Texten är skriven av Tove Chevalley, Formation
At conferences, in boardrooms, and in media, the questions are always the same: “What's the size of the company?” or “How much did the business grow last quarter compared to the last?”. The larger the number, the better. The faster, the more impressive. The greater the breakage of communities or employees, the more credible. Its time we reframe that.
When the planet is burning up and people are burning out, why are we still so obsessed with financial growth at speed, and at all costs? What’s the temptation beyond bloated egos and overfed shareholders? What’s wrong with playing the long game, staying small, or valuing the wellbeing of your employees, customers, and community as much as you value the financial wellbeing of your business?
Think of hospitals, we don’t say “If they only grow their recurring business exponentially, do a global expansion, and provide a 10X return to their shareholders, then they’re a great hospital. That’s not how we define the value of them, so why is it the way we have to measure businesses?
It doesn’t have to be
Did you know that companies that embed sustainability at their core improve their business performance, attract top talent, and generally realize over 3 times the revenue, 3 times the profit, and gain twice the customer advantage? Or, that to sustain profitable growth over time without human capital – the quality, talent, and mindset of people – is nearly impossible*?
Driving growth at all costs doesn’t have to be your game. Stand for something and live by it, and talent will come, deliver value without breaking things and customers will love you, grow at a pace that is right for you and profit will sustain. The business case for real sustainable growth is there so don’t make growth decisions based on those old truths that seem to hold a tight grip on the cool kids.
It is far from easy, but don’t doubt yourself for aiming to be in it for the long run and a company that wishes to be sustainable for people, the planet, and profit. Anyone who is running a business that takes care of all its stakeholders, whether big or small, and can do so over time, is someone to look up to. Be that company!
** https://hbr.org/2024/04/a-growth-at-all-costs-mindset-can-stall-your-company
Want to learn more?
If you would like to know more about sustainable growth and how to transformation towards it, send me an email at tove.chevalley@formation.se, and let’s talk!