Swiss retail banks: earnings could fall by up to one-third by 2030

Swiss banks operating in the retail banking business are still doing well. However, new developments are increasingly challenging the currently dominant business models, including the transition from a closed banking business model to a platform-based "open banking" model, the increasing opening of value chains, and intensified cooperation with third-party providers. This is shown by the new Deloitte study "Future of Retail Banking".

Swiss retail banks, which include cantonal banks, are likely to face declining revenues through 2030, a Deloitte analysis shows. (Image: Depositphotos.com)

Traditional Swiss retail banks primarily serve private customers and SMEs and primarily offer standardized services - from paying, saving, and investing to financing. Besides the two big banks, the cantonal and Raiffeisen banks are the dominant players in the market. Compared with their European competitors, the Swiss retail banks operate in a very attractive market environment. A characteristic feature is the robust and stable domestic market, which only accepts far-reaching changes with long lead times.

Peculiarities of the Swiss market will increasingly disappear

As far as the different historical development of Swiss and European retail banks is concerned, three core factors stand out: First, the high business volume of around 150,000 Swiss francs per customer, which leads to an annual operating profit of a whopping 550 Swiss francs on average - also per customer. In a European comparison, the total business volume per customer ranges between 30,000 and 60,000 euros, and the operating profit is between 150 and 350 euros. The second factor is the boom in the Swiss mortgage market, which has provided Swiss banks with consistent revenue growth over the past two decades. The third differentiating factor of the Swiss retail banking market is the high level of brand loyalty among customers. Customers have built up a close relationship with their respective house bank and are hardly willing to change it.

However, as the study by the audit and consulting firm Deloitte shows, these factors are changing and will lead to major challenges in the Swiss retail banking market in the medium term. In view of the current uncertainties and changes in the Swiss banking center, the willingness of bank customers to switch is tending to increase - an opportunity for retail banks that are now acting quickly.

Structural changes jeopardize retail bank earnings

"It is becoming more difficult for Swiss retail banks to maintain high levels of profitability and growth," Cyrill Kiefer, Head of Banking at Deloitte Consulting Switzerland, is convinced. He sees reasons for this in the conversion of society and the economy to "net zero" emissions, the higher maturity of the market, the increasing saturation of the residential real estate market, the aging of the customer base, and the growing demand of customers for functional "end-to-end" solutions of the banking services offered.

Neo-banks, challenger banks and non-banks get on board

Another challenge is posed by the emerging neo- and challenger banks. With their sophisticated digital banking models, they offer a better customer experience - and at lower cost, too. Well-funded non-banks (NBFIs) are also increasingly becoming serious competitors for some core banking services. These include, in particular, insurance companies and pension funds. Various NBFIs have entered the attractive mortgage business for retail customers in recent years and are working with independent brokers and providers of lending platforms for this purpose. NBFIs will also seek to increase their market share in other financial services such as financial advice and asset management.

New "open banking" ecosystems compete with the traditional banking model

The traditional business of Swiss banks is facing fundamental change. The magic word is "open banking. This will make it possible to combine separate services from banks and other service providers on digital platforms and offer them to customers as a complete package. The development of these new ecosystems is being driven primarily by agile FinTech companies that collect, process and make available content and offers.

"In light of changing customer needs and expectations, new interaction models, the increasing decomposition of value chains, and technological advances, retail banks need to develop new strategies for dealing with and positioning themselves in emerging ecosystems," Kiefer elaborates, adding, "Banks should move away from traditional strategic planning and think much more in terms of scenarios. This is the only way they can survive in the long term."

Measures help retail banks cope with the future

Depending on the scenario and their position in it, Swiss retail banks have to make important strategic decisions quickly. In doing so, they basically have two options: They can either develop and offer innovative and attractive products or focus on managing customer channels and relationships. They also need to think about how to merge the elements of traditional banking with services from a broader ecosystem.

"To increase business agility and drive innovation and growth, retail banks need to look from the inside out. They would be better off focusing on external partnerships and collaborations rather than internal practices and policies," advises Kiefer. Digitalization will also be an indispensable success factor in the current decade, he adds. And he adds, "But this requires more than keeping up with current technological trends. After all, customers today expect the best of both worlds: a personalized interaction coupled with the benefits of a digital offering."

Source and further information: Deloitte

Successful Career Day 2023 at the FHNW

At Career Day 2023, students from the School of Engineering, the School of Business and the School of Applied Psychology at the University of Applied Sciences Northwestern Switzerland FHNW met with a wide selection of companies.

