Overcoming the future readiness gap: How companies become fit for the future

Companies are constantly on the move, they have to react to external influences and produce innovations. Against this backdrop, learning is becoming increasingly important - both for the entire organization and for individual employees.

Are German companies losing touch with the future?

In August 2023, an article in The Economist caused quite a stir. In what is probably the most important business magazine in the world, Germany is described as the "sick man of Europe" - once again. The magazine cites the German economy's lack of speed in digitalization and the implementation of new technologies as a key reason for this thesis. Compared to other countries, we react too slowly to change - and are therefore jeopardizing our competitiveness.

Doubts about the future viability of our economy have also grown within the country in recent years. According to an Allensbach survey, half of the population believes that Germany will no longer be one of the leading economies in the next ten to 15 years.  

I share this concern: in my view, there is a growing discrepancy between the speed of change in the business sector and the inadequate adaptability of companies. I call this gap the future readiness gap.

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The current situation: future viability means adaptability

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The expression "survival of the fittest" is often attributed to Charles Darwin. However, it was actually coined by Herbert Spencer, who combined Darwin's ideas on natural selection with his own economic theories. This is because the same applies in nature and in the economy: In the long term, those who are better able to adapt to new conditions are successful.

The big negative examples of a lack of adaptability are familiar to many of us: Kodak ignored digital photography for too long, Toys R Us missed out on online retail, and Blackberry could no longer score with its once popular keyboard in a world of touchscreen smartphones. But there are always companies that prove that things can be done differently! Netflix , for example, started out as an offline video store, but recognized the signs of the times and the potential of streaming early on. Hardly any of its former competitors are still on the market. Netflix, on the other hand, has risen to become one of the most valuable entertainment companies in the world.

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We at the Haufe Akademie have already felt how brutally change can affect a company. The coronavirus pandemic brought our most important business segment at the time to a complete standstill. The global situation initially made face-to-face seminars impossible and subsequently much less attractive for companies and employees. Unlike some of our competitors, we took advantage of this change and were even able to benefit from it because we reacted quickly and systematically switched to live online seminars.

The stories of companies that have failed as a result of these massive, disruptive changes usually only mention a few company names such as Kodak. In doing so, we lose sight of the fact that this failure is not the exception of a few. On the contrary. We don't even realize how large (and growing) the number of companies is that disappear into oblivion year after year because they react too slowly to change. Or of companies that have been successful for decades because they have adapted time and again.

The ability to continuously adapt to change is what distinguishes sustainably successful companies from those that eventually disappear. In a time of accelerated change, this realization is particularly important. Can we afford to continue to ignore the blind spot? I think not. Instead, we need success stories that invite imitation: Stories of companies, of courageous decision-makers who run their companies successfully because they have adapted time and time again.

A phase of accelerated upheaval

Change is a constant, both in nature and in the economy. However, there are always phases in which this change takes place particularly rapidly. We are currently in such a phase of accelerated change. Technologies that are developing at unprecedented speed, such as artificial intelligence, are threatening business models in entire industries and giving rise to new ones. New competitors are entering a globalized market at an ever faster pace. And political crises are creating additional challenges for companies - from unstable supply chains and ESG requirements to cautious purchasing behavior among end consumers. Since the end of the coronavirus pandemic, we have also seen fundamental changes in everyday working life that require the development of new skills across the board.

Studies such as the Accenture Pulse of Change Index confirm that the speed of change is increasing exponentially. The consulting firm uses the index to analyze the extent to which companies' business environments are changing from year to year. It shows that the pace of change has accelerated significantly in recent years. The pandemic, geopolitical crises, skills shortages and new technologies were among the biggest drivers of acceleration last year. Business leaders expect the pace of change to accelerate further in 2024.