Can You Maintain The Pace of Evolution?

In observing the evolution of species that had survived the test of time, Charles Darwin noted that “it’s not the strongest of the species that survives, nor the most intelligent…it’s the ones that are the most adaptable to change.”

The same is true for modern businesses. With disruptive technologies as a catalyst, government legislation, financial regulations and changes in customer behaviour put pressures on investment managers to keep up with the pace.

Adapting to the changes of this brave new world is not an easy transition. Regardless of a company’s size, there will always be confrontation with critical factors. Larger organisations inevitably face more hurdles.

A key driver in the evolution of industry is data. Empowered consumers have instant access to a wealth of high-quality information that enables them to make a purchasing decision in an instant.

Such dynamic markets are difficult to master. Products and services become obsolete quickly and the ability to adopt and adapt to new business models is an evolutionary step too far to make for many organisations.

Competitive markets call for an increased focus on the core capabilities of a business. A company’s ability to quickly adapt to investment strategies and operational efficiency has to be dissected before enhanced controls can be implemented.

The challenges faced by investment managers to increase the value of a business can often require a significant overhaul in order to deliver consistent streams of revenue. Subsequently, more private equity firms are outsourcing their administration to third-party service providers.

Adapting to Change

Not everyone likes change. In the mid-20th century, the eminent biologist, Hans Seyle found a correlation between change and stress. When we have to step away from our comfort zones, stress hormones are triggered and people become hesitant or reluctant.

That’s not to say businesses owners and C-level executives should not strive for change. You have no choice. How you manage change, on the other hand, draws the fine line between success and failure.

Seyle himself contemplated how to handle stress: “Fight always for the highest attainable aim, but never put up resistance in vain.”

Today’s organisations have to be competitive. How you orchestrate and integrate change into your company culture will determine which side of success you will land.

PEA are no strangers to change. The entire business world has travelled through several stages of transformation over the last decade, and there will be more changes to face over the next decade.

Our ability to react effectively and strategically gives us the knowledge to take the steering wheel and guide our partners in the right direction. We help relieve the stress and allow you to focus on other important aspects of your investments.

Regardless of whether you intend to flip a company culture from being creative to proactive, hierarchical to collegial or introspective to externally focused, flexibility is the key to long-term survival.

Our personal experience means we have a team that is fully equipped to assist you with bespoke administration solutions, accessible reporting and meeting the demands for transparency across the board. We share your vision for growth and help you to achieve your goals.

To borrow another quote from Darwin, “Intelligence is based on how efficient a species became at doing the things they need to survive.” Do you know what you need to survive?

 

James OrrickJames Orrick holds a Masters in Corporate Governance from Bournemouth University, a BSc (Hons) in Accounting and Finance from the University of Essex, is a Fellow of the Association of Chartered Certified Accountants and the Institute of Chartered Secretaries and Administrators.

 

Would you like to share your thoughts?

Copyright © 2018 Private Equity Administrators