FUTURE NORMAL
The book “Future Normal – 8 Questions to Create Business Your Children Will Be Proud Of” serves as a guide for purpose-driven leaders aiming for a meaningful life in business. It examines ways to evolve your business into an entity that not only yields profits but also contributes positively to society and the environment. This exploration is centered around the following eight questions:
- Does your business’ vision perpetuate a world you want to live in?
- Is your business aligned with our world?
- Does your business listen to all its stakeholders?
- Does your business have the metrics?
- Does your business use language that enables?
- Does your business understand its footprint and tread carefully?
- Does your business learn from nature?
- Does your business lead by enabling others?
Simply pursuing financial success is no longer sufficient; we must prioritize environmental and social impact at the core of our business. Today, effective leadership demands this mindset, and to achieve it, we need engaged and motivated employees.
Change in the business realm is inevitable—it’s an exciting yet challenging process!
We need to differentiate between standard business operations and the process of change. If you answered “no” to any of these eight questions, it’s time to initiate a transformation within your business.
Normal business processes are like a playback concert. You must be confident in your planning, hire the right people, assign tasks appropriately, rehearse, ensure safety, and continuously observe your audience, ultimately ensuring their satisfaction. If you take these steps, you won’t encounter any major issues. Sure, there might be a little rain, but that’s not a significant concern.
Transformation processes, however, require an orchestra performance. Different departments of the company must work in harmony, creating a symphony. For example, the cello needs to bring a deep, even somber tone, while the trumpet should create a lively, energetic atmosphere. The leader is the conductor of this transformation orchestra. Without them, no rehearsal can happen. They are a charismatic leader. Success is credited to them, and failure falls on them as well. In the digital world, if you make a mistake, the curtain never closes—you can’t escape.
Can a book make you a successful conductor?
No. Success as a conductor requires more than just theoretical knowledge; practical experience, strong leadership skills, interpersonal abilities, and emotional intelligence are crucial. The real world presents far greater complexities. While a book can offer guidance, fresh perspectives, and inspiration, the essence of success comes from your dedication, experiences, willingness to learn, and your unique leadership approach. As I noted at the start of my writing, the answers you provide to these questions are far more important than the questions themselves.
Every effective strategy starts with a question. When curiosity sparks that question, it opens the door to innovation and allows us to explore new opportunities, paving the way for more ambitious strategic decisions. The authors of Future Normal (*) stress that only with this approach can businesses move away from the mindset of the past century and adopt new strategies for the success of all stakeholders.
For years, the business world has focused on one question: How do we maximize profit? This perspective is flawed and insufficient! It has caused leaders to see their organizations only from a financial perspective, overlooking long-term value and their impact on society and the environment. I believe we should define life’s purpose as “salih amel” (good deed)—doing good for others, even for strangers, without expecting anything in return.
The book highlights how focusing solely on profit maximization leads to many negative consequences, using the example of tobacco companies hiding the link between smoking and lung cancer. It also highlights how the drive to minimize costs can lead to harmful practices, such as underpaying workers and neglecting environmental damage. This profit-focused mindset hampers businesses in achieving long-term success and negatively impacts society’s well-being. However, a shift is occurring in the business landscape, where values beyond profit are becoming central. This transition involves moving from a simplistic view to a more complex understanding. Today, our businesses are not merely “money-making machines,” but rather “salih” instruments that influence our society and environment. The authors emphasize that businesses are catalysts for change, brought to life by our actions and shaped by the questions we choose to ask.
Furthermore, the book argues that business value is optimized when society thrives. In other words, money-making shouldn’t occur in isolation; it should be integrated into the fabric of society. We can develop our strategies based on three key assumptions:
- The questions we pose hold significant importance.
- Businesses serve as instruments that influence our society and environment.
- The real worth of a business is evident when it contributes to the welfare of the community around it.
With these ideas, we can steer our business toward what is considered the *Future Normal*. It is essential to focus our efforts on fulfilling the needs of future generations. To achieve this, we must understand cause-and-effect relationships and analyze processes thoroughly. Our assessment involves analyzing the assumptions and choices that have led us to this point. Decisions rooted in outdated methods are unlikely to deliver the desired outcomes moving forward. Still, many businesses are reluctant to change, clinging to old models and persisting with products or services that have worked for years while shutting themselves off from innovation. Yet, in the business landscape, everything can change, including the business itself! The only constant is the philosophy that underpins your business, and that’s what you should bequeath to future generations. But don’t expect to find this in philosophy textbooks.
