Wednesday, 10 June 2015

Managing is more than just a [copied] skill

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

No comments:

Post a Comment