Great interest in the FHNW's Career Day 2023 (Photo: Karin Weinmann, FHNW)

In the Campus Hall at the University of Applied Sciences Northwestern Switzerland FHNW in Brugg-Windisch on March 22, 2023, more than 110 companies presented themselves as attractive employers for starting a career after graduation. A wide range of industries are on the lookout for the sought-after skilled workers: represented were numerous different economic sectors from technology and IT companies to service and consulting firms to financial institutions and industrial companies. 600 students from the three FHNW universities took the opportunity to get an impression of possible career paths, make contacts and compare job offers.

A premiere: the career profile lounge

This year, for the first time, there was a career lounge. Specialists such as IT system engineers, portfolio managers, and project managers talked to students in person about their day-to-day work. Those who wanted to deepen the conversations beyond the day of the fair could register for virtual one-to-one talks with the participating companies via the Talentspace app. These took place from March 27 to 29 and offered the chance for a personal exchange with the employer of choice.

Prof. Stephan Burkhart, head of the FHNW career organization next Career Services is very satisfied with the event: "Career Day 2023 was a great success. The more than 110 companies were able to hold exciting discussions with 600 students. The students appreciated the diversity of the companies and the relaxed atmosphere. We are already looking forward to Career Day 2024."

Source and further information: FHNW

WI-Award 2023 for best final theses in industrial engineering

For the fourteenth time already, the best diploma theses in industrial engineering in Switzerland were awarded. On Wednesday, the Department of Industrial Engineering of the Bern University of Applied Sciences Technology and Information Technology in cooperation with the Association of Industrial Engineers (VWI) Switzerland invited to this year's WI-Award at the Switzerland Innovation Park in Biel.

The finalists for the WI Award 2023: (from left to right) Fabiano Ulmke (ZHAW), Tobias Frech (ZHAW), Enrico Pfyffer (HSLU), Roger Waltenspül (HSLU), Armando Demarmels (HSLU), Sandro Gafner (BFH), Alexander Zingrich (FHNW), Roger Rinderer (OST) (Image: zVg / Bern University of Applied Sciences).

Where is the digital transformation heading? Where are we today? What are common misconceptions about what digital transformation must be able to do? Prof. Dr. Bastian Widenmayer explored these and other questions in his keynote address "Digital Transformation - Quo vadis? His keynote formed the thematic prelude to the evening. "Digital transformation is a process that has already been ongoing for several years. Instead of wanting to manage and simplify digital transformation, we should rather learn to endure its complexity and reflect on digitization - for example in our own company - and ask ourselves whether what we are doing is actually the right thing to do," Widenmayer continues. Prof. Dr. Stefan Grösser, Head of Industrial Engineering at the Bern University of Applied Sciences, adds: "Instruments, methods and processes that enable digitization are indispensable, but not the sole key to success. It is much more important to train people who can apply them properly and, as drivers of change, make their knowledge effective in companies." Industrial engineers bring precisely these competencies with them to be able to analyze, interpret and optimize technical and economic aspects in company processes, business models and supply chains across disciplines.

From a data-driven persona tool to an on-demand urban air mobility network.

This year, the WI Award honored the best papers in the Bachelor and Continuing Education Master (MAS) categories. "We are proud to be able to contribute to the visibility of the profession with our nationwide network of partner schools. The submitted works testify to the diversity of application and activity areas: From production to marketing, industrial engineers* can occupy a key position with their work," says Daniel Büchel, Deputy President of the Association of Industrial Engineers Switzerland. The issues addressed in the theses show how broad, interdisciplinary and relevant the work of industrial engineers* is for addressing current challenges in business and society: the nominated theses cover topics ranging from creating personas for companies using data from Google Analytics to working on strategic and operational aspects for the introduction of an urban "on-demand" air mobility network in the Zurich region. The jury judged the submitted works according to criteria such as economic viability, the way in which the topic was presented, sustainability, and real-life practical relevance and feasibility. The Bachelor's thesis "Data-supported process and cost optimization for order picking and shipping" by Alexander Zingrich (University of Applied Sciences Northwestern Switzerland FHNW) and the Master's thesis "Development of an on-demand urban air mobility network in the greater Zurich area" by Fabiano Ulmke (Zurich University of Applied Sciences ZHAW) were ultimately convincing.The audience award for the best presentation went to Sandro Gafner (BFH) for his bachelor thesis "Google Analytics as Basis for Creation of Personas".