What is the root cause of this resistance to change?
The primary issue is leaders’ deep connection to past truths. Embracing change demands effort and adapting to new insights and habits isn’t easy. Many leaders prefer to hold on to established norms instead of reevaluating their careers. However, the core of innovation lies in being receptive to change when new evidence presents itself, and that’s precisely what the business world needs. Reflecting on my writings, I realize I’ve already been striving to look forward. Unfortunately, I see a strong longing for the past in our society. But if our past was truly so great, why are we in our current predicament? How can we recapture the glory of the past in the future? To me, even these questions seem pointless—unless we initiate change when the future arrives, future generations will be left to navigate today’s landscape. If we make informed predictions today, we can build a strong foundation for future generations to face what lies ahead. Otherwise, we’ll remain trapped in the past (https://fastcompany.com.tr/dergi/ben-simdiden-gelecekte-yasamaya-calisiyorum/).
Is this easy? Definitely not. Anticipating the future is an enormous challenge, especially in the business arena. Nonetheless, every strategy hinges on a clear vision of what’s to come. Strategies are crafted based on the business’s purpose, vision, values, and the expectations of its stakeholders. These expectations encompass sales projections, investment priorities, and the skills that need to be nurtured. Identifying and managing these expectations is a crucial aspect of developing an effective strategy.
In strategy, the business’s challenges are usually identified, along with an explanation of why the previous strategy is outdated. This process includes redefining the company’s purpose, vision, and values. It outlines how the business plans to tackle these challenges within those frameworks. Action steps to address obstacles and criteria for future success are established, often relying on key metrics such as revenue, returns, cash flow, and market share. Strategy is crafted with stakeholders in mind and is regularly revised as our understanding of the world shifts with the ever-changing flow of information. Forecasts for the coming years take into account environmental concerns, the loss of biodiversity, and the risk of ecosystem collapse. Social and economic issues include aging populations, the weakening of social cohesion, the challenges and opportunities brought by digitalization, geopolitical instability, and more. These concerns are a major source of anxiety for future generations.
While shaping the future, it’s crucial to remember that businesses are interconnected with people and the planet, the authors argue. Strategies must aim for long-term prosperity rather than short-term gains. Businesses must evolve into instruments prioritizing society and the environment, acting in line with this commitment.
Now, let’s delve into eight key questions, exploring the rationale, supporting theories, and practical applications behind each one.
1: Does your business’ vision perpetuate a world you want to live in?
A company’s vision encompasses the results and ideals it aims to achieve. Most businesses tend to shape their vision by focusing solely on their success. However, the authors contend that posing this question is essential for assessing your business’s contribution to society, the environment, and the future. If you’re uncertain about your answer, consider exploring it by asking various questions to reveal the right response:
- Does your company’s vision promise a better society and environment for you, your family, and future generations?
- Or is the vision primarily centered on the company’s success and performance?
- Does your company’s vision include a broader societal goal? Does it cater only to a specific group, or does it aim to benefit everyone?
- Can you adjust your vision to be more inclusive of everyone?
These questions are crucial for shaping the direction of your business and the mindset of your employees. A vision is an integral part of your company’s narrative, guiding employees on what they should strive to accomplish. A properly crafted and articulated vision fosters a collaborative environment that promotes shared prosperity, encouraging cooperation among customers, employees, supply chains, and other stakeholders.
Many prominent and successful firms, including JP Morgan and ExxonMobil, articulate visions that are quite limited, concentrating exclusively on their own achievements. For example, JP Morgan seeks to be the most respected company in serving its customers, while ExxonMobil intends to be a leading company that achieves outstanding results. Should these companies rethink their visions to better align with the future normal? The authors believe they should.
At Yıldız Holding, we envision a world filled with happy individuals and strive to achieve that goal. Our guiding principle is encapsulated in the manifesto: “make happy, be happy.”
2: Is Your Business Aligned with Our World?
The authors emphasize that a company’s vision must align with the world it inhabits. The world is in constant flux, and with that, perspectives and understandings evolve. To remain relevant, a company’s actions must continually adapt to these changes. The authors define a future-proof business as one harmonizing with its environment and engaging in actions that benefit society.
The prevailing worldview, or paradigm, is a framework of shared values, beliefs, and assumptions. You only share this worldview if you feel connected to the environment. As a result, actions that harm the environment are perceived as detrimental to oneself, while actions that enhance the environment are viewed as acts of self-preservation. This connection is influenced by the degree to which an individual feels mentally connected to their surroundings.
