Friday, September 13, 2019

Your Business Strategy Solution are in the 17 Goals


What should be the strategy for my company? What should be my product? Which segment of the consumer to focus?  Where should invest to grow my business? How I can grow mine exponentially? These questions are common but seem to be powerful enough to keep the management awake at night.  Fragile economic growth has changed the dynamics of doing business. Instability within the global economy is another factor which asks companies to reinvent and redefine its every corner to grow with the changing economic circumstances.

What does sustainable business model mean? It means uplifting the society into a productive society which feeds the process of growth over generations. Every day functioning at every level of an organisation makes things sustainable. It is not a one day or a time-bound activity. The sustainable organisation includes the place from where a company source raw material, to labour, to the person to whom the finished goods are sold. All these come under the sustainable business organisation.

United Nation came up with a list in 2016 of 17 Goals which are known as Sustainable Development Goals. These goals are one of the paths shown to the global corporates and economic to design, develop, invest and grow. It has been found that these goals have the potential of creating $12trllion of exponential revenue growth. Sustainable business growth leads to economic value creation.

The 17 sustainable development goals (SDGs) to transform our world:
GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic Growth
GOAL 9: Industry, Innovation and Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and Communities
GOAL 12: Responsible Consumption and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong Institutions
GOAL 17: Partnerships to achieve the Goal

The above goals are sufficient  enough to create new industries, drop-down traditional practices, change in manpower and their abilities and the most important thing redefine the whole organisation.
The SDG is also being focussed by the government and hence one needs to keep a close eye on the government policies which are framed towards these goals. The country which adopts these goals within its government policies that economy and those companies who realign their strategies are poised to grow exponentially.

Upcoming all-new business strategies will depend on social business and growth. Exponentially growth will be achieved by that product or service which is linked with the social segment.

Now after the product has been identified it is the people who play a critical role in designing and adapting the redefined company. But on which people or what type of people an organisation needs to achieve this redefined growth. Well those people who have CSR aspect mindset is the best army of people who can really adapt and take forward the redefined organisational growth.

All the Vision and Mission statement of the companies will be redefined where social development based and impact creating objectives will be adopted. I this journey of redefining many people will leave and many new people will come but the ones who have CSR aspect mindset can create a change and impact the growth of an organisation.

The one who understands the shortcomings of the current period, process, strategy are the ideal person for building the team. These are the people who identify the gaps between organisations and as they are linked with CSR activities or mind-set are the key people to be part of the turnaround. Remember one thing very clearly that redefine of an organisation cannot happen without the same set of the mindset of people.

Sustainable business impacts customer, communities, process and society. For example, the Indian government is taking many steps like clean water, save water, smart cities, gender equality, bridging gap of income inequality etc. All these are nothing but opportunities of redefining the companies and industries. The ban on use of plastic is an indication for the manufacturer to look for recycles product to be manufactured. If water saving is promoted then industrial manufacturing needs to re-design the products which saves water or uses minimum water.

In Indian Financial market SEBI has come with the RIA model and scrapping the Regular model. This change is designed to bridge the income inequality gaps. RIA helps to promote savings and investments with proper advice. Distribution industry rule has been changed and hence the plan for redefining of the organisation is already laid off. Income inequality gap can be reduced when the RIA model grows and reaches to the poorest person and advise them to invest.

Cashless mode of business has growing stupendously.  The prime objective is that Parallel economic growth needs to be closed. Sweden is the country which has taken a total cashless objective. If you visit Sweden, be sure to take your credit card or mobile phone with you. Only 15% of payments involve cash transactions, and it’s rare that a person will be limited to paying with cash. A popular mobile payment app, Swish, used by half of the country’s 10 million population enables payment transfers to people and businesses.

For example, Grameen Bank achieved viability through several operating innovations, such as using peer groups to manage the loan process. Group members had to approve of each other and could not take additional loans unless all members had repaid. Group lending reduced the need for credit assessment (since the groups did the screening); for collections departments (the groups encouraged its members to pay); and, for loan loss reserves (since peer pressure and repayment of group members’ loans assured low losses). These attributes changed the cost structure of lending and made microcredit economically viable.

Aravind Eye Care System3 created a self-sustaining business model that allows it to serve the poorest people in need for eye care, for free. Key operating model innovations include a highly efficient production process (performing high-quality cataract surgeries much faster than traditional models); its own manufacturing facility for producing intraocular lenses at a much lower cost; and, a dual hospital set-up (a somewhat higher quality facility for paying patients and a lower cost facility for the poor). These operating decisions allow for a pricing structure in which revenues from the full paying patients create profits which subsidize those who cannot pay.

 The birth of payment banks came up from these government policies of cashless economy. Sustainable business growth comes when people within an organisation have the mind-set to bring and adapt changes.  

In simple terms, all your questions are answered by the goals mentioned by the UN. When you connect your product or services with the goals you redefine your company. But it’s the product and the people who had the mindset to take forward the re-definition of the organisation into a new level. Grameen Bank could not succeed if people were having traditional mind-set of operating Bank, same with Aravind Eye Care System3 or with the payments banks.

Sustainable business growth aligned with population and mass usage is the key to growth of an redefined organisation. All your business strategy questions are within the society which one needs to identify and work upon.

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