RETHINKING ORGANIZATIONS
A MARKET RESEARCH STUDY CONDUCTED BY
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RETHINKING ORGANIZATIONS
What are the main challenges for the future of business? How are organizations adapting? And how do employees feel about these changes in the companies they work for?
QSP – Marketing Management & Research sought to answer these and other questions through a study conducted as part of the launch of another edition of the QSP SUMMIT, under the theme ‘Rethinking Organizations’, with over 130 business professionals. The study results allowed for an initial analysis of the event's theme, exploring the evolutionary scenario of the business world and the strategies that are reshaping organizations as we know them.
The 17 th edition of QSP SUMMIT, which will take place from July 02 to 04, 2024, in Porto, Matosinhos, will be the stage for debate and knowledge sharing. Under the theme ‘Rethinking Organizations’, more than 3.500 attendees will have the opportunity to hear over 90 speakers discussing the trends in organizational dynamics and how companies are adapting to face the challenges of today's world.
More information at www.qspsummit.pt .
RETHINKING ORGANIZATIONS
THE MAIN CHALLENGE FOR MANAGEMENT LIES IN PEOPLE, EITHER DUE TO THE DIFFICULTY IN ENGAGING EMPLOYEES OR RETAINING TALENT IN THE COMPANIES.
For the vast majority of managers who shared their vision of the business world in this study, people are the main management challenge for companies. Whether it's the difficulty in instilling an organizational culture and engaging employees (mentioned by 60% of respondents) or the challenge of attracting and retaining qualified professionals in their ranks (53,3%), these are significant concerns for organizations, as such professionals are increasingly scarce.
EDUCATION AND TRAINING MODELS THAT ARE OUT OF STEP WITH THE NEEDS OF ORGANIZATIONS ARE ONE OF THE MAIN PROBLEMS IDENTIFIED BY BUSINESS PROFESSIONALS.
77% of professionals consider current education and training models to be out of step with the needs of organizations. In contrast, only 14,1% consider them to be appropriate, with the remaining 8,9% not knowing about the subject. These percentages show that there is a clear discomfort with current educational models and a desire to reformulate them in order to better meet the needs of organizations, whether due to the
to
ORGANIZATIONAL CULTURE AND EMPLOYEE ENGAGEMENT 60,0% ATTRACTION AND RETENTION OF QUALIFIED TALENTS 53,3% AGILITY IN ADAPTING TO MARKET CHANGES 52,6% EFFECTIVE MANAGEMENT OF FINANCIAL RESOURCES 36,3% LEADING IN A CONSTANTLY EVOLVING BUSINESS ENVIRONMENT 34,8% PRESSURE FOR CONSTANT INNOVATION 28,9% OTHER 2,2% WHAT
priority given
ARE THE MAIN MANAGEMENT CHALLENGES THAT ORGANIZATIONS FACE?
RETHINKING ORGANIZATIONS
theoretical content to the detriment of know-how, the disregard for soft skills, or even the lack of connection with the corporate world, as the results of the study indicate. The challenges that organizations face in an environment of fierce competition and constant change mean that, especially top managers, feel that recent graduates should be better prepared for the corporate dynamics.
ARE CURRENT EDUCATION AND TRAINING MODELS ADJUSTED TO THE CURRENT NEEDS OF ORGANIZATIONS?
• VERY THEORETICAL TRAINING MODELS (61.5%)
• DISREGARD FOR BEHAVIORAL AND SOFT SKILLS (55.8%)
• STUDENTS' LACK OF TECHNICAL AND PROFESSIONAL SKILLS (53.8%)
SKILLS TAUGHT MISALIGNED WITH CURRENT TIMES (48.1%) LACK OF CONNECTION WITH COMPANIES (45.2%)
• LOW EXIGENCY LEVEL (16.3%)
• OTHER REASON(S) (2.9%)
EMPLOYEES ARE VALUED, BUT INVESTMENT IN DIVERSITY AND SUSTAINABILITY IS LACKING.
What are the three most important characteristics in organizational management? The professionals surveyed highlighted recognizing and valuing employees (63,7%), open and transparent communication (52,6%) and inspiring leadership (50,4%). And are these characteristics promoted in organizations? After a more detailed analysis, it can be seen that in 25,2%, 20,0% and 22,3% of the cases, respectively, they are hardly promoted or not promoted at all.
NO 77,0% YES 14,1% DON’T KNOW 8,9%
WHY?
RETHINKING ORGANIZATIONS
WHICH CHARACTERISTICS ARE MOST IMPORTANT WHEN MANAGING ORGANIZATIONS?
Although employee appreciation is considered an important factor in management, respondents comparatively give little importance to inclusion, diversity, and equity within organizations. This is seen as one of the most important characteristics in organizational management by only 11,9% of professionals, and is underpromoted or not promoted at all in 20,8% of cases.
Social responsibility and sustainability also receive minimal emphasis from managers. They are highlighted by only 20%, but there are also 23,7% who report that these are not promoted internally in the organizations they work. In cases where there is indeed a promotion of sustainability and social responsibility (76,3%) even if moderate, the initiatives most often prioritized in terms of corporate social responsibility are business ethics, transparency, reducing environmental impact, and promoting diversity and inclusion.
