Business as Usual?

It’s not unprecedented to say we live in unprecedented times. COVID-19 means that we do.

As it rages, it devastates. The stream of awful news seems endless as thousands of lives are destroyed every day. It’s heart breaking and we are desperate for good news.

I’ve found it: an unprecedented opportunity to learn, innovate and improve the way we do business.

With new terms like ‘furloughed employees’ and working for home ‘Zooming’ now mainstream, Governments writing blank public purse cheques to support private businesses all over the world – AND with voters overwhelmingly supporting this new normal; it’s time to question the fundamentals of how we have structured our business eco-system and the institution of the company in society.

Will we, should we, must we return to business as usual when the COVID-19 crisis passes?

No.

With brave leadership we won’t. We have the opportunity to cross the Rubicon and create a more resilient and sustainable economy that truly serves people.

Here’s my challenge to our leaders, based on both the experience of 30 years in business as an employee, employer, entrepreneur, investor and board director; and on the experience of these unbelievable weeks of ‘lock down’ seeing the COVID-19 pandemic change everything.

Those 30 years have taught me that:

  • business isn’t really about profits and assets; it’s about people. Business plans are delivered through building trust, abilities, inspiration and innovation and it’s the profits and assets that lubricate the machine that delivers the mission and company success.
  • Milton Friedman’s trickle-down economics and monetarism was wrong: business has responsibilities beyond only to its shareholders’ welfare.
  • the Companies Act desperately needs reform: it sets the purpose of business in the wrong context – simply to maximise profits; it charges us to measure the wrong things (quantity not quality, short term not long term); and it rewards the wrong behaviours and often the wrong people.
  • capitalism brings prosperity, innovation and wealth; but the resources it exploits are finite and alarmingly depleting; consumerism makes us believe happiness lies in purchasing; productivity gains often trump mental wellbeing – and even human rights; unregulated markets create risk, increase inequality and often lead to monopolies; and most of us have accepted this status quo.

In contrast, these last few weeks have powerfully taught me that:

  • things can change, and change rapidly, if we understand the stakes for all of us.
  • an economy can lose a third of its ‘value’ catastrophically – and catastrophically quickly. But that catastrophe is hastened by practises like shorting and opportunism to ‘bury bad news’.
  • innovation can thrive in hard times, with the right focus, support and need. Vacuum cleaner manufacturers can make hospital ventilators, beer companies can make hand sanitizers, and a London exhibition centre can, within a week, become the largest hospital in the world.
  • (people in) Government can revolutionise thinking, philosophy and action and gain trust and confidence with innovative policies and drastic actions. It can bring society and unexpected partners together to collaborate on shared goals.
  • language transforms and framing can make all the difference to behaviours. In the last few weeks cleaners, hospital porters, supermarket cashiers, warehouse staff and so many others have been transformed from ‘low skilled’ employees – bottom of the pile on the payroll and top of the pile on immigration checks to ‘key worker’ heroes. We now see the people not the job.

So, with 30 years and a few unprecedented weeks to draw from, here are my ideas to grab the moment:

  1. Re-define in law what business is for: Recognise business’ equal responsibility to all stakeholders (including the environment and communities) and not just to the primacy of profit for shareholders.
  2. Refine in law what business has to report: Move away from the quantity of sales revenue and profitability measure of success, to a more human and sustainable quality of impact measure. Companies and shareholders have been granted by society an incredible benefit of limited liability and now it is the time that society needs to re-balance the ‘deal’ it gets.
  3. Incentivise long term investment and sustainable growth. Tackle the culture of short-term thinking in investment and business strategy which creates volatility in share prices and focuses on immediate financial gain, at the expense of sustainable long term growth.
  4. Value the jobs that ensure our society operates smoothly. Before COVID-19 these were often seen as ‘low skilled’ and low paid. These jobs, be they in the private or public sector, are critical to society functioning. Business and the public sector need to be persuaded to value them more, reflected in pay, training and career development.
  5. Support and encourage innovation. so that entrepreneurs, big business leaders, research centres and universities can better collaborate and de-risk short term impact through fiscal and market access incentives.
  6. Invest in people. We must refocus our education system so skills beyond the academic are taught and rewarded, upgrade the framing of apprenticeships, reward companies for investing in learning and development; and increase business ownership so that more people are invested (emotionally and financially) in the long term success of their business.

In 30 years of business, I have had first-hand knowledge of a system that creates undoubted prosperity and improves lives immeasurably but it also encourages overproduction (44% of the bread baked today will never be eaten – which is crazy), over consumption (40% of London’s children are an unhealthy weight), concentrates influence that does not necessarily operate in the national interest and fails to recognise the value added by its lowest paid.

As society we have an unprecedented opportunity to change this failing now. Every business could better live, love, learn and leave its legacy if we could collectively grab ideas like these and encourage our leaders to be brave enough to grab the moment, their moment. This is not about market dynamics and trends. It’s about people making decisions about the purpose and actions of their business. It’s up to us. Let us not return to business as usual.

Paul Lindley OBE
Founder, Ella’s Kitchen: http://www.ellaskitchen.co.uk/
Founder, Just IMAGINE if: http://www.justimagineif.co.uk/
Chair, Toast Ale: https://www.toastale.com/
Chair, Robert F Kennedy Human Rights UK: https://www.rfkhumanrights.uk/
@paul_lindley
https://www.paullindley.uk/about

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Business as Usual?

