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Business reasons for taking the environment seriously

Business reasons for taking the environment seriously

A number of years ago, our team wrote a short white paper on nine business reasons to take green issues seriously. You can read and download it here. We still believe this. The recession has meant that environmental issues have been put on the back burner by some customers and consumers, but we still think that the trend is clear into the future: being more ethical, being more environmentally friendly and being more green will be a good thing.

In this video, Graeme Codrington outlines some key reasons to take the environment seriously.

 


This video of Graeme Codrington was recorded by our good friends at Your Business Channel as part of their ongoing work to capture the best business insights in video format. See more video at our TomorrowToday TV channel.

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Building innovative companies using the powerful disruptive force of the Connected Generation (Part 1)

Building innovative companies using the powerful disruptive force of the Connected Generation (Part 1)

Competitive dynamics are shifting and the rules for success and failure are being rewritten across almost every industry and every business function. Exciting new innovative business models are emerging every day and you don’t have to be a fresh upstart to be a leading innovator. A recent study by Fast Company on the most innovative companies for 2013 shows that established companies Nike, Amazon, Safaricom and Target (the latter was founded over 110 years ago!), make up part of the Top 10 most innovative companies. However, the study also reveals that being legacy free helps as six relative newbies: Square; Splunk, Fab, Uber, Sproxil and Pinterest; capture the other top ten places and in doing so lay claim to the accolades that go with being a leading and successfully disruptive company.

These top ten innovative companies have two things in common; an overwhelming desire to disrupt their competitors by re-imagining the ways things are done and, they are also guided and driven by leaders who come from what we at TomorrowToday call the Connection Generation.

The Connection Generation is a cohort of innovation vanguards and change agents. As a rule of thumb, they were born sometime from the mid to late 1980’s until the early 2000’s and subsequently lived their adolescent years after 1995 growing up just as personal computers started to become ubiquitous in everyday life. This generation has been connected, communicating, content-centric, computerised, community-oriented, and continually clicking since they can remember. However, being a member of the Connection Generation is attitudinal factor rather than entirely age related, as we shall see later.

Astute companies are recognising the importance of creating a workplace that attracts and inspires talented members of the Connection Generation. By 2020, across the United States, Europe and the BRIC countries, this generation will make up 40 percent of the population and by then, they will constitute the largest single cohort of consumers and employees worldwide.

Business leaders take note, this generation is already rewriting the rules for success and failure and will be one of the greatest forces for disruption and empowerment the world of work has ever known. They are unhindered by preconceived notions of how things should be done, and their digitised view of the world ensures that they can imagine entirely new ways of doing things. We predict that this generation will drive changes in the world of work that will have as far reaching an impact as the industrial revolution had 200 years ago.

To support this claim we share with you, in Part 1 of this two series article, how the rules for competitive advantage have changed and why. In Part 2 we show why these changes in competitive advantage play naturally into the hands of the Connection Generation and in doing so we also provide you with a framework and new business script for building a competitive advantage in an era of turbulent change.

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Competitive Advantage: What matters most today and how we got here

Competitive Advantage:  What matters most today and how we got here

The Connection Economy – Competitive Advantage:  What matters most today and how we got here

By Keith Coats, TomorrowToday International Partner

Competitive advantage has always existed and understanding the evolution of what constitutes competitive advantage in today’s context, is important for any business. It may seem obvious and yet there are many companies who persist in playing by ‘old rules’ when it comes to their endeavour to create a competitive advantage for their service or product. A way to understand today’s competitive advantage – and for many it will strategically be ‘tomorrow’s competitive advantage’, is to ‘go back to the future’.

By tracing what constituted competitive advantage through a succession of economic eras, we are able to see the evolution of what remains central to business success. This journey through time builds an appreciation for how each new era precipitates what we could call the ‘rules of the game’ in the quest to establish a competitive advantage. The secret is in understanding these changes to the rules of the game and of course interpreting them into one’s own context and practice. This is not always easy. The inability to do this is a contributing factor in the fall from grace that has beset many companies who at one or other time might have appeared impregnable as they strode like a colossus across their particular industry.

