He business ecosystem In Spain, it is in a period where it must respond to various stimuli and do so quickly enough, but always in a strategic manner to achieve its survival and obtain a competitive advantage over other players in its sector. Something that, at the moment, does not seem to be being attended to in the most correct way since 60% of companies do not exceed five years of life according to Eurostat data collected by Cepyme last year in the report ‘Situation of SMEs in Spain compared to other European countries’.
This is a situation that has gained relevance in recent years, with the sudden appearance of Covid or, more recently, with the rise of Artificial Intelligence (AI), which has brought about important changes for the business culture. All of these situations require companies to always be willing to adapt to the new needs and demands of the market as quickly and efficiently as possible.
In the next decade, 50% of the global companies in the S&P 500 index will be replaced by new ones. In this sense, adaptation is key to belonging to the group of companies that will extend their life despite the disruption of their sectorsalthough for employees this fact does not seem so simple. In fact, 50% of those surveyed in the Study ‘The State of Organizations 2023: Ten shifts transforming organizations’ carried out by the consulting firm Mckinsey indicate that their organization is not prepared for the future, so it is necessary to act quickly now. and be as adaptive as possible.
«An adaptive organization is one that is prepared to detect and react to the highly changing conditions of today’s market. Being able to create and implement a structure prepared to adapt and respond quickly to changes and customer demands is, in addition to a necessity, an advantage in the current context,” he points out. Miguel RodriguezConsulting Director of Netmind. Besides, Aleix PalauVice-President at BTS, points out that, to achieve this, “all dimensions of the organization must be aligned so that the change is carried out optimally: Strategy, Government, Design; Values, Processes, Technology; People, Leadership and Culture.
In fact, BTS and Netmind experts explain that producing a model that leads to success is not easy, but it must pivot on five essential aspects. First, a company must be able to detect and anticipate changes in your environment to later carry out a detailed analysis of market conditions.
Furthermore, they highlight that after these two initial stages “the next step is to understand. Careful observation would be of no use if the implications or consequences of the changes that are detected are not recognized in order to react later,” says Palau.
Understand changes in the environment
«After this, adaptive organizations launch mechanisms to take advantage of what is detected through innovative solutions and data collection to generate new learning. “This step finally shows whether an organization is trained in an adaptive way since ultimately “they are able to make improvements and adjustments in the processes that make them more efficient, customer-centered and people-oriented,” complements Miquel. Rodriguez.
The ability to adapt, especially in times of uncertainty, makes the difference. During the 2008 crisis, the most resilient companies achieved 20% more returns for their shareholders. A scenario that was also replicated in a pandemic. The difference between closing, surviving or gaining a competitive advantage from an a priori disastrous moment.
This circumstance is largely due to the complexity in which the ecosystem currently finds itself, regardless of the size or experience of the company in its sector. «The need to stay up to date in crucial areas such as sustainability, technological advances or preparation for the future, has become an increasingly demanding task. In this sense, the increase in complexity redefines the business landscape, challenging companies to innovate and adapt continuously to excel in a competitive and changing environment», continue Palau, Vice-President at BTS.
In short, companies must prioritize and dedicate time to actions with the most impact and value for their company to act quickly. They will only achieve this if they have extensive knowledge of their sector and their clients to understand needs and challenges. “Adaptive organizations are resilient to succeed in the long term, which translates into the use of more fluid alternative structures and investment in the development of learning capabilities that generate and collect new knowledge,” they conclude.
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