In its Decalogue for the Economic-Business Refounding of Mexico, EGADE Business School has included four recommendations for the transformation of the private sector and its adaptation to this new scenario produced by the pandemic.
By INSTITUTIONAL COMMUNICATION | EGADE BUSINESS SCHOOL
The health, economic and social effects of the COVID-19 pandemic have brought to light the need for a great business reset in Mexico and the world. In this reset, business models will need to adapt to a volatile, uncertain environment, increase disruption in entire sectors, and focus more closely on new ways of working and remote consumption, with all the technological and geographic implications for companies and society in general.
In order to contribute to reflection and the search for collective solutions, EGADE Business School - Tecnológico de Monterrey recently published its Decalogue for the Economic-Business Refounding of Mexico, which includes four key proposals for the transformation of companies and their adaptation to this new scenario:
1. Develop a more conscious model for doing business
Before the pandemic, the world was already immersed in a profound environmental and social crisis that was gradually eroding citizens’ confidence in globalization, democracy and a business model that prioritized shareholder profits over any other objective.
Although this model generated prosperity, growth and opportunities, there is an urgent need for a new paradigm to foster business practices and strategies that will incorporate responsible consumption and production, as well as participation in entrepreneurship and social innovation. In short, a conscious vision for doing business.
2. Establish the entrepreneurial ecosystem as the core of recovery
With depressed business and industrial environments and a sharp drop in the availability of venture capital and foreign investment, supporting and facilitating the survival of existing companies and the creation of new firms by developing government funds matched by private funds is vital. Businesspersons, entrepreneurs and new companies must have access to loans where factors such as the generation of potential employment and cash collateral are sufficient.
In the long term, it will be essential to consolidate an entrepreneurship and innovation ecosystem, with the participation of companies, universities and research centers as talent magnets. In addition, it is extremely important for all the different actors to understand that talent is highly mobile and its attraction requires the creation of dynamic, inclusive and sustainable opportunities.
3. Leverage economic recovery through sustainability and innovation
From this point on, ensuring sustainable development cannot be postponed, which is why companies must set goals aligned with the 17 Sustainable Development Goals (SDGs) approved by the United Nations.
This will lead to the generation of enormous opportunities for companies to raise their sustainability goals, create new business models inspired by the circular economy and develop disruptive technologies, thereby enhancing their reputation and the shared value they offer society.
4. Forge collaborative, transparent leadership
The health emergency has exposed an alarming lack of leadership in society. A confused leadership, plagued with errors has led to a high cost in human lives and resources. As a result of this situation, some institutions or companies are suffering from a mounting lack of credibility that hinders crisis management.
Therefore, and in collaboration with civil society, the private sector needs leaders with a global, human and entrepreneurial vision to head the return to growth and prosperity. These leaders, unlike those of the past, should prioritize collaboration with other companies, universities and diverse organizations, and be completely transparent in their practices and operations.
The ten keys of EGADE Business School’s Decalogue for the Economic-Business Refounding of Mexico can be downloaded here.