Evolution of Enterprise: A Tale of Two Centuries
Article by Gautam Mukerjee
You may assume that in the 23rd year of the 21st century, the corporate world has left the past behind. Logic would be on your side because nearly a quarter of the new century has lapsed, and that’s a long time for change. However, logic loses to reality. Reality says most companies are still on 20th-century practices while coping with new challenges. Obviously, they are failing because new challenges require new methods, with some having a direct confrontation with earlier practices.?
PwC’s recent article with the headline “Evolve or Die” is a shocker. Their global survey covering 4,410 CEOs throws up unpleasant truths that spell gloom and doom for many corporates in the near future. Let us travel with them and examine some of the findings.
40% of global CEOs surveyed by PwC believe their current business model would not be economically viable 10 years from now. That’s how fast the sand is running out. This 40% data hides a danger zone where both Japan and China scored the negative highest, with 70% of CEOs giving their current business model a thumbs down. The USA was best placed, with only 20% of CEOs spelling out danger to present practices. India rests at the mean of 41%.
Imagine decades-old organizations now facing just ten years to change or die. The man on the street innocently asks, “Why ?” PWC’s study answers with?CEOs stating the main dangers on the horizon.
The mother of all challenges is the Climate Risk which impacts the cost profile and the supply chain. CEOs most exposed to Climate Change are the ones showing urgency for change. Unfortunately, here too, lies, deceit and short-term thinking because 87% of global investors feel most companies do “greenwashing” with unsubstantiated sustainability claims. This is dangerous – both for planet Earth and the miscreants.
The solutions are known to most, but it’s the implementation that holds up transformation. Some organizations are making Supply Chains more sturdy and flexible with AI-enabled Supply Chain control towers which PwC says are “connected to dashboard of data, key business metrics and events personalized to decision makers across business ecosystems. The control tower helps prioritize issues in real time”. Unfortunately, this is a minority group.
The key to transformation’s success is the time the CEO devotes to reinventing the business. The present rate of 53% for current issues and only 47% for building the future is totally inadequate. PwC prescribes a 57:43 ratio in favor of the new.?
The next biggest block is culture, and PwC has given us some disturbing statistics on what CEOs admitted about leaders in their organizations.
This is the old 20th century ruling over the?young 21st. So where lies Hope? ?
A ray of light comes from another PwC article titled “ A new roadmap for accelerated business performance,” where Julien Courbe, Deputy Global Advisory Leader (USA), states, “The top 20% of companies today do 13 times better than their industry peers based on the combination of profit margin and revenue growth”. The new areas are well known but worth a repeat.
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How do we take the first and second steps to move in the right direction?
Getting the Philosophy right must be step one, and for me, there is no better reading than John Kotter and Holger Rathberger’s?“Our Iceberg is Melting”. Pick it up this weekend and finish it with a feeling of wonder and joy. Build the new with the young and banish the Mr. NoNo.
For your second step, dive into “The Ananda Crucible – A Business Compass for the 21st Century”. Choose any chapter representing your ‘pain point’, and you will travel the path to solutions.
Happy Reading!
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About the Author
Gautam Mukerjee ?is an alumnus of the Indian Institute of Management, Calcutta (IIMC). His upcoming book “The Ananda Crucible: A Business Compass for the 21st Century”?is a wake-up call for organizations worldwide to transform and embrace the 21st?Century.?
For more on his upcoming book — click the link below:
Rtd. General Manager at State Bank of India. Looking for a challenging role post retirement.
1 年Excellent read. Well throughout and well summarised.
Talent Development Manager
1 年Very Well Summarised and serves as an eyeopener for changing business dynamics in the future
Vice President, Insights at Brandscapes Worldwide
1 年Useful summary of trends to look out for.
Quality Auditor @ DXC Technology | Quality Assurance | Operational Excellence | ISO Standards | Building systems and improving efficiency is my passion | Trained 1800+ on ISO
1 年Through the evolution of enterprises, this article highlights the ideas that have shaped the past two centuries! The tales woven together serve as a testament to the resilience and forward-thinking mindset that drives progress. We stand at the intersection of history and the future, where the lessons learned from the past propel us into uncharted territory. This serves as a reminder that the seeds of success lie in embracing change and pushing boundaries.