WI-Award is awarded on a rotating basis

According to the rotation principle, the WI Award 2024 will guest at another university from the network of partner schools.
Partner schools: Bern University of Applied Sciences, University of Applied Sciences Northwestern Switzerland FHNW, University of Applied Sciences Eastern Switzerland OST, Lucerne University of Applied Sciences HSLU, Distance Learning University of Applied Sciences Switzerland FFHS and Zurich University of Applied Sciences ZHAW.

Industrial engineers design products, digitize supply chains, and optimize logistics processes and production facilities. They deal with technical and economic issues of the digital world and form the link between business, computer science and technology. In a digital world that is no longer imaginable without sustainability, they bring with them the best prerequisites for assuming a key position in a networked, future-oriented and competitive company.

Source: Bern University of Applied Sciences

Company Successions in Switzerland: Pressure Wave Rises

The Swiss umbrella organization for business succession CHDU presents for the first time a "Succession Demography". It documents the development of all companies, organizations and enterprises registered in the HR: While in 1922 there were just under 80,000, today there are over 680,000. Currently, company succession will soon be an issue for around 93,000 Swiss SMEs. This corresponds to a good 15 % of all companies in Switzerland.

The number of companies in Switzerland continues to rise - and with it the number of company successions. (Image: Swiss Confederation for Business Succession (CHDU))

With the Succession Demography of Switzerland, the Swiss Confederation for Business Succession (CHDU) underlines the importance of company successions. Depicted on the canton of Zurich, a "succession map" was presented for the first time. It shows 100 years of Swiss and Zurich succession development and demographics - from 1922 to 2022. The surveys of the succession demographics of Switzerland and the Canton of Zurich in the Succession Map 2022 result from the comparison of foundations and the current stock of sole proprietorships, collective limited partnerships, cooperatives, limited liability companies and stock corporations registered in the Swiss Commercial Register over the period from 1922 to 2022, in each case in 10-year steps.

Company successions on the rise

The figures are impressive: Whereas only 80,000 companies were entered in the commercial register in 1922, by the end of 2022 the number had risen to 680,000, with a further upward trend if the developments in company formations further into consideration. If around 15% of all companies continue to enter the succession process, the threshold of 100,000 companies in the succession process will soon be exceeded. This is an unprecedented number of companies, most of which want to be handed over or taken over. There is a real pressure wave of succession with consequent pressure to act for the Swiss economy, because about 800,000 jobs are linked to these companies.

It is also noteworthy that of the 5,756 organizations founded in Switzerland in 1922 and registered in the HR, only 97 or 1.7% can be found today, 100 years later. Figures that once again make clear how demanding long-term entrepreneurship is. Integrated into the 2022 succession map is the "100 list" for Switzerland and the Canton of Zurich. This lists the companies, organizations and enterprises that have successfully mastered this challenge and thus also several succession arrangements.

Canton by canton

With the Succession Map 2022, the CHDU has launched the first edition of this publication, which will be published annually in the future. The map is divided in equal parts into a nationwide and a cantonal representation of the current succession development and demographics. The cantonal representation in particular serves as a supplementary service for the cantons, in order to make the companies located there aware of the relevance of successful business succession by means of meaningful figures and graphics, as well as pointing out cantonal contact points and support options.

From now on, every canton has the option of a succession map with its own cantonal succession demography. The canton of Zurich kicked off the Succession Map 2022 by highlighting the high importance of business succession. Government Councillor and Director of Economic Affairs of the Canton of Zurich Carmen Walker Späh commented: " (...) In order to remain competitive, our economy will continue to depend on an agile, innovative and sustainable SME landscape in the future. The timely preparation of company succession is an important part of this. Only in this way will it be possible for our traditional SMEs to hang on to their company history for as many more decades as possible."

The location promotion department in the Office of Economic Affairs and Labor (AWA) of the Canton of Zurich supports the development and expansion of the association as a partner organization. The digital follow-up map 2022 is available there on the website at this link: www.wirtschaftsraum-zuerich.ch/100-jahre-nachfolge-entwicklung-die-druckwelle-steigt

Logistics Purchasing in the Chemical Industry Webinar

The logistics company Dachser Chem Logistics is holding a webinar on April 19, 2023, from 3:00 to 4:30 p.m., under the motto "Logistics purchasing rethought." The event is aimed at experts in the chemical industry in Switzerland and Austria.

Challenges in logistics purchasing: This is the topic of a webinar on April 19, 2023. (Image: zVg / Dachser)

The chemical industry is characterized by sometimes complex supply chains. The Dachser Chem Logistics webinar will discuss how logistics can become a competitive factor for chemical companies. The added value for participants lies in sharing their own views with other company representatives and the speaker, discovering potential for innovation and optimization, and discussing recommendations for action and feasible solutions.

