In Russia, continued sanctions and falling oil prices force leaders to answer existential questions: do we cut costs to survive the short-term (and hope the good times come back again soon) or do we accept that today’s business climate is the new normal and adapt?
Perhaps unsurprisingly to those who’ve been doing business in Russia a long time the bias is towards the former. Yet the longer the ‘lock-down’ goes on the sooner someone will take the snake by the tail and start to exploit disrupted industries to their advantage.
In reality this is already happening and those who wait too long to react will get left behind.
Whilst not traditionally a core driver of Russian business HR has been placed under extraordinary pressure in recent years to prove it’s more than just a cost centre. It must also do this with less resources than ever and it’s currently ill-prepared to cope.
In an excellent book looking over a decade of research as to what drives real, top and bottom-line performance two McKinsey partners highlight how the same old questions leaders ask of HR are often at fault for producing the same old answers:
If these questions sound familiar your organisation might be in more trouble than you think!
The need to measure everything as a form of scientific proof has led HR to develop tools and processes that ape the work the hard functions like finance and operations do. But humans are not resources like capital and goods: they are irrational and unpredictable but also versatile and creative; the very skills now needed to pull organisations out of trouble.
HR must discover a way to work with the way people really are, rather than how they want them to be to unlock new answers to old questions:
Shape the Future
Don't just adapt to it