Never More Important
Professor Chris Harrop OBE
11 July 2024•4 min read
Every generation of business leaders believes that their time is more complex, moves quicker, is more challenging, and is harder to manage. This time the current generation of leaders may just be right.
Our challenge is how to lead successful thriving organisations in a time of unprecedented change where the traditional ways to find answers may simply not work.
Traditional business school models were based on a 20th Century industrial world view where consumerism and shareholder primacy drove decision making. But the golden age of unbridled consumerism and growth at all costs is coming to an end and we are now approaching what some would argue to be a series of existential tipping points.
With each of these challenges we must always ask ourselves the question “So what?” and “What is the impact on people?” then importantly “What can we do about it?”
Let’s start by looking at the major challenges facing us today…
Climate Change
Global Warming of at least 1.5C is inevitable…
A warming of 1.5C over pre industrial times is almost a certainty, This is possibly one of the most significant threats to human life on Earth. Indeed 2023 is now regarded as the hottest year on record and did in fact reach the 1.5C mark.
The impact of 1.5C will be hugely significant for all humans and therefore has massive implications for business.
The impact of each climate change tipping point, from 1.5C to 2.4C to 2.7C, delivers an exponentially worse impact, and the need to ‘adapt' to the impact of heat, rain, storms, drought on all aspects of life and all businesses, the business model, their operations, their products and services, and customer behaviours.
Those businesses that adapt will survive and thrive and it will be the people within those businesses that deliver the solutions.
Resource Constraints
Earth Overshoot Day was 2nd August in 2023
The impact of dwindling raw materials on businesses is complex. Organisations can actively manage and address resource scarcity by adopting sustainable practices, diversifying supply chains, and investing in innovation. As a result they are better positioned to navigate challenges and contribute to a more resilient and sustainable business environment.
The move from a Smash, Melt, Burn and Bury model to a truly circular economy will require great human innovation…
Biodiversity Loss
Wildlife populations have declined by an average 69% since 1970
The impact of biodiversity loss on business is multifaceted, affecting supply chains, resource availability, regulatory compliance, and overall sustainability.
Implementing sustainable practices, promoting biodiversity-friendly supply chains, and engaging in conservation initiatives are ways in which businesses can mitigate their impact on biodiversity loss. Organisations that recognise and address the implications of biodiversity loss are better positioned to manage risks, enhance resilience, and contribute to environmental conservation efforts.
The Loss of Freshwater
Global fresh water demand will outstrip supply by 40% by 2030
‘Water is Life’. It is core to survival. We can survive without food for around 30 days but without water we can only survive 3 days.
The loss of freshwater can have profound implications for businesses across various industries. Organisations that recognise the importance of sustainable water management, implement water-efficient technologies, and adapt to changing water-related challenges are better positioned to navigate the risks associated with freshwater scarcity and contribute to overall water stewardship.
Social Inequality
The richest 20% of the UK population has an income more than 12 times that of the poorest 20%
Social inequality has far-reaching implications for businesses, influencing aspects such as workforce dynamics, market engagement, and overall corporate reputation.
Organisations that proactively address social inequality, promote diversity and inclusion, and adopt socially responsible practices are better positioned to navigate the challenges and capitalise on the opportunities associated with an equitable and inclusive business environment.
Artificial Intelligence Impact
41% of people feel that AI will create a better life for them
AI has already had a transformative impact on various aspects of business: driving efficiency, improving decision-making, and contributing to innovation. As businesses continue to integrate AI technologies, adapting to these changes becomes crucial for staying competitive in the evolving landscape.
These are mega trends, seismic shifts are now at a tipping point. They are driving global uncertainty and raising geopolitical tensions.
The World Uncertainty Index a measure that tracks uncertainty across the world by text-mining the country reports of the Economist Intelligence Unit. It clearly shows that since 1990 levels of uncertainty measured in this way have doubled.
How do we react? Bury our heads in the sand, pray that they wont affect us or our business, or seek to understand their impacts on our organisations and customers and find ways to solve them, to mitigate them, to adapt to them?
If we decide upon the later, it will require human action. We will need the talents, the abilities, the expertise, and the insights of everyone of our organisation’s stakeholders.
These are Mega Trends
Seismic shifts are now at a tipping point. They are driving global uncertainty and raising geopolitical tensions.
The World Uncertainty Index, a measure that tracks uncertainty across the world by text-mining
Economist Intelligence Unit country reports, clearly shows that levels of uncertainty measured in this way have doubled since 1990.
How do we react? Bury our heads in the sand? Pray that they wont affect us or our business? Or seek to understand their impacts on our organisations and customers and find ways to solve them, to mitigate them, to adapt to them.
If we decide upon the latter, it will require human action. We will need the talents, the abilities, the expertise, and the insights of every one of our organisation’s stakeholders.
We will need a human-centred organisation…
Professor Chris Harrop OBE
Professor Chris Harrop OBE is Visiting Professor in Sustainable Business at the University of Huddersfield and former ESG Strategy Director at Marshalls plc. He is also Chair of Made in Britain and a Non Exec Director of the FairTax Foundation. Chris started his career in marketing and now has over 20 years’ experience in sustainability and sustainable product development, taking a holistic view of sustainability and a practical approach to business strategy.
In 2017 Chris made the trek to the North Pole to see for himself the impact of climate change and become a better advocate for business action.
In 2018 Chris was named BtB Marketing Director of the Year and in 2019 he was awarded an OBE for services to the Prevention of Modern Slavery and Exploitation.
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