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Stability: the "invisible" foundation that defines success

Sources of instability in an organization can be classified as internal or external, and understanding the distinction between them is essential for effective management

A lack of stability in operations and management processes can undermine a company's ability to sustain healthy, adaptive growth, directly affecting efficiency and competitiveness. From a management standpoint, instability creates uncertainty that makes it hard to implement coherent strategies and jeopardizes the organization's success.

The sources of instability in an organization can be classified as internal or external, and understanding the distinction between them is essential for effective management. Internal sources are those that arise from within the company, such as leadership changes, conflicts between teams, process failures, or operational inefficiencies. These issues, although challenging, are within management's direct reach and can be addressed through proactive interventions such as restructuring, training, and process reviews.

External sources of instability, on the other hand, come from factors that occur outside the company, such as economic crises, legislative changes, disruptive technological innovations, and shifts in market demand. Although management has no control over these external forces, the capacity to adapt becomes fundamental to responding quickly and adjusting strategies to remain competitive.

In both situations, the role of management is decisive, whether to mitigate internal risks or to adapt the organization to new external realities, nurturing resilience and pursuing business continuity. In lean management, we use the "4Ms" perspective when referring to the fundamental elements for ensuring what we call "basic stability." The "4Ms" refer to four elements written in English: Man, Machine, Material and Method.

Put simply, if any of these elements shows any sign of instability, the performance of the operation as a whole may be compromised. Thus, management's first challenge is to ensure "basic stability" for each of the "4Ms." Of course, this is a simplification, since each of the four elements can be broken down or translated into many others, such as information (in addition to "materials"), digitalization, and AI (as other forms of automation associated with "machines").

A recent study by the consulting firm Gartner, which surveyed more than 500 Human Resources leaders in 40 countries, revealed a number of concerns. Among them, one finding stands out: one of today's main factors of instability lies in the relationship between employees and employers. In other words, one of the "Ms" seems to be troubling a large share of organizations more forcefully. Precisely the one that refers to people ("Man").

Some of the numbers are worrying. For example, the controversy over workplace flexibility is evident, with only 26% of organizations reporting that their employees fully comply with office attendance requirements. In addition, productivity-related anxiety is a growing concern, as almost 50% of employees consider their current performance unsustainable. This scenario is aggravated by mutual distrust, with only about 50% of employees saying they trust their organization. Together, these factors highlight significant challenges that need to be faced if we want to ensure the "basic stability" of the workforce in the short and medium term.

Unstable relationships represent a significant risk for companies and require precise intervention by management. There are several approaches to mitigating the problem. Lean management, for example, suggests that we work continuously to ensure that all employees, at different levels and in different functions, clearly understand the organization's expectations and objectives. Furthermore, it is fundamental that they have precise guidelines on the actions needed to achieve these purposes and on how each of the parties involved will contribute. Finally, it is essential that the company offer concrete, practical support to make it possible to meet these objectives.

Another way to strengthen management and ensure stability is the practice of "Daily Management (DM)," a routine that brings leaders and teams together to check whether planned actions are being carried out as intended. If there are deviations, the team identifies the causes and defines corrective measures. It is in the daily practice of DM that the other sources of instability are addressed, clarified, and resolved, transparently and collaboratively, with leaders and employees acting in a permanent and integrated way.

To face these challenges, it is crucial that managers adopt a structuring approach, capable of providing real conditions of basic stability and strengthening an organizational culture oriented toward problem solving. Establishing clear expectations, precise guidelines, and practical support are fundamental steps to mitigate internal risks and prepare the company to respond with agility to external adversity. Building mutual trust between leaders and teams is essential in this process, as it strengthens commitment and cohesion. Turning these practices into consistent actions is what will enable the organization to sustain its performance and make it evolve over time.

This article was originally published in: Época Negócios

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