Nothing is constant in this world but despite of that we seek consistency. This article gives birth to the thought point that we need to recruit and create entrepreneurs within organizations. In my recent research I find that today’s leaderships and senior level management are being challenged by bigger threats and hence it’s a high time that we take control of the same. Internet and technology was changed the landscape of industries and their sustainability. One of the most surprising things which came up in my research looking over the business pattern is that cutting down cost. Well recession point, cutting down of cost and scaling down production facilities etc could be understood but it seems that the current phase has become permanent in nature. Corporate economist is highly required to save these companies from dire slow down death symptoms. When you come across any companies who are looking insights for cutting down cost, looking for scaling down productions, searching for efficiency in supply chain management through negotiations and the biggest risk of blind faith on the existing business model are few of the triggers of getting annihilated. Today’s leader must understand that consumers are unpredictable; business markets are unpredictable which creates extensive insecurity to the companies.
The industry leaders are at the highest point of risk as any sort of ignorance could be a disaster for the entire industry and creation of new industry. Today’s industry leaders behaves like farmers where breeding the same quarterly results, showing consistency in driving business sales by cutting down prices and moreover management takes decision based on guaranteed path of success are the key mistakes we keep on doing. We keep deep focus on short term targets and fail to judge the long term changes the industry or the company needs to adopt. Repeating the same policies and strategies of doing business is another indication that you are protective in nature and don’t want to get into exploration. Well protective mindset is the birth point of death of an industry or company.
A radical change in leadership quality is required where one needs to behave like a hunter rather than farmer. Farmer is one who farms the same agri-products where as a hunter seeks different strategies and targets for feeding. Lean process systems are the early indication. In majority of the organization I have witnessed that short term targets are being taken as the foundation of long term strategies. Short term successes are the key parameters of the management. These are early indication that your industry or organization needs to change. It indicates that your cash cows are the risk and you need to peep into the new world. Mere doing budgeting and tweaking the allocation form previous year and taking down cost cutting measures are no longer the paths of success of an organization. Optimum recourse utilization cannot be the bible of company or industries success over the long term.
So what does the leadership needs to adopt? You need strong quality and attitude to understand and predict the changes. We must understand that core competencies are at risk. It has been found that many industries leaders get shaken up when these things happens. Industry experts and seniors needs to understand that uncertainty is an opportunity. Senior leaders often run to the government to save their leadership positions. Well these things rules in those countries where government red tape system is strong but globalization unfortunately has eradicated that space too. New companies erupt within days and within couple of years leaderships positions are eradicated. Today’s leadership needs to understand that incremental gains, legacy of industries would change and profitability based on cost cutting is the end of the industry. Today’s leaders need to be focused about what is coming new. You need to create network to read the lines of changes across the globe. For example in India extensive R&D is happening in the electric car space. Over the next decade fossil fuel consumption would come down dramatically. Solar power based national goals are being adopted which will reduce the core competencies of crude and coal based power supply. Remember that shift and changes of industry don’t happen overnight. When digital photography was coming forward Kodak became quite ignorant about the same and rest of the history is known. Today’s leaders should behave like hunters who are roaming in the corporate jungle in search of opportunity to grow.
Now another question which comes into the mind that what type of leaders we need in the business so that they can save and flow with the changes? In my research its well clear that hunters are the best bet for the same. Entrepreneur mind sets are the need of the hour. We need to bring forward who are having the bacteria of innovation. Innovation is the key of success and hence they can only save the industries and can create new industries keeping the core competencies to flow with the changes in the market. New industries will grow but the point is that you need to scale down your attitude of ignorance. A company like Infosys cuts down prices to remain in business is a serious threat .It reveals that business is changing and Infosys needs to react accordingly. Hence recruit more entrepreneur mind sets in your organization so as changes predication and aligning with the same could be expedited and save the farmers. Stepping down from the predecessors shoes is going to be the key factor.
Global Macro Economic Researcher and Business Strategist
Master of Economics, MBA in International Management, ICWAI (Final)