The webinar will focus on the study "Purchasing Logistics Services in the Chemical Industry," the results of which will be presented by Prof. Dr. Christian Kille from the Würzburg-Schweinfurt University of Applied Sciences (THWS). This will be followed by a discussion round moderated by Dachser Chem Logistics Business Development Managers Selina Hipp (Switzerland) and Manuel Schmelz (Austria).

The webinar provides new impetus for logistics services in the chemical industry of tomorrow and offers an interactive exchange of knowledge and experience. Decision-makers from purchasing, logistics and supply chain management as well as representatives of the trade press can participate.

Registration is done by e-mail to selina.hipp@dachser.com.

Quickline grows in mobile subscriptions and TV streaming

In the highly competitive market, Quickline is growing in mobile subscriptions (+9.3%) and TV streaming (+8.5%) in 2022. An industry trend is the decline in the fixed network (-4.3%). Revenue in the Quickline network is up slightly year-on-year to CHF 247 million. The already high level of customer satisfaction has risen further.

The telecommunications company Quickline recorded growth in various areas in 2022. (Image: zVg / Quickline)

In 2022, the telecommunications provider Quickline not only recorded growth in mobile subscriptions and TV streaming, but can also be pleased about an increase in customer satisfaction. "The high level of customer satisfaction and excellent recommendation rate confirm the high quality of our products and services. Since September 2022, customers throughout Switzerland have been able to benefit from our offering," says Frédéric Goetschmann, CEO of Quickline. "As a Swiss company, we generate value in Switzerland, act agilely thanks to our size, and have a presence in the regions. This is part of our DNA and is highly appreciated by customers."

Win new customers, reward loyalty

In September, Quickline changed from a regional to a national provider and now also offers its entire product range outside the network area of Quickline partners. "Customer feedback shows that Quickline is perceived as a likeable telecom provider. Our performance in product development, marketing and support is well received by our customers. I am very proud of our employees in the Quickline network, whose daily commitment ensures an excellent customer experience," says Frédéric Goetschmann.

Quickline not only offers attractive deals to new customers, but also rewards existing customers. In February 2022, Quickline launched the Benefit customer loyalty program. Customers are rewarded for their loyalty with free or discounted tickets to sports, cultural and leisure events. In 2022, more than 50,000 customers benefited from the program.

Quickline has simplified the portfolio

For its entry into the national market, Quickline has simplified its offering and doubled the Internet speed of the two smaller subscriptions. Internet Only products can now also be subscribed to. Customers can now choose between Quickline Internet S (100 Mbit/s) and Quickline Internet XL (10 Gbit/s). Currently, customers benefit from Internet subscriptions for just CHF 34 per month for one year. Quickline TV and fixed network telephony can be added as required. The mobile offering has proven its worth and has been retained.

Quickline launched mobile Internet as a supplement to wired Internet in June 2022. With this product, Quickline meets the needs of mobile customers who want to use their personal access to the Internet at any time. This is regardless of whether they spend their time in a vacation apartment or a camper.

Smart meter solutions as a contribution to the energy transition

Since July 2022, small and medium-sized energy supply companies (EVU) have been relying on Quickline Energy's comprehensive smart meter solution. From procuring the meter and communication modules to data management and integration into the billing system and customer portal, Quickline Energy's complete solution offers great synergies. This allows the utility companies to focus on their customers and operations. "Smart meters are an important component of intelligent distribution networks. With Quickline Energy, we are making a contribution to the implementation of the Energy Strategy 2050 and thus to the energy transition," says Frédéric Goetschmann.

Source and further information

ChatGPT in use for customer service

Helvetia is the world's first listed insurance company to launch a direct customer contact service based on OpenAI's ChatGPT technology. The service uses artificial intelligence to answer customer questions about insurance and pensions. The service is still experimental; in the long term, it is intended to simplify access to insurance and pension products.

Insurance company Helvetia is testing ChatGPT for customer service. (Image: Helvetia)

ChatGPT is an artificial intelligence that can access huge amounts of text and answer questions based on it. Helvetia is the world's first listed insurance company to use this technology in a live experiment with Clara, Helvetia's digital assistant in Switzerland. Clara's new chatbot service provides information on insurance, retirement planning and home ownership. To do so, the software draws on web content from Helvetia Switzerland - for example, product pages or advice articles. Everyone is invited to try out the new chatbot service free of charge.

