The Financial Management has as its fundamental objective the efficient administration of the working capital of an organization, taking into consideration financial risk factors, and in the search for the optimum levels of profitability. The financial administrator's mission is to maximize the organization's market value, based on the maximization of the share price; This is therefore a relationship of dependency: maximizing the price of the organization's shares transmits solidity to the owners, and presents it as an attractive alternative to potential investors.
In the modern economic world, with the influence of global impact factors such as global warming, and other factors of less impact but still massive, such as innovative policies and in some cases, depending on the given perspective, rigid on the part of of the State, the term Total Quality acquires a strategic dimension, as a proposal to generate added value to the products and services of an organization.
For years, the conception of financial effectiveness and efficiency was managed from an adequate cost structure, not investing more than necessary in human resources, and developing a limited relationship with the environment, based on satisfying the basic need of the client. customer through a specific product or service, generating through it an economic return.
In the 1950s and the following decades, the Culture of Total Quality was developed and shown to the organizational world, whose fundamental premise is not to produce as much as possible but the best possible, with a focus on the customer and not on the product.
This is the strategy followed by Japanese companies, in which their managers were instructed to continually improve their products and services to develop a competitive advantage in the medium and long term, thus this would mean financial losses in the short term.
The message was and even today it is clear, if you invest in elements that generate added value to products and services, the profits will come and, most importantly, strategic skills and behaviors will be developed that will give the organization, although not advantages, competitive tools.
These strategies are nothing more than continuous improvement of products and services, highly efficient human talent management, and most importantly, developing a symbiotic relationship with the environment around you; and that with concrete actions they contribute to eliminate the existing paradigm that the only purpose of organizations is to obtain margins of financial profitability through a simple market transaction.
The future of the organization and the achievement of Social Welfare depends on it.
