The Cycle of Good
Business as a catalyst for positive change
Within the book we learn that, throughout history, those businesses that respond to cultural change to deliver something better for society grow and thrive while those that stay set in their ways wither away.
But what does this look like in practice? The Cycle of Good explains the fundamental forces in action.
The Cycle of Good
The cycle starts with a major change in society. This could be a new cultural movement, ideological revolution or political shift that takes several years – or even decades – to become mainstream.
The first movers see what the customers, employees and communities of tomorrow will need – and they start to innovate. They take the risk of investing in new ideas and make sure they’re in the right place when the right moment arrives.
These first movers will get the lion’s share of the market, alongside the fastest followers. As the vanguard, they gain the prime cuts of publicity and trade. They are also the first to bank public goodwill, which can give their brand resilience for the future.
The fastest followers bring further innovation, as each company finds new ways to meet growing needs.
The revolutionary idea becomes conventional. Challengers are now incumbents; the hunters are the hunted. This is often the juncture at which the government steps in to crystallize the change, writing legislation that benefits the first movers and fastest followers and offering financial incentives to ensure the national market grows.
The first movers are the Lions in this dynamic, swiftly pouncing on opportunities to grow. But they’re not the only animals on the savannah. There are plenty of Ostriches too.
For those laggards who either fail to see the signs, choose to ignore them or lack the means of responding, the future looks bleak. Starved of market share and societal goodwill, their eventual demise seems inevitable.
We reach the period of mass adoption, mass innovation and the setting of a new status quo so the cycle can turn again.
How this looks may vary. The situation on the ground will differ, often greatly, on a local, national and international level. There are multi-dimensional, multi-actor and multi-scalar dynamics in play. Just as in nature, there are no straight lines in business.
Influencers /
accelerators (music /
journalism / art, etc.)
CULTURAL
CHANGE
MAJORITY:
MASS INNOVATION
FORCE
FOR
GOOD
LIONS:
FIRST MOVERS AND
FASTEST FOLLOWERS
STAKEHOLDERS:
CONSUMERS
EMPLOYERS
COMMUNITIES
INVESTORS
GOVERNMENT
REGULATORS
Where will this take us?
Business will keep evolving in a positive direction over time, driven by cultural forces. The momentum is too powerful to stop and, as the cycle turns, it will spin out new cycles, as good can take many forms.
No matter which form good takes, the first movers will gain the advantage while those companies that fight against the tide will eventually find themselves swept away.