01. Mar. 2018

Creating Sustainable Growth

by Kaizen Institute

We recognise that economic cycles will always remain strong, but in the long-term, no one can stop the scientific progress, innovation and cultural change for the better that has settled in modern societies.

 

Growth

In contemporary societies, economic growth has become the primary goal of nations, companies and organisations in general. The media confronts us daily with the need to overcome the crisis and governments rejoice when they see that same economic growth is really happening, thus anticipating their re-election.

Growth is the order of the day, especially in companies, key units that make the economy succeed. Many studies focused on the performance evaluation of leading organisations in Europe and the United States concluded that, only one in ten companies can deliver value to their shareholders in a sustained manner over a period of 10-20 years. In fact, a Gartner study in 2016 revealed that this was the main concern in the agendas of Top Management. But how do we explain this obsession of modern society?

 

Homo Deus

In Yuval Noah Harari's bestseller, "Homo Deus", it was written that mankind is now busy moving on to its next evolutionary stage: the transformation of Man into God. Harari mentions that we are at a point in history where all the problems that have haunted us for a millennium are about to be solved: wars (it is more common to commit suicide than to die in an armed battle), hunger (the risk of obesity rather than hunger) and diseases (death has become a simple technical problem and we are close to achieving immortality).

It is argued that Humanity is in a position where it can raise its head and look over new horizons, since many traditional skills that were considered divine, are now so predictable that we do not even realise them.

We know that economic cycles will remain strong, but in the long-term, no one can stop the scientific progress, innovation and culture change for the better that has settled in modern societies. It is in this context that Harari explains, for the modern economy to survive, it needs to grow constantly and permanently.

The Homo Deus continues his quest for perfection, personified by current Top Managers and Executive Directors. While some observers argue that capitalism's only goal is to increase profit for the shareholder's sake, we now know that sales growth together with profitability growth, is, after all, the most balanced view, with benefits for all involved in economic activities. In fact, few companies can grow profitability, without at the same time increasing sales.

 

A Continuous Improvement Culture

We move on to another fundamental factor in the ability to grow an economy, whether it is at a macro level (countries and conglomerates) or at a micro level (organisations and companies): the ability to change for the better, by eliminating old paradigms and traditional ways of thinking and working.

A Business Culture of Continuous Improvement enables Sustainable Growth from the perspective of Sales, Quality, Costs, Service and Employees Motivation. In KAIZEN™ methodology (Kai = Change, Zen = For the Better), these are referred to as GQCDM (Growth, Quality, Cost, Delivery & Motivation) goals.

Nowadays, Growth Strategies based on KAIZEN™ philosophy and methods have come to play a key role in the organisations' profitable growth effort. KAIZEN™ involves the implementation of a daily practice improvement and change actions for the better. The KAIZEN™ System of Change Management is based on the practice of improvement workshops at various hierarchical levels and processes of the organisation, in order to foster a process of change management.

It is possible to build a culture based on the practice of improvement at all levels, in all areas and at all times. If the organisation is flexible and seeks to implement strategic changes rigorously, the improvements implemented will have a positive impact on the GQCDM objectives and the final result will be the company’s Homo Deus design: Continuous Improvement of Profitable Growth.

In short: Organisation Growth in Size, Profitability and Continuous Improvement is the number one Goal of successful companies; Growth allows the best reward, both spiritual and material, of all those involved (employees, managers, shareholders and other interested parties); Growth is greatly facilitated, if the Organisation develops a Framework and Culture for Continuous Improvement. So, it is possible to make ourorganisations stronger for the next generation, putting up a fight and achieving our Homo Deus design.

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01. Mar. 2018

Creating Sustainable Growth

by Kaizen Institute

 

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