One proposition that gains greater media traction is the positive role a green revolution has to play in pulling us out of the current global economic crisis. This has been met with a degree of scepticism, even cognitive dissonance by many business leaders of today; those still of the opinion that economic growth and sustainability are diametrically opposed. But until such a time as we come to the collective realisation that in fact they are mutually supportive, the ‘tectonic’ stresses that we face, to quote Thomas Homer-Dixon, will continue to threaten the very rules of the game. So articulate and compelling are Homer-Dixon’s arguments in his last book The Upside of Down, that I sold every share I owned back in February of this year. Foresight can be a wonderful thing. But Homer-Dixon is not alone. We have been warned of a number of stresses for a considerable time; an impending credit-fuelled financial meltdown, a global population explosion, accelerating climate change and soaring energy prices underpinned by the inevitable peak in oil production, to name but a few. As Jonathon Porritt the environmental advisor to Prince Charles and Marks & Spencer among others recently posited, the current financial crisis was “guaranteed” to happen. Yet as a majority we continued unabated, it seems oblivious to the implications of continuing to live way beyond our means.
There are an ever-increasing number of opinion-leaders, experts and academics with no selfish or vested interests but who share a common belief. A belief that our system is out-dated, indeed lacks relevancy to contend with the growing stresses we are faced with. Will we continue to ignore the warning signs at our peril, or will we gain a sufficient understanding of the issues and thus address the flaws in our system accordingly? Mine nor their intention is to apportion blame, but rather to awaken a majority in consciousness among the leaders of today and tomorrow as to the nature of these existing and emerging threats, the rigid flaws in our system they will only serve to expose and to then help realise the very real challenges and opportunities these present, for all of us.
You’d think the world was coming to an end when economists predict a two-percentage point drop in retail sales in the run-up to Christmas this year; this represents the first ‘real’ drop in years, and federal government fiscally, and somewhat misguidedly, is trying to re-fuel conspicuous consumption as a result. But maybe the world as we know it is slowly coming to an end. I feel a little heartened by this latest economic prediction. Whilst one wouldn’t doubt that the credit crisis and associated consumer uncertainty are partly culpable, I wonder if reduced consumer demand isn’t also about society re-evaluating their values as citizens. What if this is the start of what will be the inevitable shift in human consciousness that some of us predict, and have been for some time now. A shift toward a society that is more socially just and environmentally sound. Perhaps a significant percentage of the population are increasingly questioning their individual role in society. Understanding that less can in fact be more, spending quality time rather than money, living within one’s means and feeling contented, rather than spending beyond one’s lot and feeling anxious. The realisation that we actually can live on less and be happier as a consequence; getting to know our neighbours, playing with our kids, reading a book or growing some food in the backyard; less gadgets, less three-car garages, less second homes and third refrigerators, less TVs and not buying the latest iPhone. As I heard someone say recently, “more isn’t better. It’s just more, and often that means less!”
So what does all of this mean for business? Whether this is the end of the world as we know it, or not, business needs to consider the long-term implications of these so-called tectonic stresses and trends. As IBM’s latest CEO report asserted, the gap between the expected rate of change and businesses’ ability to manage that change has tripled in just two years. The three external forces that have consistently ranked higher in each consecutive survey are socioeconomic factors, environmental issues and people skills. It is not surprising that those factors identified are directly, indeed inextricably linked to corporate responsibility and reputation. If you like, they provide the basis for ensuring the long-term prosperity of business.
“There’s a danger” however, as Lord Stern (of the Stern Report) points out, “it needs leadership.” Of course it needs good leadership, but good leadership only comes with a requisite knowledge and understanding of the context. Our current thinking is too short-termist and too often we base strategic decision-making on a history of the past whilst what we need also do, is build a history of the future. Leading companies have come to the realisation that it requires a significant shift in organisational culture as the first very necessary step. To inspire and instigate the positive change that will inevitably create value and sustained comparative advantage in the long-term thus requires a deeper level of understanding of a new world and with it, embracing a new set of appropriate leadership skills. It may indeed be the end of the world as we know it. But I, like others who recognise it, feel fine.
Posted by olibryant 
