In a global corporate world, we became accustomed to ‘proven streamlined
management methods’, giving us the confidence that we will achieve increased
turnovers. It makes us feel good to apply them and based on their demonstrated
results, success is assured. Well, ... is it?
A recent customer, a considerable sized internationally operating
company active in 15 countries world-wide, insisted on standardising their
sales activities – based on a successful formula from its US branch: in order
to offer incentives, a new reward system were to be introduced throughout all
its offices. Expectations forecasted a global growth of 15-20%...
Some of the overseas offices, however, felt less happy with the
unexpected change in their modus operandi, even up to a point that it
ran against their own culture. The result, therefore, was that nine months after its implementation, the change has
caused an overall decrease of no less than 10%, while a number of
skilled members left the company. These were hardly those results, the company
would have anticipated; far remote from what it had wished for. A number of branches
had to be even closed down.
This example illustrates exactly, how although totally verifiable
experiences do not necessarily copy the same success in a totally new setting –
even within the same organisation. It was a costly lesson learned, on never to
rely on previous results; many factors can step in, not only external changes
in economic developments, but foremost, the cultural dynamics of a branch or
even a team.
Obviously, management
would have preferred their higher turnover variant and made a painful discovery
and a damaged reputation: by adjusting their strategies to a more moderate and
realistic scope, they could have been far longer in successful business. It’s
not all in the figures, but rather finesse in understanding the overall dynamic
settings. Only this brings a more lasting comfort and a smoother success.
Michael Srba
associate partner
Flow4Biz
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