The challenges to building a great company
Today’s complex business landscape makes it increasingly challenging to lead a company towards its full potential.
Among the top business challenges today identified by AESC (Association of Executive Search and Leadership Consultants) in 2018 are:
Business Growth
Disruption
Talent Retention
Today’s leadership is under extreme pressure to meet business goals in such a volatile environment, to be agile enough to withstand the accelerating pace of change, and to have a team of high performers dedicated to the company for the long run.
3 important factors in overcoming business challenges
“The good news is, everyone in the C-Suite is on board with how important culture, organizational agility and engagement are”, Rebecca L. Ray - Executive Vice President, The Conference Board says.
1. Culture
Corporate culture, as defined by Investopedia, is “the beliefs and behaviours that determine how a company’s employees and management interact and handle outside business transactions.”
Reflected in every aspect of an organisation’s operations, culture and its influence on business results must not be underestimated. According to Prof James L. Heskett, Harvard Business School, culture “can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors."
Culture “can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.” — Prof James L. Heskett, Harvard Business School
2. Organisational Agility
An organisation that is agile is built to adapt to changes. Employees are empowered to learn new skills. They respond well to change, knowing how to innovate, problem solve, and think outside the box. They are able to participate meaningfully in change initiatives, without fear or resistance. This is only possible if there is a speak-up culture where people are not punished for making mistakes.
3. Engagement
When employees are valued, cared for, and respected, they become highly engaged, and thus more emotionally committed to their work. This results in lower staff turnover and absenteeism. Disengagement, on the other hand, affects talent even more and results in higher turnover, a key concern for leadership
“A strong workplace culture can be the difference between your organisation having impressive employee retention rates and high employee satisfaction levels, and having a high turnover and low morale. Businesses that appreciate how vital a good company culture is, know that they must really invest in their people if they are to get the best out of them.” - Michael Page
Culture is the most critical in solving business challenges
Culture influences behaviours, actions, and decisions in a company. It is not a by-product but rather a deliberate and strategic undertaking. Culture is seen to have direct impact on performance, engagement, innovation, agility, and the ability of an organisation to learn, grow, and adapt.
Culture is the overlooked factor in overcoming business challenges
