Your Town's Business Community Can Lead the Way to "Winning the Peace"
Photo by Artem Beliaikin from Pexels
We can learn so much from history, particularly when we can extract the right lessons. I recently saw where someone compared the pandemic and the future that’s still unfolding to World War Two and what happened after. It’s not just about fighting (and winning) the war; it’s just as important to think about what happens after it’s over.
Once World War Two was over, the slogan became, “And now—win the peace.” The words resonated. The war was over, and the world had to set about reinventing itself in a big way. To say the economy experienced a boom is an understatement.
Can we also “win the peace” following the fierce battle we’re now in the thick of? There is a tendency for all of us to focus on “getting through this.” It’s normal to want to get through painful circumstances, but it’s not enough. We need to look farther down the road. Now is the time for business leaders—in league with local government and citizens—to start figuring out what our communities are going to look like on the other side of the pandemic, in the midst of massive social and economic change.
The business community will play a critical leadership role in moving our nation into its next normal. It has to, because there can be no prosperity without economic growth. On a local level, too, the business community will need to take the lead as cities and towns move into the future.
We’re coming up on a year since the Business Roundtable released its Statement on the Purpose of a Corporation. The point of this official statement—signed by leaders of companies like Amazon, Walmart, Pepsi, and Apple—was that corporations shouldn’t just advance shareholder interests. They should also commit to investing in employees, dealing fairly and ethically with suppliers, supporting the communities in which they work, and so forth.
In the face of the COVID-19 pandemic and its economic fallout, the Business Roundtable’s message matters more than ever. Companies need to think, What does this statement really mean? What does investing in stakeholders (not just shareholders) look like in action? It’s the decisions we make in tough times that reveal our values.
With this in mind, it’s vital that values-driven business owners and leaders lead the way and partner with our communities as we move into the “next normal.” Here are just a few things businesses and local communities can do to help get us back on our feet.
First, understand the emotional fallout of the pandemic. People will need a sense of purpose to help rebuild their lives. The pandemic has caused great anxiety and a profound sense of loss. Our world has crumbled around us, and much like nations that had to rebuild after World War Two, we need to see that we can build a new one. The U.S. came up with the Marshall Plan to help alleviate human suffering in the late ’40s and early ’50s. On a smaller scale, how can communities do something similar? It is up to leaders to give citizens a vision to work for and a plan for getting there. When people have a sense of purpose, we can achieve great things.
Invest in digital infrastructure. Digital connectivity is more important than ever before. For a while, it’s been possible to work from anywhere. But now, in a matter of months, COVID has made virtual work a reality for countless people. It has never been clearer that talented people can live wherever they want and work remotely. This gives vibrant smaller communities with their lower cost of living a huge advantage. Just make sure the digital infrastructure is ready for them.
The role of the public sector will need to be reinvented. Government will be asked to do more with less. Just like business, they’ll need a renewed focus on competency, efficiency, execution, and accountability. We need better public-private partnerships around community investment and infrastructure, as well as education and other social issues. Now is the time for forward-thinking communities to lead the way in closing the widening achievement gap and decreasing economic inequality for minorities, a challenge that has only been exacerbated by the COVID-19 crisis.
Shore up your entrepreneurial ecosystem. A strong small business presence is the economic engine that drives communities. This is why it’s so alarming to see so many struggling and failing right now. It is crucial to make sure that your community a) removes all roadblocks to starting a business and b) strengthens its resources for new entrepreneurs.
Invest in retraining the workforce… We are entering a new normal and we may need to revise our skill sets. There is a lot of opportunity for companies to share knowledge and resources with others in their local business community. This not only helps new businesses thrive, it keeps them strong over time—and, of course, a well-trained workforce is crucial for attracting investors. Chambers of commerce are perfectly positioned to facilitate and promote skills and leadership training programs, assuming a deeper, more meaningful role in shaping their community’s future.
…while finding new ways to help citizens re-skill for tomorrow’s jobs. Over the past few decades, technology has changed rapidly. So have the needs of employers. Education systems are looking for ways to create a workforce that can meet these changing needs, but it’s not easy. It’s a job that’s never done. Communities can play a vital role in encouraging fresh approaches. For example, school systems can partner with local industry to create hybrid classroom/distance-learning/hands-on programs that help get more students trained and certified for the high-tech jobs that will be in demand in the future.
Business Roundtable President & CEO Joshua Bolten on redefining the purpose of a corporation, yesterday on @CBSNews’ @FaceTheNation. pic.twitter.com/Uri0tUp0Ow
— Business Roundtable (@BizRoundtable) August 26, 2019
Pay attention to all stakeholders, not just shareholders. Connecting back to the Business Roundtable Statement, it’s time for companies to serve not just shareholders but customers, employees, vendors, partners, and all citizens of their communities. One big key to achieving this is to keep as many people employed as possible. Obviously, this is good for individual employees, but it also helps vendors stay in business and keeps the local economy strong and healthy. In Jim Collins’s book Good to Great, he makes the case that companies that do better long-term are the ones that choose values over revenue. Avoiding layoffs may not be easy right now, but it proves your willingness to choose values over revenue. It’s what stakeholder investing looks like right now.
Plus, there are plenty of other ways businesses can positively impact the community. For example, a developer can practice economic inclusion by committing to hire for their projects a percentage of minorities that reflects the local demographic makeup. Or, as is being done in Pensacola, hospitals can promote early learning by teaching every new parent the brain-building value of talking to, reading to, and playing with infants and young children. (Economist John A. List says the one reliable economic indicator for the long-run vitality of a community is the optimal development of a young child’s brain.)
Get proactive about raising civic IQ. Informed citizens are the “boots on the ground” that make things happen. But only when people understand what’s going on and how they will benefit will they get on board with revitalization plans. Civic education helps people understand the why behind growth initiatives. It gets more people to buy in until, eventually, a community achieves the critical mass that allows progress to happen faster.
“Winning the peace” will take an intense and focused effort by all members of the community working together toward a common goal. It will not be easy and it will not happen overnight. But in my work with cities and towns of all sizes, I have met plenty of people who have the smarts, the resources, and most important, the passion and commitment to make it happen.
As Nelson Mandela said, “It always seems impossible, until it is done.” Nothing is impossible. Let’s get it done.
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