Management also faces 'climate change'

April 22 2016
Executive Education INCAE

Just as the Earth registers an increase in temperature - it will probably rise by 0,3 to 1,7 ° C during this century - companies experience major changes that raise the temperature when making decisions. These have occurred in practically all the countries of the region.

In politics, the laws on access to public information are taking effect. According to the World Economic Forum, in the last decade, access to information on changes in public policies and regulations has improved in 12 of the 18 countries in Latin America.

Cultural changes also affect decision-making. On the one hand, new generations emerge apart from the traditional treatment with work and human relations (for example, millennials) and, on the other, more rigorous standards of conduct are promoted for entrepreneurs.

The field where the business climate has changed the most is shown in the explosive growth of social networks, which make possible, and at surprising speeds, the exchange of information, communication and the use of devices to control goods, irrigation cycles, times of service, etc.

It is no longer just manual or low-skill jobs that are replaced by technology. A 2013 Oxford Martin School study concluded that 47% of the white-collar workforce in the United States is automatable today. McKinsey's 2013 study on disruptive technologies by 2025 estimates the impact of the automation of intellectual work (artificial intelligence), between 3.400 and 4.400 billion dollars annually in Costa Rica. The future will force retraining of the workforce to adapt.

In terms of environment, the managements face new ecological challenges, which mean a greater commitment to nature. The reduction in carbon dioxide emissions agreed in Paris represents an opportunity for improvement in the use of renewable energy and technology to lower the carbon footprint.

The possibility of becoming independent from the use of electricity required by the burning of fossil fuels (very expensive in Costa Rica for industrialists) through the use of solar and wind energy represents a new paradigm of work and cost reduction if you know how to take advantage of it.

The key to success

For Juan Carlos Barahona, professor of innovation and technology management at Incae Business School, the most important challenge is to acquire digital skills to radically transform cost structures and skills to serve consumers.

Associated with this, develop the necessary skills for corporate leadership that allows decision makers to transform organizations in an environment of increasing complexity.

“Each company is different”, says, for his part, the negotiation professor Enrique Ogliastri. “There is no generalization, it must be thought in each sector, in each country. The entrepreneur must know what he has, what is the context, where he is going and what his priorities are. Success lies in making a correct analysis of what is happening and where things are going ”, adds Ogliastri for whom the entrepreneur must know what he is going to do with the three great strategic resources: physical resources, people and knowledge. The latter includes what you prioritize ...

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