As the old saying goes, the only constant in business is change. Inevitably, all organizations will at some point need to evolve by implementing a more structured and radical change program. There are several reasons for this including increased competition, lack of stakeholder confidence, reputation of the business at stake and technological advances.
In the aftermath of a high-profile corporate crisis, it is a foregone conclusion that chief executives must respond quickly to avoid further backlash. However, according to the HBR article Strategy: How to Live with Risks, a recent survey shows 60% of corporate strategy officers said that their company's decision-making process is too slow and that 91% of these companies plan to reprioritize risk management in the next three years. So what can senior executives do to prepare, or better yet avoid a highly combustible situation?
According to The Economist, if there is a harsh lesson to be learned from China’s recent panic it’s that the rest of the world needs to raise its level of productivity. Long gone are the days where relentless Chinese expansion could be relied upon to keep the global economy moving, and despite external factors that promote robust productivity growth, companies continue to lose ground. If tackling productivity at the microeconomic level is the key to unlocking a nation’s true potential, then business leaders must be part of the solution.
An interview with former Chevron President, Ray Wilcox
As the petrochemical industry adapts to the current business environment, many in the upper echelons of the business are relying on operational excellence (OE) strategies to become more efficient.
Corporations are bound by the rules of short-term earnings. It is a vicious cycle that repeats itself every quarter and consumes a significant amount of an executive's time. During this short window of time, the goal is to produce consistent and predictable results that will, in turn, deliver a strong share price and a higher valuation. In order to keep up, priorities typically shift to the day-to-day execution of operations
Alexander Proudfoot recently had the pleasure of participating in this year's "Being Global" conference in Santiago, Chile. It proved to be an outstanding forum for Latin America's emerging business community to learn how to establish a global presence through the effective management of profitability, growth and leadership.
The ability to run operations at full capacity, and then sustain them, is a major challenge for the mining industry. Vital tasks, such as crushing and transferring minerals, are suffering because people and equipment are not being utilized properly. The end result is low productivity and the high costs that are associated with it. However, our recent findings show that it in many cases it is possible to increase productivity in mining between 20 - 40%, reduce supply costs between 10 - 15% and cut energy costs by 2 - 10% through effective asset management.
Knowledge transfer a must
In the natural resources industry, companies are faced with the daunting challenge of maintaining current production levels despite an industry-wide shortage of skilled workers. For example, the lack of college graduates specializing in mining operations
In several of our recent engagements we have witnessed first-hand the enormous amount of pressure on CEOs to meet the stringent demands of both stakeholders and customers. One such demand that continues to be a top priority for executives is employee productivity.
Many major banks are suffering declines in trading revenue amid an environment of tranquil markets and stringent regulations.
Organizations dealing with rapid changes are often plagued with inconsistencies that limit production and produce erratic results. So why not devise a plan to stop wasteful practices and become more productive? Sounds easy enough, however gaining employee acceptance of a new approach can be extremely challenging. Two key elements must be considered for a large-scale project such as this to be a viable option: behaviors and change management.
Every year hospitals waste millions of dollars on misused or overused items, such as disposables, general supplies, laundry, uniforms and food. Changing a wasteful culture starts with identifying and correcting processes that that are detrimental to the inventory management process. However, this type of change is easier said than done. It is often difficult for hospital executives to implement a new framework of operations on every floor – they neither have the time nor the resources to execute a plan of this size and scope.
The term “big data” is getting a lot of attention these days, but for all the wrong reasons. In theory, the concept of big data analytics – acquiring systems to analyze large quantities of data – makes sense for businesses inundated with information.
Over the years, many chief executives have voiced their frustration with the process of transforming a vision into reality. One CEO in particular compared it to a high-performance sports car without any gas. By the same token, the "fuel" is often missing from an executive's ability to drive multiple initiatives that move a company forward. The key is overcoming gaps that exist between a company's current state and desired future state.
The evolution in the style of the successful CEO over the past several decades has been dramatic. Today’s style, marked by collaboration and efforts to mold consensus, and alignment, was preceded by a micro-managed, top-down hierarchical and power-driven approach.
Multiple factors are combining to intensify the pressures on chief executives to realize the full potential of their business within shorter and shorter time frames. Faced with this reality, the challenges facing every chief executive are daunting. And yet, in
spite of the rising tide of change at the top, many regularly and consistently execute their strategy with precision and flair to deliver solid results for the company and their stakeholders.
