organization".
Modern management is not about filling a position. It should be understood as the execution of an assigned strategy, channeled through a management project with specific objectives and commitments.
Current management is not permanent because the lack of renewal of challenges and commitments ensures the loss of effectiveness and the demotivation of any management professional.
Today's management must not simply follow organizational inertia; on the contrary, it must be the primary agent of transformation. It must lead change by skillfully navigating through storms, managing the resources at its disposal, and guiding teams to steer the organization toward calmer waters. Other storms will come, and new challenges will arise.
EPUNTO Interim managementAs a company specializing in management services, it responds to this new reality by naturally and structurally incorporating the different elements of current management into its service delivery methodology, mitigating possible risks through the guarantees offered to clients.
Therefore, our management services are leaders in this new reality, as they flexibly adapt to the managerial needs of organizations. We utilize the best management professionals available on the market, supervised by our partners who have overseen hundreds of projects.
Founder and managing partner of EPUNTO Interim Management.