In a world shaped by the workings of the 4th industrial revolution and the growing urgency of the ecological and energy transition, the challenges facing companies are more numerous than ever.
The digital shift that began three decades ago has fundamentally redefined the way we think about innovation.
More recently, the rise of corporate social responsibility (CSR) has become an unavoidable imperative, accentuated by the pivotal year of 2022 for environmental awareness.
Although these two movements seem distinct at first glance, we’re well aware that history tends to repeat itself.
Back in 2015, as the rise of data was taking shape on the horizon, we could discern striking similarities with the digital era that preceded it.
And with the growing emergence of CSR, we have a possible repetition of adoption mistakes similar to other transformations.
Our observations lead us to answer one question: how can we learn from the lessons of the past to guide companies through these waves of major change?
From Web 1.0 to Web 3.0, a series of innovations has redefined society.
From the World Wide Web in 1991, through the creation of Twitter and LinkedIn in 2002, to the rise of generative AI in 2022, digital transformation has, in less than 30 years, radically changed the way we communicate, store data and create content, requiring companies to continually adapt to remain competitive.
This evolution is a veritable revolution, in the image of its exponential curve, as described by Moore’s Law.
An example of this acceleration is the generative AI developed by OpenAI, which is being adopted at an unprecedented speed.
As for the ecological transition, while it’s true that the first IPCC reports were put into circulation a long time ago, recent years have seen a significant acceleration in the attention paid to CSR and, in particular, to the ecological transition at the start of 2022.
The ambitious goal of achieving carbon neutrality by 2050 requires a 5% annual reduction in global emissions.
By way of comparison, the COVID-19 pandemic of 2020 reduced annual emissions by 7%.
It has become imperative to move away from fossil fuels in less than 30 years, even though they currently account for 81% of the global energy mix.
So, our only choice is to accelerate the transition to sustainability, which must apply to every aspect of our lives: from the way we house ourselves to the way we travel, produce and feed ourselves.
Beyond this acceleration, another element of complexity has been added: unlike in the past, when one crisis followed another, we are now witnessing the stacking up of multiple major challenges.
Covid-19, AI deployment, climate crisis, geopolitical tensions, inflation: these issues are overlapping, both for companies and their employees, requiring simultaneous transformation on multiple fronts.
These crises are made all the more complex by the fact that the triggers often remain unknown, adding a significant degree of uncertainty to the equation: no one can predict with certainty what the next crisis point will be.
So the challenge lies in finding the ideal balance where transformations meet.
We need to promote responsible digital technology that makes a positive contribution to the ecological transition, and to be attentive to areas where these transitions do not coincide, particularly where artificial intelligence (AI) is concerned, which can sometimes conflict with the objectives of the ecological transition.
In the corporate world, a worrying pattern repeatedly emerges.
It begins with an initial underestimation, or even denial, of the complexity of the challenges to be met.
Problems tend to be simplified, fragmented, and responsibility assigned to a specific individual or department.
For example, digital transformation is entrusted to a Chief Digital Officer (CDO), who is expected to act alone, and a CSR Director in the hope that she can solve all the problems associated with the ecological transition.
This simplistic approach leads to cumulative delays, leaving companies lagging behind in such crucial areas as e-commerce, the digitization of internal processes or the transition to a CSR approach.
Massive investments are then made in strategies that are supposed to solve everything, but whose deployment very often proves unsatisfactory.
In this context, it is imperative to break with established models and adopt a long-term vision, beyond the immediate demands of finance.
One of the main challenges for companies lies in their ability to anticipate more, rather than persisting with obsolete models.
The ecological transition certainly requires investment, but it should be seen as an essential investment, in the same way as the acquisition of a major machine.
Companies have much to gain, whether in terms of profitability, market share, or avoiding the consequences of inaction, such as disappearing in the face of changing competition or penalties for non-compliance with regulations.
Not to mention living in a more comfortable global environment, or avoiding an unbearable planet…
Ultimately, the greatest danger lies in standing still and refusing to take decisions to evolve.
Model change is unquestionably necessary, and companies that don’t adapt quickly risk disappearing.
It’s better to take risks, experiment with new paths, and follow the “try and fail” concept, while having the courage to say “no” when necessary to bring about significant change.
As Christopher Guérin, CEO of Nexans, reports: “We need to propose models that fit into the financial logic and enable us to continue making profits, while at the same time having a logic of renunciation and degrowth”.
The success of a transformation depends not only on technologies and organizational structures, but first and foremost on the ability of employees to adapt, understand and commit to profound change.
While it’s easy to change the organizational chart, to see the impact of real transformation, every stratum of the company needs to be mobilized: it’s impossible to overlook the COMEX, which will embody the actions and release the resources, without getting the employees on board.
On the one hand, we need a change management plan to support 100% of our employees, and on the other, we need to tackle the hard issues (digitalization of collaborative tools, implementation of data governance, data audits, carbon assessments, creation of decarbonization workgroups, etc.).
The ecological transition poses an even tougher challenge, as it often involves the commitment of additional stakeholders, often linked to external players. A common example: if the carbon footprint shows that 90% of emissions come from external purchases, we may have control over purchasing, but suppliers will have to change.
Reporting and measurement tools are often perceived as the tedious, basic, even elementary side of transformation. However, if we use them as levers, they can propel us much further.
Take, for example, the regulatory requirements of the CSRD (Corporate Sustainability Reporting Directive). It’s not just a question of producing a new report, but of thinking about how a company creates value by integrating its impacts. It also means rethinking how we collect data, and how we commit to getting better data. This approach prompts reflection on a longer-term model. Similarly, the carbon footprint is not simply a box to tick, but can become a powerful tool for transformation, providing the essential basis for identifying areas for improvement.
If we really want to change the model, we also need to forge new narratives, imagine a different society, and position ourselves in this new reality, aspiring to new dreams. These dreams of the future are of crucial importance: if companies want to reshape the model today, it’s imperative to project themselves 30 years from now with a radically different vision than today. It’s this ambitious vision that can guide their actions and catalyze real change in the way they use tools to shape the future.
If you’re working on these transformational issues, or would like to develop them further, get in touch with us to find out more about Connection Leadership’s practical solutions.
Plus qu’un cabinet de conseil, Connection Leadership est votre partenaire dans la transformation holistique. Our approach, based on transversality and pragmatism, brings you all the necessary elements to co-construct the transformation of your company. This co-construction is carried out with all levels of the company to improve collective commitment. Our coaching and transformation programs are designed to bring impact and concrete results, ultimately empowering you in your transformation.
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