Due to the current state of the economy, it seems pointless to make predictions for the year and to contemplate how they might affect our business’ geopolitical situation and economy. We can, however, be sure of certain factors: there’s no escaping inflation, uncertainty, or the energy crisis.
Besides these macroeconomic aspects that are beyond our control, we should be keeping an extremely important challenge in mind in order to be able to face them: “business inflation.” The complications that organizations have inherited during the past two years are far from disappearing. These situations will also “inflate” today, and in the short-term future—and we’re far from comprehending the extent of their consequences.
In this context, and as a result of the effects of the pandemic and the international crisis created from the invasion of Ukraine, management has been forced to take on the challenge of normalizing the process of transformation which seems to have come to stay. Four fundamental factors should be considered during this process:
Crisis mentality
During the last World Economic Forum (WEF) in Davos, one of the main topics revolved around the question, “Is your business ready for the next global crisis?” WEF recommends three main actions to prepare for the future: building trust with stakeholders, embedding value-led sustainability, and rethinking trade and supply chains. At Olivia, we believe that the real challenge is about integrating crisis mentality and business management, in order for executives to be able to make decisions despite uncertain circumstances. As leaders, we need to develop the necessary tools to remain stable within the discomfort of uncertainty and, from there, make decisions.
The new distance between people and their organization
Flexible work arrangements and hybrid business models have come to replace the 20th century’s physical workplace environment. Working remotely implies a challenge for business cultures which are often deeply rooted in outdated models of work. This shift, however, is the “new normal”, and needs to be permanently integrated within organizations. Otherwise, retaining talent and maintaining motivation and commitment from our teams—a fundamental requirement for any successful business—will prove impossible. As managers, we need to overcome our fear of remote work, understand its benefits, and integrate it with our corporation’s culture.
The end of job exclusivity
As stated previously, the changes in processes that resulted from working remotely, combined with the priorities of a talent that are increasingly global, have caused employees to value flexibility in the workspace. They no longer search for the security of a permanent contract. More and more professionals want to feel in charge of their future and prefer to work on individual projects, and explore new possibilities of work—especially those with the most talent. This model, frequently seen in technology sectors, is spreading to other industries. We need to be aware of this change and prepare our organizations for attracting the best.
Equity and diversity
The combination of dimensions, people, processes, markets, and activities that has appeared in the last few years has increased the amount of elements that make up our organizational value chain. Our work base has become more diverse, but also more complex. For organizations, this diversity implies a challenge for management and their business culture. Familiarity feels comfortable, and change can make us feel insecure, but the 21st century calls for a new outlook that supports a way of working that encourages diversity. In Europe, regulations require organizations to incorporate diversity, inclusion and equality in their management models. In the future way of work, which has already made its way to the present, work is as diverse as it is equitable.
We need to be aware of macroeconomic challenges; but more importantly, we should be especially prepared to take on the challenges within our organizations. It’s the best way to build strong, solid, diverse and qualified teams that are capable of facing the difficulties that the future might hold.
By Gabriel Weinstein, Managing Partner at Olivia in Europe.