Every generation of business leaders believes that their time is more complex, moves quicker, is more challenging and is harder to manage, and 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 as 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…

Possibly one of the most significant threats to human life on earth has reached a stage where an warming of 1.5C over pre industrial times is almost a certainty, 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 challenges of ‘mitigating’ the impact of climate change 1.5C to 2.4C to 2.7C with each tipping point delivering an exponential worse impact, and ‘adapting’ 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

The phrase ‘Water is Life’ is core to an 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.

We will need a human centred organisation…