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8. New Guidelines For Managing

Chapter 8

NEW GUIDELINES FOR MANAGING 

                                                                                                          

                                                                                                                                  By: Josavere

 

                                                                       Introduction

 

The phenomenon of globalization is irreversible and the development of electronic banking and the Internet greatly facilitate the actions of investors, regardless of whether it is swallowed or permanent capital and the accounting trend is oriented towards universal accounting standards (IFRS ) which will make your decisions easier every day.

 

The changes that are imposed in the economic activity for the recovery of the crisis of the year 2020 caused by the pandemic of COVID-19 or coronavirus and the pronouncement of the Davos Forum, speaking of CONSCIOUS CAPITALISM, which defined the purpose of a company of the Fourth industrial revolution: "involving all interest groups in the generation of shared and sustained value including local communities and society", require a high dose of productivity, which will imperatively lead companies to implement risk salaries based on the results that are obtained, which makes the compensation model fairer for shareholders and workers, including the management team, contributing to a business system that actively participates in Sustainability with more social justice.

A clearly defined character in the modern world is change. It can be said that the human being who does not adapt, lives against it and is exposed to a psychological death earlier than the physical one.

The entrepreneur who wants to survive has no other way than the constant search for mechanisms for continuous improvement within the standards of sustainability, accepting the premise according to which "Quality is designed and made."

Starting from the very possible human errors, employers must be oriented to find perfection through systems that allow the interaction of people and the mechanisms used in order to prevent any possible gap in relation to the established norms and facilitate the pertinent corrective actions.

If it is accepted that "no one can give what they do not have", it becomes impossible to speak of continuous improvement and total quality, if the personnel who work in a company do not have the degree of personal development that allows them to join the work team.

The first concern must be the development of human resources as a contribution to improve the quality of life, training useful people for society and of course, productivity for the company in particular. Thus, little by little, a business culture based on quality criteria is being strengthened, with the human being as a priority.

 

To increase productivity, the participatory development of human resources is required in the preparation of the Value Generation Plan, which is facilitated to the extent that executives have basic knowledge of accounting and finance, which it does, even through personal management. , It is very convenient that all people, regardless of their trade or profession, acquire basic financial concepts that facilitate investment decisions, either as entrepreneurs in private businesses, regardless of the type or size of the company, or as investors, through of the financial system.

 

In the modern world, the objective of improving the quality of life is taken for granted and the happiness index is being used as the most important indicator at the country level. Although it is apparently very abstract, it is a challenge for the social sciences to refine the model so that this index is generally accepted to replace GDP (gross domestic product) and becomes a goal at the level of countries and companies in general. Because there is a direct correlation between the level of happiness and productivity.

 

Social responsibility is a matter for all the inhabitants of the planet, especially the privileged ones due to the level of development of their country, their family, their studies, their occupation, social class, and their role in society. All of us have the moral obligation to contribute what we can to improve the quality of life of all inhabitants, contributing to Sustainability. The consensus of all the countries of the world is needed, with greater responsibility for the most developed and those that most affect well-being for violating human rights and for attacking nature with reprehensible practices.

People who work happily feel very fulfilled, they are very positive, they are very creative, innovative, efficient, and very willing to work as a team. The level of satisfaction has to do with the attention to basic human needs, the easiest to cover and continues with the most complex or higher-order needs for which the cooperation of others is required, which leads us to propose as a business objective the search for happiness as a contagious collective of groups integrated with people of great personal quality.

 

Of course, you cannot speak of happy groups if you do not have comfortable working conditions with good landscaping and other environmental comforts. As people normally work a third of their time, it is necessary for governments to take care of Sustainability and regulate everything pertinent; collect the corresponding taxes and administer them with absolute transparency, exterminating corruption so that the money contributed by the companies is applied in its entirety to create inclusive environments that protect families as the cell of society and help catapult the degree of happiness to increase it to a personal level, the basis of productivity to be able to compete in a globalized world, in urgent need of recovery.

 

In this vein, there is a very large gap between administration and accounting, whose reports must comply with international standards of Good Corporate Governance1, aimed at protecting small shareholders, groups to which workers will be welcomed. On the one hand, all those advanced in administration agree that human resources are the most important and spare no effort in their selection, training, development, and compensation, including the family group. To achieve these levels of intellectual capital, companies require large investments that accounting usually treats as expenses reducing profit and therefore the payment of taxes, but creating hidden reserves that must be taken into account when calculating the value of the company. 

As long as there are well-integrated work teams with people of high personal quality (business values), supportive; With life plans aligned with the business organization and duly committed to the mission and vision of the company, a very valuable intangible asset is achieved that is equivalent to a significant proportion of Intellectual Capital. It is complemented by investments in environmental sustainability and innovations, which largely explain the difference between the market value of the share and its intrinsic value.

 

Each country, by regulating its own model and the unique plans of accounts for the different sectors (PUC), must respect IFRS to be in accordance with international systems, which greatly facilitates negotiations with abroad and obviates the need to carry out cumbersome adjustments, which are essential when it is necessary to interpret financial information from countries that have not yet availed themselves of this regime.

 

As executives, they must act ethically and with all the responsibility that corresponds to them for the position they occupy, because ethical behavior instills trust, which constitutes a pillar in 21st-century companies and especially in virtual ones. It also implies social responsibility, framed in the wise phrase "who does not live to serve, does not serve to live." Due to the subjective and complex nature of the subject, I summarize it in a phrase that I learned from Eastern culture: "always decide while seeking inner peace."