The authors have developed various research methods to measure this connection. For readers curious about the details, the book provides metrics and data in a more accessible manner. Although such changes may be difficult, improving alignment with the surroundings ultimately enhances business performance. Participatory, team-based work, workshops, and group discussions can all contribute to increasing a company’s harmony.
3: Does your business listen to all its stakeholders?
No one achieves success in isolation; we rely on others to reach our objectives. Our achievements depend not only on our immediate team but also on the teachers who taught us literacy, the engineers who designed our schools, and the laborers who built the roads we use. Likewise, we count on internet service providers, food producers, and even the workers who harvest the cotton for our clothing.
The same holds true for businesses. In recent years, there has been a growing trend for companies to move beyond shareholder primacy and adopt a broader perspective. The U.S. Business Roundtable made a statement in 2019, affirming that a company’s purpose is to deliver value to all its stakeholders, which was supported by the 2020 Davos Manifesto. While this shift has been welcomed, stakeholders are often limited to shareholders, employees, customers, suppliers, regulators, and local communities.
Stakeholder theory is based on the idea that businesses should serve a wide range of interest groups beyond shareholders and that aligning these groups’ interests will lead to greater long-term success. This theory has roots going back decades, but modern stakeholder theory was pioneered by R. Edward Freeman in his 1984 book, “Strategic Management: A Stakeholder Approach”. Freeman defines a stakeholder as any group or individual that influences or is influenced by the attainment of an organization’s objectives. However, this broad and vague definition is often narrowed to focus on stakeholders who directly impact the business. This approach can limit companies to short-term thinking and address only visible impacts.
Freeman’s broad definition of stakeholders could potentially create an unmanageable range of interests. Thus, identifying an appropriate list of stakeholders is crucial. According to the authors, this list should include not only direct stakeholders but also the natural systems that support physical functions, as well as future generations.
As a starting point for stakeholder identification, the authors recommend mapping stakeholders and determining which groups are most essential for the company’s optimal performance. During this initial phase, many stakeholders who typically remain unheard may be identified. They stress the importance of expanding the conversation and involving external parties in the stakeholder identification process. Once the initial map is established, they advise a careful, gradual approach to planning how to engage with unrepresented stakeholders. This approach resonates with the TÜYO sessions we conduct to listen to our consumers for the well-being of our brands.
4: Does your business have the metrics?
“What gets measured, matters.” If something can’t be quantified, concluding it becomes impossible. A financial metric will promote a specific set of behaviors, whereas a purpose-driven metric will guide a different approach.
The authors highlight that money is the most tracked metric in businesses. It’s a universal measure, and the equation is straightforward: if you can sell products for more than their production cost, you’re successful. To increase revenue, you can raise prices, increase volume, or cut costs. However, this approach only works if your primary focus is making money, with no consideration for how it’s earned.
In my view, businesses should also incorporate positive metrics like reputation and happiness, as well as negative ones like anxiety, alongside key performance indicators (KPIs), to truly assess success.
According to the authors, in the Future Normal, money is simply a means to an end, not the goal. A company should contribute to societal progress and welfare, respect the environment, use resources efficiently, and generate profits—but financial returns should not be compromised in the process of achieving these objectives.
In this chapter, the authors delve into broader systems and measurement frameworks, including the United Nations’ Human Development Index (HDI), the OECD’s Better Life Index, the Sustainable Development Goals (SDGs), Integrated Reporting, and Environmental, Social, and Governance (ESG) metrics.
These binding and regulatory developments in the global arena have introduced non-financial evaluations into the business world. This progression is captured under the umbrella of social and environmental accounting. One longstanding framework in this area is the “Triple Bottom Line” approach, introduced by John Elkington, which argues that businesses should measure their performance across financial, social, and environmental dimensions.
ESG metrics have also gained considerable popularity. As investors become more concerned with the societal and environmental impacts of businesses, these metrics have rapidly expanded since 2005. ESG metrics now attract investor interest and help companies secure more loyal investors.
Sustainability reporting will become mandatory across the European Union after 2025! The reward? Preferred access to financing and lower costs. For instance, Ülker benefits from its robust sustainability performance by securing more affordable financing from global financial markets. This translates into millions of U.S. dollars in additional profit!
In my view, companies that excel in these intangible metrics should be financially rewarded and supported by both local governments and global financial markets!
5: Does your business use language that enables?