What follows then is a sprint through 100,000 years of human history viewed through a lens of economic eras in which we unpick what constituted competitive advantage in each of the eras examined. Naturally this represents a very generalized overview; nonetheless there are valuable insights to be gained for future success through undertaking such a journey. The other golden threat to be aware of is that although what constitutes competitive advantage differs from era to era, there are important carry-through lessons to be learnt from the past as we navigate our present and future realities.

The Hunter-Gatherer Economy:

If we estimate human history to span 100 000 years, then approximately 90% of this period would have been dominated by the ‘Hunter-Gatherer’ era. In this era a nomadic, tribal lifestyle would have been the norm. Experience was essential to both survival and the transfer of knowledge. It stands to reason then that the elders were the leaders within the tribe. Those whose stories stretched back the furthest were the leaders.  Remembering was revered, as it was essential to survival. In this era achieving a greater sense of focus than your competitors forged competitive advantage. By ‘focus’ it is meant the ability to hunt, ensure the tribe’s safety and act on vital knowledge. In essence the ability to action or translate this ‘sense of focus’ secured a competitive advantage. In this economy leadership would have devolved to the strongest of the species. In the tribal context this meant that men would have exerted dominance when it came to leadership matters.

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Competitive Advantage through the Economic Eras

There are two important lessons for us today from this particular era: The tribal cohesion and loyalty that helped ensure survival and the importance of storytelling in the context of preserving and transferring fundamental values.

What is interesting is the resurgence in both these concepts – tribes and story, in the context of the modern company.

The disruptive shift that occurred which changed the rules of the game was the ability to harness animal power to plough – and of course the plough itself. One way to understand ‘disruptive shift’ is to tag it ‘technology’. This then emerges as a consistent lever in the transition from one era (economy) to the next. Technology is always the ‘game changer’ and is also a simplistic way to understand the respective transitions that we are exploring. In reality, it is not this simple. We know that events – local and global, as well as other factors also impact on such transitions. However, for our purposes, we will concentrate purely on the major technologies that served as a catalyst to the rules of the game changing when it came to competitive advantage.

 

 

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Do you think this is the end for the High Street?

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We don’t.

Yes, another big UK retailer, Republic, bit the dust today.  It’s been an incredibly tough few years for the High Street, with retailers having to negotiate through the challenges of out-of-town retail parks, online competition and the deepest recession in our lifetimes.  And it’s unlikely to end any time soon as consumer spending bumps along the bottom for a while to come.

Yet despite all appearances, we don’t expect the High Street to suffer a lingering death.  In fact, we expect to see something of a renaissance, although it may take some time as the recession plays itself out and the industry adjusts to the new reality of retailing (read about it in our “Tomorrow’s Retail” report).

In essence, for customers, the business of shopping won’t change. A combination of price, convenience, urgency and emotion will determine where a shopper chooses to spend on any given occasion. What will change is the level of information available to the consumer to make these choices. We’ve moved from ‘traditional’ to ‘multi-channel’ to, now, ‘hyper-channel’ – with customers using an almost endless permutation of routes to discover, research, buy and report on their purchases.

Just how fast the retail landscape is changing is illustrated in this great interview with eBay CEO John Donahoe, who felt it necessary to shock staff by telling them the business was “on a turnaround” and making radical changes to the business model of a so recently innovative company.

The distinction between offline and online sales is already blurring, and will become even more intertwined as the customer uses the physical shop as a ‘showcase’ and can choose whether to make the purchase there and then or later, online or off, to take home then or be delivered later.  Price visibility will become critical as it becomes easier for customers to compare prices and more of them have the technology to do so.  Mobile payment will explode, making cash and cards virtually redundant within only a few years.

The expected impact upon the High Street will be that large retailers reduce the number and size of stores as both coverage and in-store stock become less important.

The less expected outcome, as pointed out by Richard Cuthbertson of the Oxford Institute of Retail Management at Saïd Business School, is that “…price transparency could encourage people back to the High Street because they know they don’t have to be sat in front of their laptop to get the best price”.   Customers will have a new confidence to make informed choices that aren’t always price driven, or will just stop making the assumption that prices are always cheaper online.  Online shopping is convenient, yes, but there’s nothing like coming home with an armful of bags and boxes if you know you aren’t paying over the odds for the thrill.  And we know price isn’t everything – businesses such as John Lewis and Amazon aren’t the cheapest 100% of the time, but customers return because these retailers have built a relationship with their customers where the convenience and service outweigh any minor price differential.

