"When you focus only on the company's present, you lose its future and, when you focus only on the future, you put its present at risk" / Juan Carlos Erdozáin Rivera - Strategic Consultant
"To solve this dilemma, every company must have two teams, one that ensures the present and another that guarantees the future, this is what in strategic terms is known as a world-class company"
THE COMPANY'S PRESENT: CONTINUOUS IMPROVEMENT OR "REINVENTION"
THE PRESENT IS THE SHORT TERM: FROM ZERO TO 24 MONTHS
In the present organizational time, the Operational Plan (one year) and the Tactical Plan (two years) are carried out, whose objectives are to improve the company through actions (tactics) that translate into Continuous Improvement.
They are short and medium-term actions (no more than two years), which allow the company to be improved in all its aspects and do NOT involve costly investments of time, money and effort.
In the time horizon of the Business Present (from zero to 24 months), one way to improve the organization is through "Continuous Improvement", which some authors call "Reinvention".
Reinvention has to do with tactical actions through a tactical plan, which do not involve large economic, human or time resources.
The graph that appears below this text shows the components of the Present of an organization, which, if fulfilled properly and with excellence, will guarantee its Present profitability, but will NOT guarantee the Future of the Company.
Those responsible for ensuring this present are the Present time teams, which focus more on day-to-day activities and do not spend time thinking about the organizational future. To think about the future and success over time of the company, there are Future time teams.
THE FUTURE OF THE COMPANY: INNOVATION
THE FUTURE IS THE LONG TERM: MORE THAN 36 MONTHS
In the time horizon of the Business Future (more than three years), one way to improve the organization is through "Innovation", which depending on its degree of uncertainty can be incremental, disruptive or radical.
Innovation has to do with strategic actions through a strategic plan, which involve large economic, human and time resources.
The graph that appears below this text shows how an organization migrates from the Present to the Future, through Innovation and the future teams that are in charge of carrying it out.
Due to the above, it is necessary to imagine the future, a future that does not yet exist, but that must be designed and to do this, there are a series of questions about the future, which help to imagine what a company should be like in three, five or more years:
Are the customers of the future likely to be the same as those of today? How will tomorrow's customers be different?
Through what channels will tomorrow's customers be reached?
What will the configuration and characteristics of the industry in which you currently participate be like in the future?
What will the competition be like? What will be the basis of competition: continuous innovation, strategic alliances, outsourcing, mass customization, etc.?
What strategy should we follow to ensure that the development of the industry in which we participate is in our favor?
What strategies should we develop to guarantee survival and eventually market domination?
What alliances will we need to develop?
What will be the profile of a typical employee? Will you report to the office every morning to work or work from home? What do you hope to receive in return for your time and effort?
REINVENTION OR INNOVATION?
🔲 If the company wants to improve (continuous improvement or reinvention) its Present, it must use Incremental Innovation
🔲 If what you want is a "Quantum Leap" into the Future, you must Innovate through Disruptive or Radical Innovation.
MANCHESTER SHIRTS A CASE OF INCREMENTAL INNOVATION
On my trips to the USA I used to buy shirts that I normally couldn't find in Mexico, since in addition to the colors, the fit was very appropriate, however, the pandemic no longer allowed me these trips, so I decided to try my luck, and I took on the task of visiting some department stores in Mexico City, in search of new and innovative shirts.
In my search I discovered that the "Manchester" brand still existed, the same one that I knew as a child, when a Mexican actor, Mauricio Garcés, advertised them on Mexican television, using the slogan "Until I used a Manchester, I felt comfortable."
The most relevant thing about Manchester shirts, and why I am allowing myself to write this Blog, is that they are a clear example of Incremental Innovation, the reason is the following:
Innovation may be perceived by the customer through the product or service that is sold, however, innovation may not be perceived by the customer, since it implies improvements in the company's internal processes.
Therefore, innovation can be divided into two large groups:
PRODUCT INNOVATION
When the design features of a product change in ways that imply new or improved services for consumers.
PROCESS INNOVATION
When there is a significant change in the production technology of a good or service. For example, the implementation of ERP's / CRM's.
Other ways to innovate within this area are organizational and service innovations.
On the other hand, we already know that there are three types of Innovation depending on the degree of uncertainty, where Incremental Innovation happens when there are improvements in existing products and services, its degree of uncertainty is low, and it is motivated by the needs of the consumer. ; An example is the successive improvements that a mobile phone has had, also derived from the needs of the consumer.
Of course, Manchester shirts are a good example of Incremental Innovation.
Note: In disruptive and/or incremental innovation, the key to transformation lies in customer needs.
Returning to the case of Camisas Manchester, it can be seen that it is a good example of Product and Incremental Innovation. Why?