Language is a key factor in shaping how we think and act. This is especially true for businesses, which are abstract entities, and it is through careful use of language that we make a business’s ideas and actions understandable and actionable. The authors emphasize the importance of focusing on how metaphors permeate business language and how we can use them to inspire action.
Metaphors are indispensable building blocks of our language. They spread meaning, shape our perceptions, and allow us to connect our experiences with our imagination. Most common metaphors used in business draw on images from sports and warlike “eliminating the competition.” This phrasing implies that the business is always at risk, vulnerable to sudden competition or challenges in the market. Essentially, metaphors help us interpret the world by enabling us to grasp one concept through the framework of another. It’s a mental shortcut, but shortcuts don’t always lead you to the right destination. In this section, the authors discuss the challenges of two particularly common metaphors in business language: seeing a business as a “machine” and as an “organism.” I recommend reading this section of the book.
Psychological distance refers to how close or far away we perceive something to be. When something feels psychologically close, we are more likely to act. For projects aimed at driving behavioral change, the first step is to elevate the issue to the level of a “psychological object” in people’s minds. This increases engagement. Psychological distance has four dimensions: temporal (now, past, or future), spatial (near or far), social (a friend or a stranger), and probabilistic (what could or might have happened). Reducing psychological distance can make an issue feel more immediate and personal, prompting individuals to act.
The authors provide a great example to illustrate how language shapes our perceptions and actions: “Is your business discussing gas emissions in the atmosphere, or is it focused on the quality of the air we breathe?”
As a first step in this process, the authors suggest engaging in a dialogue with a diverse group of employees from various functions within your organization. What are the current metaphors being used? What do they enable, and what do they hide? What implications do they carry for the business? Additionally, for metaphors that incorporate war terminology, it may be helpful to ask, “Who or what is the business in conflict with?” This approach can help foster a more collaborative language within your organization.
A similar approach can be applied to explore and address psychological distance. Examine the language your business employs to articulate the challenges it encounters and their effects on society and the environment. For example, discussing the air we breathe and the water we drink helps to minimize psychological distance, transforming the issue into a psychological object. This approach enhances the sense of personal relevance and urgency.
6: Does your business understand its footprint and tread carefully?
“We have all observed the footprints we leave in sand or mud at some point in our lives. The pressure we apply determines the depth of our mark and the impact we create.” This analogy has become increasingly relevant as businesses become more aware of their carbon footprints. Every product or service we create has a cost, and it’s not just monetary.
The authors highlight carbon footprint as the most obvious starting point. Any calculation of a footprint begins with assessing the current situation or baseline. The baseline can be easily established through carbon audits conducted by various consultancy firms. This process helps identify the volume of emissions and determines which business processes contribute most to your carbon footprint. With this information, you can develop a targeted reduction plan.
The first step involves identifying the carbon footprint, followed by the development of a plan to reduce it. Planning may involve various strategies, from eliminating emissions to reducing their volume or even changing the source of emissions.
However, a deeper question businesses should consider is whether their size is appropriate. For many companies, growth is an inevitable, yet unquestioned rule, but when considering that we only have one planet, aimless and unplanned growth no longer seems rational. Determining the optimal size for your business is a dynamic process that depends on varying contexts. Microeconomic concepts can help consider marginal cost and marginal benefit. Marginal cost refers to the expense of producing one additional unit of a product or service, while marginal benefit is the advantage gained from that additional production. It’s crucial to consider the marginal benefit of growing your business, as well as the marginal cost of increasing its footprint.
7: Does your business learn from nature?
In this section, the authors highlight the important lessons nature can teach us and the innovative possibilities it opens for the business community. Traditional business practices often operate in a linear fashion, both in theory and practice. Resources are extracted and transformed through a production system, the product is sold, and after use, the customer likely discards the product as waste. This linear logic might have made sense on a planet with unlimited resources and a sparse population, but it no longer aligns with the reality of Earth. Given the planet’s limitations, the necessity of a transformation fueled by innovation is undeniable. A fundamental approach toward this goal is eliminating waste. Waste elimination means either not producing waste at all or repurposing it for something else, transforming it from a worthless by-product into a valuable input. According to the authors, this mindset forms the core of natural capitalism. Natural capitalism encompasses four components: (1) increasing the efficiency of natural resource usage; (2) producing with biological values at the center; (3) seeking a solution-based model; and (4) reinvesting in nature.
