As 2020 gets into full swing, companies within the industry will undoubtedly be looking to alter their business strategy in line with various changes, trends and consumer demands. Here is a look at the specific areas on which all business owners should be focusing going forward.
Transparency, anti-hierarchy and disparity
According to Forbes, transparency is set to be a massive business trend in 2020, and should be applied to a company’s clients as well as its workforce. Honesty and transparency facilitate loyalty and trust, which are both integral to the growth and sustainability of a business, regardless of its size. Transparency may extend to employee salaries, or it may extend to full disclosure regarding the components of a specific product, IPOs etc.
Companies within the construction and design industry will need to continue re-inventing more than just their brand, but their products too. With new trends and technology coming to light at various exhibitions across the globe, especially in regard to sustainability, innovation needs to remain a key driving force behind business success. Companies need to be more focused on providing bigger and better products, rather than simply providing high-quality versions of the products that already exist.
According to Harvard Business Review, there is a variety of ways in which to push innovation within a business. Business owners need to:
• Collaborate with key internal partners: While companies may wish to retain all the glory for themselves, innovation is easier when collaboration is a part of the process. Business owners should seek out other companies and knowledgeable individuals to assist in their innovation projects for faster, and often more notable, results.
• Hire the right staff members: Innovation goes further than ideation. Hence the reason why it is so important for companies to invest in more human resources. Larger innovation teams can take care of more than just brainstorming and planning – they can build and test the resultant new offerings, and therefore help to generate more significant revenue.
• Monitor impact: It is important to actively track the financial impact associated with innovation programmes and projects. The metrics for this should be established long before the programme or project even gets underway.
Ask any business owner from any industry, and he or she is likely to tell you that his or her company’s main purpose is to generate profit. Obviously, this is the catalyst behind every business. After all, without profit, the business ceases to exist. However, according to market statistics, in order to succeed in the market, companies need a purpose greater than simply generating a substantial income.
“Companies with high levels of purpose outperform the market by 5% to 7% per year, on par with companies with best-in-class governance and innovative capabilities. They also grow faster and have higher profitability,” comments Claudine Gartenberg and George Serafeim in Harvard Business Review.
“However, the link between purpose and profitability is present only if senior management has been successful in diffusing that sense of purpose further down in the organisation, especially in middle management, and in providing strategic clarity throughout the organisation on how to achieve that purpose,” they add.
As always, success is hinged on dedication and continuously striving for more. What will you do to take your business further this year?