So, we will see a new mix in the High Street.  Yes, the next few years will see the large retailers reduce, withdraw or just stop trading.  But Manufacturers will increase their bricks-and-mortar presence as ‘direct touch’ becomes obligatory.  Apple is manufacturer, retailer and service provider to its customers, who don’t distinguish or care which bit they’re dealing with.

Rents will fall, which will encourage the remaining big players to return, albeit to smaller premises.  And the new High Street will even offer an opportunity for smaller and local businesses to move back in and reach their niche markets more sustainably.  The consumer once again gets a varied, active and busy High Street.

Now, doesn’t that sound great?

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Tomorrow’s Retail – using data to help customers (not scare them)

Tomorrow's RetailWhat if a retailer could anticipate what a customer needs before they even realise it themselves?

US store Target, famously got into hot water when it used analytics to predict when customers were pregnant in order to benefit from their upswing in spending and sent coupons to a teenage girl whose family were not yet aware of her pregnancy. Since then, the store has found subtler ways to target mums-to-be in a less intrusive fashion.

In our “Tomorrow’s Retail” report (download it now for free), we have found examples of retailers using purchasing data from milk to gas barbecue canisters to approach the customer with an offer before they have even considered shopping around.  And although it might sound a bit ‘Big Brother’, what a great service to the customer that could be, if executed with consideration.

Amazon is famous for using its data to powerful effect.  In pure merchandising terms, it reports that 30% of its sales come from its recommendation engine – that is, “Today’s Recommendations For You”, “Frequently Bought Together” and “What Other Items Do Customers Buy After Viewing This Item?”  It also uses data to give a seamless feel to customer service calls, meaning that customers are not repeatedly asked to provide details that Amazon already possesses and customer service staff have access to the data they need – and thus removing those familiar frustrations we are all familiar with.

In a serious attempt to catch up with Amazon in the online space, US retailer Walmart is really taking its data seriously. It has made a massive investment in Walmart Labs, building new offices in a Silicon Valley base to give it access to the best tech talent.  It has so far launched its own semantic-based search engine and is developing ways of combining online data with store shopper data to give personalised homepages, and even taking a shopper’s local weather forecast into account when making purchasing suggestions.  Read all about it here.

The increasing pressure on businesses and governments to disclose information back to the public could cause retailers problems in their use of data – read about Smart Disclosure in this new HBR article.  Tesco, always in the forefront in the utilisation of data to help customers and drive sales, has pre-empted Government regulations with its plans to roll out “Clubcard Play” – a service that will give its loyalty card customers access to their own shopping history along with planning and goal-setting functions.  A bold attempt to harness another trend, gamification, to introduce some fun into grocery shopping.

The march of data continues.  Retailers lead, but all other consumer-facing businesses can and will need to follow.  How can you use the information your business has to help your customers? (not scare them!)

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Tomorrow’s Retail – Available Today!

Shopping bags and mobileToday we launch our new Tomorrow’s Retail report and we hope you take the chance to download and read it.

And please don’t think that if you don’t work in retail, it’s not for you.  One of the things we focus on at TomorrowToday is how technologies and innovations from one industry can prove disruptive to other, quite unrelated, businesses.  For example, the Nintendo Wii was not an iterative development built upon the blocks of existing video games – it was someone who thought to harness the technology used in airbags that brought revolution to the games industry.

Retail, at the front line in terms of responding to customers, tends to be ahead of the game in utilising technological advances and understanding changes in people’s needs and demands.   We’ve uncovered some really innovative and exciting applications and business models – but which could disrupt your industry?

Despite the enormous upheaval in the retail sector illustrated by the recent loss of three more UK high street names, to all intents and purposes the business of buying hasn’t changed much.   A combination of price, convenience, urgency and emotion will determine where a shopper chooses to spend on any given occasion.  But what has changed, and will continue to do so, is the level of information available to the consumer to make these choices. We’ve moved from ‘traditional’ to ‘multi- channel’ to, now, ‘hyper-channel’ – with customers using an almost endless permutation of routes to discover, research, buy and report on their purchases.

