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  • Writer's pictureMarkéta Hinková

Prevention of Company Collapse - the recipe for success

Professional business performance management

An example of this are companies that depend on business results for survival.

The success of business activities depends primarily on professional and systematic business management. These include functional business strategies complementary to the company's vision, setting up a motivational remuneration system, active management according to goals and evaluation of business activities on a regular basis, direct responsibility of salespeople for results, linking business to quality marketing activities, business team development, etc. substantially reflects the personality of the sales manager, the level of his professional and managerial competencies and knowledge of the market.

An integral part of success is also a unified business mindset in the company, for business settings, business-oriented decisions and also the knowledge that the results of business activities, among other things, "sustain" employees in the process of implementation or production.

Another factor is the quality of the business team, whether they are ordinary traders, "business gurus" or business development representatives.

The key to high business performance (under the terms of the sales product) is therefore the willingness of management (shareholders) to invest in future profits - ie invest in a top-quality business team, where the personnel costs associated with this team will be reimbursed several times. Inefficient businessmen are just another cost of the company and do not bring added value to the company.

HR as a business partner

The competitiveness of the company can be likened to climbing Everest.

The base camp is employees. People are the core value and gold of any business.

The first base camp then represents a top quality service or product produced by well-selected, trained and motivated employees.

In the second altitude camp, we find satisfied clients who buy quality products and services, return repeatedly and recommend the company.

The third altitude camp are positive numbers. The company is thriving, selling, has an interesting portfolio of clients, and therefore economic results.

At the very top of the 8,000-metre mark is the company's competitiveness. Once you’ve covered everything until now, you’ve conquered the mountain.

In this context, it is logical that it is necessary to change the paradigm of the concept of the role of human resources in companies. If the personnel manager is not in the role of one of the key managers of the company, who is co-responsible for the strategy and economic results, the expedition to 8,000 metres cannot be successful. Human resources in the company are directly responsible for top quality of all personnel processes: recruitment of quality people, their rapid and effective adaptation in the company culture, targeted development in direct connection with the company's strategy, transparent evaluation, remuneration in relation to performance, motivation, retention programs, etc. that employees are the gold of the company, then the HR must be, in a good way, one of the stars of top management responsible for the success of the trip to the top.

So it all starts with thorough preparation in the base camp. Targeted and professional development of people is ultimately a tool for the company's competitiveness.

Companies that do not consider their employees to be the essential driver of their business are sooner or later doomed to a major crisis or collapse.

The quality of personnel management, the willingness of shareholders to invest in key employees, corporate culture and corporate values, the level of leadership - these are the key topics of retention.

In general, high-quality employees with high added value choose employers who not only provide them with sufficiently motivating and competitive financial rewards, but also treat them with respect within a fair corporate culture. It turns out that prosperous companies are brave and mentally set up to cooperate with personalities, provide them with the necessary powers and make the most of their strengths in the management of the company.

Otherwise, quality potential candidates do not choose the company or sooner or later leave it because they refuse to cooperate in a dysfunctional corporate culture with debatable values, motivations and approaches. Employees who do not produce significant added value and employees with a low level of competencies who do not have the courage to change or do not find a job in the labor market remain in the company.

It is logical that with such a base camp, conquering the peak of Everest is simply not going to happen, and any such expedition is doomed to failure before it even began its journey.

Strong leaders

The personality of a strong and respected leader, ie a real management elite, has a key influence on the company's success.

In practice, it is clear that mastering the managerial craft is only a necessary prerequisite - the key is the personality of the leader (natural authority respected for his professional experience, but also for his approach, character or high degree of credibility), which manifests itself not only in practice and functional communication skills (including working with relationships and high networking and emotional intelligence), the ability to systematically motivate the team to high work performance (assuming the role of the model, the ability to make maximum use of individual strengths, positive mindset and exemplary approach), but also the ability to optimise and harmonise the system, through having a clear stance and sticking to agreements.

The positive values ​​that such a leader really lives and non-violently promotes are then cascaded to lower levels of management, shape the company and its energy, and are reflected in the quality and degree of maturity of the corporate culture. The company's values ​​then have a direct impact on a chain of other contexts: the quality of staff and, as a result, the competitiveness of the company and its financial indicators.

A company with an elite leader makes quick decisions, does not waste energy, sets clear rules, does not resist innovative

approaches, is not afraid of personality, invests in quality employees, gives them the necessary space and competencies and thus makes the most of their strengths. Managers are motivated by the success of the company more than their own individual benefit, the company takes a bold approach to solving problems, and communicates openly.

The Singaporean Miracle

On today's map of the w

orld, we see tiny Singapore and its neighboring, disproportionately larger Malaysia. There is no doubt that the natural conditions (ie the basic conditions as well as the environment) were essentially the same for both players. However, while Singapore is a highly prosperous country, Malaysia is showing poorer economic performance. The context can also be found in the way the Singapore system originated and was governed. Singapore was founded and significantly influenced by the British statesman Sir Thomas Stanford Raffles. To this day, we encounter his importance and name in this country, and his influence on the development of Singapore has been indisputable.

The Prime Minister of Singapore (1959–1990) Li Kuang-jao, the father of the ‘Singaporean Economic Miracle’, who is also respected on the international political scene, also made a significant contribution to the shape of Singapore.

If we ask what the magic was, among other things, we find that in a strong, realistically almost a Machiavellian process (but not with the usually negative connotations this word has in our society). It is Machiavellian in the sense that is it strict, pragmatic, realistic, and takes into account potential law-breaking vices which it proactively acts against in order to prevent crime, not ‘treat’ it. Singapore has relatively strict rules in place that correct the behavior of its people while declaring clear values. The result is, in addition to the long-term prosperity of the state, a quality education system, attractive business fields or a high level of security and living standards. The system of causes and consequences can then be seen in the behavior of both systems (Singapore vs. Malaysia). Those who do not respect the rules in Singapore are "excluded" by the system (either in the form of strict and consistently enforced laws or by the members of society's own decision not to adapt and opt for another system with seemingly greater freedom but significantly lower prosperity). The overarching lesson for the company here is that clear rules which are followed without exception can have a knock-on effect on the prosperity of the unit (whether it’s a country like Singapore or your business) and are amongst the core tools which should be laid out from the beginning and implemented if you want your company to be a long-term economic success.

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