People management is the biggest challenge for organisational leaders

# tags: Leadership , QSP Summit

A study by consultancy firm QSP concluded that people management is the biggest challenge for organisational leaders.

QSP - Marketing Management & Research sought to find out what the main challenges are for the future of business and how organisations and workers are adapting to changes in companies, through a study of business professionals, as part of the launch of the 17th edition of the QSP Summit, which will take place from 2 to 4 July in Porto and Matosinhos (Portugal), with the motto 'Rethinking Organisations'.

For the majority of managers surveyed, people are the main management challenge, both because of the difficulty of instilling an organisational culture and employee engagement (60%) and because of the difficulty of attracting and retaining qualified professionals in their ranks (53.3%).

In addition, 77% of professionals consider current education and training models to be out of step with the needs of organisations; only 14.1% consider them to be appropriate.

"These figures show that there is a clear discomfort with current educational models and a desire to reformulate them in order to better meet the needs of organisations, whether it's the priority given to theoretical content to the detriment of know-how, the disregard for soft skills, or even the lack of connection to the business world, as the results of the study indicate. The challenges that organisations face in an environment of fierce competition and constant change mean that top managers in particular feel that recent graduates should be better prepared for the dynamics of the business world," says Pedro Carneiro, head of Marketing Research at QSP, the organiser of the QSP Summit.

Agility in adapting to market changes, another of the many topics that will be debated at this year's QSP Summit, emerges as the third biggest current management challenge (52.6 per cent) for those surveyed.

Appreciation, communication, social responsibility and sustainability

When asked about the most important characteristics in the management of organisations, respondents highlighted the recognition and appreciation of employees (63.7%), open and transparent communication (52.6%), inspiring leadership (50.4%) and organisational agility (35.6%) - characteristics that in 25.2%, 20%, 22.3% and 26.7% of cases, respectively, are promoted little or not at all in organisations.

Although they see valuing employees as an important factor in management, respondents give little importance to inclusion, diversity and equity within organisations. It is seen as the most important characteristic in the management of organisations by only 11.9% of professionals, and is promoted little or not at all by 20.8% of respondents.

Social responsibility and sustainability are also given little prominence by managers, being highlighted by only 20%; but there are also 23.7% who say they are not promoted internally in the organisations where they work.

In cases where sustainability and social responsibility are actually promoted, albeit moderately (76.3 per cent), the initiatives most often mentioned as priorities in terms of corporate social responsibility are business ethics (59.2 per cent), transparency (49.5 per cent), reducing environmental impact (48.5 per cent) and promoting diversity and inclusion (39.8 per cent).

"People continue to be at the heart of organisations"

The QSP study reveals that 97.8% of professionals consider innovation to be essential to the success of organisations and 85.2% believe that technology is having a positive impact on the way organisations operate.

In the next few years, 83% expect artificial intelligence to be the technology with the greatest impact on organisational management. “It's clear that artificial intelligence will mark the future of organisational management," says Pedro Carneiro.

The study indicates that 63 per cent of professionals believe that Big Data and data analysis will be the technology with the greatest impact in the short/medium term and that 40.7 per cent point to automation. Other technologies such as the Internet of Things (21.5 per cent), blockchain (14.1 per cent), augmented and virtual reality (9.6 per cent) and the metaverse (8.9 per cent) were also mentioned.

But not all companies seem to be prepared for change: 16.3% of professionals indicate that their organisation has a low or very low capacity to adapt to change and 43% see their organisation as having a moderate capacity. On the other hand, 40.7% believe that their organisation has a high or very high capacity to adapt to change.

The QSP study adds that focusing on the customer and market needs currently seems to be the priority strategy for most companies; however, those surveyed believe that, although this is very important, the focus should be mainly on developing the skills and competences of employees and also on organisational flexibility and agility in decision-making.

Investment in technology and innovation, although indicated by 33.3% of professionals as a current priority area in their companies, should be a priority for 46.7%, demonstrating that there is still a long way to go and that investment in technology and innovation is still not enough.

"Once again, although investment in technology and innovation is seen as very important and an increasingly pressing reality for organisations, professionals highlight the development of employees' skills and competences, demonstrating that today people continue to be at the heart of organisations and the main concern of the business community is to guarantee valuable staff who are prepared for the changes ahead," concludes Pedro Carneiro.

The study carried out by QSP - Marketing Management & Research, among more than 130 professionals from the business community, made it possible to carry out an initial analysis of the theme of the QSP Summit, which expects more than 3,500 professionals to take part in the event.