In economic activity there is a high level of irrationality, this occurs in all latitudes, the only thing to a different degree.
The more irrational the management of resources, the greater the problem for companies, organizations in general, and the country as a whole.
If there is something that stands out in Latin America, it is the high level of irrationality, both of politicians, and of businessmen, unionists and managers in general. Irrationality that has led and leads to a continuous waste of resources, be they human, material or financial. And the greatest of all waste, which is the waste of time.
The concrete experiences lived on a daily basis allow me to assert the incapacity and in many cases the notable irresponsibility of leaders and professionals who squander possibilities and potentials in a systematic way or form.
It is not feasible to advance without research, discipline, and a strong work ethic. Only this allows continuous improvement that leads to a better and higher quality of life.
About professions and activities
Although as patients they would not be treated by an eye doctor for a cavity in their teeth, or they would not be seen by a traumatologist for a cardiovascular problem, we have entrepreneurs who put in charge of quality control a graduate in political science, or a dietitian in charge of the human resources area, or worse an electrical engineer in charge of the financial management of a bank.
Just as the patient will not find an answer to their problems and can even lead to death, something similar happens with companies, which in many cases end up disappearing.
Although this may seem like a lie, it is something real, something lived by the person who tells it, and without a doubt recognized by many of the readers. Something that is enhanced in many government agencies, where for reasons of policy, or rather of political accommodation, there is no problem in placing a lawyer in charge of a Ministry of Defense, or an engineer or accountant in charge of a Secretary or Ministry. of health.
It is necessary to say that the specialty does not guarantee success, but it is a basic question from which to build the achievement of objectives.
Otherwise, we must ask ourselves why the Faculties and Master's degrees, Post Grades and other specialization careers exist, if later they are put in charge of certain positions to people lacking the suitability to carry out correctly and effectively the functions for which they have been designated..
Both the faculty and then the exercise of the profession provide the intervening professional with a terminology and way of thinking typical of the profession in question. Obviously, it cannot and should not remain with a level of specialization that reaches what has been called the "trained disability", that is, the ability to see only the sector that commands, or what is the same, the inability to see the whole and its interrelationships.
Seeing a dietitian in charge of the human resources of a high-tech company is without a doubt surprising. Just think about all that this implies in terms of personnel strategies, human resources planning, knowledge management and salary and incentive policies.
Lack of motivations, lack of training according to needs and an incorrect salary policy could lead the company to the loss of key personnel, or to the gradual and sustained decrease in its competitiveness capacity in the medium and long term.
Just think of the electrical engineer in charge of Financial Management for a financial institution. Without training in economics and finance, and only with a low-level banking career, this person was key in the disappearance of the banking entity in which he carried out his functions.
These issues clearly mark the achievements of those countries that conquer space, or manage to set foot on the moon, of those companies that fail to get out of their vicious circles.
Or can we imagine a doctor projecting an orbit, or an economist operating on appendicitis? So imagine my surprise when a person told me about his need for explanations about the Six Sigma system, given that she had a degree in political science and had a master's degree in international relations.
This only proved that in many countries and companies they are totally unaware of the theories on the optimal allocation of resources, guided by irrational behavior that leads to loss of competitiveness or, worse, their own existence.
About areas and responsibilities
That a manager of a major international company introduces himself saying that he is in charge of Cost Reduction Management, is clearly surprising and crazy, especially with everything that has been written and said on this subject.
How is it possible to assign a person or area responsibility for cost reduction? When in reality the costs are a responsibility of each and every one of the areas, in addition to being involved in a fundamental and special way in the quality issue.
It is possible to conceive an internal cost reduction adviser as a staff, or a person in charge of a committee for control and cost reduction, but not a cost reduction manager. Costs as well as quality and productivity are the responsibility of all areas and sectors. Therefore, it is not admissible to accept the existence of a Quality Control Management.
