The world is currently experiencing a series of social, political, and economic changes like never before. We are also witnessing rapid changes in business models that increasingly seek to maintain levels of profitability and growth amid these turbulences, which were once highly targeted and now extend beyond one region of our planet.

This reality is no longer a reality we can live with our backs to in this country; and with that, we maintain the axiom that what made you successful yesterday is not necessarily the tool for success today, much less the guarantee that tomorrow you'll have the same market share that companies enjoyed just a few years ago.

We are at a point where, based on our experience in the Dominican business world, it is necessary to change the recipe for success of the past, which was based on habit, long hours, and the opportunity to adopt new ingredients that can respond to today's market, such as culture, visible indicators, and strategic consistency.

This change in mentality is, without a doubt, a huge challenge, which would involve abandoning the three aforementioned ingredients, which we will detail below. The habit that becomes synonymous with "it's always been done this way" is one of the most lethal components of resistance to change. It is a modus operandi, whether in accounting, dispatching, inventory management, sales meetings, or the way a company is run day-to-day.

Today's business environment requires change, because the factors that make up each of these activities are constantly changing or evolving, and the rigidity of habits puts results at risk.

The number of hours reflected as part of hard work doesn't always result in the achievement of objectives. Time itself has become a tool that must be managed differently. The creation of smart agendas, new meeting models that eliminate the waste of more than 10% during long workdays, and even the time spent generating management reports using computer systems are part of the minutes that are not optimized in the daily routine of any business owner.

The business instinct that was once an essential part of identifying a market opportunity has come face to face with new technological tools and a dynamic entrepreneurial environment that is much more eager to seek out any business opportunity that can be replicated with structure and a group of investors willing to invest in exchange for taking advantage of the current profitability. Sooner or later, others will enter the niche that has been enjoyed for years.

We understand that these managerial components are reflected in the fact that we are a commercial environment that offers opportunities for Dominican business development. We must all, without exception, contribute to improving the competitiveness of the tasks we perform, fostering innovation and creating value for Dominican brands, and committing to ensuring that these skills are part of future human resources, whether as entrepreneurs or collaborators. If we want to be more competitive, we must change now and in the right direction that will allow for the sustainable growth we expect from companies and, consequently, from the Dominican economy, so that its behavior is more organic and equitable at the base of the pyramid.

As a suggestion for a new recipe, we share three management ingredients that have been part of what we've rebuilt in dozens of companies over the past three years. When combined appropriately, we see positive performance on both the top and bottom lines of organizations' income statements.

Culture. We must move from being a place where people gather to work to an environment where a corporate philosophy, business objectives, and a vision of how things are done are shared.

One of the paradigms that needs to change is that we are no longer owners; we are general managers with a collaborative approach and a keen interest in safeguarding the customs and values within the organization. We have sometimes dismissed high-performing individuals who don't identify with the culture because a person who is attached to the company's culture is more impactful. Often, when we are merely "business owners," we neglect this aspect of our day-to-day operations.

In the past, many business owners operated with the following equation: cash in the account + full warehouse + high accounts payable – low accounts payable = business is going well. This set of indicators may have kept many companies afloat, but running a business goes beyond that.

Visibility of the right indicators becomes an essential tool for a general manager to negotiate. First, let's start with what visibility means: the availability at the right time of the numbers and ratios that must be observed for sound decision-making. It doesn't do any good to view financial reports 15 days after the end of the month, or to check inventory turnover once a year, or to know the amounts of credit collections at the end of the month.

When it comes to appropriate indicators, although some are already known—mainly in finance—each company must define the indicator's scope, the measure on which efforts will be made, and their ranking, so that management can focus on the appropriate ones.

For example, if you have a significant debt level (more than 51% of total sales), your priority should be managing your portfolio days and not your aging balance, since banks charge interest on days you don't work. Therefore, you should monitor the performance of this indicator weekly through your IT system to know what tasks to assign not only to the collections team but also to the credit team, so they can make appropriate adjustments.

Last but not least, the consistency of strategies. When you are clear about the what? and the how? of achieving the result, it should be a map that allows everyone to reach the same end point, while taking into account time and resources. Many companies define objectives and, over the course of a period, lose focus on the defined path and what it entails. Let's ensure that the strategies themselves, to be a learning experience and repeatable in the company, take time and discipline. Therefore, be careful not to take shortcuts or change your focus, since at the end of the period you won't know if it was effective, efficient, or efficient.

Ultimately, it is up to each manager (formerly owner) to know how to make the right mix according to the order or portions required by their company to have a recipe that responds to changing times.

Author: Lenin Pacheco