Organizations and corporations across the globe are growing and expanding locally, nationally and internationally. Due to globalization, technology and innovation, and uncertainty in the global market regulations and policy, organizations and corporations are focused on solving some of the most concern challenges they face. They are working to better understand the national and international market, its trends and culture, adapt to the government policy and regulation nationally and globally, and become more innovative while still maintaining a sense of control. They are trying to develop short-term strategies due to uncertainty while at the same time they develop long-term technology tools and process being flexible and adaptive due to rapidly changing in the technology and market complexity. The increasing diversity of employees and customers is forcing the organizations and corporations to foster the expansion of different ideas and viewpoints, develop cross-cultural communication strategies and develop better system thinking capability to deal with the complexity and diversity.
The research, innovation, and expansion of knowledge and information have made its so challenging for the organizations and corporations to deal with the mountain of the information and knowledge available out there, and structure as per their need using either technology or human know how. The expansion of organizations and corporations has raised a challenge of supply chain strategies to ensure low cost, minimize risk, and maximize profit or impact. Cybersecurity challenges and threats are the major worry of the day for organizations and corporation to ensure customers/clients privacy and data protection. The changing nature of the jobs due to rapid changes and growth in the technology and innovation compels the organizations and corporations to ensure compliance with the needs/desires of the employees and it also makes it difficult to analyze and report the performances of the employees. Recruiting the right talent, developing them for the job and future tasks, and retaining the talent are key challenges to the organizations and corporations in today’s world. The organizations and corporations are struggling with maintaining their reputation to satisfy their customers and perform better than the competitors.
Maintaining employees work-life balance is the key challenge in this regard due to which organizations and corporations develop and adapt to strategies to ensure employees work-life balance. Organization and corporations are facing the following key challenges while trying to stay competitive and creating growth and sustainability;
- Global politics, rules, and regulations: The changing global politics, rules and regulations have made it so challenging for the organizations and corporations to adaptive, have compliance and thrive.
- Adapting Technology and Innovation: The rapidly changing technology and innovation in every aspect of business and life give tough time to organizations and corporations to adapt to technological changes and innovation.
- Cyber Security and the rising threats to privacy and data protection: The key concern of the organization and corporations is to protect business and customers data, and improve the privacy of the customers due to the rising cyber security threats across the globe.
- Talent attraction, talent development, and Talent Retention: The key to organizational success is human resources. Organizations and corporations face challenges to hiring the right talent, develop the human resource for job and future work to be productive and effective, and retain the talent to have best human resources for the services or products they offer.
- Customer Satisfaction, Customer services, and marketplace competition: It’s very challenging for the organizations and corporations to manage the changing customer’s relationships and expectations by providing timely and efficient services to satisfy their needs and desires. It’s more challenging when it comes to marketplace competitors which force organizations and corporations to perform better, efficiently and productively to satisfy customers needs and maintain long last relationship with them.
- Changing Nature of the jobs and Employees work-life balance: The 4th industrial resolutions i.e the high technological development in all walks of life and the changing nature of the jobs have focused the organizations and corporations to design flexible hierarchy by including the job diversity to cope with the changing nature of the jobs the job seekers or employees are looking forward. They are also developing strategies to help employees balance their work life to provide comfort and easy both at work and private life due to the virtual workplace.
- Financial Complexity due to globalization and diverse customers & employees: The cost calculation and global price strategies, universal payment methods and currency rate are key challenges that organizations and corporations are facing and trying to better and more effectively adapt to these. International accounting, global audit and financial management challenge the organizations and corporations to develop effective system and strategies.
- Supply Chain Complexity: It’s a great challenge to choose the right global shipment methods, and develop supply chain strategies to ensure lower cost, minimize the risk and maximize the profit or impact.
- Developing the right system for organization and corporation: There has been an amazing development in every aspect of life due to technology and innovation which has to change the working nature of business and people. Due to the market complexity, customer diversity, cybersecurity threat, attracting the right talent and due to the changing nature of the job and financial complexity, it’s so challenging for the organizations and corporations to develop the right system for them which effective, efficient and productive.
- Embracing Change and maintaining the reputation: When it comes to embracing the changes internally and externally organizations and corporations are struggling to embrace and incorporate the changes. It also makes them more concern about how they can maintain their reputation in the marketplace.
Example of ENCO – A Multinational Oil & Gas Company:
To improve the company’s innovation performance, Enco – A multinational company working in Oil and gas sector created a Scientific Directorate at the Corporate level and an Innovation Directorate in its Marketing and Services branch. The company has more than 10000 employees worldwide. Despite its size and scope, the company is facing some of the key challenges which includes innovation in the renewable energy, shale oil and gas, oil crisis, the rise of China, digital transformation, growth and fragmentation of knowledge, risk of product commoditization and becoming flexible, more agile to meet increasingly volatile demand. In the list of challenges that Enco faces also includes corporate scientific direction, accelerate of innovation cycles and real-time evolution of needs, strategic planning for effective dealing of cultural diversity and noncore technological renewal. The two directorates established to work two main challenges which include, Noncore technological renewal and acceleration of innovation cycles and real-time evolution of need. Although the Enco innovation process is mature still it faces many challenges to address. The Enco case study of improving innovation performance is an example from an Oil and Gas company, and it can be studied in detail which is available online. In the other industries, challenges may vary and it’s for sure every industry faces one of most of the challenges discussed above and trying to come up with effective and innovative solutions.
The challenges vary across the sectors depending upon the work nature of the organizations and corporations. These are the key challenges that the majority of the organizations and corporations are facing in different ways. There is also a deep concern about the worldwide environmental issues, leading with the right scalable strategy and the market oversaturation. The costly health insurance and ensuring local compliance are also key challenges for the organizations and corporations. The organizations and corporations work to ensure to timely and effectively deal with the challenges by either having specialized workforce working internally to look into the challenges and help organizations develop strategies and adapt, or sometime they hire external resources to help them understand the challenges, develop strategies and help them in the implementation for impact and effective to ensure they deal timely and efficiently with the challenges to main their customers relationships, market reputation and thrive.