Yes, there have been some high-profile casualties in the retail space within the last couple of weeks, but we don’t think that the high street is going to disappear any time soon. It’s going through a painful patch right now, having to contend with the huge disruption wrought by online retail as well as the depression in consumer spending caused by the ongoing recession.  But it could come out the other side looking far more interesting.  Big chains will become less dominant, taking smaller spaces to ‘showroom’ their products using some amazing new technology such as the cool stuff to be found at Audi City in London, or the virtual fitting room swivel.  This reduction in big-chain spend will force rents down, allowing niche and local businesses to move back in – and expect to see online operators like Amazon joining them with some exciting concept stores…..

In the online environment, new social, collaborative and just plain helpful business models are springing up. One of our favourites is the potentially very disruptive Decide.com – which not only shows a customer where a product is cheapest, but it also predicts if the price is likely to change, a confidence rating in this prediction and an indication of when new models are to be launched.  What would happen in your industry if customers made their buying decisions using such a system?  Maybe it couldn’t happen, you say.  But could it??

Take a look for yourself at all our discoveries and predictions and consider how your industry could be disrupted.  You can download the Tomorrow’s Retail report here.

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What is your industry’s iceberg?

What is your industry’s iceberg?

There are numerous forces changing the shape and face of business today. We call the most important ones the TIDES of Change. TIDES is an acronym standing for Technology, Institutions, Demographics, Environment and Social values. Each forces has numerous, let’s call them “icebergs” disrupting the normal flow of business and changing business models and entire industries. The thing with icebergs is on the surface they look innocuous but below the surface lies a force that can sink even the most “unsinkable business”. Take the music industry bosses for example. Their iceberg was digital music. They knew about it, had been warned about it and yet still sailed full steam into iceberg iTunes.

Another “iceberg” would be shift in demographics resulting in the emergence of  digital natives. This young generation of media and tech savvy social vanguards, is not only discovering new ways to disrupt business, but also how to invent completely new industries. Business of the future is digital, social and mobile. This generation will not wait a moment to disrupt your industry. How are you responding to this generational “iceberg”?

What are your industry’s or business’s iceberg? Contribute and let us know we are compiling a list of all forces capable of sinking today’s “unsinkable” businesses.

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The Third Wave of the Digital Age

The Third Wave of the Digital Age

Last Saturday, I spoke at a TEDx conference in London.  The talk I initially scripted would have taken longer than half an hour – not quite TED style!  The talk I planned to give would actually have taken about 19 minutes – and the fairly detailed script is reproduced below. (The talk I eventually gave took about 16 minutes – the video will be available soon).  As with all TED talks, I had to choose a focus and stick to it.  But, hopefully, these themes will be worked out in more detail in the book I am writing, that will be released early next year.

I’d really appreciate your comments on the content below…

 

TEDxSquareMile: Future of Work, Power to Make a Difference

The third wave of the digital age
by Graeme Codrington 

 

We are living at the start of a third wave of the digital age.  And things are about to get very interesting.  At least that’s what history promises us.  You see, a hundred years ago the world went through a similar third wave of the Industrial revolution, and it changed everything and set us up for a century of growth, development and change.

 

My 98 year old grandmother was there to witness it. She was born in 1914 when a workplace revolution was taking place.  Just recently, at a family gathering, I sat in on a conversation between my near-centurion grandmother and my daughters, her great grandchildren.  I have three daughters: 13, 11 and 7 (it’s the digital age – I told my wife they didn’t need names, but she thought otherwise).  Anyway, my grandmother and my daughters were talking about the world as she knew it.

 

As my grandmother reminisced about the things that have changed in her lifetime, it was interesting to me to consider that the biggest workplace revolutions of the last century actually took place in the first few years of her life.  In 1911, just two and a half years before my grandmother was born, Frederick Taylor presented a paper to the American mechanical engineering society.  It was titled, “The Principles of Scientific Management”, and it laid out the roadmap for the third wave of the industrial age and set up a model of the world of work that survived throughout the 20th century.

Taylor’s ‘scientific management’ approach exemplified the third wave of the Industrial era.

 

The first wave of any revolution is when inventors come up with new inventions, technologies or machines.  They might not see all the implications, but they present these machines and discoveries to society and put them to their most obvious and immediate uses.  This happened in the Industrial age with the steam, coal and oil driven motorised engines.

