How to build companies ready for audit, growth, and change?

How would you introduce yourself in a few sentences to people, who are just getting to know you and Humanity in Business Solutions?

For myself, I would say that I am a multidisciplinary expert with over a decade of experience in operational roles, as my curiosity and desire to improve companies and processes naturally led me to my own path. HIBS is a product of dozens of trainings, thousands of hours working with clients, and the results we have delivered for companies. The company offers consulting and implementation of GRC (Governance, Risk and Compliance) architectures, operational models, and assurance (audit and assurance) for scaling technology companies, with our vision being that every company should be supported by a sustainable operational model and processes. We would say that we democratize enterprise standards for companies that are just embarking on the path of larger deals and begin to operate in a field where supplier requirements are no longer limited to expertise or product, but to trust and certification of the supplier as sustainable and ready to meet greater demands of itself. Of course, we also work with a wide network of experts in fields where our expertise could be complemented more closely.

What made you create a company that does not consult, but designs and builds management and operational architectures?

Over the years, we have faced various challenges through our work with small and medium-sized enterprises. We found that scaling companies often rely on certain models that have taken them from 0 to 1. Our job, however, is to create the infrastructure that takes companies from 1 to 100. Quite often, this goes through the path of risk management, refactoring internal operational debt, accreditation to various standards to enhance client trust, as well as increasing the internal maturity of business functions to ensure the resilience that the market demands from a business today. Consulting is the first step, but it does not take responsibility for the final result of the audit. Through implementation, we share the risk and responsibility and gain our clients' trust in the long term.

What gap in the business environment did you see that required such an approach?

The gap we saw is in the field of the multidisciplinary approach to the operational processes of companies – we often encounter fragmented services that offer solutions in a specific area, but not a holistic approach that anticipates the overall impact of a function – whether it is finance, information security, or internal processes on the business. Here we offer superior service as multidisciplinary and independent experts capable of seeing the whole and providing solutions that contribute to the business as a whole, not in isolation.

What does “governance architecture” mean to you and why do you think it becomes critically important as organizational complexity increases?

Governance architecture is a systematic approach that proves indispensable in times of expansion, which inevitably brings with it an increase in organizational complexity. We understand this discipline as a field that simplifies, systematizes, and optimizes fragmentation, the informal know-how of a company, and prepares the company for the next step in its growth. We often see companies fighting complexity with additional complexity – additional implementation of systems or applications that should systematize processes. Thus, we get an end result that not only does not solve the so-called growing pains, but further burdens the administrative burden. Our philosophy is simple – simplification before optimization is the key to sustainability. Clearly defined processes, matrices for solutions and responsibilities within the company reflect on the final product, and clients and employees feel this.

What are the most common structural weaknesses you find in organizations, even when they appear successful from the outside?

There are no universal weaknesses – each company is unique, as are the challenges it faces. However, we often see isolation of departments that should be responsible for standards or internal corrective management. There is a belief that certain functions slow down growth and are an administrative burden for the business. Better companies know that long-term sustainability guarantees revenues more than sporadic deals or wins.

When working with portfolio companies, we see a division between the narrative of the management team about the company and the investor – we believe that with transparency and trust, the need for a narrative is often unnecessary, and we can focus on realities. These are part of the challenges we see in certain segments.

 

 

How does the architectural approach differ from traditional consulting and why does this matter for the sustainability of the business?

We view traditional consulting as a one-time intervention that can bring an external perspective and expertise on the challenges of a business. The architectural approach, however, not only marks them but also resolves them. With this approach, we ensure long-term sustainability and guarantee that the aforementioned challenges are not only outlined but resolved, and become an asset that brings additional and long-term value to the business by enhancing its sustainability and readiness for new challenges.

What does an organization look like that can function reliably during growth, audit, leadership change, or ownership?

Usually, these are organizations with a strong business ethos, clear goals, and processes that create the frameworks within which an organization operates. By the time it reaches a capital event, hyper-growth, or management change, leaders work with the clear mindset that a company should function adequately under any type of changes or shocks – they view leadership through the prism of responsibility for the resources entrusted to them (the so-called stewardship), not short-term solutions, let alone a field for the unfolding of individual ambitions. Of course, this requires clear frameworks for the ultimate goal of the company – whether it is growth and retention of ownership, whether capital events are allowed or an exit from the company – the timely perspective on the ultimate goal is extremely important. A strong team built with great personal trust and clear frameworks, parameters, and goals. Business processes and functions are so well organized and documented that the change of leadership or lack of a key employee happens smoothly, and in the transition, we observe more room for new policies and strategies than catching up in understanding what has happened so far or how to make different functions that have operated in isolation from each other work together. This is also the strength of standardized approaches – smooth transitions based on good practices in the industries.

