The Impact of change

We are all facing, globally, possibly the most disruptive times ever. A pessimist worries only about the threats. We are optimists and full of excitement about the potential. But the threats are real.

Artificial Intelligence and robotic production are threatening jobs, from clothing to agriculture, especially in countries desperately in need of improving incomes. It threatens the traditional models of development – no country will now be able to copy the Asian Tiger model sustainably, for example.

The climate is changing, with change impacting on almost every country in the world. People’s attitudes and behaviours are changing – and, as a consequence, so too are their expectations and demands. News – fake or real – travels at the speed of light.

In particular, first the 60’s generation and then the Millennial generation brought new attitudes to travel, to consumption and to what they expect of countries, corporations and producers in terms of behaviour. Those attitudes are now spreading to every generation, every social class – and every continent. But they are particularly strong in those advanced economies that often represent the best initial opportunities for profit.

Many enterprises know this. Many development organisations are equally aware. But it is difficult for one small enterprise in a small country to take the measures needed to benefit, as they undoubtedly can, from these changes.

It requires a national strategy, sometimes to support them financially but always to provide direction.

National planning strategies grew out of favour in the West in the 1970s and 80s because they failed. But this is a different kind of national planning strategy. It’s a bit like the planning implemented by South Korea and other successful Asian nations – it does not try to replace what private enterprise can do best but instead it investigates opportunity, suggests direction, provides training and ensures finances available. In other words, it provides leadership and opportunity, direction. This is the informed economy not the command economy.

Nations – like corporations – need to do three things in order to survive and succeed:

1. Use the opportunities that change offers.

2. Build resilience to the threats posed by change.

3. Identify both accurately, with respect to the nation’s core potential strengths – now, and in, say, 30 years.

The first two are inter-related.

The key to seizing the opportunities offered by change lie in:

· Alertness.

· Anticipation.

· Analysis.

· Action.

From a marketing point of view, seizing the opportunity means being actively alert to changes in consumer attitudes, expectations and behaviour.

Take, as an example, how awareness of climate change alters people’s attitudes and behaviour. Even schoolchildren are demonstrating, to force governments into action. Consumers are demanding socially responsible behaviour and production –– from how producers look after their land and their produce; to what forms of processing are used; to distribution logistics; to (biodegradable) packaging, etc.

Long-distance travel needs to be justified in climate change terms, as does buying expensive imported items.

Nations – like corporations – can no longer just wait passively. They have to take pre-emptive action.

That means not merely the nation brand but the ethical nation brand.

The wisdom of a consumer-driven – or market-driven strategy.

One key determinant of survival will be implementing a ‘consumer-driven’ strategy.

That means building consumer attitudes, expectations and demands into the whole “Value” process. So, the current notion of a Value Chain “from field to fork” becomes a Value Chain “from fork to field to fork”.

Keep alert to how today’s trends will evolve in future years, and make sure you build changing consumer needs and expectations into your production processes.

Why? Because by producing what the consumer wants and is prepared to pay a price-premium for, means that you stand the best chance of sustainable success.

When livelihoods are involved.

Setting objectives and determining how best to achieve such objectives is a first crucial step. It is the only way of securing the future sustainability of what you produce and the livelihoods of those producing it.