Political events and social changes in Germany and around the world keep us busy and stir us up - to a far greater extent in 2024 than in previous years. We therefore asked ourselves the question: shouldn't what is happening politically and socially also be given explicit consideration in a strategy development process?
Our answer to this is: yes! Here is how we imagine this and what we are thinking about as a blog at the start of what is likely to be an eventful year.
Four perspectives on the drivers of change and innovation
At the beginning of the development of a future-oriented corporate strategy, an important part of the entire process is always the question: “Why do we as a company have to ‘get out of here’, - ‘What influences are forcing us to change as a company’?” To answer this question, our participant groups/strategy developers take on four perspectives:
- Internal drivers of change: finances, employees, leadership, organization, structures and processes ...
- External drivers: competitors, customers, cooperation partners...
- Game changers: in research, technology, industry ...
- Political and social influences: Politics, society, legislation ...
Politics and society: the underestimated dimension in strategy development
Highly sensitized and disturbed by the current political upheavals in the USA, Europe and Germany, the following has become clear to me as a strategy consultant: the discussion on all the contents of the first three perspectives has always been very energetic, professional and sometimes even passionate. The level of professionalism and emotionality in these discussions has signaled: “This is a matter of the heart”, “We give these three perspectives extremely high importance”.
In contrast, the discussions about perspective four - i.e. the impact and relevance of the aspects of politics, society, legislation, etc. - have been conducted with interest in terms of content, but in an emotionally distanced manner in comparison. In retrospect, this indicates that although the topic is important, it has less direct significance for us as a company and for us as people in the company.
It may be that in the past this attribution of importance was indeed appropriate: perhaps it was energy-saving or simply not necessary to think in depth about whether and how a company wants to or should position itself explicitly in socio-political terms in an environment that is predominantly perceived as stable. If we take democracy for granted, there seems to be no need for an explicit statement on our own political position.
Civil society responsibility: from a side note to a central issue
But today? As strategy consultants, we help companies to consciously think about “the bigger picture”, about possible scenarios in the future, and to align themselves in an equally conscious and focused way towards this probable future. The strategy development methods we use must therefore take greater account of the role of civil society.
In future, we will therefore incorporate the topic of social development and politics much more consciously and prominently into the strategic considerations of companies and their strategy developers in our strategy processes, for example by asking:
- Which framework conditions (trade conflicts, sanctions or changed tariffs ...) currently have the strongest influence on the political and civil society situation in our most important markets, production sites, transport routes ...?
- How are political majorities / social trends and the political culture in our home country and our target countries changing?
- Which impulses for change are likely to have a massive impact on our market and our company?
- How will socio-political changes affect our short and long-term (strategic) corporate goals?
- How do we want / need to develop and implement our strategy in light of this assessment?
- What has been said so far was the stronger methodical integration and weighting of the political perspective in strategy development.
Why companies need to take a stand - now more than ever
Due to recent developments, however, we believe that there is an urgent socio-political need to include the topic of “corporate attitudes towards the basic social order” much more clearly in a discussion of corporate values. The following questions could guide this discussion:
- Which core values of our basic social order shape our corporate culture?
- How do our products or services influence the social and political environment, and what social responsibility do we derive from this?
- Which political principles (e.g. social justice, diversity, sustainability, democracy ...) are of great importance to us as a company?
- As a company, do we want to actively advocate or position ourselves for certain social issues and concerns?
- Do we want to link our corporate goals with our commitment to certain political or social movements?
- In which socio-political debates do we want to play an active role and what specific positions do we represent?
Companies as platforms for a constructive debate on values
This would probably be an incredibly important and valuable contribution on the part of companies to ensuring that people do not just think about these issues casually and incidentally. It would also send a clear signal that this debate is anchored in our responsibility as entrepreneurs and citizens. And it is not arbitrary whether we enter into this discussion, but a relevant civic and also an absolutely economically relevant contribution that companies and individuals can make.
In view of the strengthening of the radical fringes, the massively destructive influence of social media and the erosion of our free and democratic values, civic engagement is a sensible response. And in our view, companies, research institutes and administrations are suitable and important platforms for providing a constructive framework for this discussion.
Shared values as a basis for security and cohesion
It also gives people a sense of security and the feeling that they are members of a community that will continue to have a common foundation of values in the future. This is particularly important in a pluralistic society where different interests and views have to coexist.
To create an effective strategy, companies must not only conduct a thorough business analysis and market analysis, but also reflect on their role in civil society. This requires a learning organization that is open to future trends and considers its competitive advantages not only from an economic but also from a societal perspective.
Developing a successful corporate strategy today means improving stakeholder communication and understanding customer needs in the context of larger societal changes. Companies must position themselves as active players in civil society and adapt their strategy models accordingly.
Do you know of any best practices in this regard? We look forward to hearing your thoughts and comments.
And you are also welcome to visit us at www.to-change.de
