Where is the Heat Going to come from in 2010?

As the nation is gripped by this latest cold front, my thoughts, for now, are not on the rising energy costs or alternative energy sources to combat the falling temperatures. The sustainability consultant is me is focused on a different kind of ‘heat’ generation. I am actively evaluating the pressures that businesses will face in the coming year. More specifically, how this ‘heat’ will affect long-term business sustainability and what proactive steps my clients can take to mitigate the risk.

Examining a recent presentation, Emerging Risk Update, there are some familiar business pressures expected this year and some growing business sustainability risks to consider. The Corporate Executive Board identifies the following business concerns going into 2010:

•    Continued Recessionary Pressure
•    Cost Reduction Pressures
•    Increased Competitive Pressure
•    Strategic Change Management
•    Political Trends
•    Talent Risk
•    Liquidity Risk
•    Commodity Prices
•    Tax Regulations
•    Compliance

Meeting the economic challenges of 2009 required a tremendous amount of internal focus. However, in 2010 we are taking these concerns beyond the boundaries of the organization to address broader business sustainability.

Our professional consulting is examining the growing business concerns companies are identifying within the supply chain. Surviving 2010 and into the future goes beyond identifying and managing internal business risk. It requires an understanding of the ‘heat’ coming from external stakeholders. As a result, we often ask our own clients: “How well do you know your suppliers?”

•    What type of relationship do you have with your suppliers?
•    How dependent are you on their survival?
•    How dependent are they on your business?
•    What visibility do you have into their sustainability risk?
•    How might their decisions and operating practices ultimately affect your business?

At Taiga Company, our sustainability consulting views a key component of best-in-class supply chain management to be the ability to measure not only internal but external business sustainability risk. If your business is feeling the heat, applying sustainability concepts in the supply chain may be the answer.