There is somewhat a sense of normality post-pandemic; businesses are trying to get back into the swing of things after a traumatic 18 months, and employees are struggling to readjust after being accustomed to the work-from-home lifestyle. The economy itself is trying to figure out where to thrive under this “new” normal and amid all of this, new markets are opening, and new trends are becoming more apparent in the private sector.
Once upon a time, there were the corporate giants and then there were others. The market was populated with corporations who were in competition with just themselves. MTN was the rival to Etisalat (now 9mobile), and Shell was the competition for Total. For jobseekers, the larger the company the better. Everybody wants to work for the multinationals who are the most popular. Fast forward a few decades, and so much has changed; professionals have left organisations to set-up their own businesses and carved a niche for themselves on the path of entrepreneurship.
These businesses have had success stories that have revolutionised Nigeria across multiple sectors and put the nation on the map for international opportunities and synergy. Now we have just emerged from a disruptive recession, what does the future hold for the public sector?
The future will see large corporations partnering with start-ups and SMEs to rebrand and position themselves on the global map because they both lack something that the other has. The leveraging pillar they both possess can be a force to contend with if they work together.
Larger corporations are leaning on their legacy as trusted brands to survive. Because their brands have been household names in circulation for a long time, their consumer base are those who are creatures of habit, those who believe that, “if it’s not broken then don’t fix it”. This consumer segment is reducing drastically because more innovative ideas are meeting their needs and one of the many deciding factors that is forcing them to decamp from what they consider “the norm “is being matched by price, efficiency, and versatility. So, as a result, they are struggling to tap into the new consumer demographic.
The structure and governance of larger corporations that have been in existence for more than two decades have mainframes that are deep rooted with rigorous procedures in place. Because of this, they do not have the capacity to venture outside of their current structure to implement radical change management initiatives in short spaces of time. Considering this, their options for growth and relevance are very limited and to overcome this, they either employ entrepreneurial professionals who have had experience as independent business leaders to drive innovation within, or to partner with an established internationally affiliated start-up company to leverage on their relevance in the market and rebrand themselves as a global entity. SMEs on the other hand have a flatter structure in comparison to their larger counterparts, so the flexibility to incorporate new strategies as the tide moves with the consumer trends is easier.
Their competitors are no longer their fellow corporate giants. In terms of size, maybe. However, their biggest, and long-term competition in terms of tapping into the new generational market are the budding entrepreneurs who have their finger on the pulse. Small and Medium Enterprises have taken their time to conduct and review consumer trends to establish the needs in the market; and designed their operational strategy to fill in the gap between the recognisable household name and their innovative consumer alternative.
So, what does this new insight do for the development of the private sector?
What does the future hold for white collar employers, and the entrepreneurs? Joint Venture Partnerships.
Even though foreign investment is at the core of their sustainability, SMEs need Nigerian consumers to function and fuel their growth. While their growth will be steady, they are still competing with their own competitors, and partnering with larger corporations will rapidly increase that growth for greater coverage and market dominance.
From the perspective of the larger corporations, it’s a strategic and cost-effective way to engage a uniquely defined target market, without compromising the legendary brand they have built over the years. The truth is, they are losing touch with modern consumers. It makes great business sense to join forces with entrepreneurs who are pioneering the capturing of new consumer trends. This partnership will not only breathe new life into their brand, but they will also have the global footprint acquired through their affiliation-partnership with the start-up.
It boils down to synergy for strength!
Since the beginning of time, companies have been playing the mergers and acquisitions game for market dominance. In today’s market, it is not a matter of size, it’s more strategic. It’s about consumer coverage, working smart, and tapping those resources who have already carved a niche and would benefit from a larger financial and brand affiliation.
How does this affect the future of Human Capacity Development?
To keep up with the evolving trend, professionals would need to diversify their commercial exposure to different sectors and industries to cater to the business demands of the market. This doesn’t mean that they should lose sight of their core, but they would need to adopt a high-level of exposure to business intelligence and make use of market data and statistics to leverage successfully.
For organisations, this also means that there needs to be a shift in conventional structuring to create room for new business and innovation. This can be achieved with a separate entity that focuses on new product development, which can be integrated into the mainstream organisation for those who have more rigid structures.
Recruitment will also take a new dimension in terms of the strategies used to attract and retain talent. While some may still be looking for those who fit a certain mould, the time is now for recruiters to guide businesses into welcoming transferable skills, and unconventional skill sets that can prove to be essential for organisational growth.
Learning and Development is a key area of penetration, businesses who encompass Business Intelligence, Data Analysis, Reporting, and Mining, Strategy, People Analytics, Project Management, Operations and Business Management into their development programmes are automatically building a pipeline for succession planning. These areas of cross-functional expertise will allow employees to build a robust internal structure for business continuity.
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