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."
SEE YOU TODAY: THE NEXT #BEMORE WITH INGOMU PODCAST: JULY 28TH AT 4 PM ET
Today's #bemore with Ingomu Podcast will feature Ingomu Coach Stephanie Mirich and Lisa Caprelli an award-winning children's book author and Latina entrepreneur. We're talking about conscious parenting and the effect of social media; it promises to be a lively discussion. Along with Ingomu co-founder Al Wynant, our own author and thought leader Joyce Gioia will co-host the bi-weekly podcast. Watch the podcast live. To subscribe to the #bemore with Ingomu podcast, sign up for the Ingomu Newsletter. When you subscribe to the newsletter, you will receive the #bemore with Ingomu Podcast via email. For more information about signing up your employees, visit Ingomu.com.
BE RECOGNIZED AS AN EMPLOYER OF CHOICE® IN 2021
Responding to the tight labor market, we have seen a strong resurgence in interest by employers for being recognized as Employers of Choice®. In fact, we have two employers going through the process right now! 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 EmployerofChoice.com; or for a Word® version, drop a note to Joyce@EmployerOfChoice.com or call Joyce at 336.210.3548.
HOW DOES SHE DO IT?
Our author Joyce is often quoted in TIME and Industry Week Magazines last year and recently in College Recruiter. Sign up for ExpertClick.com. You will be found by the news media and in Google searches: 1. Through your personal search-engine-optimized press room by 39 topics you choose; 2. By news releases pushed out 10 ways including Google News; 3. Be found in the 2021 printed Yearbook of Experts, Authorities & Spokespersons. Until August 10th, get a free 10-Day Pass and send news releases free here.
To read this Herman Trend Alert on the web: https://hermangroup.com/alert/archive_7-28-2021.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