Foreign Investment: A way to recover Latam's future

GRUPO PRODENSA

4. Quality Education 5. Gender Equality 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 10. Reduced Inequalities

Overview

PRODENSA is a professional services firm that acts as an integral facilitator and assists foreign companies with start-ups and consulting for new and on-going operations in Mexico. They have assisted the start-up or expansion of over 600 operations all over Mexico, contributing to the creation of more than a 100,000 of new decent jobs. Also, PRODENSA is a company that has contributed to the economic development of Mexico, by bringing foreign companies with new technologies and innovation. Finally, PRODENSA has been developing new services that can guarantee that every foreign company that comes to Mexico can be in full compliance with the Mexican and International regulations, and also that they can have a good relation with all of their stakeholders.

Authors

Isidro Salum

Isidro Salum

Sofía Soberanes Del Grande

Sofía Soberanes Del Grande

Carlos Saucedo

Carlos Saucedo

Denisse Wah

Denisse Wah

Nallely Garza

Nallely Garza

School

Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM)

Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM)

Professors

Consuelo Garcia-de-la-torre

Consuelo Garcia-de-la-torre

Francisco Layrisse

Francisco Layrisse

Innovation

Currently in Mexico there are other companies like Prodensa that provide support during the start-up phase of a new foreign company in Mexico. However, Prodensa has decided to differentiate itself through the creation of new and innovative consulting services that allow the foreign company to carry out the best practices during the initial phase, pre-operative phase and during the on-going operations phase, contributing directly to the sustainable development of the region in which it is established.

Throughout the years, Prodensa has identified other needs that foreign companies in Mexico have, such as understanding the work culture of Mexicans, creating talent retention strategies, a or even develop strategies to attract the talent needed in the manufacturing industry. Another need that Prodensa has identified is to protect the image that foreign companies have in Mexico, and has created various public relations and institutional relations solutions that allow the foreign company to have a good relationship with its employees, neighbors, government institutions, interest groups, among others. The impact of one consulting service of Prodensa impacts not only the company that acquires the service, but all the business and social community that surrounds it. One consulting service of Prodensa can change the labor market in one region. One consulting service of Prodensa contributes can bring a new industry to one region. One consulting service of Prodensa can save an investment project of a foreign company, by supporting it with its relations with its main stakeholders.

The political environment, as well as the health contingency, have had a great impact on Mexico and Latin America and Prodensa has directly contributed to the economic recovery of the region through its different services. Currently, governments of other countries have decided to seek the advice of Prodensa to retain the industry and the jobs in their country, making Prodensa's impact not only in Mexico, but in Latin America.

Foreign Investment: A way to recover Latam's future

Inspiration

The inspiration for these innovations was born when Mexico was going through times of insecurity and a lot of violence. Being a great source of jobs, PRODENSA undertook the task of opening the doors to two very important social innovations in which they impacted society and employees through the “Student’s Industrial Tours” and “Employer of Choice” programs respectively. PRODENSA felt the need to give back to communities and employees the necessary tools to be able to continue with their studies and a good work environment for those employees that collaborated with PRODENSA.

Overall impact

During past years, PRODENSA has been dedicating not only resources but also time and focus attracting investment and companies that besides contributing economically to our country, they are built with a high sense of consciousness and responsibility towards society. These actions have pushed PRODENSA to be recognized by its own community as a company that creates value by taking care of others.

With the program “Student’s Industrial Tours,” PRODENSA works with two different schools with the objective of developing future professionals by showing them that with their effort and constancy they could be part of one of all these companies, ensuring the opportunity of a better life quality. With this program, PRODENSA has seen continuous generations of graduates that decided not to drop out of school and to have a complete education in order to get this opportunity.

“Employer of Choice” program has the vision of turning every company PRODENSA collaborates with into a “Best place to work”, where not only they are certified but also the community itself recognizes them as a place where people can keep growing, learning and developing personally and professionally. This is being achieved by making an initial assessment for all these different companies, set de base and develop mid and long term objectives, where different activities and KPIs are defined.

