Imperative shift: Lessons from LA fires for 2025 business strategies

Boudine Henningse, Executive: Operational Effectiveness, Ariston Global

Stuck in a loop

The LA fires underscore the dangers of two concepts quite clearly: cultural inertia and the "path dependence feedback loop".

In a world defined by rapid change, the "path dependence feedback loop" offers a cautionary lens through which to examine organisational habits. This term describes how established practices often perpetuate themselves, even when circumstances shift dramatically.

For HR professionals navigating the complexities of transformation, acting as both advocates for change and intermediaries for business owners, this phenomenon underscores the need to reimagine strategies and align transformation efforts with broader organisational goals.

Consider a case study from the devastating fires in LA. Historically, homes in the region were built with wood — a cheap and accessible material at the time. Despite advancements in construction technology, the “path dependence feedback loop” and cost dependence have kept this practice alive, leaving these communities vulnerable to wildfires.

In contrast, cities like San Francisco, following a similar disaster in the early 1900s, pivoted to using fire-resistant materials like concrete. This shift demonstrates the power of rethinking entrenched practices to align with current realities and future risks.

The correlation between "path dependence feedback" and "cultural inertia" becomes clear: without deliberate change, outdated methods can perpetuate vulnerabilities.

Similarly, HR professionals must challenge longstanding norms and adopt innovative approaches to transformation.

Change management: 4 pitfalls to avoid

Jeff Ryan  22 Aug 2024

EEA amendments

The amendments to the Employment Equity Act has brought sweeping changes, particularly for businesses with over 50 employees who want to do business with the state. While these changes aim to enhance equity, they’ve introduced new administrative complexities.

Small businesses, which now fall outside certain thresholds, may find some relief from compliance burdens. However, for larger enterprises, rigid frameworks risk turning transformation into a mechanical process rather than a meaningful evolution.

HR leaders must therefore champion a shift from compliance-focused efforts to purpose-driven strategies. This involves understanding the deeper objectives behind regulations: fostering diversity, closing skill gaps, and creating workplaces that reflect societal equity.

It’s about moving beyond viewing transformation as a regulatory demand and instead treating it as a catalyst for growth and innovation.

#BizTrends2025: Anticipating B-BBEE transformation in South Africa in 2025

Yuneal Padayachy  14 Jan 2025

Mind the skills gap

A critical component of meaningful transformation lies in addressing South Africa’s skills gap. Despite advancements in technology and artificial intelligence (AI), businesses frequently cite the lack of appropriately skilled workers as a significant barrier to progress.

According to the World Economic Forum’s Future of Work report, nearly half of the global workforce will require reskilling in the coming years to adapt to emerging technologies and evolving industry demands. This underscores the urgent need for businesses to prioritise workforce development strategies that align with their specific sectoral realities.

HR professionals play a pivotal role in leading these efforts by fostering targeted upskilling and reskilling programmes that bridge the gap between current workforce capabilities and future requirements.

This challenge is particularly acute for smaller businesses, which often lack the resources to invest in extensive training programmes. Collaboration between industry stakeholders, government and education providers, is essential to create scalable solutions.

HR professionals can advocate for shared training initiatives by partnering with training institutions or even with other organisation within their supply chains.

#BizTrends2025: #CuratingtheFuture - trends shaping SA's HR and recruitment landscape

Lyndy van den Barselaar  27 Jan 2025

Adapt, encourage, thrive

As businesses confront a landscape defined by digital transformation and shifting workforce dynamics, creativity and agility emerge as indispensable traits. Organisations that get stuck in a "we’ve always done it this way" perspective, risk obsolescence. Instead, HR leaders must cultivate a culture that encourages innovation at all levels.

Transformation in 2025 demands a deliberate effort to overcome cultural inertia which is the tendency to resist change due to deeply ingrained habits and mindsets. HR professionals are uniquely positioned to lead this charge by serving as advocates for transformation with top management.

For example, leveraging AI and automation should not be limited to operational efficiencies. These tools can also be used to identify skill gaps, personalise training programmes and streamline recruitment processes.

By embedding technology into transformation strategies, organisations can address the dual challenges of compliance and innovation.

#BizTrends2025: AI-assisted HR - fast-forward to business value

Caroline van der Merwe  16 Jan 2025

Not a tickbox exercise

Transformation in 2025 isn’t just about meeting regulatory demands; it’s about reshaping the workforce to meet the challenges of the future. Breaking free from the "path dependence feedback loop" that has long defined HR practices will require bold thinking and collaborative action.

The lessons from the LA fires remind us that clinging to outdated methods can leave us vulnerable, while proactive adaptation can lead to resilience and growth. By applying these principles, organisations can unlock the full potential of their workforce and position themselves as leaders in a rapidly changing world.

The time for transformation is now. Are you ready to embrace it?