Latin America is often described as a land of contrasts. While some companies are setting global benchmarks in process improvement and sustainability, others face significant hurdles in achieving even basic standards.
However, these contrasts bring opportunity – our unique mix of rich resources, inequality and political and geographical challenges creates a landscape where adaptability, resilience and creativity thrive.
Chile: Raising the bar
Chile is a prime example. Like many Latin American countries, it has vast natural resources – from its copper mines to its growing renewable energy sector. In industries like mining, retail and financial services, Chilean companies have reached significant maturity, becoming regional and even global leaders. Operational excellence (OPEX) has been a key driver in their success. For example, two copper giants were awarded with a Shingo Prize in 2022, proving that world-class standards are possible here.
However, not all businesses have the same advantages. Economic inequality means that while big companies can excel, others – particularly small and medium-sized enterprises (which amount to over 98 percent of the existing companies in the country) – struggle with limited access to resources. For many, just achieving basic process standardization is a challenge when they’re focused on day-to-day survival.
Pradheep Kileti, a director at National Grid, discusses balancing operations and innovation
Scarcity breeds innovation
This contrast isn’t a disadvantage – it’s an opportunity. If there’s one thing Latin American companies have shown, it’s that scarcity breeds innovation. From economic instability to resource constraints, businesses have learned to do more with less. Take Chile’s renewable energy boom, driven by our need for diversification. Chile leveraged its abundant sunlight and a vision for being sustainable to become a leader in the sector.
Distance, geography and instability also play a role. Our vast geography and relative remoteness can make logistics challenging, and political instability adds further complexity. Nonetheless, this environment has pushed companies to be creative with supply chains and leaner in their operations. One of the best managers I’ve worked with used to say that our unpredictability was actually a strength, making us more flexible and adaptable to constant change. This resilience has shaped Latin American businesses into models of collaboration and creativity.
Ishneet Kaur, director of innovation at National Grid, outlines what it means to innovate
A land of opportunity
Latin America’s contrasts offer great opportunities for both business growth and OPEX. The gap between leading companies and those still developing highlights the potential for improvement. With abundant resources, a spirit of innovation and a resilient, team-oriented workforce, the region is ready to fully embrace OPEX. Our contrasts don’t limit us – they create opportunities for those ready to adapt, innovate and drive change.
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