3 strategic choices for a more impact-driven business.
The beginning of a new year is the perfect time to set new goals, embrace change, and start nurturing a growth and impact mindset. You can mirror the spirit of transformation and project it onto your business. In this blog, we share 3 high-level strategic choices you can make to shift your business today and bring about positive change. Read on to find out how to become more impact-driven.
New year, new business.
In today’s business landscape, driving impact is no longer a choice, but something that is expected, not only from you but from all your stakeholders. Customers are more involved than ever and your entire supply chain is exposed online. While this may sound concerning to some, others see it as an opportunity to create new value. Value that goes beyond running a business to make a profit and expands to creating positive change for our planet and the people living on it.
At Business Models Inc., the ‘ Triple Bottom Line ‘ (TBL) of People, Planet & Profit is at the core of everything we do. It is our mission to leave behind a better world than the one we once entered. For the past decades, businesses have been mainly operating in a way that exhausts our natural resources and is unsustainable for the generations to come. That is why the only way forward from here is to (re)create more impact-driven businesses that promote sustainable practices to outlast our lifetime.
Learn how to be more impact-driven and promote sustainable practices to outlast our lifetime with our Impact playbook.
Will it be business as usual?
As we enter 2024, we are finally waking up to the fact that we all need to pitch in to make a difference. How? By continuously considering the impact, both positive and negative, that your business generates. Here are three high-level strategic choices that we think will play a crucial role in the shift of businesses that generate a significant positive impact (handprint), and greatly reduce their negative impact (footprint). By making these choices, businesses can truly play a role in positively shaping our society and environment, and shift to practices that are more aware, sustainable and make a real impact.
The 3 impact-driven strategic choices businesses are making:
1. People-centric innovation.
The business world continues to recognize one essential truth: people are the cornerstone of every successful company. Without employees who keep your operations up and running, or consumers who want to buy your products and services, your business is set to fail. While this may sound obvious, it highlights the importance of people and the need to place them at the very heart of everything you do. Think about it: engaged employees lead to better services, and costumers who feel heard and valued keep coming back. Making your business truly people centric can be the just game-changer you are looking for. Millennials and Gen Z are dominating the consumer and employee landscape, accompanied by a different set of changing behaviours. Walking around the office, you may have heard buzzwords like ‘inclusivity’, ‘work-life balance’ and ‘purpose-driven’ flying around, and for good reason. Today’s employees are looking for fairness, flexibility, and personal fulfillment.
It takes a collective effort.
It is not just you; this observation is backed by statistics. A CNBC/SurveyMonkey Workforce Survey found that close to 80% of workers today are looking to be part of a company that values diversity, equity, and inclusion across the board. When employees feel that their company is committed to these values, they are more than just a tiny bit happier, they feel deeply satisfied about their career growth opportunities and how much they are being paid.
It’s the same for consumers, who are now leaning towards brands that match their values and principles. A study from Ipsos shows us that in 2021, 60% of consumers in the UK were buying from brands that reflected their personal values, compared to a mere 43% in 2013. In the US there was a similar increase from 50% to 66%. Moreover, these conscious consumers are willing to pay more for sustainable products. According to an IBM study 70% of all purpose-driven shoppers are happy to pay an extra 35% for things like recycled or eco-friendly goods.
People favour brands with morals.
Once you put people first, success will follow. Just look at brands like Patagonia or Ben & Jerry’s, they have built brands not just on great products, but by genuinely caring for their people and customers. Now, imagine your business going down this path. Maybe it means involving your team more in decision-making, getting real about customer feedback or rethinking parts of your operations. By adopting a people centric approach, you can create an environment where people feel they are part of something meaningful and push the world towards a better future.
Turn business into a force for good. Your journey to make a difference starts today!
2. Eco-friendly technologies.
There is another strategic choice that you should consider: ‘Clean Tech’, also known as ‘Green Tech’ or ‘Eco-friendly tech’. It revolves around optimizing the use of energy, minimizing waste, and making a meaningful difference in environmental protection.
Perhaps the biggest challenge we are facing is climate change. It’s real, and it’s urgent. The global temperature is rising, natural disasters are happening at an increasingly rapid pace, and our natural resources are being used up. In the EU, industrial production has been on a continuous upward trend, increasing by 8% from 2020 to 2021, and an even further 5% in 2022 alone ( industrial production (PRODCOM) statistics). If we continue on this path and don’t change our practices, we can expect greenhouse gas emissions to rise, and our planet and future generations to suffer because of it.
Green tech growth.
This is why we expect companies to continue to adopt ‘Clean Tech’, in 2024 and beyond. How? By using renewable energy, applying smart resource management, choosing for supply chain transparency, eco-friendly manufacturing and a circular economy. This shift is not just a popular topic on your newsfeed, the statistics point to it as well. The global green technology support market is projected to grow by 16.45% (CAGR) from 2021 to 2026, and is expected to reach a valuation of $3.3 billion by 2025.
Saving costs and our Earth.
For businesses, Clean Tech means a long-term increase in cost savings, efficiency improvements, and, with the people centric approach in mind, a boost in brand reputation. Take Nike as an example. The company has experienced a 40% cut in greenhouse gas emissions from 2021 and 2022 and a 64% reduction in emissions from the production of its footwear and apparel. All while keeping its status of ‘the most valuable apparel brand in the world’ worth $31.3 billion, and receiving the highest sustainability perceptions value score in 2023.
Not convinced?
Get our impact playbook to find out more about doing business for good.
What are you waiting for? Get it now.
3. Global collaboration.
Our world is becoming increasingly interconnected and collaborating across borders and sectors has become easier than ever before. Global collaboration means joining forces with others — such as other businesses, government bodies or non-profit organizations — to tackle the big challenges our world is facing. To become truly impact-driven, you must rise above the competition and believe in the power of teamwork by sharing your strengths and ideas, and by working towards a collective vision.
Building bridges, changing lives.
The global challenges we are facing, such as climate change, social inequalities, and economic imbalance, simply can’t be solved by one single business alone. We must put our heads together to come to comprehensive solutions.
IKEA is a great example of how global collaboration can create impactful change. In 2012, the company launched the ‘IKEA Social Entrepreneurship’ initiative after recognizing the limited global labour market for marginalized communities. IKEA strategically partnered with socially driven parties, integrating social impact into its business model. By offering training, mentorship, and support in areas like product design and business management, IKEA ensured these partnerships were not only sustainable but also mutually beneficial. The result? Over 30,000 jobs were created across 45 countries, as well as partnerships with no fewer than 101 social enterprises in 26 countries, and the VÅRDANDE collection was launched, a testament to their commitment to economic empowerment and social justice.
Innovate & grow together.
This strategy isn’t just about reducing risks or boosting sales; it’s about fostering a collaborative culture that energizes your team, and about enhancing productivity and employee engagement. Yes, collaboration demands that we invest in time and resources, but the payoff — in innovation, market expansion, cost efficiency, risk mitigation, and employee satisfaction — sets your business up for growth and success in today’s interconnected global economy.
Get your Impact playbook and start shaping your business for good today!
Your time is now!
There is no doubt about it: the future of business is impact-driven. Embracing people centric innovation, eco-friendly technologies, and global collaboration are key strategic choices to make this happen. We are heading towards a future where businesses move people and planet forward, and where the focus should not be limited to just financial performance. Explore how you can make such strategic choices within your organization and get ready to make 2024 the year your business becomes a force for good.
Want to start your impact journey? Discover our helpful tips in out impact playbook. Get it here.
Would you like to shift to an impact business? Meet Roland.
He’s always ready for change!
Originally published at https://www.businessmodelsinc.com.