 

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What next for Rewards? Exploring the future of Loyalty Programmes

Is loyalty a thing of the past? Generations X and Y are naturally less loyal, believing in instant gratification. At most, these generations are concept loyal, not brand loyal, and they have grown up cynical and jaded by the attempts from companies to woo them with glossy adverts and false promises. Baby Boomers have also wised up. They have learnt through failed pension plans, medical schemes that don’t deliver and bank foreclosures, that even though Boomers now run the show, it does not mean that they are getting things the way they wanted them.

Added to this, technology has given customers a growing ability to determine seamlessly and in real time which company is offering the best benefits, price and experience. The combination of the Internet, social networks and mobile devices has dramatically shifted the balance of power in favour of customers. Companies are now more transparent than ever before.

Our most recent project at TomorrowToday Strategic Insights has been taking a look at what the future holds in store for the Rewards Programme Industry. Dean had an enviable trip to the Caribbean to present this but before he did, we were working hard to find some great stories! The good news (for Rewards Programmes) is that while loyalty, in the true emotional sense of the word, is becoming more difficult to obtain, today’s customer is very attuned to a ‘deal’ and expects more than just a purchase. Rewards programmes that continually offer value to the customer will tap into this desire and drive business.

The traditional model of purchase-earn-redeem, however, is quickly becoming inadequate.  State-of-the-art systems can deliver rewards and offers at point of sale and mobile solutions offer deals-on-the go and ways of combining rewards, payments and offers. We found some great examples of innovative companies who are tapping into this trend and putting old-style reward programmes under a lot of pressure.

For example, a new breed of ‘aggregator’ apps recognize the headache consumers have in managing and tracking their various reward programmes. Points.com was one of the first, and its customers can now swap their rewards into PayPal credit, trade points with other users and even buy additional points – a truly flexible solution. A newer entrant, Milewise, has a travel search and booking functionality so that customers don’t have to leave the site to book flights with their rewards.

Geo-location and Augmented Reality can take this one step further and push offers and rewards to customers based on their location and preferences. Wikitude, for example, will show reviews and ratings for nearby businesses and offer the user associated deals and mobile coupons.

Rewards programmes have also sprung up in response to the increasing trend towards valuing the local and ethical, which is set to deepen as Generation Y emerges as highly-socially conscious.

Wedge is a London-based local loyalty card launched in July 2011, in which only stores with fewer than 10 branches can participate. The card costs £10 – £1 of which goes to supported local charities. Blue Dot is a scheme that rewards people for actively supporting charities by giving money or volunteering. Users can exchange their points for access to exclusive products and downloads from celebrities and career experiences from major brands. Gen Y job hunters can use the site to create a personalized resume that could help them reach new job opportunities.

There are many more examples in what is becoming a quite crowded space.  The winners will be the programmes that know their customers inside out, that offer them multiple opportunities to collect rewards which can be used flexibly, and that utilise technology to work for the customer.

And that offer a bit of fun as well perhaps? Belly is a start-up with a great app, but its point of difference is the ability for participating businesses to tailor rewards – which they have been doing with enthusiasm! Current rewards include 10 minutes of all you can eat cupcakes at a bakery, a comic book store that offers customers a chance to punch the owner in the stomach, an arm wrestle with a sandwich restaurant owner, or to have a portrait of the customer plus dog displayed on the wall of a Pet Parlour – and who wouldn’t be tempted by those?!!

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Secrets to Success in a New World of Work: High Tech, High Touch, High Trust

Secrets to Success in a New World of Work: High Tech, High Touch, High Trust

The world we live and work in has become increasingly complex in the past two decades. Rapid advances in technology, together with globalization and fast growth all combined to rewrite the rules of success, failure and organizational design. The result is that in most multinationals we now have very complex matrix reporting structures, a proliferation of geographically dispersed teams, managers who would not be able to complete the work of absent team members, and more stress and pressure than ever before.

In this environment, we have no choice but to rely on others for our success. This is raising the premium on at least three aspects of this new world of work: computers, connections and collaboration. A high tech world is still high touch, and demands high trust.

High Tech

It’s almost impossible to imagine that a little over two decades ago we had no mobile phones, no Internet, no email and no 24-hour TV news channels. In less then one generation we have revolutionised communication and initiated significant change in every aspect of our lives. Initially it seemed that the revolution was simply to speed up everything we had been doing, but increasingly we’re discovering that advances in computing power, processing speed and bandwidth, also allow us to do different things and to do what we do in entirely different ways.

