The concept of institutionalization, which has been a subject of debate for many years, is now a popular approach in both public and private sectors, but it often remains abstract in practice.
Generally accepted, institutionalization can be perceived as an established institution independent of individuals, with defined and continuously improved processes and fundamental functions (sales, accounting, storage, reporting, etc.). The inclusion of a data-driven decision-making process and the establishment of basic human resources can also be added to this definition. These are already the necessary elements, generally accepted aside from nuances specific to the industry.
However, the survival of a business in today's world is not only about adopting a corporate structure but also closely related to Creativity. In this context, the ability of small businesses to continue improving in the increasing competitive environment and rapidly changing world conditions depends on their Creativity, which is of greater importance today. I will address the topic of Creativity in more detail in a separate article. At this stage, what is emphasized is that the ability of businesses to respond quickly to competitors' products and services, creating alternatives, developing creative formulas in procurement and trade, implementing creative practices in marketing and communication, developing creative tools for employee motivation, and, in general, innovation for differentiation are all related to the business's creativity and are much more critical than institutionalizing the existing structure.
As someone who has worked on institutionalization in different sectors and believes in its necessity, I often observe that the concept of Creativity is overlooked among discussions on competition-institutionalization-product. In other words, a metaphor could be made, such as not losing sight of the country's situation while dealing with the health and order of the trees. The main idea to be emphasized in this article is that all management systems and approaches need to be addressed with a coordinated and integrated process approach. Especially in small businesses and SMEs, while working in a specific area, there may be an over-focus on certain trees and overlooking the overall forest. This situation can extend to the dimensions of not considering the smoke of an approaching fire from a distance and not taking it into account while looking at the tree, reaching the extent of past examples.
Different management system approaches to be applied in small businesses; Quality Management, Food Safety System, Talent Management, Strategic Planning, Performance Management, Financial Management, etc., are as delicate as administering the drug to the body in the right dosage, and the importance of dosage adjustment increases as the scale decreases. Therefore, the required improvement should be achieved step by step with the necessary applications - but the most important thing is to ensure sustainability by applying the concept of Creativity in the entire business model and future positioning of the product in competition, and the overall health of the body should be preserved under all circumstances. Otherwise, neither the sales revenue obtained today, nor the profit, nor the number of employees, nor the market share data may remain relevant in 6, or maybe even 3 months.
In conclusion, as business practices, products, and markets become more complex in today's world, the business model, management, and future continue to become equally complex. What matters is to continue on the path with a healthy foundation of institutionalization without neglecting Creativity, simultaneously increasing Creativity. Wishing everyone healthy and creative days ahead.
Dr. Bilinç Dolmacı
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