6 challenges in shifting towards a new economy

As we move from a production to a knowledge economy, companies must adapt to the new demands that innovation and creativity bring to the forefront. Employees are no longer hired solely for their physical abilities, but rather their ideas, and management must shift their roles from delegating and controlling to creating an environment that fosters brain power. To achieve this, companies need to encourage a transparent culture, where employees are informed of vision and goals, so they can contribute valuable ideas. Structures must be built to allow for trial and error, where employees learn as they go and define goals along the way. Managers in traditional roles must now create the conditions and support for employees to design and develop ideas. Employees, in turn, must shift their mindsets from following orders to continuous learning and contributing their opinions and ideas at all levels of the organization. Silos and command-control-structures must be abandoned for cross-functional collaboration, where experts are scattered throughout the organization. Companies must get closer to the customer and predict future market trends to stay competitive. Overall, innovation is the key to future-proofing companies, and to achieve this, organizations need to restructure themselves and equip their staff with the tools and mindset to support a culture of innovation.