Showing posts from February, 2017

How to Build a Business That Lasts a Hundred Years?

Indeed, why should one even think of building a business that survives for a hundred years? Look at the Exhibit below. Whereas human lifespans have increased over the last 50 years and today the average longevity in the developed world is close to 80 years, corporate longevity has been shrinking steadily. Over the same period, corporate lifespans have shrunk from over 60 years to less than 20 years, and are projected to shrink further in the next decade. Another key marker to look at is the five-year mortality risk for corporations. From less than 10% fifty years back, today the five-year mortality risk is 33% in many sectors. Therefore, we can no longer cast aside the need to look at building blocks for corporations that will outlive the founders and be a legacy for future generations. Of course, management gurus and thinkers have provided us with many frameworks, business models, and templates for sustainability. So, what is new? Martin Reeves o