RED/GREEN/AMBER DIAGNOSTIC
What's the thinking behind our pioneering diagnostic?
In itself, it is quite simple. We ask you six questions, two questions per indicator. The first question in each section is a direct and linear consequence of 2020's realities on your business.
Most organisations have asked themselves these three direct questions and are already making changes to their business accordingly. However, it's the second question in each section that is the key.
The second question has to consider four things at the same time:
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The interconnected nature of income, globalisation and planet stability i.e. a change in one triggers a change in another.
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That interconnectivity is dysfunctional i.e. to restabilise one element we currently further destabilise another.
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Because for the first time since the birth of the modern economy, every element is unstable at the same time and not functioning in line with 20th century norms, so there is no element that can act as a stabiliser, the system struggles to self correct i.e. de-globalisation acts as an accelerant to falling disposable income. Accelerated planetary instability, acts as an accelerant to de-globalisation, which acts as an accelerant to falling disposable income. Rapidly re-stabilising the planet would in the short term further destabilise the economy. Re-stabilising the economy, further destabilises the planet and so the destabilising loop continue and the system struggles to self correct.
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This all leads us to the consequence of that prolonged destabilising loop being a change in HUMAN EXPECTATION. Much of our system is based on the expectation of tomorrow, not the reality of today. So we need to consider what happens if our expectation of what is an outlier and a norm changes or even flips over time.
Getting your baseline rating is simple.
Answer YES to both questions in a section, you are a RED, your business is completely dependent on that 20th century norm.
Answer YES to both questions in every section so six yes answers and you are what we call a Triple RED, so completely dependent on 20th century norms.
If you answer NO to both questions in a section, you are a GREEN. Your business isn’t dependent at all on that 20th century norm.
Answer NO to both questions in every section, you are what we call a Triple GREEN, so completely aligned to 21st century reality.
Answer NO to one question and YES to the other in a section, you are an AMBER so partially dependent on that 20th century norm. Repeat that for every section so that you finish with 3 YES & 3 NO answers, you are a Triple AMBER, so partially dependent on 20th century norms.
SOME OF THE WORLD’s BIGGEST BRANDS ARE TRIPLE RED
Most organisations score a mixture of Red, Amber and Green. However some of the biggest brands in the world are Triple RED. NIKE would be a Triple RED as would Adidas, for example.
Remember, being a Triple RED doesn’t matter, so long as we return to 20th century norms in 2025.
Also, a Triple RED can become a Triple GREEN, it’s just that the journey is going to be more difficult!
Depending on whether you're here as an investor, a business or simply for yourself, embark on our four stage framework summary then request our more detailed guide for further information.