Continental Grain Company - ContiConnect Online

Lessons Learned: Change and Alignment

by Vart Adjemian
  Chief Operating Officer Vart Adjemian

"We often believe we can achieve our goals through change alone. This can be a wonderful method for creating the illusion of progress while producing confusion, inefficiency, and demoralization."--Patrinus Arbiter, Roman General.

The world has changed significantly in recent months and continues to change in profound ways. We all saw this in the incredible and heinous terrorist acts of 9/11, and we know that life will not be the same.

Our business world has also changed and continues to present new challenges. Consumer awareness has accelerated enormously, and many more dynamic competitive forces are operating. Standards in all industries have risen to a point where there is simply no way to "fake" quality, and no way to be average and be successful.

In our own company, we went through a dramatic change three years ago when we divested our grain trading operations. We are still changing today, continually working to improve our businesses and our performance. We are also responding to a wide range of external forces and pressures. These include, but are not limited to:

  • The shifting sands of deregulation and re-regulation. A totally unexpected development was the Senate's approval of the Johnson Amendment to restrict livestock ownership by meat processors, and the still unresolved status of this amendment in Congress.

  • The competitive challenge of emerging companies in all areas and sometimes (as in the case of Enron) their total collapse.

  • The accelerating rate of technological progress, especially in productivity and manufacturing efficiency.

  • The increasing globalization of the world economy. For our company, exports of certain products to overseas destinations are critical business drivers. Yet world trade is often influenced by inherently political considerations rather than by economics and human needs.

As we all know, change isn't easy and can be a painful process. However, it should be embraced when it is logical and necessary. On the other hand, change only for the sake of change, and only for appearances, can be unproductive and damaging.

Throughout my career, having been through a number of major changes, I have learned that successful change occurs when people are aligned with, and committed to, the company's goals and objectives. When there is no alignment, it is impossible to change successfully and complete the transformation. This alignment consists of ensuring that our organizational structure, focus, systems, and operational processes contribute to achieving our objectives and meeting the needs of our customers, shareholders, and employees.

Far and away the greatest leverage of the principle of alignment comes when all our managers at all levels and all our people are in alignment with our vision and strategy. Every phase of the process, every activity, counts and is an integral part of the chain. When our people are filled with a true understanding of the company's needs, and are challenged to create and continually improve the structures and operating systems that will meet these needs, then we have alignment.

As one CEO has said, "I think of our company as a volleyball team. It takes three hits to get the ball over the net and it does not matter who hits it."

Vart

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