Chances are, if you open a newspaper, turn on the news, or take a look at the headlines popping up on your phone every few hours, the stories you see will revolve around a handful of key areas. If it’s not inflation, it’s probably climate change; there’ll be something around how our workforce is changing, and a story around the increasingly powerful role of the consumer in today’s economy.
These issues crop up time and again, for good reason. They’re today’s ‘megatrends’ — the fundamental problems that are shaping our world. All four have huge social, financial, and technological implications that affect everyone, in every industry, across society. They’re also notoriously tricky to deal with — partly because of their size, but also because they’re so intricately woven together. No individual, business, or even country can solve them alone.
It’s natural to try to make assumptions to gain a foothold on complex topics like these. The issue is, subjective takes on objective problems can risk entrenching issues further, or at least hold us back from creating the right solutions.
There are a few assumptions we’ve made collectively as a society that have come to the fore recently. First, there’s the notion that we can and should recreate past ‘success’ states rather than looking to something new. There’s also the sentiment that we can stop change instead of adapting to it, or the idea we can move at the same pace we always have.
We can see the results of these assumptions play out in how we’re facing today’s problems.
Take climate change, for example. The outcomes of the 2023 COP28 Summit were uninspiring, to say the least, and stem largely from a very rigid approach to what climate change is, how it’s happening, and what we as humans need to do about it.
As regards inflation, a very strong response designed to bring inflation rates in line with past targets is having the desired effect, but has eroded savings and battered consumer demand in the process. A huge array of competitors and new services have emerged to cater to that changing consumer demand, and that’s shaking up traditional business models. As for our changing workforce, a race to be the fastest, most efficient, most technologically developed organisation is, in some cases, leaving specific employee demographics behind.
Now, I’m not an expert in battling inflation, climate change, or many other of the problem areas we face today. But I am in the business of creating solutions which drive real impact and generate real value for businesses — so I can hazard a few educated suggestions.
How might our world look different if we collaborated better around net zero climate initiatives to decelerate climate change and keep global warming below 2ºC? What if we adapted to inflationary cycles, and conceived new ways to relieve pressure for businesses and consumers? How might we innovate within our businesses to provide experiences that keep customers interested — but also build systems that ensure progress involves everyone?
In my mind, even a slight shift in approach would make a real difference. It’s all the more important we make these shifts quickly, because tomorrow’s projects will be funded by the efficiencies of today.
The only thing that can mitigate an assumption is an undeniable truth. With so many different perspectives out there, these are often hard to come by, but I can offer one.
Businesses must get three things right to succeed in the face of these challenges:
- Firstly, velocity — meaning we must move at the right pace, in the right direction.
- Secondly, intelligence — we need to make the right decisions based on the right evidence.
- Thirdly, experience — in doing both of these things, we need to ensure we’re providing a better experience for all employees and consumers out there.
If you can reduce friction in these three key areas, you will very likely succeed.The next question is always: how do we do it? Often the answer is that no single example will work for everyone. But the questions we need to ask to find the right individual solutions are simple. Is work happening at the appropriate speed to bring about successful transformation? Are you making good — that is, data-powered — decisions? And are the changes you’re making really driving experience for all stakeholders?
I’ll leave you with one last thought, but it’s an important one.
The final stage of business transformation is all about managing the future — looking not just at debts and legacies, but how we focus on future opportunities and threats, too. Crises do not last forever, and new ones will certainly come our way. We can’t focus so much on the problems of today that we lose our perspective on the future.
My advice to you: banish assumptions where you find them. Use the truths we have — tried and tested processes – to build a foundation for success.
There’s plenty more to discuss around these points. To hear more, I’d encourage you to listen to my latest podcast in the Executive Circle series.
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