2021, with the mid-term and long-term in mind

During 2020 we have witnessed a very fast growth of the digital economy, the magnified use of data
analytics and the gradual recognition by our society that we need to act now to preserve our world.
These and other factors like the impact of competitive forces in our businesses, have obliged many
organizations to re-define themselves.

What should be our focus in the coming year?

For most companies, the 2021 business plan will have to respond to the need to deliver results on short
term goals while building capabilities to create and capture value in the mid and long-term. Developing
a competitive advantage, given the new context, will definitively require a new strategic thinking.
But while that strategic thinking is absolutely necessary, it will be far from being sufficient to win. In my
experience, accelerating and sustaining change under a complex business environment, will require
adding to strategy a strong focus into “purpose”, “talent” and “culture”.

Purpose
Considering the new mega-trends, the “purpose” of our organizations will have to evolve if we want this
to provide guidance and sense of direction. Generally expressed through the mission and vision, the
purpose should also address a growing demand from society: the expectation that companies create
social value rather than pursuing revenue growth and business goals alone.
I also recommend developing or upgrading the purpose of our organizations by involving and engaging
at least our leaders if not many of our teammates. Sometimes, we face the temptation to shorten the
process and do it in isolation, which is certainly faster. But there is nothing more powerful that creating
conviction around it. Only when the purpose becomes a “common purpose” we may capture people
hearts and minds; though, becoming the glue that unites everybody around our aspirations.

Our culture
Culture is the way things are done in our organizations. Culture underlies values, believes and, more
importantly, unwritten rules. Ultimately, culture is the way management and people interact with each
other, what is valued and how decisions of different nature are made not only at the top, but throughout
the entire organization. It also includes the leadership styles prevalent in each enterprise and the
organizational climate they generate.
For example, can we innovate when people know we have a deeply rooted risk averse culture? What
about when there is predominant top-down autocratic leadership style? These are simple question with
a clear answer: it will be quite difficult if not impossible to move the innovation agenda forward.
Reversing the logic, imagine the possibilities if we align our organization around the right culture in
response to our business strategy; reinforcing what is positive from our current culture and changing
and modeling what needs to be changed, so that purpose, talent, business and culture move in the
same direction. How often do we measure our culture and map it against our strategy? Can we draft a
culture change plan otherwise?
Companies are also competing for talent; and to attract talented individuals we will have to create an
environment that boosts their potential. Otherwise, we will see the talent leave.

Talent
Establishing or adjusting strategies usually require new competences and capabilities. Traditionally,
i-Q (intellectual coefficient) and academic background have been key elements under consideration.
As organizations need to stay agile in response to the VUCA* business environment, curiosity and
learning agility are now as or more important attributes than knowledge. Leaders will have to learn, de-
learn and re-learn as we need to scrap models and processes to build new ones.
Another crucial factor today is d-Q (digital intelligence). This is, at least, the ability to understand how
to transform business concepts into digital solutions to better serve the customers, enhance users
experience, be more efficient, accelerate change and deliver profit to the shareholders.
Empathy and emotional intelligence (e-Q) became more important in the last 20 plus years but are a
must right now to understand people´s fears and feeling; though being able to manage a permanent
change process that will not be only rational but emotional. e-Q is also important because companies
need “integrators” to manage cross-functional, sometimes cross-business and transversal teams.
Companies are social mechanisms and, as such, need to develop teams and teamwork throughout the
organization. So, when referring to talent I am not only thinking about individuals but teams and team
development.

Combining these elements for optimized results

Having no strategy is a dangerous game while defining the right strategy does not guarantee a positive
outcome. Maximizing opportunities and making change sustainable require us to focus on “purpose”,
“talent” and “culture” with the same weight we dedicate to strategy.
In summary, what creates the conditions for success is not only our strategy but aligning the
organization behind a compelling purpose, making the right leaders and employees
communicate, understand their inter-dependencies and collaborate beyond the boundaries of
their own areas; therefore, developing an agile culture to make decisions for the greater good.

In future notes, I will refer to “the enablers”. Those are the elements that facilitate the change process,
making it as smooth as possible. Among them, we can mention the governance system; the know-how
on change management (at rational and emotional levels); the impact of our leadership styles; how to
provide and receive feedback; the rewarding system and the importance of pivoting over positive
emotions.

Should you be interested in learning more about it, feel free to email me to:
eminardi@minardiglobal.com

Eduardo Minardi
Founder of Minardi Global
London, December of 2020

(*) VUCA: volatility, uncertainty, complexity and ambiguity.