Business Sustainability:
Business Sustainability is a broad term which can be defined in dimensions of Time and Growth. It is a pursuit of nonstop life time growth, keeping up with the changing time and market trends. Growth can be either vertical or horizontal but it should help the organization to survive in this hyper competitive world of opportunities. To sustain in this world each business or profit centre should do the cost - value and risk – return analysis of its products and services as people prefer high quality at a lowest cost.
Achieving business sustainability:
In a holistic perspective, business sustainability can be achieved only through better resource management. A business or an organizational sustainability mainly depends on its three stake-holders
The business sustainability can be achieved only through the proper relationship management of internal and external customers which ultimately leads to increased shareholder value. Proper management of external customers (end user of product or service) can be attained through continued innovation, excellence in service delivery, at low cost. Equipping the internal customer (Product or service provider) to satisfy the need of end user by providing proper training, excellent infrastructure which is supported by proper branding leads to a better relationship between these different entities. This will increase the share holders’ value and helps in maintaining the business sustainability.
Key Challenges and Risks in Business Sustainability:
There are a lot of challenges and risks to sustain the business growth especially in this so called recession period or economic down town, the key factors as identified are
• Cost cutting
• Decreased Demand
• Lower economies of scale and Increased cost of production
• Conflict management
Sustaining the business growth by managing the recession became the hot discussion of recent times, pragmatically the different methods used by organizations are
• Employee lay off
• Pumping of more resources or infusion of capital
• Innovation
• Diversification
• Change management
“By the year 2040, only 15 per cent of the world’s population will be living in what are now called developed countries. It’s therefore essential for today’s business planners to start focusing on the rest of the planet. Fortunately a strategy centred on emerging markets can be both financially profitable and socially responsible” Barbara Kux of the Dutch multinational Royal Philips Electronics.
• Identification of new horizon and expansion can be another option to maintain the sustained growth in the economic down turn.
Risk Management Strategies incorporated by various organizations:
There are difference risk management strategies which are successfully incorporated by various organizations in order to survive in this most difficult time.
Total cost management is one of the effective method which can be attained through the optimum utilization of resources. Identifying the new niches for marketing is another method where the organization can concentrate on its core competency and the rest can be outsourced. In-sourcing also is a very practical method which will equip the capable employee to provide the supporting functions which organization needs. So some function will be performed by the employee and his team as separate entity still contributing to the increased organizational performance. Now majority of the companies are opting for flexible work force which is another method of managing resources to survive in the difficult times and managing the risk.
Leader – the pillar in Change process:
To manage the entire change process in business sustainability a leader who can transform is necessary for any organization. The characteristics of a leader are identified as
• A visionary
• Experience which supports managing and implementation process
• Risk Taking
• Balances IQ&EQ
• Passionate
• Self awareness
• High integrity
• Adaptable to any situation and change
• Quick decision maker
• Empathy
• Team Player
Motivating Employees in economic downturn:
Companies are adopting various methods to motivate the employees to motivate in this economic down-turn. The leaders or peer group of the organization perform walk-the-talk, for example in cost cutting the top management will perform the cost cutting activity which will motivate the employee to follow the same. Gifts and appraisal can make a great influence in employee motivational level and which leads to grab the buy in of employees in the process of upturn the downturn.
Measuring Organizational Sustainability:
Organizational sustainability can be measured through the evaluation financial performance of the organization based on cost-value and risk-return basis. No business or organization can be sustainable without proper management of energy. So the minimal energy wastage can be a measuring tool for business sustainability.
Biggest Challenges faced by Organizations:
The biggest challenges which are faced by the organization are
• Talent management
• Job redesign
• Restructuring of wages
• Managing and implementation of flexible workforce
• Implementing fair employment practices
• Managing an ageing work force
• Training and re-employment of older workforce
• Attracting women to rejoin the workforce.
As time passes organizations will experience more and more challenges with time tested solutions which can be directly implemented by upcoming organization for the risk management and thus managing the business sustainability.
Recommendations:
The major recommendations to achieve and maintain business sustainability are
• Optimum utilization of resources
• Total Cost management
• Identifying new markets
• Innovation and diversification
• Concentrating on competency
• Outsourcing and Insourcing
• Proper talent management
Business is always about ‘survival of the fittest’. Business Sustainability is not only about survival but also about maintaining performance standards, thus achieving perpetual growth rate. All the bes for the organizations to maintain a perpetual growth even in this recession time.......
