Leadership | Corporate Goals

Corporate governance: growth at any price loses.

From Sabine Walter, Head of netzwerk managementberatung | coaching

Growth is considered an indicator of entrepreneurial success. Annual, ideally double-digit. But growth at any price in an oversaturated society is harmful. Companies and society are already feeling the first consequences: Stress-related illnesses, internal resignation, burnout. In this article, we develop a scenario that shows how healthy growth can emerge. And we raise awareness for alternative key figures and control parameters.

Over the last one hundred years of our economic history, was Growth inevitably the Result of continuous progress. The natural needs was there, the overall market in many sectors was not yet saturated. Companies that understood how to meet customer needs and requirements grew. Investments were made and Production capacities createdwhich must be filled permanently in order to remain profitable.

Growth at any price loses

Product glut as an expression of lack of ideas and overcapacity

That's why there are more than fifty different shampoos, countless similar cars competing in the market - many of them even in one corporation. There are countless different yoghurts, toothbrushes, TV sets, trousers, T-shirts, cleaning products, pet food... In short: there is too much of everything.

Due to the high investment costs, the Focus of many companies still on Sales and turnover. Only if these figures are correct, the company is supposedly doing well. If sales or turnover are below expectations, adjustments are made. Sales and turnover - and of course the Result - are the Key figureswhich in most companies are Salaries coupled are of which Depend settings or the Budget for new investments. But sales growth in saturated markets is in the long run - despite a growing population - a production for the landfill. Devices are built in such a way that they break after two to three years and a new purchase is necessary. Advertising invents new problems that the customer has not had before or suggests happiness and satisfaction when all - even the seemingly unattainable - material desires are fulfilled; no matter what the price.

Real innovations and a focus on the really important things in life fall by the wayside.

Less is more - especially for the health of people and nature

Let's say companies had the idea of taking products off the market: Shampoos, shower gels, creams, cars, mobile phones, plastic toys, handbags, watches, magazines and journals...and we would only have to choose between, say, ten different products.

Let's assume that the number of yoghurts, shakes, ready-made products, canned food, juices, beers, meat and sausage products ... would be reduced ... and with them price and discount battles, tons of advertising flyers clogging up letterboxes and paper bins and costing the lives of countless trees.

Let's assume we would establish species-appropriate and animal-worthy agriculture as mandatory and food would cost what it is actually worth; worth for keeping our bodies healthy.

Then we would actually have the chance to make a sustainable contribution to the preservation of our planet. But for this to succeed, we need to rethink. And the ones who can support this rethinking of society are the companies. What exactly can this look like?

Growth as a resultant - not as a control variable

What exactly can the contribution of companies to more social responsibility look like?

Social benefit and sustainable business as drivers for entrepreneurial orientation:

Instead of share price and profit, the entrepreneurial contribution to the further development of our society and the contribution to the preservation of our planet are the drivers for entrepreneurial decisions. This requires visionary thinking, Innovations, Leadership at eye level and long-term decisions. This may require delisting companies from the stock exchange or appointing a new top management. Develop inner independence from investors and shareholders.

Complete realignment of companies

If there are fewer of the same products on the market, there need to be fewer companies producing the same. This deprives many companies of the basis for their business and existence. Ideally, this entrepreneurial realignment process is proactively initiated by the companies and is not just the result of a market shakeout. The prerequisites for this are visionary thinking, Innovations, Leadership at eye level, long-term decisions and Self-confidence and Courage of top management and leaders.

Changed key figures as the basis for corporate management:

Changed key figures as the basis for corporate management: Key figures that help with this fundamental change process are: Innovation rate, sick days, fluctuation rate, employee satisfaction in terms of appreciation, leadership at eye level, entrepreneurial freedom, use of creative potential ... , customer satisfaction. And perhaps it would be useful At the societal level, an assessment of companies in relation to their societal contribution introduce. Profitability, sales and turnover are then the result.

Top management and executives as forward and rethinkers

This process of entrepreneurial change can only be successful with personalitieswho have internalised and live corporate social responsibility. These are Personalities with self-confidence and couragewho are willing to give up their to give up personal status and to place their leadership qualities at the service of the company and society. This requires Freedom from fear and visionary and strategic thinking detached from key figures and analyst feedback.

This process of change, which is essential for survival, will only succeed if we remember what Germany, the land of tinkerers and inventors, used to be all about. We need more entrepreneurship and less management and administration. We need more courage and less fear. We need Farsightedness instead of tunnel vision. And we must Moneythat German companies still earn Invest in future technologies.

Personal development Management

Conclusion: Growth as a resultant, not as a driver of entrepreneurial action

We are at an entrepreneurial impasse. In the long run, there can be no growth in saturated markets. New markets must be created that solve social issues and problems, that implement visionary mobility and communication concepts that contribute to the health of humans, animals and nature. Companies will only tap into these markets if innovation worthy of the name is the first priority. For this to happen, corporate management must change: Long-termism instead of short-termism, social meaning instead of profit and bonuses, future technologies instead of facelifts.

Growth is then a resultant, not a driver.

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