During rest of 2020-2021 PRODENSA will be working in getting the “Socially Responsible Company (ESR)” distinctive, and due to this they are now incorporating new bullets to their agenda with the willingness of covering other ODS with their new initiatives.

Business benefit

PRODENSA's main goal is to create happiness in its collaborators, focused on transforming happiness into passion for the activities they carry out at work, which is reflected inside and outside the organization, in the fulfillment of its business objectives and in meeting the goals of the clients .

Whether it is a book donation, a chocolate sale or a fundraising event, this passion makes its members contribute to the activities and this is the strong point of PRODENSA's social responsibility activities.

In the commercial part, the externalization of happiness, in the form of passion and action, overflows into greater profits for clients, in the selection of profitable activities that are not only a "good will or charity", and the development of their employees, shareholders and the community, promoting the personal, economic and professional growth of all those involved.

Finally, we can encompass the benefits of this innovation to the business as follows: 1) creation of happiness as a motivator for actions for improvement and personal growth, 2) gives potential to personal and professional skills for employees, and 3) creates commitment for the organization that makes the clients feel satisfied.

Because of services such as the "Social Risk Test", Prodensa's clients have been able to keep operating successfully during the contingency, and it has also allowed Prodensa to have more income thanks to the creation of new services like this one. Thanks to the creation of this services, Prodensa was able to keep all of its employees despite the sanitary situation.

Social and environmental benefit

PRODENSA’s innovations are fully based on cultural change, from the foreign company invited to start new businesses in the country, as the hired personal, the stakeholders, other company’s that are top in the industry, as well as the communities where the business is allocated, also, in a long term, this different cities will expand the positive impact to the states and -in some point- to Mexico. Prodensa’s vision and way is having a strong acceptance and good results, that is starting to open new opportunities for the company in Latin America. ¿Their secret? Focus and care about people, follow the national and international regulations and promote happiness as a way of living and working.

What they do to benefit society is based since their mission, vision, values, and DNA. Also, they started developing innovations to ensure their purpose, which explicitly mentions ‘transform productivity, positively impacting the community’ as the expected result. These 3 innovations: employer of choice, social risk test and student’s industrial tours are their next step to move further in their journey to transform communities.

Prodensa’s impact is immediate. Once they start operations the community starts receiving decent jobs, salaries, and a good place to work. They promote new leaderships and models to keep up improving a healthy organizational culture. After 10 years a new company started operations the transformation in the community is noticeable. Those marginated and rural zones develop in income, education, and culture. In a long term, this impact will increase until the area represents an economic generator. Other companies may be willing to open more industries and will keep on bringing foreign investment to the country and technology. Also, LatAm’s region suits perfectly to this business model, so Prodensa’s strategy is scalable.

Regarding to environmental impact, they are working on a strong agenda to start developing sustainable economy in Mexico. Currently, they make sure all requirements by law are in order and attending national and international environmental regulations. This may seem like something everyone should do, but truth is, that some industries come to countries like Mexico to avoid these regulations and keep on damaging the environment. Prodensa has zero tolerance to not following these specifications, they mentioned “we are not the company that you are looking for”.

Interviews

Nancy Molano García, Social Commitment Manager

Benjamin Bocanegra, Consulting & Market Intelligence Project Manager

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GRUPO PRODENSA

GRUPO PRODENSA

MONTERREY, NUEVO LEON, MX

Business Website: https://www.prodensa.com.mx/

Year Founded: 1985

Number of Employees: 501 to 1000

With 35 years of successful experience and know-how in consulting, start up and shelter in Mexico and North America, Prodensa has been able to develop an expansive and adaptable process that fosters growth and excellence to foreign companies that want to do business in Mexico. The company has been involved in the start-up process of more than 700 hundred foreign in Mexico, contributing to the creation of thousands of new decent jobs and the development of the local industry.