In PwC’s latest CEO survey, executives recognize that global issues such as climate change, economic inequality, and social instability are dramatically reshaping the business environment—so much so that 40% predict that their company won’t be economically viable in 10 years on its current path. But these issues are also huge opportunities, and companies that take bold action to address the well-being of society along with shareholder demands are defining the future of business.
Some executives, for instance, told us their companies are more likely to collaborate with other organizations to create new sources of value than to address societal challenges. But we believe it’s not a case of one or the other—that it’s both possible and potentially profitable to bring progress as you pursue innovation and value.
To achieve this, trust is pivotal, as evidenced by the strong correlation between trust and profitability among the companies of CEOs we surveyed. It makes sense. Consider the pressures facing communities today. Anxiety about personal privacy. Stark generational divides—perhaps the deepest in more than a half-century. Economic and social polarization. Business leaders who see the importance of these issues and act on them can earn greater trust and find their companies rewarded.
This all may sound like a tall order, especially when so many businesses are concentrating on the bottom line in a rocky economy. But it’s doable and increasingly critical. By harnessing exponential technologies and working in ecosystems to help solve global problems, game-changing companies are not only building trust among customers, employees, and other stakeholders, they’re also creating lasting value and growing their business as they deliver on
their purpose. Here are five things you can do to join these game changers.
1. Find your place in new value chains.
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Note: This article was created by PwC.
Companies with sustainable solutions to global challenges can foster deeper customer relationships and increase profitability.
Helping solve global problems isn’t just noble. It’s how you can build trust and value.
None of the above is easy, but ignoring these opportunities isn’t optional for organizations that want to achieve lasting value. Consider how your company can meaningfully pursue the above actions to go beyond short-term gains, help solve global problems and build trust over the long haul.
Once you believe a global problem can be solved, you can start identifying workable solutions that can address specific aspects of that problem. Be prepared to leave legacy business models behind in favor of technologies and strategies that can remove barriers to scaling your business—and open up new paths to creating value.
2. Reimagine your portfolio and focus your value proposition.
Few leaders dismiss the value of short-term growth. But as the outcomes you want to deliver in the market evolve, different approaches and measurements of success are needed. Go beyond day-to-day operations and assess your organization’s impact in the context of your contribution to solving global problems, not compared to past performance against sustainability metrics.
3. Invest intentionally and significantly.
That may seem easier said than done, but ideas require funding. Determine where technology investments can be leveraged across functions—instead of within individual departments, providing scale to meaningfully address societal challenges. Also consider how new tech should drive additional cybersecurity investment to build customer trust. Increasing those capabilities could elevate your organization above the competition when it comes to actions versus words.
4. Evolve your business model to harness exponential technologies.
A bold value proposition can be hard to deliver without innovation driving it, and simply spending on technology isn’t enough. Analyze where and how the impact of new tech can be amplified, whether it’s deeper data capture, more frequent and focused simulations, or other uses that measurably improve speed and performance.
5. Embrace change in your culture.
Employees who don’t buy into your company’s innovative approaches to solving broader problems can affect how you deliver on your promises. Empower your teams to challenge previous priorities and processes and offer potential pathways to increasing value. Experimentation is essential to reconsidering what your organization is capable of accomplishing.
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2. Reimagine your portfolio and focus your value proposition.
4. Evolve your business model to harness exponential technologies.
1. Find your place in new value chains.
Once you believe a global problem can be solved, you can start identifying workable solutions that can address specific aspects of that problem. Be prepared to leave legacy business models behind in favor of technologies and strategies that can remove barriers to scaling your business—and open up new paths to creating value.
2. Reimagine your portfolio and focus your value proposition.
Few leaders dismiss the value of short-term growth. But as the outcomes you want to deliver in the market evolve, different approaches and measurements of success are needed. Go beyond day-to-day operations and assess your organization’s impact in the context of your contribution to solving global problems, not compared to past performance against sustainability metrics.
3. Invest intentionally and significantly.
That may seem easier said than done, but ideas require funding. Determine where technology investments can be leveraged across functions instead of within individual departments, providing scale to meaningfully address societal challenges. Also consider how new tech should drive additional cybersecurity investment to build customer trust. Increasing those capabilities could elevate your organization above the competition when it comes to actions versus words.
4. Evolve your business model to harness exponential technologies.
A bold value proposition can be hard to deliver without innovation driving it, and simply spending on technology isn’t enough. Analyze where and how the impact of new tech can be amplified, whether it’s deeper data capture, more frequent and focused simulations, or other uses that measurably improve speed and performance.
5. Embrace change in your culture.
Employees who don’t buy into your company’s innovative approaches to solving broader problems can affect how you deliver on your promises. Empower your teams to challenge previous priorities and processes and offer potential pathways to increasing value. Experimentation is essential to reconsidering what your organization is capable of accomplishing.