The second component of natural capitalism focuses on eliminating the concept of waste. Waste is either reused, redirecting it as an input for another production process, or returned to the soil, water, or air in a harmless or biologically degradable form. The solution-based model focuses on addressing the fundamental need, rather than simply selling a product. For example, selling a car is just one way to meet people’s transportation needs. Offering transportation solutions, on the other hand, can reduce individual car ownership and shrink the automotive industry’s footprint. Lastly, reinvesting in nature involves ensuring the sustainability and restoration of the planet’s ecosystems.
Like natural capitalism, the circular economy initiative promoted by the Ellen MacArthur Foundation seeks to eradicate waste and pollution while fostering business models that generate less waste through circular practices. IKEA, for example, aims to be circular by 2030. This involves creating products designed for easy disassembly and reuse, repairing items to prolong their lifespan, and implementing take-back programs for products at the end of their initial life cycle.
Another method within the scope of natural capitalism and the circular economy is industrial symbiosis. This includes using the waste of one process as input for another.
Natural tendencies and the concept of biomimicry are also crucial within this framework. Biomimicry focuses on learning from and drawing inspiration from nature’s strategies. For instance, cooling techniques derived from termite mounds can help maintain lower temperatures in buildings. In business terms, learning from nature allows us to tap into the oldest known know-how.
The authors suggest that once this mindset is adopted within an organization, it’s crucial to compile a list of challenges and potential opportunities for transformation. Prioritizing this list based on impact, investment, and time parameters is crucial. Following this initial prioritization, it is important to bring in experts such as engineers, designers, and systems thinkers to develop detailed business plans for potential investments and applications.
8: Does your business lead by enabling others?
As observed by the authors, many businesses tend to operate with a mindset focused on competition and urgency. In this model, running your business is often likened to a war game—switching between attack and defense strategies to outmaneuver competitors. However, long-term success is not merely about attacking or defending; it involves building meaningful relationships with customers and other stakeholders. Therefore, transitioning from viewing competitors merely as threats to supporting them in driving broader change is essential. Rather than wishing for a market with no competition, we should view competition as an advantageous market condition to leverage.
In the Future Normal, the emphasis is placed on businesses being beneficial not only to themselves but also to society and the environment. Companies like Patagonia are committed to greening their supply chains and offering sustainability advice to others, which in turn boosts customer loyalty, attract new clients and strengthens employee engagement. Let’s not forget, the younger generation admires businesses that focus on purpose and well-being!
Transitioning to the Future Normal
Change begins with dialogue. While it can be difficult due to resistance from individuals, making small, meaningful, and determined strides can help adapt your business to the future normal. The authors emphasize the importance of involving all stakeholders in this process, ensuring they play a vital role in the journey toward a more inclusive and sustainable transformation.
The book critiques conventional business models and offers strategies for companies to attain not just economic success but also positive social and environmental outcomes. While it serves as a thorough guide highlighting the necessity for businesses to embrace new perspectives for a sustainable future, the transformation can be both costly and challenging for small and medium-sized enterprises (SMEs).
The Future Normal demands a significant cultural transformation within the business sector, a gradual process frequently encountering resistance. People and organizations tend to cling to the status quo, resisting radical changes.
The book “Future Normal” inspires businesses to adopt more sustainable and responsible practices, yet it also acknowledges the difficulties and practical barriers that can emerge during the implementation phase.
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(*) https://www.amazon.co.uk/Future-Normal-Questions-Businesses-Children
Nick Barter, the first author, is a Professor of Strategy and Sustainability at Griffith Business School, having earned his PhD from the University of St. Andrews. He has extensive experience both in academia and the private sector, ranging from strategy consulting at EY to leading the Griffith MBA program and advising organizations to move beyond narrow approaches.
Christopher Fleming, the book’s other author, is a Professor of Economics and the Dean of Research at Griffith Business School. He previously served as the Director of the Griffith Institute for Tourism and the Director of the Griffith University MBA program. His work focuses on sustainable management, conducting research, providing consultancy, and offering public policy advice. Together, they have collaborated on the Future Normal project, which guides the business world to act meaningfully toward the environment and adopt practices that bring value to both the organization and society.
(*) TÜYO, an acronym derived from *Tüketiciye Yakın Ol* (Be Close to the Consumer), also carries the meaning of a “whispered tip” in Turkish. It implies creating an environment where “the consumer whispers a tip to you.” Unlike traditional focus groups, TÜYO engages a minimum of 15 participants and utilizes a flow method along with group synergy to collect valuable insights.
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