What conclusions do you draw about the maturity of the Bulgarian business environment regarding management, risk, and institutional control?

We observe a very strong polarization – there are companies that are managed according to the so-called western model, there are also those that are managed as local. We see many opportunities to enhance the export potential, as the Bulgarian business environment has many opportunities for competition in European companies, but the maturity of the environment is still at a very early stage. Companies that have operated in western markets, which have experienced the lack of risk management not as a cultural choice but as a stage of development, have a competitive advantage. However, risk management and institutional control are very young disciplines in our country and unfortunately, rarely represented, and this is a gap, as these disciplines are often a guarantee of ethics, integrity, and success with internal and external structures.

Are companies in our country ready to transition from intuitive management to clearly defined and professional operational standards?

All of this depends on the maturity of the companies themselves, as well as whether they see the business need for it.  Operational standards less often come as a natural need and more often as a requirement from clients. We believe that with Bulgaria's ongoing integration into the single European market, we will see more and more need for such management, so that Bulgarian companies can remain competitive at a higher level, as well as ensure their business sustainability in different economic cycles.

What role do integrity and professional rigor play in building long-term trust – within the organization and externally?

Absolutely key, is my short answer. The reputation of an organization, employee, or supplier often precedes a deal or event. Business is built on trust and results in the long term.

How does systemic thinking help avoid decisions that work short-term but create future instability?

To a large extent, systemic thinking at the moment is a personal quality, and it depends on the person at the top of the chain to be implemented in an organization. Its depersonalization, however, leads to business resilience in many aspects, as thinking from the second and third order is a marker of the maturity of an organization.

Why is simplicity a result of good structure, not of compromise or simplification “at any cost”?

We believe that in order to create value in any aspect of the business, the process itself must be laid on a solid foundation – alignment with business goals, analysis of the value of the process or structure itself, risk analysis, and only then do we move on to creation and integration, with the starting point always being the decomposition of the fundamental, simple components. Simplicity is an inherent property; sometimes we see complexity as a result of aversion to simplicity as a purely human factor, and other times as a natural phase in the scaling process. In all cases, our thesis is that good management can contain a complex overall picture but ultimately simplifies things – for its employees and clients.

How do new technologies and automation change requirements for management and control systems?

The automation of ineffective processes only amplifies their ineffectiveness. New technologies can assist in optimizing an end process, but cannot decompose or create the context in which a system is executed. The requirements with the advancement of new technologies depend on the business model – they create extremely successful conditions for micro-enterprises and a lot of risk for institutional ones.

Can artificial intelligence compensate for the lack of clear governance architecture or, on the contrary – make it even more necessary?

Artificial intelligence can compensate for the lack of clear management architecture to a quite limited extent – and only to the extent that it can be a product of the lack of maturity of an enterprise and is used as a mirror of the process and to the extent that it does not actually reinforce it. However, in the long-term horizon, it enhances the need for it – because it creates additional risks, cannot contain a complex and multilayered perspective, and most importantly – cannot take personal or legal responsibility. Risk management of artificial intelligence, as well as the integration of its capabilities should be among the current topics for many companies. We already see regulatory intervention in many verticals and segments of the European and American market in response precisely to this change, and we are part of the market for alignment with regulatory requirements as a model of good governance and raising the requirements for legal responsibility of principals.

 

How does Humanity in Business Solutions design systems, that remain sustainable even when the environment, people, and scale change?

We use the best standard practices and frameworks – this guarantees the sustainability, continuity, and integration of our solutions, regardless of the circumstances. We provide the gold standard in a specific segment and adapt it according to the needs of the business. This way, businesses are better prepared for changes and remain resilient to them, working with the best possible frameworks for their segment.

What goals do you set for the near future regarding the development and impact of the company?

Our goals are related to creating meaningful and significant value for the businesses that trust us. We have the ambitious goal of becoming a leader in the niche we have created and see a good response in the market. We view business as a way to add sustainability and value for our clients and so far we have good indicators that we are on the right track.

Where do you see yourself in 5 years – as a role in the business ecosystem and as a contribution to a more mature and reliable organizational environment?

We see ourselves as a trusted partner and a synonym for these terms. We hope that the paradigm of sustainable management and our personal ethics will resonate with many more businesses and we will succeed in proving that business can be done differently – with consideration for the systems we influence, and the responsibility we have towards society.

What would you like to change in the way that business thinks about management, responsibility, and sustainable success?

Very few systems on a global scale manage to mobilize human, capital, and social resources as successfully as business does. In this regard, business has a central function in the world order as we know it. I wish more businesses understood the responsibility, privilege, and role they take on in macro and micro systems – internal and external, and as such set a successful example for sustainability, integrity, and long-term success.