This podcast episode focuses on the Profit+ model, developed by Global Strategist Sophie Krantz, which combines profit with purpose in a practical way. It argues that while many leaders talk about purpose, profit often remains the priority in the current economic climate.
The episode begins by acknowledging the criticism surrounding profit-driven capitalism. However, it stresses that profit is crucial for reinvestment and sustained impact, especially in challenging economic times. Profit allows businesses to operate independently and pursue their purpose effectively.
The Profit+ model leverages economic shifts to drive both purpose and profitability. This model recognises that financial returns can be used to solve real-world problems and achieve lasting impact.
The podcast then delves into the uneven distribution of value, profit, and wealth, highlighting research from Oxfam that demonstrates the growing disparity between the richest individuals and corporations and the rest of the world. The key takeaway is that those who can create and capture value are the ones who accumulate profit and wealth.
The episode then shifts to discuss high-growth arenas identified by McKinsey, which are projected to significantly contribute to global GDP by 2040. These arenas, such as AI, cybersecurity, and biotechnology, are driven by three key factors:
Technological or Business Model Shifts: Maturing technologies and business models enable transformative growth, like the rise of lithium-ion batteries in electric vehicles.
Escalation Incentives for Investment: Strategic investments in areas like R&D and infrastructure fuel market growth and create a cycle of reinvestment.
Large, Expanding Markets: Sectors with rapidly growing demand, such as digital healthcare and AI, present lucrative opportunities.
The episode concludes by providing actionable steps to navigate these economic shifts and turn them into strategic advantages:
Understand Arena Impacts: Analyse how trends in each high-growth arena affect your business and identify opportunities and threats.
Identify Winners: Observe emerging leaders in these arenas and consider competing directly or offering complementary services.
Adopt Futures Thinking: Prepare for multiple future scenarios by considering the potential ripple effects across different arenas.
Ultimately, the podcast emphasizes that understanding and acting on value creation is essential for success in a changing economic landscape. The Profit+ model offers a sustainable path to impact by addressing real-world issues while leveraging current economic shifts.
When you change the way you see the world, you change the way you can shape it.
*Season one of The Global Edge podcast with Sophie Krantz is AI generated. Season two, launching early in 2025, will be hosted by Sophie Krantz.