People are the core of organizations; Pope John Paul II defined companies as communities of people and Kitimbwa Lukangakye, a humanist from EL Congo, says that both the employer and the worker are first of all people in search of growth; they need each other and must see each other as brothers to interact with common goals while each one preserves his or her role. Ethics, etymologically speaking, is the art of making human relationships a means of personal growth by cultivating good relationships with oneself and with others, which leads us to a healthy behavior that allows us to act correctly without making any effort.

In the business field, ethics is a daily behavior with a long-term focus, whose best expression is trust and its best control is exercised by co-workers. It corresponds to a code, a way of thinking, and practical execution. 

Youth, so neglected by governments, become "cannon fodder" for abusers, due to the need to satisfy the needs of their age and end up being victims, sacrificing their lives, in some cases; in others, going to prisons (crime universities), or falling into vices and suffering discrimination from the society that rejects it, losing a potential resource that "in a nest of pity will be a dove and in a nest of pain will be a snake," as the master Guillermo Valencia. What to say about childhood whose character is formed from the womb to the first eight years of life as Don Reynaldo Arroyave Lopera repeated so many times, through the CEPAS foundation, in many cases the result of irresponsible parenthood, with girls, just in the stage of physical and mental development.

 

Older adults, after contributing in their own way what circumstances allowed them, suffer all kinds of abuses, starting with difficulties in receiving their old-age pensions in a timely manner and without “so much theft”, in addition to receiving bad treatment and great contempt from the society in general.

 

As is so common, rulers who buy votes in their quest for power at any price; media that are sold for various reasons, parents who "get" jobs for their children without proper preparation; corrupt, ignorant prosecutors and judges who sell their vote, businessmen who get “whatever”, sports leaders who sell venues, even at the Olympic and world championship level; arbitrators who sell results and many other misdeeds, great engines of social decomposition are generated, which threaten the quality of life, the raison d'être of all human activity and which affect the degree of happiness of society, the most important indicator of development worldwide, whose calculation is under construction and that with the passage of time will be imposed in the world.

No asset or material good individually considered is capable of generating income. It requires a combination of an infrastructure (fixed and current assets) plus an operation (administration) performed by human beings and whose efficiency depends on the ability to generate cash income.

The administration will be more efficient to the extent that it has educated people, with good intellectual capacity and with the proper training as a person and with adequate motivation, as well as specific knowledge with emotional intelligence. To obtain and develop human resources, large investments are required at the business level, being aware that the benefit will be obtained in the medium and long term and that a culture must be generated that channels everything to duly protected business knowledge.

 

Accepting the value of intellectual capital and its increasing degree of importance at the business level, especially in virtual companies, which depend on technology and the knowledge of human beings, of whom the company does not own, as well as their trust. , it is becoming more and more necessary to attempt its measurement, a development that will surely take a long time to be universally accepted as a measure of value, among other reasons, due to the difficulty of achieving a uniform, objective, and reliable measurement criterion.

The issue is extremely complex and has implications of a great nature that will surely result in real and tangible benefits for all owners and for development in general, remember that the company is very important for the country and must operate with Corporate Social Responsibility. If the return obtained is higher than expected based on the corresponding financial indicators, it is possible to calculate, based on the cost of capital of the company (dynamic concept), the investment necessary to obtain this surplus, as a basis for calculating the value of the Intellectual Capital.

 

It is essential to create a culture of well-founded projections, starting with its presentation, comparing and analyzing the real results with the budgeted ones. Deviations must be carefully studied, which constitutes a powerful tool for objective evaluation and feedback of experiences for continuous improvement that also serves as the basis for the implementation of risk salaries for managers, who must have an income that allows them to live with dignity and dignity. At the end of the year, compensation is linked to the result, as happens with the shareholders.

It is convenient for investors to be able to compare the company's expectations with others offered by the market and to facilitate the broad analysis in the shareholders' meetings so that, having all the same information to avoid asymmetries in decision-making, the strategic plan, the distribution of dividends is discussed and approved, consulting the income statement for the year and the projection of cash flow or what others call the projected free cash flow. It is very important to highlight that a projected cash flow is the result of a financial planning process that represents the finalization of a value generation plan, a fundamental tool for good management. 

                                                                      SUCCESS FACTORS

          BASICS: 

  1. Strategy: must be clearly understood by everyone.
  2. Discipline and action: to maintain good habits in the organization.
  3. Structure: flat and flexible.
  4. Values ​​and organizational culture: it is necessary to grow, develop and sustain a high-performance business culture that rewards productivity. 

         SECONDARY: 

  1. Talent: select highly competent people; privilege the training of new talent and retain the best.
  2. Innovation: essential characteristic for the century of knowledge and technology.
  3. Leadership: a group of leaders who inspire the rest of the staff to identify opportunities and anticipate problems.
  4. Organizational growth and development: either as individual action or through mergers, acquisitions, and/or alliances.

 

 

    1. THIS IS "GOOD CORPORATE GOVERNANCE" 

It provides information in English to its investors in a timely, transparent, and efficient manner. It has communication channels with its investors via telephone or website; the resume of its main members can be consulted at any time; use the relevant information section of the Financial Superintendence.
MANAGEMENT: it has independent members on its boards of directors; facilitates access to managers; adopts international accounting standards; It has committees to protect the good governance of the company.
STOCK EXCHANGE: it enters the market, which forces it to open its books so that they can be consulted by investors or it has a single type of share. It adopts high standards of good governance that translate into a greater interest in the action.

 

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Copyright © 2020
Josavere