A World Cup and election year put companies on alert to avoid productivity drops. Learn how to minimize risks. The challenges of strategic management:
In Brazil, two events will be significant for the economy in 2014: the World Cup and the elections. For some sectors, this will be a unique opportunity, but for most, there is some apprehension. For this very reason, efficient strategic management must be invested in, aiming to guide the company's progress and work towards a greater objective. To achieve this, mere shelved management is not enough; it is necessary to create strategies, goals, action plans, indicators to measure performance, and establish a routine for monitoring these processes, as well as clearly communicating the organization's expectations for this year to the entire company.
According to experts, companies need to organize themselves to ensure profits in the first half of the year, as the year will be shorter due to the games and costs will not decrease. The key motto for 2014 will mainly be to avoid unnecessary expenses to ensure the company does not go into the red, especially considering the natural increase in labor costs during this period.
Priscila Nogueira, director of strategic alliances at Stratec, believes that the economic effects of the World Cup have already been felt for longer, with the creation of the necessary infrastructure for the event. In other words, organizations have been preparing and investing for the World Cup for longer, looking for the opportunities it brings to the economy. “I understand that the main challenge now in 2014 will be to meet the targets, considering that for a month urban mobility in major centers will be compromised, and everyone's attention will be focused on the event. Have managers taken this into account in their planning? Have they defined action plans to mitigate these risks?” she asks. In addition to the World Cup, Priscila points out that there will be elections at the end of the year, and with that, possible political and economic changes. According to her, the results of the elections could invalidate plans and projects to achieve organizations“ strategic objectives. ”It's a time for reflection and a review of tactical and operational planning," she says.
One factor that managers should take into account is that the second half of the year will be shorter because of the games and that this should be planned so as not to result in losses for organizations. Three new holidays will be added to the national calendar because of the initial phase of the tournament: 12/6 (Thursday), 17/6 (Tuesday) and 23/6 (Monday). This calendar of holidays could be extended if the Brazilian team progresses to the final phase. “Managers should consider these holidays in their planning, defining preventive actions so that there is no loss of productivity. Creativity and finding solutions as a team should be valued at these times. Communicating goals, getting everyone's commitment, publicizing results and rewarding good suggestions are just some of the ways to involve teams in a problem that concerns the whole organization,” advises Priscila. Companies should also be wary of popular demonstrations that may occur during this period.
Strategic management enables the measurement, identification, and evaluation of risks, as well as the definition of action plans for their mitigation, should the organization deem it necessary to protect itself from them. In addition to the factors cited above, there is also the fact that Carnival this year only occurs in March. Therefore, some organizations are advancing projects, organizing their activity calendars, and replanning employee vacations to avoid a drop in productivity. “The fact is that the organization must handle the risks of 2014 appropriately, meaning by protecting itself, transforming risk into opportunity, or simply reducing its impact on the business's strategic objectives. Strategic Management software is prepared for the identification and evaluation of risks, as well as the proposition of actions to transform them from threats into opportunities,” Priscila highlights.
Knowing what will happen in advance is the dream of almost all managers and entrepreneurs. However, as certainty about the future does not exist, the most viable option is to map out scenarios, trying to predict the main trends and challenges that the organization will face in 2014 and prepare to confront them. Maintaining productivity, reducing costs, and strictly adhering to planning will be key elements for companies' success, according to specialists. After identifying negative risks and preparing for them, managers will also have time to think about the opportunities that 2014 may bring.
