FALCONI has been working in the market for over 30 years and is recognized for its ability to help organizations build exceptional results by enhancing their management systems. Founded by Professor Vincente Falconi, author of six books in the area of business management that have sold over a million copies, the consulting firm operates in every market segment. Check out the exclusive interview with the magazine Super Negócios.
What are the pillars for an effective management system?
Any organization, whether in the public or private sector, or big or small, is prepared to be successful if it can develop the three elements that at FALCONI we call the critical factors for success: leadership, technical knowledge and managerial knowledge. These elements, which are interconnected, require much discipline and commitment on the part of all employees to generate results.
In relation to technical knowledge, it is necessary to understand that each individual must master the processes under his or her responsibility. You cannot assign someone to operate a machine without prior training, without teaching how to get the most out of that resource. It may seem obvious, but try applying this logic to all the departments of a company. Will everyone have the necessary technical knowledge to occupy each position?
The second factor, managerial knowledge, can be summed up in one word: method. If you have a measured improvement objective and a time frame for achieving it – what in management lingo we call a goal – it is necessary to do a detailed analysis of this challenge, which should culminate in a sturdy action plan to achieve the desired results. If not, you will only have a dream that will never become reality. Method is the essence of management.
Leadership is the most important factor. Unlike technical knowledge which, as a rule, can be bought, or unlike methods, which are rigid and sequential, leadership is crucial so that the entire team can execute what was planned and the organization achieve set goals.
What are the attributes that every leader should have?
A good leader is someone who gets results (achieves goals) with the team and in the right way. Underlying this definition is the ability of that person in a leadership position to combine the needs of the business with the needs of each person on the team. For this reason, people development should occupy a good part of a leader’s agenda. Without a good, motivated and well-trained team, there is no one to lead and the organization will lose its capacity to achieve. You can’t learn to be a leader in “theory only”. It is necessary to develop content that goes beyond technical knowledge and leads to continuously practicing new skills or new behaviors. Leadership is a process, not an event. Even though many people have an innate aptitude for leadership, this characteristic must constantly be developed. It’s a lifelong task.
What gets in the way of achieving goals?
Without goals, there is no management. For a company to effectively achieve proposed goals and attain exceptional results, its employees must have method, knowledge and motivation. If a team is lacking purpose, it will be difficult to achieve goals, since people are the primary asset of any company and they are the ones that can make the difference.
Leaders must develop and motivate teams to seek new challenges. Consequently, they must also share the company’s strategic goals and objectives. They must be developed, involving the largest number of people possible, so that everyone is aware of the challenge and so that it can be achievable.
Achieving goals will only be possible when the whole company is involved and engaged in using its resources better in order to maximize its capacity to attain better results.
How should companies prepare for constant technological innovation in the market?
Statistics show that few companies survive for a very long period of time. Most end up dying and weakening, and are either bought or merged with others. This occurs because market needs are constantly changing over the years. New and cheaper products emerge to meet these needs, customs change, new manufacturing technologies enable better product quality and lower costs, and new management technologies permit unlimited gains in productivity.
Innovating is not necessarily about adopting new technologies. Innovating mean continuously adapting to the market, producing a product (good or service), with quality, pricing and availability that surpasses competitors in people’s preferences.
Innovation management processes should be multifunctional and involve all the departments of a company, ranging from marketing, R&D, supplies to delivery. If all the departments understand the needs of their customers, they should generate ideas and solutions to satisfy them. Sharing knowledge within the company generates new knowledge.
The survival of organizations depends on constant innovation. Change must be one of the pillars of companies; their competitiveness today may not be enough in the future and lead to their demise.
What is the biggest challenge that retailers face when leading their sales teams, and how do you deal with this challenge?
In recent years, the Brazilian economy has been going through very adverse times, driven by high employment and rising inflation – factors that ultimately undermine the purchasing power of Brazilian families. This combination has been negative for the market as a whole, especially retail.
With the recent recovery and possible economic upswing, retailers must be prepared to take advantage of opportunities that arise. In our experience, the pursuit of greater efficiency in internal processes, with a focus on productivity and cost reduction, continues to be a factor that can significantly leverage results in adverse contexts. However, merely “looking inward” is no guarantee of success.
To secure opportunities for maximizing sales results in times of reduced margins, it is important for leaders to follow certain procedures: manage the assortment (have an adequate mix for the company’s target audience, without excess inventory), improve pricing without affecting the margin, effectively carry out goals, standardize commercial processes and control results systematically. By adopting these measures, companies will be more solid and better prepared to cope with any challenge.
Source: Revista Super Negócios – Association of Supermarkets of Rio de Janeiro (ASSERJ) – December 2017