An organisation is only as amazing as the people in it, and therefore, if they are fully empowered, they will be able to spur companies through deep terrain and troubled waters to their desired destination.
Agility appears to be the buzzword in the business world, as agile organisations are better positioned to spur innovation, draw in investment, and generate job opportunities, all of which will contribute to Malaysia's continued economic progress.
For companies to swiftly respond to market conditions, they need to be nimble and embrace principles such as decentralisation, employee empowerment, and adaptability.
Malaysian companies must learn to dismantle hierarchies in structures and reduce bureaucracy at all levels of the organisation to be able to swiftly meet changing market demands.
A way towards that is by forming cross-functional teams across different departments that would have the autonomy to make decisions promptly and execute projects independently, reducing the need for bureaucratic approvals. This is imperative because delayed decisions can mean a loss of valuable business opportunities for the organization.
Traditional organisational structures that require decisions to be made by top management will eventually lead to these entities being extinct, and thus organizations must begin the process of flattening their hierarchies and empowering employees at all levels of the organisation to make decisions and take responsibility for their decisions. Decentralisation of decision-making would foster agility in addition to enabling quicker decision making.
A case in point is the Haier Group in China, a multi-national consumer electronics and home appliance company that adopted a flat organizational structure known as the "Rendanheyi model that emphasizes self-management, empowerment, and entrepreneurship at every level of the organisation, which led to rapid innovation and growth.
It also defined decision-making by breaking down traditional hierarchical structures, and instead of a top-down approach, the company empowered its employees at various levels to make decisions independently. The model also emphasizes a customer-centric approach to business, fostering a deep understanding of customer preferences and driving product innovation tailored to those needs.
Haier also emphasizes continuous improvement and learning as core principles of its organisational culture. Employees are encouraged to experiment, take risks, and learn from mistakes.
Another notable aspect of making organisations agile is encouraging transparent communications where employees feel comfortable sharing feedback, concerns, and ideas. It must be kept in mind that if suggestions by team members are met with ridicule and scorn, it will impede communication, and employees will be dissuaded from making suggestions.
There are many examples of corporations that emphasize the importance of communication and feedback, such as Google, which has an open culture of encouraging employees to voice their opinions aside from having other communication platforms such as emails and social media platforms where valuable feedback from employees is elicited.
The notion that managers and employers know best is over, and companies have come to terms with the fact that knowledge cannot surpass the collective knowledge of all employees.
Responding to changes in the environment and coming up with products and services that meet customer needs requires an entrepreneurial mindset among the employees. Employers must foster a culture of innovation among employees that allows them to contribute ideas, take calculated risks, and learn from failures.
An example of this would be Apple, which has a culture of innovation that is embedded in its DNA as it encourages all employees to think differently by fostering a collaborative environment where cross-functional teams work together to develop products such as the iPhone and iPad.
The key to thriving in an environment that is in a constant state of flux is becoming customer-centric, and by prioritizing feedback and incorporating it into the decision-making process, companies can stay relevant.
An example of such a company is the Ritz-Carlton, which is synonymous with hospitality and exceptional customer service. The employees are empowered to anticipate guest needs, resolve issues proactively, and create memorable moments that foster loyalty and repeat business.
If Malaysian companies are to stay relevant, they need to adopt and adapt to an environment that is in a constant state of flux and cannot sit on its laurels. Companies that were complacent and displayed inertia to change, including global brands such as Kodak, perished due to their inability to change.
Once a giant in the photographic industry, Kodak struggled to transition itself into digital photography despite being the earliest pioneer in digital camera technology. The company filed for bankruptcy in 2012, unable to compete with the likes of digital competitors such as Canon and Nikon.
Malaysian companies must ensure that they reduce bureaucracy in the workplace and embrace agility in decision-making. It can perhaps take a leaf from Malaysia's homegrown brand, Air Asia,
It adopted lean principles to streamline operations and eliminate waste. It focused on maximizing efficiency in all areas of its business, from aircraft turnaround time to the ticketing process, to ensure optimal use of resources and minimize costs.
It also decentralised the decision-making process to empower frontline employees to enable faster responses to customer needs and market opportunities. The airline encourages employees to take ownership of their roles and make decisions instantly.
As the demands of the marketplace change, organisations must adapt to them or face the same fate as Kodak. Malaysian companies must start being agile by breaking down age-old outdated practices such as rigid organisational structure, top-down approach, and bureaucracy. It must instead embrace agility, teamwork, and open communication to forge ahead and stay relevant.
*The writer has an MBA from the University of Strathclyde in the UK, has worked in the financial markets, and has lectured extensively on management. He was also formerly attached to a leading think tank. The views expressed in this article are the author's own and do not necessarily reflect those of Business Times.