That there is a person in charge of advising or monitoring quality is acceptable, but at the present stage in the development of quality it is not admissible to focus on one person responsible for it, directly separating all managers from the quality issue. Furthermore, quality is not something that only passes through the production of goods and services, it also passes through administrative, credit, financial and marketing activities, among others.
Of leadership, knowledge and objectives
Many entrepreneurs consider that reading a book gives them the ability and aptitude to try to implement methods and systems that have nothing to do with their alleged knowledge.
Thus, the president of a major company during a training seminar and in the presence of the senior staff of his company, said he intended to implement continuous improvement, but he did not stop harassing his staff at all times, considering that they were unable to understand the need of continuous improvement to achieve greater competitiveness.
In order for the objectives to be achieved, said president must previously change his corporate culture, increasing confidence in the capabilities of his staff, concentrating his efforts on motivation rather than irrational harassment.
We cannot pretend to achieve a goal without first changing our own culture, our way of seeing and feeling reality.
"For me everything is fine and there is nothing to improve"
If a Manager utters these words in relation to the operation of his company, it is better that the owners think seriously about dismissing him. A Manager who thinks this way no longer has an interest in leading a process of change, not recognizing on the other hand that everything can be improved. Furthermore, everything must be subject to systematic analysis for continuous improvement.
Not recognizing the need for improvement is leaving the space served to competitors who will gladly make continuous improvement the fundamental strategic tool or weapon to gain the largest market share.
The company to which this manager belongs, unfortunately began its collapse. This way of thinking with the events that have taken place is coincidence or causality. Without a doubt the thoughts precede the action, and if the thoughts are wrong they lead to making wrong decisions for the competitiveness of the company.
Be unable and destroy the company
In an urban passenger transport company, a mechanic was responsible not for maintenance, but for the entire preventive maintenance policy. Costs as you will imagine were flying. Lacking knowledge about computer systems and not to miss the lubrication of the units, every "x" number of days changed the oil to all units regardless of how many kilometers they had traveled.
That was just a tiny part of the anecdote. Let's not talk about statistics on the productivity of the units, the response of the inputs or the repeatability of inconveniences or repairs. Of course, repairs and maintenance constituted a veritable "black hole" that literally swallowed up the company's monetary resources. Obviously, this company succumbed and ended up disappearing.
Not everyone is a banker
It is one thing to be a good merchant, a fabric or grocery seller, and quite another to take over the management of a bank. These were always and today more than ever subjected in the first instance and deeply to economic crises. Taking charge of a Bank implies knowing and recognizing the characteristics of this activity.
This largely explains the disappearance of almost all cooperative banks. Lack of skills, experiences, added to a certain relaxation in financial discipline led to their disappearance.
Supporting Small and Medium Enterprises
Many government agencies say they have their doors open to concerns and progress. So the first thing you think is: "the government is interested in promoting productivity and quality to make growth and exports feasible."
It is not necessary to wait too long to realize that these open door policies are only open to corruption. Most of these state agencies have a greater interest in subsidizing loans to their pseudo-clients in exchange for large shares or they have an interest in large over-invoicing.
There is little to do in countries where their rulers are more interested in affirming their kleptocratic approaches than in supporting competitiveness for continuous improvement in the living standards of their fellow citizens. There is only room for a critical mass of entrepreneurs who are committed to competitive management, and committed to a work ethic and social responsibility.
Conclusions
In the Knowledge Age, those who do not have the adequate and updated knowledge and experiences to take care of the demands that the market proposes day by day, end up killing their patients and their clients or companies.
Entrepreneurs and managers are responsible for their own failures by acting and selecting human resources in an inappropriate and ineffective way.
Certain protected economies or activities not obliged to face any competition can easily indulge in wasting time and resources in an unreasonable, or worse irrational way. But those that must face the competition and face the ever-increasing demands of the market have only one path, and that path requires rationality and efficiency.
The day that resources are properly allocated, and especially the main resource in this new Era, which is human resources, there will be greater possibilities of success for the economy of companies and countries as a whole. This largely explains the brain drain in certain countries, as they do not find a resource management that values them properly.
