The HVAC paradox in Latin America and the Caribbean.
by John Homez*
In Latin America and the Caribbean, health is now a daily concern and perhaps has not allowed us to see the magnitude of what is already in our business environment. The fact that the world is at a standstill does not mean that we can see a little beyond what the immediate and long-term future of our business would be.
The great paradox will be the way that world is going to be and how we should adapt business to that new reality. Here are some considerations that I analyze in this paradoxical adventure of our Industry.
Strategic Options in a Recession
When organizations understand that they must review their strategies they are adapting to changes and have a probability of success and growth, since now changes in business are not necessarily due to supply and demand. This is a strategic gift.
But how and who do they do this? First of all, a constant Strategic Tactical Planning exercise should be done (see graph). Although the strategy was understood as a destination or goal of the company, it is also true that, in the face of the new reality, the strategy "must" be reviewed and even "changed". This is achieved with a periodic Strategic Plan audit (monthly suggestion) and immediately a "Strategic Adjustment" of the plan, through feedback from the External and Internal Scrutiny, as well as market analysis information.
The difference in terms of what was always done is the dynamics of the periodicity of the movements and their impacts on the company.
In the measurement of external scrutiny and market analysis, the responsibility lies with the commercial part. Everyone, managers, salespeople, logistics coordinators, must implement a network of periodic information and as detailed as possible of what concerns the market where we participate.
Already the sales reports (if any) will not be specified to give the figures of fulfillment versus the goal or the previous year, but "must" contain information related to the movement of the business.
Marketing, therefore, will no longer be exclusively an advertising department, but will be an internal unit perfectly incorporated into the commercial and sales part. In this way, those in charge of marketing must report to the manager of the commercial area.
The audit instead must be carried out by both the administrative and the commercial part and the review of the plan is agreed by "all" the members of the organization.
Obviously, the commitment, follow-up and the issue of involving senior management is of vital importance, not only for the success of the business, but to achieve the motivation of the entire organization.
Trust
Brands should focus on safety and confidence-building. Businesses should consider the "cost of trust": the investment needed to provide peace of mind to customers. In our field, responsibility, efficiency, seriousness and integrity are not only essential, but must be clearly evidenced towards the clientele.
In a recession, cost reduction is inevitable. But that doesn't have to be at the expense of a good customer experience, which can create substantial value. During the 2008 crisis, it was estimated in the United States that companies with experience in trust had a return three times higher for shareholders than others.
Attitude
It has been shown that the value of human resources is greater in people with a positive and favorable attitude. Knowledge and skills are basic and are achieved in universities and work experience, but attitude is a very particular element of people. Companies must be sure that their employees have a flexible and positive management of emotions, aligned with the situation in the future.
Economic change
In Latin America and the Caribbean there are many differences between the economic conditions of countries. This depends a lot on the state of indebtedness of each country before the pandemic, its reserves, dependence on oil, political confidence of investors.
All this leads us to the fact that the future in this matter will depend on the struggle between life and the economy, and in this there are still many intangibles.
It must be generated as a challenge, not only to survive, we must also bet on strengthening companies. In this sense we can consider, among others, situations where cash flows are fundamental and assets cease to have relevance. The flow will generate the power to negotiate products and services and to keep payroll in its right place. The reduction of the credit of external suppliers should be replaced by local financing mechanisms.
The virtual world
We will see how a sudden acceleration of a 25-year trend is occurring. Already, an increase in the use and investment in virtual reality has been pointed out as a possible side effect of the COVID-19 pandemic. The shift to the virtual will affect the ways of communicating through learning, work, transactions and consumption. This will affect everyone. One paradox is that while we isolate ourselves and study or work remotely, many of us are rediscovering social ties, sometimes with more people than before.
Among the options to analyze in this topic, we can cite: run an evaluation of your computer and communication systems, change customer connections online (think about how you create social trust in people who meet virtually), collaborate virtually (consider training requirements and new hardware and software requirements to support new forms of collaboration, perhaps through the motivational aspect of the contacts). Think of pop-up activities and quick support to other traditional experiences like festivals. Rethink your service as entertainment. Consider how to create and deliver the content.
Now, let's take these ideas as a start to the new life, expand it and see what applies to your HVAC businesses in Latin America and the Caribbean.
* John Homez - [email protected]