It’s not unprecedented to say we live in unprecedented times. COVID-19 means that we do.

As it rages, it devastates. The stream of awful news seems endless as thousands of lives are destroyed every day. It’s heart breaking and we are desperate for good news.

I’ve found it: an unprecedented opportunity to learn, innovate and improve the way we do business.

With new terms like ‘furloughed employees’ and working for home ‘Zooming’ now mainstream, Governments writing blank public purse cheques to support private businesses all over the world – AND with voters overwhelmingly supporting this new normal; it’s time to question the fundamentals of how we have structured our business eco-system and the institution of the company in society.

Will we, should we, must we return to business as usual when the COVID-19 crisis passes?

No.

With brave leadership we won’t. We have the opportunity to cross the Rubicon and create a more resilient and sustainable economy that truly serves people.

Here’s my challenge to our leaders, based on both the experience of 30 years in business as an employee, employer, entrepreneur, investor and board director; and on the experience of these unbelievable weeks of ‘lock down’ seeing the COVID-19 pandemic change everything.

Those 30 years have taught me that:

  • business isn’t really about profits and assets; it’s about people. Business plans are delivered through building trust, abilities, inspiration and innovation and it’s the profits and assets that lubricate the machine that delivers the mission and company success.
  • Milton Friedman’s trickle-down economics and monetarism was wrong: business has responsibilities beyond only to its shareholders’ welfare.
  • the Companies Act desperately needs reform: it sets the purpose of business in the wrong context – simply to maximise profits; it charges us to measure the wrong things (quantity not quality, short term not long term); and it rewards the wrong behaviours and often the wrong people.
  • capitalism brings prosperity, innovation and wealth; but the resources it exploits are finite and alarmingly depleting; consumerism makes us believe happiness lies in purchasing; productivity gains often trump mental wellbeing – and even human rights; unregulated markets create risk, increase inequality and often lead to monopolies; and most of us have accepted this status quo.

In contrast, these last few weeks have powerfully taught me that:

  • things can change, and change rapidly, if we understand the stakes for all of us.
  • an economy can lose a third of its ‘value’ catastrophically – and catastrophically quickly. But that catastrophe is hastened by practises like shorting and opportunism to ‘bury bad news’.
  • innovation can thrive in hard times, with the right focus, support and need. Vacuum cleaner manufacturers can make hospital ventilators, beer companies can make hand sanitizers, and a London exhibition centre can, within a week, become the largest hospital in the world.
  • (people in) Government can revolutionise thinking, philosophy and action and gain trust and confidence with innovative policies and drastic actions. It can bring society and unexpected partners together to collaborate on shared goals.
  • language transforms and framing can make all the difference to behaviours. In the last few weeks cleaners, hospital porters, supermarket cashiers, warehouse staff and so many others have been transformed from ‘low skilled’ employees – bottom of the pile on the payroll and top of the pile on immigration checks to ‘key worker’ heroes. We now see the people not the job.

So, with 30 years and a few unprecedented weeks to draw from, here are my ideas to grab the moment:

  1. Re-define in law what business is for: Recognise business’ equal responsibility to all stakeholders (including the environment and communities) and not just to the primacy of profit for shareholders.
  2. Refine in law what business has to report: Move away from the quantity of sales revenue and profitability measure of success, to a more human and sustainable quality of impact measure. Companies and shareholders have been granted by society an incredible benefit of limited liability and now it is the time that society needs to re-balance the ‘deal’ it gets.
  3. Incentivise long term investment and sustainable growth. Tackle the culture of short-term thinking in investment and business strategy which creates volatility in share prices and focuses on immediate financial gain, at the expense of sustainable long term growth.
  4. Value the jobs that ensure our society operates smoothly. Before COVID-19 these were often seen as ‘low skilled’ and low paid. These jobs, be they in the private or public sector, are critical to society functioning. Business and the public sector need to be persuaded to value them more, reflected in pay, training and career development.
  5. Support and encourage innovation. so that entrepreneurs, big business leaders, research centres and universities can better collaborate and de-risk short term impact through fiscal and market access incentives.
  6. Invest in people. We must refocus our education system so skills beyond the academic are taught and rewarded, upgrade the framing of apprenticeships, reward companies for investing in learning and development; and increase business ownership so that more people are invested (emotionally and financially) in the long term success of their business.

In 30 years of business, I have had first-hand knowledge of a system that creates undoubted prosperity and improves lives immeasurably but it also encourages overproduction (44% of the bread baked today will never be eaten – which is crazy), over consumption (40% of London’s children are an unhealthy weight), concentrates influence that does not necessarily operate in the national interest and fails to recognise the value added by its lowest paid.

As society we have an unprecedented opportunity to change this failing now. Every business could better live, love, learn and leave its legacy if we could collectively grab ideas like these and encourage our leaders to be brave enough to grab the moment, their moment. This is not about market dynamics and trends. It’s about people making decisions about the purpose and actions of their business. It’s up to us. Let us not return to business as usual.

Paul Lindley OBE
Founder, Ella’s Kitchen: http://www.ellaskitchen.co.uk/
Founder, Just IMAGINE if: http://www.justimagineif.co.uk/
Chair, Toast Ale: https://www.toastale.com/
Chair, Robert F Kennedy Human Rights UK: https://www.rfkhumanrights.uk/
@paul_lindley
https://www.paullindley.uk/about

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