1

Trends and Challenges in Business

Christine Ann McCalla, NorthCentral University

Abstract
Leadership at the top is a significant challenge given that the CEO must manage the
organization, execute strategies, and coerce buyins of the numerous stakeholders. The retention
of a consulting organization can either create new complications or resolve existing issues by
preventing new ones. The resolution; address client acceptance to prevent a return to the old
methodology (the problem) by cautious consultant selection. The right consultant adapting the
right role for the organization can not only advocate change but can propel the organization into
receiving the value-added service purchased during the consulting hiring process. Additionally,
the consultant engaged can also create an organization of technical experts that can not only
enrich its strategic plan but can translate the succession plan to new hires and new stakeholders.

Introduction
DiRenzo (2016) required this paper be written as a consultant to a CEO for the retail industry.
As a result, the organization that engaged the consulting services is Image Profiling, Inc. The
consulting firm can encourage and persuade the Image Profiling, Inc. to accept the performance
improvement plan using Meutia & Ismails (2015) settings in which we expect the quality of a
CEOs decisions to be more consequential, p 373.

Thompson, et al, (2016) presents numerous system dynamic models, the model types, and the
engagement models, p 951. This results in either policy or predictive models. Furthermore, the
clients reception of the product deliverables is also driven by the clients preconception of what
is required, engagement need, and the potential outcome. Mustafa (2012) discussed probable
reasons for this including, In this arrangement, the status from different projects and
programmes are aggregated, rationalized and then presented to the executive team for decision
making.
If the Chief Executive Officer (CEO) is the only executive involved in the product acceptance
process, naturally the process acceptance level will be low. Then comes the final dilemma of
client buyin where the client must experience the critical learning factors required to be able to
implement the proposed changes. Reidel, et al, (2012) also noted the level of acceptance must
be considered: will the client return to the old methodology or adapt the engagement outcomes?
I believe the level of acceptance is better considered prior to the beginning of the engagement to
ensure the client perceives value-added service. In going one step further, Quing (2014) clarifies
the four roles of the consultant in great depth: (1) trainer with responsibility of training
personnel in the product outcomes. (2) Advocate who persuades the client of the values of the
consulting solution and the benefits of its adaptation. (3) Fact-finder who performs a thorough
investigation of the client to identify the problems, potential improvement areas, and the main
focus of the project. (4) Technical expert who can identify and understand the clients problems
and have a vast network to rely on in providing solutions.

Trend One: Succession Planning

Amato (2013) discusses components of a successful succession plan, p 46, Write a three-year
plan Develop your staff Evaluate your rates and clients Leverage Technology A
succession plan does more than prepare for the future. It is an opportunity to improve internal
processes and therefore the successful operational perspective of the business. This can be
executed through the Kaplan & Nortons traditional model of the balanced scorecard that is
comprised of Costa Oliveiras univocal network of relationships, established by
the original model (learning and growth internal processes customer
finance), the reality is inter-relational.

Image Profiling, Inc. was also evaluated using the nontraditional / adapted model of the balance
scorecard, which is a version of Kaplan & Nortons balanced scorecard modified by us for the
purpose of the integration of Costa Oliveiras (2014) Committee of Sponsoring Organizations
(COSO) risk assessment. Image Profiling, Inc. was evaluated using the traditional balanced
scorecard approach which addresses risk management through the financial, customer service,
internal process, and learning and growth perspectives. In the nontraditional / adapted model of
the balance scorecard, we evaluated the organization using one of Costa Oliveiras risk
management systems, p 50, proposed by the COSO. The COSO risk management system
incorporates risks present in every organization and industry similarly to the balance scorecard
but has different emphasis on different risks.