Recognizing added value for customers

Helvetia clearly characterizes its new service as an experiment: the company wants to explore the potential of language models such as ChatGPT and find out how customers accept corresponding services. The main focus here is on the new service as defined in the strategy. helvetia 20.25 defined ambition to set standards in customer convenience and access, as Jan Kundert, Head of Customer and Market Management and member of the Executive Board of Helvetia Switzerland, explains: "We invest continuously and at various levels in a positive customer experience. That's why we want to recognize the added value that artificial intelligence can offer our customers."

Joint exploration is in the foreground

Helvetia was quick to offer chatbot services to its customers; it is considered an industry pioneer in this field thanks to its digital assistant Clara. When OpenAI published the ChatGPT application programming interface (API) at the beginning of March, Helvetia immediately began internal testing. Achim Baumstark, CTO of Helvetia Group, says, "It is clear to us that artificial intelligence and, in particular, language models will be an important competence in the future. Accordingly, we are interested in gaining experience with this technology as quickly as possible within a clearly defined test environment." The experiment is being accompanied by the Lucerne University of Applied Sciences and Arts. The latter will also support Helvetia in evaluating the results. The fact that this is an experiment is clearly described in the terms of use. Project manager Florian Nägele: "We are testing the possibilities of artificial intelligence together with interested customers. The chatbot in no way replaces an individual consultation with a specialist." Helvetia will decide how to proceed with Clara and its GPT capabilities after evaluating the initial findings.

Source and further information: Helvetia

How to demotivate your people guaranteed

Who doesn't want that: a highly motivated team in which everyone contributes with full energy and joy to achieve common goals. But in everyday life, there are always factors that demotivate us. Volkmar Völzke reveals what these are in his new Success Impulse.

Bored and frustrated: Not always just a matter of personal attitude, lack of leadership can also demotivate. (Image: Pixabay.com)

Basically, we are all motivated. But we are all demotivated again and again by all kinds of factors (especially by leadership). Therefore, it is your important task as a leader to stop demotivation again and again and thereby indirectly increase the motivation of your people. Here are five things through which you demotivate your people:

1. treat your people like children

I know it sounds provocative, but many managers treat their people like children. This is expressed in language ("Why did you do it that way and not differently?") and also in many rules, regulations and strong control. If you declare your people to be immature, they will behave that way. And just because there were one or two cases where more control was needed, you don't take everyone else into clannish custody by issuing more regulations.

2. always give answers immediately

It may sound strange, but if you always give immediate answers to all questions, you demotivate others. This is because you deprive others of the chance to come up with answers and solutions themselves. If you do this consistently, your people will come to you before they have even thought about it. This is anything but motivating and leads straight to service by the book.

3. postpone decisions

I see this very often - especially in leadership teams: decisions are repeatedly postponed, or they simply peter out. Or the decision is not communicated. People notice that: "They up there don't decide anything anyway!" It's demotivating. Every motivating leadership is decision-making.

4. be afraid to be clear

It's amazing, but many leaders are afraid of too much clarity. Because then you have to stand by your statement. Unclarity, on the other hand, keeps some options open. The only thing is that lack of clarity creates uncertainty and demotivates your people. Behind this is often the need to be liked a lot. But that is not good leadership. Sometimes you simply have to "show the edge". If you use this correctly, it has a motivating effect. Ambiguity always has the opposite effect.

5. do not tackle unpleasant things

If you don't tackle unpleasant issues, you demotivate your people. In the end, these are the famous "skeletons in the closet" that eventually start to stink. By the way, a common example of this are decisions about people who should not stay in your team in the long run.

Conclusion: If you stop these five things, your people's motivation will go up. Try it out.

To the author:
Volkmar Völzke is a success maximizer. Book author. Consultant. Coach. Speaker. www.volkmarvoelzke.ch

Europe's companies are lagging behind their own expectations when it comes to digital business models

European industry overestimates its digital maturity. Because although eight out of ten companies already describe themselves as a digital industrial enterprise, a look behind the scenes shows: The use and analysis of important product and process data is neglected or not even possible yet due to incompatible systems.

Overconfidence: Many European companies describe themselves as "digital," but in fact they are far from it. (Graphic: Aras)

A recently published industry study shows that Europe's companies are still lagging behind in terms of digital business models. For the study "Europe's Industry in Transition" conducted at the end of 2022, 442 executives in 19 European countries were surveyed on behalf of the product innovation platform Aras. The survey participants are employed in companies with a minimum turnover of 40 million euros in the automotive, aerospace & defense, mechanical engineering, medical technology, chemical, pharmaceutical and food industries.

