The shift is measurable – Insight from the Inter Business Index 2017
The well-known quote by Peter Drucker, “what gets measured, gets managed” is true. By measuring, you get the information needed to do what you intend to do. But so far, we’ve been without reliable metrics that grasp the complex reality in which companies act today. Now however, the shift is made visible.
Thanks to the companies’ own willingness to publicly share key information we have been able to develop a tool for measuring holistic value creation. We can measure who have what it takes be a force to be reckoned with in the future. By setting up indicators that provides us with information on businesses and how and for whom they create value, we can actually measure this great shift towards holistic value creation.
The shift is visible
The shift is visible, and can be found in publicly available material. The best way to assess a business is by examining their own communicated materials. This gives us a good indication of where they’re headed, and where they want to be. This is also where we can find the value of the company, or even more accurately, the value they create. This shift in perspective that’s occurring means that businesses are moving on from being introvert with a short-term perspective, to an extrovert and long-term perspective. Information about the future is in the relationships. When we look at publicly available material, we can access that layer that’s between businesses and people.
Who’s supposed to manage this?
When we talk about managing that what gets measured — we also need to talk about the ones who’s supposed to manage this. Business leaders, owners and management are ultimately the ones responsible for tackling issues of the future of the business — as well as the future of humanity. They are also the ones that have the power to integrate sustainability into the core of the business, setting goals and strategies that makes sure that value is created for all — not just shareholders, and not even just customers. The information of this index is primarily for this group that in their hands hold the power to change our future through their businesses. And this is imperative for a future that is truly sustainable. As Matt Loose, Senior Director at SustainAbility, wrote in an article:
“Embedding sustainability into business not only helps secure a sustainable future, but it also benefits companies, enabling them to prepare for future risks, act on opportunities and create more value for the business and its stakeholders.” — Matt Loose, Senior Director at SustainAbility.
That’s why the information provided from the Inter Business Index is most relevant and needed for leaders, owners and decision-makers.
This is an extended excerpt from Inter Business Index 2017, ranking the 50 largest corporations in Sweden. Based on published research, the Inter Business Index uses a unique tool, Ibx Insight™, developed to measure and analyze the core skills that indicate a company’s’ ability to create holistic value.
Download full report and find out which Swedish corporations are the frontrunners in business beyond sustainability — the ones that have the ability to lead with the skills needed to create value in multiple dimensions.
The Inter Business framework is built on extensive qualitative research, resulting in not only the Index itself, but also a sound methodology for the framework that have been published in Journal of Management and Sustainability and European Social Innovations Review.
The Inter Business Index is presented by us, Inter Business Initiative, and Ibx, who offers tools to measure and manage, as well as insights on, business beyond sustainability.