Companies are only just beginning to discover the benefits of this high tech world. Many organisations still fear it, banning Facebook, YouTube and Skype, and limiting access to the digital world during office hours. Some have begun to experiment with using technology to enhance what they do already, including video meetings, in-house instant messaging and document management.

But only a very few are truly stepping into this high tech world and trying to take advantage of issues like “big data” (our ability to harvest, process and utilize hundreds of thousands of data points, and use algorithms and intelligent systems to look for patterns in the data that can influence our decision making), social business (using the concepts underpinning social media to devise entirely new approaches to all aspects and functions of business), BYOD (bring your own device, as companies stop insisting on specific hardware or uniform platforms for staff) or truly mobile, cloud-based, digital communications (that will free people up from needing to be in any specific location).

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The Future workplace: How technology, globalisation and the environment is affecting the way we work

The Future workplace: How technology, globalisation and the environment is affecting the way we work

Predicting the future is not an exact science. However, in these days of rapidly changing technology, it has become more imperative than ever for companies to look ahead and try and predict how technological advances, globalisation, environmental concerns and people’s desire for more flexible working will affect the way business is carried out. And this future of work matters not only in the way we work but where we work, says Vanessa Townsend of Recruiter Magazine

Vanessa interviewed TomorrowToday co-founder, workplace futurist and international speaker Dean van Leeuwen for an article published on the 2nd November and titled Brave New World of Business. You can buy the magazine in any good bookstore or read the online version below or at Recruiter Magazine

How is technology, globalisation and the environment affecting the way we work?

By Vanessa Townsend

2 November 2011

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The New Business SCRIPT: new article in Motivated Magazine

August 11, 2011 Dean van Leeuwen Articles and white papers, Change, Innovation, Strategy No Comments
The New Business SCRIPT: new article in Motivated Magazine

MOTIVATED Magazine encourages readers to rise to their fullest potential. Pairing passion with purpose, the magazine features insightful articles submitted directly from today’s world leaders, entrepreneurs, and everyday people with extraordinary stories to share…Readers are able to tap into the knowledge and life experiences of people and writers like: Bill Clinton, Chris Gardner, Deepak Chopra, Seth Godin and Steve Wozniak.” (http://motivatedonline.com/)

So when this prestigious magazine offered me the opportunity to write a series of articles I knew exactly what I wanted to write about – the new business SCRIPT – here is the headline thinking:

The capitalist system is under siege, says Harvard Business School professor, Michael Porter. Companies are being perceived as prospering at the expense of society and their legitimacy has fallen to unprecedented levels. Porter elaborates further: “A big part of the problem lies with companies themselves, which remain trapped in an outdated approaches…”

What is required is a new business script. Old models and approaches no longer work. My first article for Motivated Magazine
explores what the new business SCRIPT is and subsequent articles will dig deeper revealing our research results and illustrate what successful companies are doing today to be more competitive.

SCRIPT is an acronym and it stands for:

Strategy @ speed
Collaboration
Results
Innovation
People
story Telling

The new business SCRIPT provides a great framework and assists in exploring and understanding what needs to done in the new world of work. The great thinking coming out of our Research Lab and some of the leading universities is incorporated into this new framework. You can read the article below or visit Motivated Magazine

We also have a new presentation based on The New Business SCRIPT and you can contact James Dunne if you would like to book one of our speakers.

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Primary Blog contributors

The main contributors to this blog are:

Dr Graeme Codrington, co-founder of TomorrowToday, author, speaker and expert on the changing world of work
Dean van Leeuwen, co-founder and CEO of TomorrowToday UK & Europe, speaker, consultant and Chief Intellectual Adventurer
Keith Coats, co-founder of TomorrowToday South Africa, leadership development guru, speaker and author
Professor Nick Barker, director of the Asia Pacific Leadership Program at the East-West Center in Hawaii, leadership development expert
Markus Kramer, marketing director for Aston Martin and brand building expert
Keith Holdt, Visionary Enabler of business growth and change, currently works for LDC as an investment executive.
Dil Sidhu, Chief External Officer, Manchester Business School; Executive education specialist.
Dawna MacLean, expert on fostering meaningful change and creating authentic experiences through transparent and trusted partnerships.

Click here for a full list of contributors


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