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Corporate Governance: The Darwinism of Management

Written By :

  • Éric Dufour | Expert RCGT
    Éric Dufour

    Vice-president, partner FCPA Management consulting

Whether we like it or not, businesses are no longer being managed in the same way. The “theory of evolution” also applies to management.

The management profession is undergoing a major transformation. Not only has the pandemic accelerated change, but it has also forever transformed the way things are done, particularly in terms of organizational governance.

To lead teams with efficiency and agility while mobilizing them to make the organization innovative and competitive, managers must adapt and avoid setting old, more paternalistic vertical management practices into stone. They need to evolve towards a horizontal, more engaging approach, where the collective takes precedence over the individual.

Today and tomorrow’s leaders must therefore acknowledge the facts and seek to adapt quickly, lest they become fossils!

Gouvernance entreprises | Darwinisme

Taking stress factors into account

The time has come to accept the fact that not acting will inevitably force all entrepreneurs and managers to consciously or not, take a huge step back. Leaders must quickly become aware of the stressors they face and take them into account, not only for themselves, but also in the way they manage their organization.

Below are some of the findings that reflect how management has evolved.

Pressure on labour shifts

With the pandemic, humans have had an unexpected encounter with themselves. They have returned to their deepest values and exploratory instinct, resulting in pressure on labour shifts, which is far from over.

Emotional intelligence and responsibilities

Humans want to be part of tomorrow’s solution, which forces managers to think more collectively. Emotional and strategic intelligence, as well as responsibilities, must now be expressed and distributed horizontally, which promotes a spirit of collaboration and openness.

Organizational structures must become more agile, innovative and motivating for employees. With the labour shortage, it is essential to involve players to retain key employees.

Progressive transition of power

In terms of change management, the gradual transition of power is forcing leaders to rethink their governance and communication strategies to make them more linear. It is important to recognize that more transparent and inclusive governance encourages staff engagement and facilitates decision-making.

Skills, attitudes and promising personalities

Supporting ambitions to advance will trigger a numbers game that can foster a more natural selection of skills, attitudes and personalities that can provide managers with local solutions.

Evolving towards a horizontal decision-making process

Lastly, the managerial and entrepreneurial species is evolving rapidly towards a reverse management model that better leverages grassroots skills in its decision-making process. The vertical will become more horizontal and the power pyramid will become flatter. Managers will focus more on gathering ideas and solutions from their resources with a governance that integrates a variety of experts.

Key considerations for future managers

Beyond these observations, how can leaders avoid fossilizing their management? Here are some considerations that our experts can help you with in order to make your management evolve towards the managers of tomorrow.

Ensure overall managerial health

Ensure the business’s (managers, company and employees) overall health by identifying the new stressors caused by the major changes experienced. It is essential to target the key issues that can compromise your organization’s growth and sustainability.

Review your governance by maximizing the components of your ABCD

Review your governance by maximizing the components of your ABCD (Agility, Benevolence, Collective, Diligence). This governance review ensures, among other things, that business leaders are not isolated and that part of the burden of responsibility is taken off their shoulders. If you are well surrounded and if everyone understands their role, you encourage agility and thus promote the growth and sustainability of the organization.

This will make it possible to implement a matrix of the necessary competencies and review the delegation of authority matrix to move towards a more collective and horizontal allocation of responsibilities.

Shock treatment for HR component

Initiate a shock treatment of the entire HR function (surveys, engagement, overall health, total remuneration, flattening of authority, structure and coaching, etc.).

Implement a strategic and technological plan

Implement a strategic and technological plan so that your organization can innovate, remain competitive and increase the engagement and commitment of all teams. The digital age has replaced the old ways of doing things. It’s time to evolve!

Adapt your organization to an accelerated evolution

We support many organizations in their transformations, whether it be in terms of entrepreneurial succession, governance renewal, technological levers, strategic HR advice or overall entrepreneurial health, to name a few. The pace of these types of transitions must accelerate.

In 2022, our firm invites managers and entrepreneurs to quickly take up the transformation challenge of adapting their organization to the accelerated evolution of management. The organization’s Darwinian transformation is no longer a choice, it’s a necessity to remain at the forefront and ensure its sustainability.

Take control of your organization’s destiny by consulting an experienced consultant who can help you implement a structured approach and by appointing an internal team to ensure the transformation’s pace and success.

Contact us today to find out how we can help you take the steps necessary to adapt and successfully carry out your business plans.

It’s time to evolve and adapt to avoid fossilization!

Together, let’s ensure our collective success!

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