Table 1: Integrating Succession Planning with the Traditional Balanced Scorecard

Financial
-Benchmarking

Customer Service
-Benchmarking

-KPIs (return on investment and capital)

-Forecasting & performance: sales & revenues,
accounts receivables

-Traditional and reversed customer satisfaction

initiatives inc. evaluating and rating clients
-Customer acquisition and retention

Internal Processes
-Strategic planning and leadership management
-Technology

Learning Growth
-Benchmarking / KPI (employee retention and
turnover
-HR plan

By integrating succession planning and the traditional balanced scorecard model, we created a
strategic map to identifying how the elements of how our plan addresses the balanced scorecard
as a strategic plan. Therefore, we are confident that Image Profiling, Inc. can manage and
re/assess their strategic plan regardless of the changes in the COSO framework, resource
allocation, a redesigned balanced scorecard modeling, trend twos market adaptation, and trend
threes organizational excellence to be discussed below.
Titzer, et al (2013) identified several elements in their succession planning design model, pp
976 - 977. The model included ... strategic planning, resource allocation, key position and
competency identification, high potential leader selection, leadership development, mentoring
and coaching, and programme and candidate evaluation.

Technology's Role in Trend One: Succession Planning / DSS

The CEO can also use technology in the sponsorship and promotion of the trends, primarily a
decision support system (DSS). One methodology that would be a very effective executive
support system without consideration for cost outlay would Microsoft Project or a similar
project management software. Microsoft Project or a similar project management software
would help as work can be scheduled in terms of hours and dollars, work breakdown structure,

timelines and milestones can also be tracked and measured and the resources required could be
utilized to see where the slack will fall.

Organizational Value Creation (The Challenge to Trend One)

Ego, cross conflict, lack of clarity, and transparency is a deterrent, intentional and otherwise, to
successful succession planning due to the various personalities involved of Chen & Millers
(2015), p 761, key players, their personalities, and ulterior motivations. Musibau Akintunde, et
als, p 66, When a clear structure exists, people perform better, tasks are divided and
productivity is increased. . Such a defined structure can expedite the CEOs primary role and
responsibility of sponsoring and promoting the trends which can be difficult if the executive
team does not support the CEO. Although management sets the tone at the top, the executive
team in general must plan, execute, and monitor the project plans for personnel to follow. Poor
project planning, inexperience, and pride which occurs if the executive team is unaware of how
to ask for help result in poor follow-up on development plans. Therefore an effective
developmental process must be implemented and executed, and not just for key employees.
Musibau Akintunde, et als, p 66, Indeed, having a suitable organizational structure in place,
one that recognizes and addresses various human and business realities of the company in
question is a prerequisite for long term success. By mastering this structure, Image Profiling,
Inc. has clearly set the stage for long term success.

Trend Two: Market Adaptation

Market adaptation is the opportunity to anticipate new trends and make appropriate and timely
corrections to keep pace with the market, and create structures in place to ensure continuity. As
a result, it is the second trend recommended, and can be addressed using the SWOT analysis

(strengths, weaknesses, opportunities, and threats). Meutia & Ismail (2015) argued ... that
managing ability and adaptability will create competitive advantage oriented strategy, p 118.

SWOT Analysis
Strengths:
Product innovation creation

Weaknesses:
Business environmentCosts of operations
Opportunity cost
Cost of resources and possible output

Opportunity:
Marketing performance; Stakeholders
Crisis Management
Integration of trend ones succession planning and
opportunity costs

Threats:
Economic Cycle / Industry downturn
Legislative issues
Competitive pressures
Benchmarking of KPIs
Competitive analysis
Performance management and outcomes

STRENGTH:
Image Profile, Inc.s strength is product innovation and creation. Meutia & Ismail noted
Product innovation is a product that can be viewed from its functional side that will bring a
product one step ahead compared with its competitor. As a result, product innovation was
chosen as a strength in the SWOT analysis for this very reason, and can be further broken down
as: Four kinds of innovation are service, market, logistic and organizational innovation Can
occur simultaneously, p 121, Meutia & Ismail. Successful product innovation and creation can
also be a safety net, as it creates opportunities to increase revenue streams and product portfolio.
Additionally it increases market share and can create new markets, but most importantly it can
be used to substitute products that must be redesigned or subsidize the organizational profit until
new markets are found.

