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Nigerian economic experts are united in their projection that this year (2023), “Nigerians will experience harsher economic realities”.
For business owners and captains of industry, the situation is that of almost hope lost. How do we move forward? We surely, cannot continue with our age-long business models that have worked for us. Do we right-size for the sake of our balance sheet?
I wish to prescribe the ALGORITHM DYNAMICS. That is, the change process whereby “input value yields output value”. Algorithm dynamics prescribes that like algebra, a concept or an idea can be substituted in a dynamic process with another.
Before I elaborate on the above, let us examine what we have on ground now.
Strategic planning through frameworks, charts, barrage of data and managed metrics are not providing the much-needed effectiveness. Also, we have tried analytics, decision trees, financial models, process maps and other forms of logical transformation dynamics with little success.
What about the different forms of financial management principles, such as optimum fund utilization, tracking liquidity and cash flow, utilizing funds at least costs and maximizing earning capability? Honestly, they have not delivered the expected results.
Standard business philosophy and standard practices are definitely not as effective in delivering the expected numbers in these trying times.
The “value-input yielding value-output” dynamics is people-centric, pragmatic and practical. It is purpose-driven and thrives on natural and intuitive ideas. It is flexible and adaptive.
Also, natural talents and fully “engaged” workforce guarantee continuous alignment of purpose and goals; shared values and loyalty. There is focus, determination and revved-up atmosphere for phenomenal profitability. Employees come to work every day with full gusto or enthusiasm. Loyalty is such that, employees are not just chasing salaries but also ready to cope with cut downs whenever they arise.
This value-input model, which “comfortably” rests on the “resourced-based” option, develops and grows extraordinary people who achieve extraordinary things.
The “value input-value output” model also provides an alternative and credible way to achieve competitive advantage. With this dynamics in “full gear”, focus shifts to authenticity and superiority. There is also uniqueness in value-delivering expertise and efficiency.
The company achieves highest brand recognition as well as distinctive and superior products and services. There is passion for imagination, innovation and invention. Bars are constantly and consistently being raised by the fully engaged workforce. Also, limits for exceptional performance are consistently and constantly pushed up.
When employees are led (and not managed), there is also value-led differentiation in customer service. Strong relationships are built; unique experiences are created and opportunities tapped into. The workforce is more responsive and resolves problems quickly as well as efficiently.
Leadership in this value-model is a profound opportunity to shape lives within an economic vision that creditably checkmates downturns and promotes reliable compound growth. Leaders, and not bosses, are the stewards of the “preciousness” of every person in all positions. Our successes as leaders should be measured by the way we touch lives and promote respect as well as dignity. We must consciously, appreciably and positively shape the lives of colleagues and through this, achieve profound impact.
When we“right-size” because of the economic downturn or the crisis we are facing in the business environment, we may inadvertently distort initiatives in the corporate culture. We may therefore do the following; make genuine efforts to protect the health of the business; encourage shared sacrifice; invest in process, service and product improvement as well as education. Also, there is need to encourage proactive communication.
It is the responsibility of leaders to develop and promote an integrated, inspirational and sustainable morale. Tough times show true character, so your positive impact must touch everybody, no matter their job levels or titles. A positive culture of shared values fosters “unbreakable” loyalty as well as desirable employee and customer engagement.
Company’s culture and the values it creates, can decisively determine success or failure. Current findings by researchers revealed that 94 per cent of executives and 88 per cent of employees believe that a distinct corporate culture is critical to business success. When employees share company’s values, they make more informed decisions. Shared values unify the company and foster strong bonds.
It also provides “social safety nets” because employees can be depended upon in times of uncertainty, stress or change. It helps retention, value-adding collaboration and improved performance. Employees deliver “maximally” when they are dedicated and motivated. Companies that place a high value on wellness and good work life balance obviously reap the benefits of improved performance and more productivity; improved satisfaction and fulfillment. Satisfied employees mean satisfied customers and this leads to appreciable productivity.
Companies that will survive in these very challenging times must promote the power of ideas and climate of ideas. We must leverage culture for sustainable competitive advantage, innovation, new ideas and patterns.
We must promote shared beliefs, shared values of the people and organisation, unblock our ability to innovate, perform and achieve topnotch performance. Competitors can match anything we do. They can steal our best people, best ideas and processes. The one thing they cannot steal and that is very unique to us, is our culture; our interests and ways of doing things.
The leadership that drives and supports this authentic connection can drive breakthrough performance in a sustainable manner with the much-needed competitive advantage; we must therefore, build a culture that enables and transforms the company.
How do we, on a sustainable basis, ensure the reawakening and thriving of our culture? This can be achieved by: Building it around all levels of employees; ensuring an effective business strategy that leverages unique strengths; and Employing people who are not just qualified, but also believe and fit into the culture. Through the people, make your services and products continuously relevant, more useful and more beautiful.
The other tips to support this Algorithm Dynamics as antidote in these challenging times include but not limited to the following:
Financial discipline either by way of credit or cash must be strictly maintained. No matter how close you are to your bankers, do not say “my bank is friendly”. Always discipline your risk tolerance and financial integrity. Also, have respect for “cash”. Do not fritter it away. If you are handicapped, please be careful about how you go into asset-based lending.
One best way to play the game in these challenging times is to have a Board of Directors made of professionals. This is definitely, very useful. It will effectively galvanise the team and ensure organic growth.
Also take good cognisance of this truth by result driven experts: there is no relationship between cost and market value. As we have learnt from the Algorithm Dynamics, always input value and you will surely output value. Cost accounting can misdirect your thinking.
Unique, relevant and beneficial value from our fully-engaged people, will surely deliver the expected returns.
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