WHY COMPANIES WILL DISAPPEAR
Over the last few years, most companies have focused on the following axes: efficiency in the use of resources (especially whithin their operations), when thinking about and implementing their corporate responsibility strategies (or sustainability or social responsibility or whatever department name is given) and in the management of socio-environmental and economic risks (with greater relevance to the latter, especially in the context of crisis in Brazil). They are fundamental questions to obtain and maintain the operating licenses and thus guarantee the existence and the operation of the companies. The aproach has been focus on companies boundaries. Of course there are some companies and some industries that also have an external look and deal with issues such as waste management, impact on the supply chain and also on resources and raw materials. Yet these initiatives are still aligned with the two points above, and with an “internal” view, that is, what risks the supply chain and raw material can pose to my operations.
THE PROBLEM IS THAT THE GREAT IMPACT GENERATED BY OUR COMPANIES AND PRODUCTIVE PROCESSES IS IN THE EXTERNAL ENVIRONMENT AND NOT ON THE INTERNAL!
The problem is that the great impact generated by our companies and productive processes is in the external environment and not in the internal environment! When analyzing topics such as innovation, local development, use of resources, climate impact, generation of waste, generation and contracting of local employees, mapping and contracting of local suppliers, research and development, product development, packaging, logistics, etc. we realize that the most significant impacts are outside the operation, the unit, the factory, the office. At a time when companies have adopted “green” components in their products, or “green” product lines (eco), but have not incorporated the corporate responsibility vision into their business, production, management and use. resources and in each area of the company. What consumers are asking for is not a green or green line, what consumers are asking for is a new way of thinking about production, products, consumption, how to work, how to relate to different key actors for each of the companies in their respective sectors.
A NEW CONSUMER, A NEW CULTURE
According to a survey conducted in the American and European markets, 80% of consumers already demand that the processes and products of companies, either goods or services, should be responsible and take into account socio-environmental and economic issues. But they want more: they demand INNOVATION in the way companies manage their businesses, produce, hire, design and launch their products or services. For these consumers, the concept of innovation is linked to processes, production, services and products that: respect the environment and the planet, that improves one life and relationship between people, that is not a fashion and endures, that protects and resolves questions of community or people´s future , that promotes satisfaction in carrying out activities, that promotes new experiences, that improves the image of the person related to other member of society. Some companies are already on this path and have even set goals to expand the range of responsible products within their portfolios.
ONLY 28% OF EXISTING COMPANIES ARE PERCEIVED BY CONSUMERS AS RESPONSIBLE AND ABLE TO CREATE A POSITIVE IMPACT ON PEOPLE´S LIVES.
As there is such a distance between the vision and approach of companies and the expectations of opinion makers companies have a great challenge ahead. According to the survey, 74% of current brands and companies could disappear and consumers would not feel the least lack and only 28% of them are perceived by consumers as responsible companies that have a positive impact on people´s lives. And these results have a direct impact on the consumer’s willingness to indicate the brand or company in their desire to return to buy products or services from a company in a willingness to pay more for the product or service.
Millions are spent on advertising, several companies want to stand out and differentiate themselves, countless people seek new ways to relate and maintain loyalty to their customers through marketing and the result has been disastrous. And it will be even worse if the trends and the profile of the millennium generation designed by the experts are correct because this generation has habits, values, priorities, references, level of information, knowledge very different from previous generations – and especially because of the existence and their use of the digital world.
Another important point is to emphasize that this is not a theme of large corporations, large corporations, micro, small and medium entrepreneurs, family business owners, individual entrepreneurs can and should be aware of this movement and should understand this as a great opportunity for stand out and be more successful in your business, whatever it is.
But after all, how can a business or a company accomplish and deploy this process, how can it do it in the real world? Let’s take the main steps here to succeed on this path.
There are 7 steps to start the process:
- RELEVANT CONTENT FOR WHOM IT MATTERS: To say that relevant content is one of the main means of differentiating businesses and businesses in the virtual world and abroad is redundant. Experts, studies, surveys, consumer conversation groups and other methodologies have already proven this. Consumers, suppliers, employees, partners, shareholders, governments, and any actor who is important to the business expect, desire, and are ready to receive content that is relevant to them.
- DO NOT COMMUNICATE WITH WHOM YOU CARE, BUILD RELATIONSHIP: to know what each of the important people for your business wants to know is to ask, know and relate. This will require companies to build a strategy and plan of action (with tasks, responsible, deadlines and defined resources) to be able to effectively relate to each one of them.
- BILD A POSITIVE BRANDING [i]: a positive branding is one that has a unique and true purpose, which is linked to a mission, a purpose, a desire to transform your sector, people. The purpose is what makes the brand unique.
- DEVELOP PRODUCTS AND SERVICES ALIGNED AND WITH SENSE FOR WHOM IT IS IMPORTANT: the purpose should guide the actions of the company when developing its products and services. Listening and relating to the different stakeholders relevant to your business (see items 1 and 2) helps you get a vision of what product or service you want, allows you to receive contributions and have inspirations that can even help the company, the business to find a new niche, a new group for what you are offering.
- PROCESSES AND PEOPLE: Think, repent, design, innovate, create processes that can respond to your purpose and the current and future needs of your industry. Also remember that people are critical to the success of any business, so make sure they have support, training, involve, promote creativity, encourage group work and co-creation.
- PERENITY: the commitment to the purpose must be something that lasts, that is perennial and not that it changes to the taste of the fashion, the market, the margins of profit. Remember it is it that will make your company and your business stand out in the crowd!
- DO NOT FOLLOW TRENDS, PREACH IT: Be proactive, do not follow trends, be innovative. There is a phrase from the founder of Ford Motors that translates well: “If I were to follow what others expected, what my customers demanded would have produced carts with more horses, not the automobile.”
[i] The concept of POSITIVE BRANDING used here has as reference the concept, references and elements created by UTOPIES consultancy. For more information access www.utopies.com.br/home.