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CORPORATIONS expend enormous resources in an effort to innovate and identify new growth platforms.
In this endeavor, corporations will look to customers, consumers, competitors and within their own internal pipelines (Figure 1). In addition, they conduct extensive research and development and even study best-in-class organizations outside of their industry.
Most corporations, however, fail to consider their social critics' viewpoints in an analysis of growth strategies and new initiatives.
Social critics create a dynamic force or a "social pressure" that many companies overlook, and yet, addressing a social pressure can offer a significant upside for corporations.
There are numerous examples of corporations that have leveraged the existence of a social pressure to improve their assessment tools and processes for identifying new tactics and opportunities.
With that said, there is no guarantee that a social pressure will develop into a widespread trend. In fact, the overwhelming majority of early-stage social pressures will dissipate before the mainstream population adopts them.
This is no different than new product introductions conceived through research and development efforts that ultimately do not become marketplace "winners."
The challenge is not simply to heighten awareness of social pressures but to make educated choices about which social forces will grow into a lasting movement.
How does it develop?
A social pressure is an external force created by a person or group of people that aims to affect business practices in a way that supports their cause. This influence causes corporations to consider actions and behavior they may not otherwise take into account.
In order for corporations to address a social pressure, they must first understand how one materializes. A social pressure typically begins on a small scale and permeates outward into the mainstream population (Figure 2).
A social pressure usually begins with a single person's perspective (individual position). Over time, that person's perspective is adopted and shared by a group (social advocacy group). As the group begins to organize (strategic planning of group), it broadens its reach and further increases awareness of the issue (public awareness). Finally, if enough interest is generated, public opinion will lead to the creation of new laws (public policy). Corporations that violate these laws will then incur penalties (judicial involvement).
Today, most firms respond to a social pressure during the later phases of its propagation (public awareness, public policy, judicial involvement). Corporations realize less goodwill and encumber a substantial cost to the corporation with this reactive approach.
In the future, successful corporations will increasingly deal with social pressure in the earlier phases of its dispersion (social advocacy group and strategic planning of group). This proactive approach will require some investment by the corporation, but the cost to the corporation is less, and more positive goodwill is created.
The premise that firms can improve their overall inventiveness and identify potential growth areas by heightening their awareness of social pressure is predicated upon our belief that most firms invest significant resources in these initiatives; hence, there is a vested interest in ensuring that the returns on these business enterprises are maximized.
Importance of processes
The actual processes of identifying innovation and new growth platforms are valuable. Experiencing the processes allows a firm to gain an understanding and work with the new information, ideas and market needs that will ultimately become the firm's future source of revenue. The processes can be equated to preparing for a football game.
Adam Vinatieri, famed field goal kicker for the Indianapolis Colts, practices kicking field goals in game-like conditions, including noise, weather and on poor kicking surfaces. In doing this, he puts himself in the best possible position to capitalize on an important opportunity when it presents itself (i.e., the Superbowl).
Participating in innovation and growth platform identification processes is like preparing for a business opportunity in game-like conditions: When an opportunity presents itself, a firm is prepared to act.
The knowledge obtained through this process is also beneficial to incumbents acting as a "barrier to entry" to new firms trying to enter the market space.
Potential entrants understand that firms investing resources in a new business endeavor possess the requisite knowledge to be successful in that space and that without such knowledge, success is unlikely. Likewise, if incumbent firms cease their innovation-seeking processes, their competitive advantage erodes, and other firms develop a better chance of entering and competing in the market.
Companies today must remain vigilant and commit ongoing resources to forward-looking initiatives and growth opportunities if they want to maintain their competitive advantage in the marketplace. As new processes and products arise, consumer demands change and legal protections expire, competitors will copy what the first mover has done.
Given the importance of ingenuity in today's marketplace, we believe firms can improve their efforts by heightening their awareness of social pressure. Corporations can heighten their awareness by studying the development and diffusion of social pressure in all its phases but with particular attention and resources dedicated to the early phases.
Brief case studies
Starbucks is a great example of a company that has improved its innovation and future growth platform identification processes by heightening its awareness of social pressure.
Its track record on social pressure is excellent.
In 2000, Starbucks entered a licensing agreement with TransFair USA to market and sell coffee that is Fair Trade Certified.
In 2001, Starbucks introduced coffee sourcing guidelines that were developed in conjunction with Conservation International.
In 2004, it joined the U.N.'s Global Compact (network of corporations that support principles about the environment, labor and human rights).
In 2007, the company teamed with Global Green USA to encourage individuals to change their behavior in a way that will positively impact global warming.
Starbucks recognizes not only the importance of addressing a social pressure but also the equal importance of addressing it at the right time. It acts at the point where the mainstream population is familiar with the issue but before the mainstream population calls for corporate action. As a result, Starbucks manages to maximize positive goodwill while minimizing costs.
Google also capitalizes on social pressure. Its approach is subtler than Starbucks' but is equally effective.
Google is a global leader in acquiring desirable human capital. It appreciates that there are several benefits to being an employee-friendly organization. Being the premiere company for employee workplace satisfaction, Google has created a culture that both attracts the best and the brightest employees and prevents activist groups from building claims against the company.
Here are some of the ways Google has built an employee-friendly, "activist-proof" organization:
- It offers a $5,000 subsidy to employees to buy a hybrid car;
- It keeps five medical doctors on site (free access for employees);
- It continually works to establish a culture where diverse interests are welcome and highly desired, and
- It provides free access to on-site workout facilities.
Google made the decision to proactively address the mainstream social pressure of a poor working environment before mainstream social pressure ever had a chance to target Google. It developed a culture that captures innovation and new growth platforms through retaining and acquiring extraordinary human capital.
*Justin Maietta, consultant, and Robert Ludwig, principal, are with The Hale Group and can be reached at jmaietta@halegroup.com and rludwig@halegroup.com. | 
