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

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Why companies need to increase their speed of adaptation in times of accelerated change - and how they can achieve this.

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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.

Future readiness gap: The speed of change is increasing. The speed at which companies are adapting is not.

The current situation: future viability means adaptability

The same applies in nature and in the economy: Those who can adapt better to new conditions are successful in the long term

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.

We at Haufe Akademie have also already experienced how brutally change can affect a company. The coronavirus pandemic brought our most important business area at the time to a complete standstill. The global situation initially made in-person seminars impossible and subsequently significantly less attractive for companies and employees. Unlike some of our competitors, we took advantage of this change and were even able to profit from it because we reacted quickly and consistently 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

The speed of change has increased massively in recent years.

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.

The problem: can our companies keep up with the pace?

Accelerated change is a challenge. However, it also offers immense opportunitiesfor companies that can keep up with the pace. I think that many people currently doubt the future viability of German companies because they have the feeling that they are struggling to adapt to the accelerated pace of change. According to a study by the VDI, less than a third of the population agree with the statement that Germany is particularly fast compared to other countries and brings new technologies to market quickly.  

In personal conversations with decision makers , I also realize time and again that these difficulties are real. I regularly hear sentences like these: "Why does it take so long for us to react to changes across the board?" "Why can't we get new technologies into use faster?" "Why do we find it so difficult to develop innovations and bring them to market?" "How do I manage training when I don't even know what skills will be needed in the future?"  

In my view, these difficulties in dealing with change are all an expression of a lack of ability to adapt. In concrete terms, this means

  • The ability to adaptOrganizations must enable Employees to quickly and individually access new relevant topics.
  • The ability to transformOrganizations must make it possible for expertise from within the organization and impulses from outside to reach all areas of the organization via a suitable network density.
  • The ability to innovateOrganizations must enable Employees to work together optimally through horizontal competencies (the so-called future skills) and to create something new through the right vertical expertise (specialization)

Companies need to address these three points if they want to become more adaptable and thus remain competitive in the long term.  

The three modes of adaptation: adaptation, transformation and innovation

The solution: L&D and technology can turn change into a competitive advantage

But how does this work? How do companies build these capabilities and thus increase their speed of adaptation? I am convinced that L&D has an important role to play here and that technology is a crucial key. New technologies are not only a cause of accelerated change, but also a means of dealing with it better.  

The transformative influence of technology on our private lives has long been a matter of course. It determines how we communicate with our friends, how we organize our household, how we pursue our personal interests and how we are entertained in the family circle. These paradigms and advantages of well-known digital platforms can also be used by companies in their L&D processes and offerings. What's more, if these offerings are to be accepted by employees and thus lead to a lasting improvement in adaptability, they must.  

Companies that keep up with the pace of change can build sustainable competitive advantages

This would allow employees to do so,

  • Finding suitable content as easily as on YouTube and thus combining efficiency and immediate readiness to act. Sharing or consuming relevant information as easily as on Instagram, combining a quick sense of achievement and personalization.
  • Communities of interest can be formed as easily as on Teams or Facebook, thus combining imminent issues with existing solution expertise within the company.
  • Sharing knowledge and expertise with many users as easily as on WhatsApp, combining speed and scalability.

Accelerated change is a reality. We need to stop closing our eyes to this reality out of fear - and instead ensure that our companies can keep up with the pace. With modern L&D and the sensible use of technology, the future readiness gap can be sustainably closed and change can become a competitive advantage .