Are You Prepared To Embrace The Impact Economy?
Are you prepared to embrace the Impact Economy?
Is your company ready for this?
Whether you’re a large and established organization or a young start up, embracing the Positive Impact mindset is an opportunity to go beyond traditional boundaries with new models and approaches that will outpace the old economy.
~ (HuffPost, 28 Sept, 2017)
There is a new age of business, a newer business model evolving – businesses that make a positive impact to society. It is no longer sufficient to believe that if your business makes a profit and creates employment, it therefore contributes to a healthy socio-economic environment. Why should you pay attention?
1. A New Reality:
Change is not new anymore: it is one of certainties in life. The rapid change in social media and communication brings a level of ubiquitous transparency to our lives that was not previously there. The business environment is increasingly volatile and will continue to challenge businesses to maintain sustainable growth. Along with that – attitudes in society and market forces are changing as well.
The relationship between value and profit is still valid, but the perception of value is changing. Doing good and adding value to society is becoming increasing important to consumers.
The market is also becoming very sophisticated in the knowledge they hold about companies, added value, and any social cause or doing good campaign must be sincere and authentic.
2. The Millennial Effect:
Clients and customers are interested in the company behind the product or service. They do not only buy a product, but a value system that surrounds the product.
55% of online consumers across 60 countries said they were willing to pay more for products and services provided by companies that are committed to positive social and environmental impact. (Nielsen)
Millennials put company values high on their list of priorities when it comes to choosing an employer; 94% of those surveyed said they wanted to use their skills to benefit a cause.
3. Business Model Evolution:
There is a tremendous opportunity to challenge the way things used to be done. Most business strategists are tweaking, challenging, or reinventing existing business models to gain a competitive advantage.
There are numerous business ecosystems rising up; a convergence of complementary businesses that collaborate to develop mutually beneficial relationships with customers, suppliers, and even competitors. Newer business owners believe in the need to grow business models that improve lives while making a profit.
4. Big Company Trailblazing
The road to adopting the Impact Economy is not completely unchartered. Larger firms have proven that embracing the impact economy has strong benefits. The book Green Giants found that companies that focus on growing business while reducing their environmental footprint were growing at twice the speed of their competitors. The author, Freya Williams, refers to businesses which generate at least a billion dollars through services or products that have sustainability or ‘doing good’ at their core. Tesla, Chipotle, Ikea, Unilever, Nike, Toyota, Natura, and Whole Foods are all examples.
5. Every Leader Has a Moment
In a current research project investigating the impact of toxic leadership on organizations, it became apparent that all leaders are guilty of less than virtuous moments in their leadership journey. A button gets pushed, patience is lost, commitments are not followed through, crucial points are missed in a decision… basically things go wrong, and you happen to show your grizzly side. All human leaders will at some point move over to the dark side of leadership, albeit momentarily, to change an outcome and force a new direction. Or sometimes, in a heated moment, give the most eloquent speech that will be regretted for the rest of your life..
Every business owner, big and small, will be facing the Impact Economy in some way our another. As with any change and growing trend, it is prudent to take time out of the weeds and busyness of daily operations and think strategy, plan, and tweak the business model.