With the business environment constantly changing, corporate organisations need to be flexible and in tune with reality, IFE ADEDAPO writes
An important characteristic of business
is that it is dynamic, or constantly changing. To be successful,
businesses must react quickly to the changing nature of society where
they operate.
An example is the dissemination of
information in the eighties and early nineties using post office, but
with emergence technology of desktop computer and Internet services,
messages are being sent through email. Also, the influx of social media
that are easily accessible on mobile phones provides a platform for the
transmission of instant messages without delay.
John Holt’s 2000 annual report states
that the Nigerian economic environment during that year witnessed
unsatisfactory growth rate, high rate of unemployment, low industrial
output, coupled with poor demand.
Energy crisis continued unabated and the
supply of petroleum products was epileptic; serious bottlenecks were
thus created in the production processes culminating in increased
operating cost.
Electricity supply from the Power Holding
Company of Nigeria was too disruptive that their operating units were
forced to rely heavily on power generating facilities at exorbitant cost
of diesel.
According to United Nations Educational
Scientific and Cultural Organisation, the remote business environment
comprise the economic factors, social factors, political factors,
technological factors and ecological factors that affect its activities.
In addition, it further states that the business environment provides companies with opportunities, threats and constraints.
For example, they say when the economy
declines and construction activities start to decrease, an individual
contractor is likely to suffer a decline in business, but that
contractors’ efforts in stimulating local construction activities will
be unable to reverse the overall decrease in construction.
Experts say innovations drive changes in
business transactions and delivery of products and services. A business
consultant, Peter Drucker, says innovation is the specific tool of
entrepreneurs, the means by which they exploit change as an opportunity
for a different business or a different service.
In addition, he says innovation is
capable of being presented as a discipline, capable of being learned and
practiced. He says entrepreneurs need to search purposefully for the
sources of innovation, the changes and their symptoms that indicate
opportunities for successful innovation; and they need to know how to
apply the principles of successful innovation.
Using the opportunities and constraints
that abound in the business environment as a pedestal, experts have
pointed out ways of achieving success in business.
Be an innovative leader
Experts say executive leaders hold the
key to the level and success of innovation in their organisation. They
control the strategic direction, influence the culture, and directly and
indirectly control all organisational practices as well as the skills
taught to managers and employees.
They say innovation is a rare occurrence
and certainly cannot be sustained without the active commitment and
involvement of every member of the executive leadership team.
In fact, based on experience of
professionals, innovation success is only as strong as the executive
leadership team’s weakest believer in innovation.
According to iveybusinessjournal.com,
leaders throughout the organisation do not have to be the most
innovative individuals but they must learn innovative thinking and learn
how to lead or manage innovative teams. Since 70 per cent of
organisations report that innovation is among their top three
priorities, innovative thinking and managing innovative teams should be
high on their training agendas.
Imbibing culture of innovation
Professionals say culture defines an
organisation’s implicit rules and guides the activities of individuals
and teams when no one is watching. If the culture supports innovative
behaviours, innovation can occur systematically.
However, if some of the elements of the
culture, such as decision-making or risk tolerance, are not supportive,
innovation will never happen systematically. Leaders also need to
analyse the current cultural assumptions to identify what to support and
what to change.
Have an innovation plan
Although many organisations are trying to
close the innovation gap, experts say very few are successful. One of
the main reasons they do not achieve their goal is that they fail to
develop a formal plan. If senior leaders want better information
technology or more productive marketing, they ask for a plan; and
because most organisations are good at creating and implementing plans,
they usually achieve their goals. However, even if innovation is a
priority, leaders are more likely to make a few speeches and ask their
employees to have more ideas. They rarely develop a specific innovation
plan that is budgeted, resourced, and implemented.
According to experts, it is only by
creating a customised plan and implementing it rigorously that a leader
can create an organisation where innovation happens systematically.
The plan gives focus and structure to the
innovation effort. It provides the long-term view required to be
successful. In the absence of an integrated plan, an organisation will
find it is too easy to cut innovation resources when quarterly results
demand cost reductions.
They say principles such as engaging the
whole executive team, stating clear boundaries, enforcing the plan and
tracking its progress will ensure that the plan is solid, sustainable,
and will achieve the objectives.
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