People in the Industry of the Future – balancing human capital and technology for a competitive edge

In today’s complex and diverse commercial environment, companies which are not in tune with the political and economic nuances of the landscape invariably fail. There have been too many high profile business collapses not to take account of the pressures which lead to such a demise. No company is immune, whether a large corporate or a small enterprise. Global economic shock does not discriminate though it tends to affect the larger company more, with its wide spread interests, investments and global investors. Withstanding such shocks and remaining at the leading edge of success is multi-faceted. Staying alert to – and where possible – anticipating political and economic change is key but even more relevant is retaining a willingness and desire to transform and change.

People – the essential component

There is however, one essential component to growing and maintaining a competitive edge as we take the first, faltering steps into the industry of the future and embrace the challenges of the fourth, digital, industrial revolution – the people who drive a successful business. In the rush to become more effective and efficient, it is too easy to buy digital technology, automate the processes of production and reduce the number of people involved to cut the salary bill. Companies which do this, introducing technology for its own sake without clear consideration of business requirements, invariably raise their levels of debt to critical proportions, struggle to fit the technology to the business and suffer from significant reductions in people with the potential to realise new skills and capabilities.

Decisive leadership and teamwork

Those companies which succeed first consider their requirements, discuss potential business enterprise solutions with suppliers and the resource needs to gain full value from the investment as the business transforms. Transformation to retain a competitive edge is about creating a winning culture, seizing the advantage to be gained by imaginative ideas and innovation, the adoption of new, game-changing technologies, and motivating that most important business asset, your people – your team, to be the willing driver on the road to success.  However, none of that will work without strong but empathetic leadership to create the culture which empowers people to innovate, create and be willing to take decisions to grow value. Arguably, in the new, digitised business world, allowing people to do just that is the foundation for success.

Competitive risk assessment and mitigation requires an understanding of the nature of the task, what will be required to carry it out, and the desired outcome. That only comes from delegating responsibility to those closest to the task or opportunity. Pragmatic risk taking greatly assists the achievement of objectives. It speeds up decision making and generates competitive momentum. It is in these circumstances that it is vital that leaders and managers at every level have the confidence to observe what is happening, consider relevant factors, decide what needs to be done, then act – rapidly! The precise application of digital technology, managed by people who understand the questions to be asked and the level of analytics required, smooths the decision making process to enable swift but considered action.

Technology – asset or hindrance?

But there are numerous examples in large companies where, despite the application of technology, tortuous levels of approvals, bureaucracy and risk aversion remain, prolonging decision making, introducing unnecessary complexities and adding considerable cost. When this occurs, businesses lose sight of the intended outcomes and price themselves out of the market. The objective is to get inside the competition’s decision cycle – being able to think and act faster than a competitor in order to win.

This requires a culture in which leaders are trusted and supported to do the right thing, creating an environment for success with highly motivated, knowledgeable and confident people having implicit trust in their leaders to support, guide and encourage them, knowing that it is a team effort. Not doing so in the new, digitised world, makes a mockery of the very technology which is there to transform the business by serving the people who will drive that transformation.

The People/Technology balance

Organisations need to achieve a logical balance between technology and their greatest asset – people – if they wish to survive, grow and prosper. The culture must embrace the complex demands of leadership and encourage development and progress, giving impetus to the imagination of its young employees. Interns and graduates arrive enthusiastic and full of promise – all too often that enthusiasm is dampened by corporate processes and behaviours and the potential power of the individual is lost.  People should be encouraged to ask the question ‘why not’ or ‘if we’ – learning from experiences – experiences on which business can be designed. The uncluttered mind of youth, encouraged and given freedom to operate and roam free is a powerful asset.

Technology growth over the last 15 years has been extremely rapid and there is no sign of that falling away – in fact the reverse is true. Limitations and barriers to thought are being broken down and the business world needs to empower the mind to think further, faster and deeper.

The perfect relationship

To conclude, digitising the process and activity of business is not about replacing the people involved. It is about empowering them to think widely, to act differently and to be part of the success which comes from the appropriate use of that technology. Achieve the right balance and the company will strike the perfect relationship between customers and their expectations, business and its drive for efficiency and competitiveness, and academia as the powerhouse for developing the people at the heart of the digital future. Getting it ‘right’ is not easy but is worth the effort it takes at every level to create the value that people, aided by technology will achieve – a truly sustainable, resilient business with a winning competitive edge.