The core mission of any given economic entity is to generate value. A successful company is characterised by generating products or services that costumers want to buy, whilst controlling operational costs and managing risks and uncertainties. Embedded in a ascending globalised and competitive business environment where economic, environmental and social issues are increasingly interwoven, businesses are facing challenges beyond classical financial and market indicators: companies need a new way of thinking. Or at least – a new way of exploring an analysing management options.
Only when you know all your options and their real-life consequences can you make informed decisions that sustain current and create new value.
In order to remain profitable, companies need to anticipate future trends and risks, both internal (in terms of operational management) and external (in terms of market, regulatory, and technology developments) – and this is what sustainable competitiveness is about. Sustainable management means integrating all the “non-financial” factors that have indirect financial impacts. Sustainable management is not a revolution - it is a natural evolution of management approach and paradigms in an increasingly complex business environment.
Companies that fail to define timely business answers to the new challenges will face higher costs and lower customer acceptance, and may, in extreme cases, ultimately be forced out of business. Early adopters on the other hand can gain competitive advantage - in terms of cost structure, customer trust and product/service development.
With increasing influence and business impact of key sustainability trends – globalisation, climate change, energy and raw material scarcity, water constraints, aging populations, etc. - the importance of sustainable management capabilities is set to increase further in the future.
Sustainable management is sustainable competitiveness. Managing sustainable means achieving competitive sustainability.