Increasingly, companies face pressures from international customers, banks, talent, consumers, and stakeholders demanding a clear commitment and concrete actions in favor of the environment and society.
At the same time, they need help to remain relevant in saturated markets that only allow for timid and linear growth. Getting stuck in these competitive dynamics inhibits innovation and prevents adequate preparation for future disruptions.
Additionally, socio-political volatility and changing regulations incentivize prudence and a self-protective attitude that often favors inaction.
A reasonable response to tough competition and reigning volatility is geographical and portfolio diversification. However, expansion generates “growing pains” such as: Disconnected strategies between different businesses; Lack of a cohesive organizational culture, governance, and structure; Problems with attracting, retaining, and mobilizing talent; A confusing corporate image; Lack of synergies; Lack of focus and dispersion (seeing the branches of each business, but not necessarily the forest of cross-cutting corporate strategy).
On the other hand, the normal response to the demands of meeting Corporate Sustainability standards is to adopt ESG (Environmental, Social, and Governance) criteria in businesses and report progress to stakeholders. However, this is already mainstream. Companies need to adopt comprehensive strategies that create demonstrable value for their shareholders, society, and the planet.
Faced with these challenges, a Sustainable Business Evolution becomes imperative.
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