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. This is essential in companies which have grown through acquisition – there is a fine line between retaining the brand value of the acquired company and absorbing it completely into the organisation of the parent which, if carried out too quickly and with lack of sympathy, can destroy the very value for which it was acquired.

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 route 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.

All too often opportunities are missed or lost due to excessive bureaucracy and lack of delegation in decision making. Speed, coupled to appropriate risk mitigation is vital, as is the confidence and authority to assess and take risks at the lowest possible level.  Confidence and trust in business leaders is a prerequisite. 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!

Tortuous levels of approvals, bureaucracy and risk aversion prolong decision making, introduce unnecessary complexities and add considerable cost. When this occurs, then businesses lose sight of the intended outcomes and price themselves out of the market. Such actions fly in the face of trust, responsibility and accountability. Teams and their leaders should not be fearful of corporate censure for taking measured risks and decisions – such an environment stifles innovative activity. Innovation requires people who will take a decision and, if necessary, ask for approval afterwards, rather than people who will not make any decisions until they have permission from layers of corporate approvers – which simply stops any competitive momentum in its tracks.

In the latter case the opportunity will be lost to the competition.  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.

Trusted, respected and responsible leaders will instinctively do the right thing and satisfy those above them that the business is in dynamic, innovative and capable hands. That requires courage to change – but in the knowledge that such change will generate a winning, unstoppable momentum!