EMPLOYEES RECOGNITION & APPRECIATION 63,7% OPEN AND TRANSPARENT COMMUNICATION 52,6% INSPIRATIONAL LEADERSHIP 50,4% ORGANIZATIONAL AGILITY 35,6% CULTURE OF INNOVATION 31,9% COLLABORATION BETWEEN TEAMS 25,9% OTHER
1,5%
SSUSTAINABILITY AND SOCIAL RESPONSIBILITY INCLUSION, DIVERSITY AND EQUITY 11,9% 20,0% 20,0% UNDERPROMOTED OR NOT AT ALL
BUSINESS ETHICS 59,2% PROMOTING DIVERSITY AND INCLUSION RREDUCED ENVIRONMENTAL IMPACT TRANSPARENCY SUPPORT FOR LOCAL COMMUNITIES 39,8% 48,5% 49,5% 35,9% 25,2% UNDERPROMOTED OR NOT AT ALL 22,3% UNDERPROMOTED OR NOT AT ALL 26,7% UNDERPROMOTED OR NOT AT ALL 22,2% UNDERPROMOTED OR NOT AT ALL 18,5% UNDERPROMOTED OR NOT AT ALL 23,7% UNDERPROMOTED OR NOT AT ALL 20,8% UNDERPROMOTED OR NOT AT ALL
RETHINKING ORGANIZATIONS
BEYOND TECHNOLOGY, PEOPLE ARE AT THE CENTER OF CHANGE.
The study reveals that 97,8% of professionals consider innovation essential for the success of organizations, and 85,2% believe that technology is positively impacting how organizations operate.
In the coming years, artificial intelligence (AI) is expected to be the technology with the greatest impact on organizational management according to 83% of respondents. And, although 18,8% do not differentiate, both generative and predictive artificial intelligence are expected to have a significant impact.
There are also 63% who believe that Big Data and data analysis will be the technologies with the most impact in the short/medium term future, and 40,7% who point to automation. Other technologies, such as the Internet of Things, blockchain, augmented and virtual reality, and the metaverse are also mentioned.
AI 83,0% 63,0% 40,7% 21,5% 14,1% 9,6% METAVERSE 8,9% WHICH TECHNOLOGIES WILL HAVE THE GREATEST IMPACT ON ORGANIZATIONAL MANAGEMENT IN THE COMING YEARS? OTHER 0,7% BIG DATA AND DATA ANALYSIS AUTOMATION AUGMENTED/VIRTUAL REALITY BLOCKCHAIN INTERNET OF THINGS (IOT)
NO 0,7% IS INNOVATION ESSENTIAL FOR THE SUCCESS OF AN ORGANIZATION TODAY? DON’T KNOW 1 5% YES 97 , 8% NO 5 , 9% IS TECHNOLOGY POSITIVELY IMPACTING THE WAY ORGANIZATIONS OPERATE? DON’T KNOW 8 , 9% YES 85 , 2%
GENERATIVE AI (57,1%) PREDICTIVE AI (50,9%) OTHER TYPE OF AI (1,8%) • DON’T KNOW (18,8%) WHAT TYPE OF AI?
RETHINKING ORGANIZATIONS
However, not all companies seem to be prepared for change. 16,3% of professionals indicate that their organization has a low, or even very low, capacity for adapting to change, and 43% see their organization as having a moderate capacity to change. On the opposite spectrum, 40,7% believe that their organization has a high or very high capacity for adapting to change.
FOCUS ON THE CUSTOMER OR ON EMPLOYEES?
Nowadays, focusing on the customer and market needs seems to be the priority strategy for most companies. However, respondents believe that, while this is very important, the focus should primarily be on developing the skills and competencies of employees, as well as on organizational flexibility and agility in decision-making. Although investment in technology and innovation is identified by 33,3% of professionals as a current priority area in their companies, it should be a priority for 46,7%, demonstrating that there is still a long way to go and that today’s investment in technology and innovation is still not sufficient.
WHICH ARE THE PRIORITY STRATEGIES IN YOUR ORGANIZATION? AND WHICH ONES SHOULD BE? FOCUS ON THE CUSTOMER AND MARKET NEEDS 68,9% 49,6% STRATEGIC PARTNERSHIPS AND COLLABORATION WITH OTHER ORGANIZATIONS 35,6% 31,9% DEVELOPMENT OF EMPLOYEE SKILLS AND COMPETENCIES 42,2% 61,5% ORGANIZATIONAL FLEXIBILITY AND AGILITY IN DECISION MAKING 39,3% 49,6% DEFINITION / IMPLEMENTATION OF MANAGEMENT AND CONTROL METRICS 36,3% 26,7% INVESTMENT IN TECHNOLOGY AND INNOVATION 33,3% 46,7% CURRENTLY PRIORITIZED SHOULD BE PRIORITIZED
MODERATE 43,0% VERY HIGH LOW HIGH VERY LOW 8,1% 12,6% 32,6% 3,7%
"Once again, even though investment in technology and innovation is seen as highly relevant and an increasingly pressing reality for organizations, professionals highlight the development of skills and competencies of employees, demonstrating that people today continue to be at the center of organizations, and the greatest concern of the business community is to ensure valuable and prepared staff for the impending changes".
Pedro Carneiro - Head of Marketing Research @QSPA MARKET RESEARCH STUDY CONDUCTED BY
FOR THE 17TH EDITION OF