Why do so many boards chase growth like it’s a lottery ticket and ignore sustainability like it’s an afterthought?
At a board strategy session for a client in the hospitality sector, the directors were excited about their aggressive expansion plan, new locations, new partnerships, and double-digit revenue projections. On paper, impressive but after three hours, no mention of how these decisions would hold up in five years. No conversation about talent capacity, risk exposure, climate compliance, or tech disruption resilience.
I asked them bluntly:
“Is your plan designed to grow the business, or is it designed to outlive you?”
Silence knocked, that’s the difference between growth chasers and legacy builders.
The case of the agriculture board that saw ahead
Contrast that with a client in the agriculture value chain. Two years ago, their board rejected a tempting export contract because it promised short-term revenue spikes and exposed the company to unsustainable input costs and volatile currency risks. Instead, they doubled down on building local supplier capacity, invested in regenerative farming practices, and automated supply chain logistics.
Guess what?
Last year, when droughts hit and currency swings rocked competitors, their margins held. Their model was future-proofed, growth sustained and stakeholders secure.
Board’s real job: steward, strategist, sentinel
Boards don’t drive growth by approving more projects but they drive growth by:
1.Demanding future-proof models.
Every strategy must pass the test: Is this scalable and sustainable? What happens when markets shift, tech evolves, or regulators tighten?
2. Institutionalizing risk visibility.
Growth amplifies risk. Boards must ensure risks are not buried in departmental reports but mapped against strategy and mitigated structurally.
3. Embedding sustainability into incentives.
If the board’s bonus schemes reward revenue without accountability for long-term resilience, you’re paying people to burn the business down.
Mr. Strategy’s challenge
At your next meeting, scrap the growth charts. Ask:
“What part of this strategy guarantees shall we be relevant and resilient in 2030?”
If you can’t answer, you are not governing but you are gambling.
Shall I help you stress-test your board’s growth plans against sustainability criteria?
Kenya Fluorspar Company, when short-term gains blindside long-term viability
In the heart of Kenya’s Kerio Valley, the Kenya Fluorspar Company once stood as a beacon of industrial promise. Established in 1971, this mining enterprise was among Kenya’s leading foreign exchange earners, extracting fluorite, a mineral integral to various industrial applications. However, beneath its gleaming surface lay poor oversight: a disregard for sustainable practices.
By 2015, global fluorspar demand waned, and prices plummeted.
Instead of proactively diversifying or investing in sustainable practices to buffer against such market volatilities, the company remained tethered to its traditional operations. This myopic focus led to a complete halt in operations by 2016, culminating in ceasing its mining lease in 2018. The once-thriving enterprise became a relic of missed foresight.
Lessons from the Downfall
- Market adaptability: The global shift towards sustainability isn’t a fleeting trend. Companies anchored in extractive industries must anticipate market evolutions and pivot accordingly. Kenya Fluorspar’s inertia exemplifies the peril of stagnation
- Environmental stewardship: Sustainable environmental practices are not mere regulatory checkboxes but pivotal to a company’s longevity. Neglecting this can erode community trust and invite operational roadblocks.
- Community engagement: The company’s operations heavily impacted local communities, leading to strained relations. Genuine engagement and investment in community welfare are foundational to sustainable success.
The board’s mandate championing sustainability
Boards must transcend traditional oversight roles and embed sustainability into the corporate DNA. This involves:
- Strategic foresight. Anticipate global trends and steer the company towards resilient practices.
- Risk management. Identify and mitigate environmental and social risks that could jeopardize the company’s future.
- Stakeholder integration. Ensure that community and environmental considerations are integral to decision-making processes.
Mr Strategy’s challenge
At your next board convening, pose this pivotal question:
“How are we future-proofing our operations to ensure sustainability amidst evolving global dynamics?”
If the response is nebulous, it’s time to recalibrate your strategic compass.
Shall I assist in crafting a sustainability roadmap tailored to your organization’s unique context?
