Fortune Favors the Adapters

I don’t think there’s any doubt that we live in an age of disruption. Three years we ago we appeared to be cruising along and now there’s division and disease and inflation.

It turns out, those are only the short-term issues.

AlixPartners produces a report that they call the disruption index. The report includes a review of the disruptions as well as a survey of CEOs to see how they are feeling and reacting.

It is recommended reading. But bring your grown-up pants, because it is not going to make you feel good.

Beyond the more temporary disruptors we are feeling, the report identifies four tectonic disruptors that will impact the world—and therefore our business—in the coming years.

The forces creating disruption are:

1. Demographics, as in the number of people who “produce” in an economy is declining “for the first time in modern times.”

2. Deglobalization, as in the retreat from the global trade regimen that has been in existence during an extended period of prosperity.

3. Technological acceleration, which is changing our lives faster than we can manage—particularly as it relates to our values and ethics.

4. Climate transition, as in efforts to move our systems off fossil fuels. This part of the report is especially sobering. It is going to be far more difficult than people realize.

CEOs in the survey are feeling the pain

• 94% expect their business model to change in the next three years

• 72% are worried about their jobs (Up from 52% in one year)

• 57% worry that their companies are not adapting fast enough

Three takeaways…the communicator perspective

1. Internal communications is the new media relations

   As I have written before, most people think that public relations is media relations. It is possible that in 10 years, they will think it is internal communication.

   Here’s why. There’s a vein that runs throughout this report…talk of new business models in three years, not changing fast enough, companies too set in their ways, initiating change, disrupting yourself, managing and surviving the climate transition, and emphasizing pace over perfection.

   No one will thrive in this environment without a strong culture. Reaching that level will require a level of speed, clarity, and transparency that leaders have typically shunned. To add to the degree of difficulty, employees are craving stability and there is going to be less, not more. In a workforce shortage, retaining and engaging people is imperative. Put your cape on.

2. Consumers are empowered

   Remember all those neat little boxes and segments we had? They are gone. This is from the report:

   “It’s becoming clearer than ever that power has permanently transferred from brands to consumers—but equally clear that many companies have not fully realized the extent of this shift.”

   To add to the challenge, consumers are aware of their power and are “less forgiving.” Companies have to meet these consumers where they are, which will include a lot of things, including consistent and granular communication with consumers…about products, ESP, DE&I, the works.

3. What growing through productivity will require

So, if we are only going to grow through productivity, we are going to need to make a higher investment in training and education. We may need to facilitate career shifts from employees mid-stream or mid-quarter. Companies could end up with virtual community colleges baked into their business model. And sure, much of it will be taught by professional teachers, but I see a lot of education about business models and change coming from the communication professionals.

Last thing: I don’t want to be the its-an-opportunity-not-a-problem guy.

Because I actually can’t stand that guy.

But in times of great change, fortune favors adapters. Those who don’t adapter go away.

Be the adapter.