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The Big Boardroom Questions:Questioning the existing business model

An opportunity to begin a new debate

DRAFT for trialling v5.2

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Why this is important

Ian Cheshire, Group CEO, Kingfisher Plc

“We have a requirement as business leaders to genuinely take a longer-term perspective and to think more transformationally about our businesses. Today we are all geared towards and rewarded for improving the current business model and this makes it incredibly hard to conceive of a new business model.  It is critical that we find the time and space to think differently, for this is a big challenge for business. Thinking about how the world will look in 2050 and thinking about the business in the context of global mega trends – such as resource constraints and consumer engagement via technology – is important and exciting. If CEOs and Chairs are not thinking about this, no one else is going to.”

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Our research shows

76% of business leaders think they are going to need a different business model to remain fit for the future,

17% have business plans that currently look beyond 10 years.

Those with longer-term business planning horizons recognise that we will need new and different ways of working to find solutions.

Business in the Community Leadership Research (Nov 2011)

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As the CEO and Board, what would you like

(your personal &/or) the business’ legacy to be?

 

The Big Boardroom Questions – questioning the existing business model

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Are you comfortable you have Chaired the right

conversation on the mega trends –

in today’s world of 7 billion people – and for the predicted 9 billion in 2050?

 

The Big Boardroom Questions – questioning the existing business model

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What is your unique contribution to 9 billion

quality, sustainable lifestyles in 2050?

 

The Big Boardroom Questions – questioning the existing business model

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For some companies, a large proportion of the impact of their products is created through

customer use –

What is your one ask of your customers?

And they of you?

The Big Boardroom Questions – questioning the existing business model

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How will you ensure your success in the face

of societal or environmental change?

The Big Boardroom Questions – questioning the existing business model

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Have you created the right balance?

The Big Boardroom Questions – questioning the existing business model

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The big picture

Companies’ Unique

contribution

Company legacy

Role of customers

Finding the balance

Social & environmental

change

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• What does success look like in the long term (10 – 30 years?)

• When questioned by your ‘grandchildren’, what would you most like the company / brand to be known for?

• What is your one ask of your investors? And they of you?

• What is the core competency of your business from which to build?

Supplementary questions

The following questions may be helpful to consider when answering the Big Boardroom Questions, or as you develop a strategy to develop the journey

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• What business opportunities are presented in a marketplace of 9 billion people?

• What value could this add

• What unique commercial, Government and NGO partnerships would support your future success?

• What is your key positive impact now and the approach to CR/ sustainable development that your are most proud of, from which to build?

• What is the one ask you have of your stakeholders – customers, employees, suppliers, investors, communities – in support of your ambitions?

• What are the timescales required to make that level of change?

Supplementary questions cont.

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• What mega trends are material to you now with a global population of 7 billion people? How will this change in the long term as the population increases to 9 billion?

• What is your key negative impact

• What impact will these have on your stakeholders – investors, customers, suppliers, employees, regulators etc

• What is the impact for your sector in light of these trends?

• Is your current business model sustainable in light of these trends?

Supplementary questions cont.

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Supplementary questions cont.

• What societal and environmental events or crises can you anticipate which could affect your business?

• Are you comfortable that the measures you have in place to respond will contribute to your brand reputation?

• How do you know where the impact of your product comes from?

• What role could they play as co-creators of your business?

• How are you balancing the potentially competing interests of your key stakeholders?

• To what extent have you incorporated non financial impacts into your investment appraisal process for acquisitions/disposals, capital and operational spend