Because in addition to the distinctive fabrics, the shirt provides a very good fit to the body and, above all, it has a (invisible) spring system in the collar, which gives flexibility of movement, especially for people with thick necks, allowing Make sure the tie fits perfectly. Excellent idea!
MANCHESTER, THE POWER OF A VISION
After 22 years of experience as a Strategic Consultant , I observe as a common factor that successful entrepreneurs perfectly satisfy the key points of a Business Plan, sometimes without academic knowledge and many other times with pure common sense:
Mission
Market analysis
Identification of a market opportunity and how to satisfy it.
Operational analysis
The problem arises over the years, when the "Start-Up" is already in the growth phase and focuses only on the Organizational Present, not reviewing the Future options and disappearing over the years.
When the company leaves its first, second childhood and adolescence and begins to grow, it is essential to diagnose its Present and Future through:
Analysis of the business environment and the impact on it (Pestel Analysis: Opportunities and Threats)
Analyze the nature and Future of the Company (Reinvention / Innovation)
Review of the key factors for the success of the organization (Competitiveness Matrix)
External diagnosis through a Matrix of External Factors (Opportunities and Threats)
Internal diagnosis through a Matrix of Internal Factors (Strengths and Weaknesses)
Replant or do it if you do not have a Business Plan
Review of your operational (current year), tactical (two years) and strategic (more than three years) financial statements
Review and rethink or do so if you do not have one of a Strategic Plan, to review your competitive advantages and rethink them if necessary.
It seems to me that Manchester (a Mexican company), after 75 years of its foundation, is still valid and growing due to its parallel approach to the Present (Reinvention) and its Future (Innovation), being a company from the strategic point of view of Class World.
PROUDLY MEXICAN COMPANY
Citing the article entitled "Manchester weaves together 75 years of royal success stories" written by Jesse Camargo on August 11, 2014, I allow myself to extract the following text:
♾️ The prestigious brand has managed to cross trade barriers and export to Central and South America. Today it has 800 workers
Creating and maintaining a business requires a gift that few enjoy. Don Espiridión Canavati and his wife Doña Emilia Fraige have it. In August 1939 they achieved it by making history in the textile industry of Nuevo León: they founded Manchester.
♾️ In the beginning, what is now Manchester was a shirt-making workshop with 60 employees. Now, after 75 years of life in the market, the group has conquered the taste of its consumers through the positioning of its shirt brands and the solidity of a company that "dresses men elegantly."
To date, there are four generations of Don Espiridión's family who have worked in strategic areas of the group and have taken it forward. History says that, thanks to the vision of its founders, Manchester grew rapidly and became a pioneer in the textile industry, positioning itself as a national leader and consolidating operations abroad.
THE POWER OF A BUSINESS VISION
The director of Manchester, Adrián Canavati, narrated the beginnings of the firm forged with the vision of a man with dreams and tenacity to spare: his grandfather.
"The man who loves what he does always has a dream and dreams of being able to achieve it, 75 years ago, on August 1, 1939, there was a man who had a dream that with efforts became a success, but as that phrase says, Success is only achieved when you have someone to share it with. That man was my grandfather, Don Espiridión Canavati, who together with my grandmother shared that dream and formed this family called Manchester," he said.
The manager recalled that his predecessors faced a path full of challenges and difficulties, however, they never gave up and instilled in the family the path of work, discipline and perseverance.
"Manchester" is undoubtedly a Mexican company, an example of Strategy and Future Vision
In conclusion, "When you focus only on the company's present, you lose its future and, when you focus only on the future, you put its present at risk; to solve this dilemma, every company must have two teams, one that ensure the present and another that guarantees the future, this is what in strategic terms is known as a world-class company" / Juan Carlos Erdozáin Rivera - Strategic Consultant
To create and implement a successful business strategy, in addition to what has already been mentioned, it is required:
Diagnose the current and past state of the company.
Define or rethink the vision and mission.
Define or rethink principles/values.
Define or rethink strategic objectives.
Identify (through strategic planning) the competitive advantages of the organization.
Establish specific goals and the personnel to achieve them.
Determine the resources (financial, time and human capital) to implement the business strategy.
Strategic alignment. landing the strategic plans for each area or department.
Implement a Balanced Scorecard with Tactical and Strategic Indicators, to measure the progress of your business strategy and your company's performance.
Automate your processes to improve performance.
Feedback on progress and constant updating.
SOURCES:
1) Juan Carlos Erdozáin: Strategic Thinking Seminar. Ibeoamerican University. 2024
2) Juan Carlos Erdozáin: Seminar on Business Models and Decision Making. La Salle University Business School. 2023
3) Juan Carlos Erdozáin: Seminar on Market-Oriented Intelligence Systems. La Salle University Business School. 2023
3) Manchester: WEB Pagehttps://manchester.com.mx/historia/
4) Jesse Camargo: Article The Horizon, The Truth as It Is." August 11, 2014
