The Herman Trend Alert
January 24, 2018
For a while now futurists and other foresight professionals have promoted the fact that it is in the best interest of the enterprise to be prepared for the future. Though you would think that being prepared would be an obvious advantage, but it is only recently that companies have begun to realize its true value. Now, we have proof.
A longitudinal study
The study was a collaboration between René Rohrbeck, professor of strategy at the Aarhus School of Business and Social Sciences at Aarhus University in Denmark and Ménès Kum, leader of Digital Strategy for Deloitte Consulting's Monitor practice in Germany. Using a longitudinal research design, looking at operational results data between 2008 and 2015, they investigated the impact of corporate foresight on firm performance. They began by developing a model for assessing the future preparedness (FP) of a firm.
The findings were remarkable
The researchers' expectation was that corporate foresight would enable firms to spot trends ahead of competitors, gain deeper insight into how such trends would affect their organizations, identify their most effective responses, and ultimately gain a competitive advantage. The results were really impressive: future-prepared firms outperformed average firms by a notable 33 percent higher profitability. Not only that, but future-prepared firms outperformed average firms by an extraordinary 200 percent higher growth. Clearly corporate foresight pays.
The downside of not engaging in FP
The value of FP is even more critical when looking at firms not engaging in future preparedness. Firms characterized as "neurotic" or "vulnerable" firms had an average of 37 percent lower profitability when compared to the profitability of the "vigilant" firms. At the same time, firms characterized as being "in-danger" realized 44 percent lower profitability.
Corporate Foresight is the law---in Germany
Publicly traded organizations under German law are required to have a strategic foresight system. However, with the absence of an indicator of transparency, the requirement is surely difficult to enforce.
The Future of Corporate Foresight
Corporate executives worldwide will use these results to rationalize investing in future preparedness. As with many things, wise corporations will invest increasing amounts of resources to enhance their preparedness and best the competition.
To read the full published study, visit https://doi.org/10.1016/j.techfore.2017.12.013
© Copyright 1998-
by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or https://hermangroup.com. To sign up, visit https://HermanTrendAlert.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."
NEED HELP TO INNOVATE?
If so, The Innovation Global Network (www.InnovationGlobalNetwork.com) is your go-to spot for best practices and experts you need to help you with any aspects of creating innovation, entrepreneurship, or change. IGN is a global ecosystem that welcomes anyone who wants to find (or offer) innovation help, expertise, tools and resources. When you visit their website, you'll find all kinds of information and resources, including networking events and webinars. Basic membership is free, so sign up today!
BE RECOGNIZED AS AN EMPLOYER OF CHOICE® in 2019
We've seen a strong resurgence in interest by employers in being recognized as an Employer of Choice®. Celebrate your employee-centered corporate culture! This coveted award is well worth the effort, yet is not easy to achieve. Download the extensive application at http://www.EmployerOfChoice.com; or for a Word® version, drop a note to Joyce@EmployerOfChoice.com or call Joyce at 336.210.3548.
OUR VERSATILE TRANSLATOR ROCKS
Excellent translation services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. 5-year Bachelor Degree in Translation. Also editing and proofreading of all kinds of Spanish language documents. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at firstname.lastname@example.org or contact her on SKYPE at marianacampora.
To read this Herman Trend Alert on the web: https://hermangroup.com/alert/archive_1-23-2019.html.
Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.
New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Click here to sign up for the Herman Trend Alert.
Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service.
Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts