Companies can align their capital, talent and senior attention with a sustainable business vision, and ensure people are empowered to deliver.
In any fast-moving transition, the ability to learn and adapt is critical. In this case, companies can build their capability by educating and empowering individual leaders, organisations and wider industries to take a longer, broader view of value creation consistent with sustainable business success. This will involve purposefully reallocating capital, talent and senior attention from current models towards the allocation required to deliver on sustainable business ambitions.
Resource allocation is notoriously ‘sticky’ in most organisations, and there is evidence that active reallocators outperform the market. This is an important capability for organisations to build. Companies will benefit from increasing their human capital and developing the people and skills to operate in new ways that are consistent with sustainable business success.
Incentives matter and companies of all kinds – including in the financial sector – can review their reward and recognition schemes to ensure that managers are not facing perverse incentives to preserve the status quo, and are effectively rewarded for long-term, sustainable performance.
A simple test: is sustainability good for your career?