How to prevent employee burnout through a growth mindshiftÂ
When we feel stressed, we’re more likely to operate from a place of fear and fall back on a mindset that is fixed, judgmental, and focused on polarities – behaviour that soon...
Brain Circuits
How to change the way you think for innovation and sustainability
Understanding how profitability and sustainability work together is the critical factor that will define successful businesses for the rest of this century. While shareholders will always want profits, your employees and customers are expressing growing demands that businesses should also work to make the world a better place. The good news is these ideals are not in conflict; they actually support each other.
The challenge
As an exercise, ask yourself this question: Does your organization pursue both profitability and sustainability as something to be achieved together (a “both/and” mentality) or is it viewing them as conflicting efforts (a “profits vs. sustainable goals” mentality)?
We posed this question to executives in an IMD webinar, and found that 73% of participants indicated that they were striving to achieve both. This is a fantastic statistic, but when you dig a little deeper it becomes evident there is more of a conflict with this way of thinking than people realized.
Now ask yourself this: How do you envision moving forward with your goals? When launching your business, how do you think it is best to start?
1. Â Â Â A focus on profits so you are able to then put resources into sustainability?
or
2. Â Â Â Start with roots in sustainability, creating a product or a service aimed at improving the world, and then figure out later how to monetize it?
If you opted for the first choice, you are not alone: 68% of participants in the aforementioned webinar said that was their organization’s approach. In fact, this was a bit of a trick question to illustrate how most people are stuck in an old-fashioned, linear way of thinking. If you can change this, you can unlock innovative potential.
Think cyclical
Â
Profitability and sustainability, when done right, should work together. You are seeking profits, which will give you more resources for sustainability goals – but you should also seek to find ways your sustainability goals can contribute to the bottom line of the firm. This essentially creates a positive feedback loop where each goal is supporting the other. Sustainability goals provide leverage for generating funds, and that profitability allows for more resources to go towards sustainability.
If your organization can shift its thinking, the next step is to identify potential opportunities to change your business operations. Read more about this in part two.
Authors
Related
How can AI enable your business strategy?Â
Artificial intelligence is perhaps the most far-reaching technology ever created. Google’s AI business strategist Gopi Kallayil recommends asking yourself three key questions regarding your business strategy and identifies three AI capabilities you...
Tell me more: how to boost your leadership skills by learning instead of directingÂ
Many leaders feel compelled to motivate their teams to perform by being highly solutions-focused – but learning rather than directing often leads to better results. Consult the following checklist to guage whether...
Only connect: How to keep disparate workforce elements happy and motivated Â
Today’s workforce often includes a mix of permanent employees, freelancers, and outside contractors – but even organizations with mostly external workforces or highly autonomous workforces need proximity to succeed over the long...