What is the New Paradigm of Business?
Lately I’ve been leaning toward using the term New Paradigm Business to replace Conscious Business. In either case, I often get asked “What do you mean by New Paradigm (or Conscious) Business?” I have no short answer, but the best way I’ve found to explain the New Paradigm is to contrast it with the Old Paradigm.
The following characteristics contained in the table below I think clearly delineate some the key differences between the Old and New Paradigms of business. Note that they split into two categories: Mindset and Structures. Mindset refers to the intangible ways business is viewed and experienced while Structures provides a few key examples of how the New Paradigm shows up in tangible forms and practices that support and exemplify a new way of doing business.
| Old Paradigm Mindset | New Paradigm Mindset |
| Business exists to make money; financially driven | Business makes money to serve a greater purpose; mission driven |
| Numbers oriented, financial bottom line | Impact oriented, triple bottom line |
| Short term, narrow focus | Long term, broad focus |
| Maximize shareholder value | Maximize stakeholder value |
| Zero/sum competition, dominating | Win/Win collaboration, creating |
| Short term, narrow focus | Long term, broad focus |
| Consciousness of scarcity | Consciousness of abundance |
| Operating from fear and self-interest | Operating from love and being of service |
| Left brained, analytical, partial intelligence | Holistic, heart and mind integration, full intelligence |
| Old Paradigm Structures | New Paradigm Structures |
| C and S Corporations, LLC | Benefit corporation (PBC) |
| Hierarchical organizations, top down, command and control | Flat organizations, empowered, self-managing teams |
| GAAP accounting | Triple bottom line accounting |
The watershed question that distinguishes the Old Paradigm from the New Paradigm is “What is the purpose of business?” A classic Old Paradigm response is “The purpose of business is business” or in the infamous words of Milton Friedman “The only corporate social responsibility a company has is to maximize profits.” An exemplary New Paradigm response is provided by Marc Benioff: “The business of business is to improve the state of the world.” or in the motto of US manufacturing company Barry Wehmiller: “Building a better world through business.” Out with the old and in with the new I say.
Awareness Into Action 