Impact Series, part 5: Why we need Impact Transformation
Updated: Mar 28, 2022
In the previous blog posts in this series, we have shown how the Covid crisis has become a turning point for society in general and companies in particular. Covid accelerated change but also showed that transformation of our (business) models needs to happen fundamentally. New system shocks such as the impact of climate change or economic and political upheavals, only increase this need.
The conclusion is that the future will be different: we must look for the New Equilibrium for people, society, and the economy.
An important tool to get a grip on this new future is Impact Transformation and we will explore this in more detail in this last post in the series.
Transformation - revisited
As we saw in the second blog post of this series, "digital transformation" has come a long way over the past 25 years. From the initial digitization of an existing business (in which many companies are still stuck to this day) to the realization of the major disruptive force of technology and the need to reinvent existing business models (something the Ubers and Netflixes of this world excel in).
In recent years, this has also come with the understanding that our status quo is not only under pressure from digital disruptions alone but equally from societal changes such as the nature of work, new urban developments, mobility, healthcare, and the like. Add to this the challenges of system-shocks such as Covid today, and the impact of climate change tomorrow (both prevention and mitigation), and we can safely speak of 'Societal Transformation' rather than the overly limited 'Digital Transformation'.
Why we need Impact Transformation
As we described earlier, the importance of this wave of transformation is much greater than before. A combination of system shocks, the first of which was Covid, make it necessary to look for the New Equilibrium. This is no longer just about being performant as a company in a changing world, but also about including the impact of our actions in the new rules of the game that underpin our strategy for tomorrow.
Sustainability and impact are no longer empty concepts or marketing slogans. Sustainability at the core of all our activities will be the driving force of success for tomorrow.
Not because companies want it that way (often they don't even want it at all – they assume it only costs them money), but because citizens and customers want it. Because banks will no longer provide money if it is not used for Impact Investing. Not to mention the sustainability policies of governments and the additional requirements that these will impose on companies.
And here is the good news: impact investing and impact transformation to create impactful organizations, also offer opportunities. Opportunities for an impact economy adapted to the new equilibrium, in which we can make money, with business models that contribute positively to a better world.
And that is why our mission is Doing well (for economy) by doing good (for society).
So finally, our definition of Impact Transformation becomes:
“Impact Transformation is the paradigm shift, induced by a combination of societal and technological disruptions. These disruptions create a profound change in solutions, business models, market needs and players. The objective of Impact Transformation is the creation of impactful organizations, that strive towards beneficial social or environmental impact in addition to financial gains. Impact Transformation will help prepare for the New Equilibrium”.
We hope you can relate to these new concepts and that they may be a source of inspiration.
Would you like to chat about the ideas? Contact us and we will make an appointment for a real or virtual coffee.
If you have a transformation challenge and you are looking for a vision for your company in the New Equilibrium, don't hesitate to contact us as well. We might be able to help you.