Market Development

Senge and his colleagues argued that the new environmentalism would be driven by innovation and would result in radical new technologies, products, processes, and business models. The rapid rates of market penetration for such technologies and the decline in their costs are evidence that Senge was right.

The politics of the world are not the everyday focus for all managers, but change leaders need to understand their influence on market development and attractiveness, competitiveness, and the resulting pressures on boards and executives. Firms doing business in jurisdictions such as Russia, China, and Argentina know this all too well. Issues related to climate change, water and food security, power, urbanization/smart cities, public transport, immigration, health care, education, trade, employment, and our overall health and safety will continue to influence political discussion and decision making at all levels—from the local to the international context. A sudden transformation of the political landscape can trash the best-laid strategic plan. The growth of populist and anti-global sentiments in Europe and the United States has demonstrated how political surprises (e.g., the Brexit vote in the UK and the election of Donald Trump) can quickly disrupt existing relationships (e.g., alliances, markets, supply chains) and create high levels of uncertainty as to what lies ahead. It’s been argued that the rise of these movements is attributable to the declining size of the middle class in many countries, the massing of wealth by elites, and the declining sense in parts of the population that a positive future is available, given current conditions and trends.

Successful change leaders will have a keen sense of the opportunities and dangers involved in global, national, and local political shifts. If they are behaving in a manner consistent with corporate social responsibility, they will also have a keen sense of the opportunities and dangers related to the issues themselves.