WEAKNESS:
Timilsina (2015), p 119, identifies Costs of operations, Opportunity cost, Cost of
resources and possible output as an opportunity to evaluate various options, as well as
including a resource allocation mechanism in the business model such as resource choice,
operations decision making, which should also include strategic benchmarking (p 281 - 282).
Given that the costs identified can be quite extensive, a constant analysis of the business
environment is required. Successfully executing these processes increase the bottom line and the
organizational overall performance but in the same breath, improperly executed can force the
organization to rightsizing. Financial stability is important, but the continuous resource
allocation of choosing between options to generate the most productive outcomes can take its
toll. Oftentimes this results in opportunity costs when economic cycles, industry downturns, and
legislative issues present themselves jointly or individually. A restraint to the probability of
opportunity costs is addressed by Chen & Millers (2015) concepts of improving competitive
dynamics, p 761, which done by gaining advantage over the competition (innovation),
measuring performance (benchmarking), and addressing motivations of key players
(organizational value creation).

OPPORTUNITY:
The opportunity elements of the SWOT analysis are marketing performance to include
stakeholders described by Kim (2010) as group of people who share the benefits of the program
and those who are interested in the results. p 17. Han, et als (2016) crisis management which is

triggered by poor timing / lack of timeliness, p 369, poor decisions and low ability and
significant industry downturns, p 370, and consideration of industry shocks where industry
shock is defined as a 5% or greater decrease in aggregate industry sales, p 371. Personnel is

actively engaged in pursuing opportunities whether through through solicitation or negotiation.

Timilsinas, p 119, costs of operations and resources and possible output becomes secondary.
The focus is now on the opportunity costs the disregard of Hans crisis management can create,
and further enhance effectiveness elements of trend ones succession planning model.
THREAT:
Image Profile, Inc. addresses the threats of its SWOT analysis, by addressing the economic
cycle / industry downturn, legislative issues, competitive pressures, and strategy. Han et, al
(2016) addresses the economic cycle / industry downturn / recovery, p 373 where the strategy is
innovation driven, industry is competitive and characterized by more managerial discretion,
have little experience in the industry. Felin & Powell (2016) address the threat component of the
SWOT analysis through their discussion of dynamic capabilities, p 78, ... in a fast moving
environment that requires constant agility, strategic innovation, and market adaptation
precisely the kind of environment that places dynamic capabilities at a premium.

The legislative issues component of the SWOT analysis must be addressed as Meutias p 119
freer competition: Government policy to open free market triggers every organization and
SME to face freer competition. It will produce competition in business world. While the change
in government policy can increased productivity through innovation or render bankruptcy
through obsolescence, it must be considered in every strategic plan. Barriers to entry must also
considered as it can introduce new competitors into the marketplace, or exact punitive
requirements of existing ones. The threat of competitive pressures can be managed through
performance management and outcomes accomplished by benchmarking of key performance
indicators (KPIs) and competitive analysis. The KPIs can extend to and include financial ratios,
efficiency ratios, operational ratios, and leveraging ratios. Additionally, the competitive

environment must always be monitored to see economic changes and any new requirements to
technology or various business strategies. Meutia, Felin & Powell captured this theory perfectly
in their arguments of managing ability, adaptability, strategies, and structure. In the argument,
managing ability and adaptability, Meutia, p118, stated ... managing ability and adaptability
will create competitive advantage oriented strategy., and requires structure. Felin & Powell, p
81, reinforced this theory with, It is no longer a matter of structure follows strategy or
strategy follows structure but of continuously orchestrating strategies and structures that
enable the sensing, shaping, and seizing of market opportunities. This flows through to the
bottom line, and therefore the ability and opportunity to perform according to the stated
business model meeting Meutia, p 118, ... be better than competitor improves adaptability..

Technology's Role in Trend Two: Market Adaptation

Image Profile, Inc. can utilize the use of dashboards in market adaptation through its enterprise
resource package (ERP), or through the use of a manual dashboard created in excel. The ERP
usually has a financial accounting and reporting module that presents dashboards in various
formats with a myriad of data including ratios. Creating dashboards in excel is done by
choosing the benchmarking KPIs required, calculating them, and presenting a series of them as
charts or tables.

Organizational Adaptation: (The Challenge of Trend Two - Market Adaptation)

It is not enough to create strategies and manage performance to retain an existing business
model. Felin & Powell, p 82, addresses additional issues such as, Solve problems and capture

opportunities. A company that fails to differentiate its internal structure will fall into traps of
insularity or folly ..., finding it impossible to respond to fast-changing environments. This can
be done through the reliance and management of trend one, succession planning and its
numerous challenges. Once perfected and integrated with Felin & Powells structure follows
strategy and strategy follows structure, the CEO is more aptly able to promote, manage, and
direct the new direction of the organization. This leaves more time to monitor and address
Meutias legislative issues, p 119, and any triggers the organization may face as inevitable
changes occur. While completely separate theories, organizational adaptation must be complete
prior to achieving market adaptation. The relationship between the two is derived from the
organizational ability to create direction and accomplish the competitiveness that market
adaptation requires.

