Sustainability Measures for a New Economy

It is not certain how or when the economic recovery will unfold. The only certainty is that the current state will not last, and that at some point, we will reach a point when only upward movement is possible. In fact, some experts believe that we are near a turning point in a direction of greater stability. In anticipation of this recovery, our professional consulting has observed the redefining of measures of personal and business sustainability.

In conversations with peers and clients hit hardest during the downturn, we have been engaged in some interesting inquiries into the future of business sustainability:

•    How will this new economy be different than those of the past?
•    How will the landscape of business change?
•    How can we rebuild for a sustainable future?
•    How should or planning and strategies change?
•    What metrics and indicators should we be monitoring?

At Taiga Company, we believe that the planning and forecasting strategies of the past will have to respond to the changes occurring around the world. Performance measures will now have to take into account business sustainability indications.

In a previous post, Indicators of Sustainability Success, we discussed how sustainability indicators integrate environmental, social, and economic factors into a cause and effect relationship. This concept is causing companies to redefine the criteria for business performance.

•    Validity – do they measure something relevant?
•    Available and Timely – is the data available on a regular basis?
•    Responsive – do they respond quickly and measurable to change?
•    Representative – do they cover the important dimensions of the evaluation?
•    Flexible – will they be available in the future?
•    Proactive – do they act as a warning or a measure of current state?

Performance measures have always been a part of business. Over time, companies have learned to incorporate metrics most applicable to their stakeholders. Leading organizations are now embracing more advanced performance management practices to include business sustainability indicators.