Trend Three: Organizational Excellence

Organizational excellence can be increased through the use of organizational capital. Miles &
Van Clieaf (2016), p 2, defined organizational capital as the extraordinary value created and
realized through unique organizational processes, systems, and management structures. To
create a strategic plan that improves Image Profile, Inc.s bottom line, we are recommending
creating value using Miles & Van Clieaf , p 2, elements: (1) intangible asset, (2) practices and
processes for acquiring and retaining talent, (3) culture, leadership, and alignment of people to
strategic goals, (4) organizational design, and (5) role of leadership capability in transforming
resources into a competitive advantage. Unlike intangible assets such as goodwill,
organizational excellence is not usually factored into formulae to determine an accounting
value, but it can be implemented using process, systems, culture, alignment, and leadership.

Crotts & Ford (2008), p 235, argued that ... supported by explicit systems, policies, and
procedures will be able to reinforce the achievement of such goals and will therefore be more
effective and profitable than operations with low alignment. This can be accomplished using
continuous process improvements and a balanced scorecard approach, which requires Musibau
Akintunde, et al, p 65 structure. Then again, there is a difference between performance and
productivity. Musibau Akintunde, et al, confirmed in their article, p 65, that performance
includes productivity and its result oriented evaluations including liquidity and operational
efficiency, profitability ratios and can be used to build trend and benchmarking analysis. The
integration of the results in performance management of the bottom line.
Lueg & Vu (2015), p 308, describes the balanced scorecard as divided into four perspectives:
financial, customer, internal processes, and learning and growth, which must be adjusted as
necessary as determined by organizational context. Costa Oliveira presented a risk assessment
model similar to the balanced scorecard, but the risks can be fit into the balanced scorecard
mold with variations. The risk assessment model presented by Costa Oliveira consists of:
financial risks, operational risks, strategic risks, and pure risks. In this model, the primary
difference is that operational risks including skills and operational development found within
the learning and development perspective. Using Alikajs organizational excellence, p 85, create
... sustainable competitive advantage by focusing on improving sustainable superior standard
management We believe this has been accomplished for Image Profiling, Inc. using an
integration of Costa Oliveiras risk assessment model and the balanced scorecard.

Technology's Role in Trend Trend Three: Organizational Excellence

A quick and easy method of producing the data required for the constant shifting, realignment,
and monitoring that organizational excellence requires, would be by purchasing an inexpensive
software called Business Plan Pro Premier. This software facilitates constant manipulating of
data to watch and incorporate trends, while at the same preserving the integrity of the data as it
is compatible with ERPs.

Risk Management: The Challenges of Trend Three - Organizational Excellence

The risk management component can be adequately managed by continuously realigning and
integrating Kaplan & Nortons balanced scorecard with Costa Oliveiras (2014). P 48, ... for
the purpose of increasing the organizations value for its stakeholders For that we must
consider: financial risks ...; operational risks ...; strategic risks ....; pure risk... Risk
management modelling can be addressed Costa Oliveiras use of the internal processes
perspective. Teece, et al (2016) argued Risk management procedures and protocols can also be
introduced to help manage known unknowns. While risk management is the greatest significant
challenge to organizational excellence, the implementation of procedures and protocols (policy
management) is created and with it the expected behaviors are defined. Additionally, the policy
is not only managed but reviewed at defined interims with experts in place (external or in-house
consultants) to fill the required roles of trainer, advocate, and technical expert. The organization
cannot progress on policy management alone, as organizational excellence is required.
Conclusion
Teece, et al, (2016) stated The role of organizational agility in modern management cannot be
assessed separately from a consideration of risk, uncertainty, budgets, costs, commitment, and

strategy. I feel this has been adequately demonstrated in the three trends: organizational
adaptation, market adaptation, and organizational excellence, and the challenges and resources
they have provided.

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