The wish is father of the thought in digital business models

The distorted self-image revealed in the study is dangerous and restricts the scope for action, the study authors complain. At the same time, companies are under great pressure to adapt. Nine out of ten industrial companies expect their business model to change further in the coming years. "The growing amount of data in everyday business life is obviously leading to overestimation of one's own capabilities," says Jens Rollenmüller, Managing Director of Aras Germany. "If 82 percent of the study participants already describe themselves as a digital industrial company, the wish is probably father to the thought here." The sentiment, he says, is too positive and hides the failures to date. "In reality, companies are not yet that far along. They often only understand digitization as broad data collection or the digital dispatch of data. However, the actual possibilities, right up to new, digital business models, are not yet being exploited," industry expert Rollenmüller continues.

Analyze and correlate existing and new data

Although 78 percent of respondents say that everyone in their company has access to the product data they need for their work, 62 percent admit that the quality of this data is poor. At the same time, however, 62 percent admit that the quality of this data is poor. And 79 percent complain about a silo structure, i.e., that the information is located in compartmentalized systems in various places in the company. Aras CEO Rollenmüller therefore believes that the industry is only at the beginning of its digitization journey: "To remain competitive in the long term, companies must leverage hidden potential. This can only be achieved if existing and new data is analyzed and correlated. This requires digitally mapped products and supply chains, which can then be developed into a true digital twin in the next step."

According to industry expert Rollenmüller, companies must make up for past failures as quickly as possible. This is because the upcoming changes are putting the industry under great pressure to transform. For example, 87 percent of those surveyed assume that their business model will continue to change over the next few years. Jens Rollenmüller: "The change is in full swing. More and more companies are already focusing on a modern product world. For example, according to our study, 36 percent of companies already offer PaaS (Product-as-a-Service) solutions, 35 percent are in the implementation phase for this and 15 percent are planning to do so."

Source: Aras

Sustainability: Many companies are still driving with the handbrake on

Swiss companies have recognized the relevance of sustainability for long-term corporate success. Many companies have already taken initial sustainability measures, but communicate only a fraction of them. This is shown by the Swiss Sustainability Benchmark Study 2023 of the ZHAW on the status quo of sustainability with 361 Swiss companies.

On the road to sustainability, most companies still start with the "low-hanging fruits," or measures that can usually be implemented quickly, according to a study. (Image: Pixabay.com)

Swiss companies have recognized the relevance of sustainability and estimate that sustainability in the areas of economy, ecology, and society and social issues will continue to gain in importance over the next ten years. If a company wants to remain successful in the future, it must adapt its business processes and strategies to sustainability - 79 percent of the companies surveyed agreed with this. Despite the high relevance attributed to the topic of sustainability in general, still just under a third of respondents have not defined a sustainability strategy for their company. A quarter of the companies surveyed have a sustainability strategy, but this runs parallel to the business strategy. Fortunately, at 45 percent of the companies, the sustainability strategy is already an integral part of the business strategy. "We see that many companies are in the middle of the transformation process. That is a good sign. But there is also still a lot to do," says Prof. Dr. Brian Rüeger, Head of the Institute for Marketing Management at ZHAW.

Conflicting classical corporate objectives and sustainability goals

The majority of companies (85 percent) have defined sustainability goals, but these are also anchored in the business strategy of only 38 percent of the companies. For many companies, sustainability goals only serve as orientation or are not compatible with corporate goals. This problem becomes even more apparent when it comes to monitoring the goals achieved. "Many companies still find it difficult to measure the success of their sustainability efforts and also to incorporate these figures into future decisions. In 66 percent of cases, the achievement or non-achievement of goals has no consequence, which can be particularly problematic in the case of conflicting goals," says Dr. Pia Furchheim, co-director of the Sustainability Lab at the Institute for Marketing Management.

Are the sustainability goals (e.g. ESG or SDG) anchored in your corporate strategy? (Graphic: ZHAW)

Customers as the biggest driver and at the same time the biggest barrier to sustainability

According to the authors of the study, one exciting finding is the field of tension in which companies find themselves today. Customer requirements and expectations are among the strongest drivers behind companies' sustainability efforts. At the same time, more than 60 percent of the companies see customers as the biggest barrier to sustainability. It was found that customers are still not sufficiently aware of sustainability and are generally not willing to bear the additional costs for sustainable alternatives. For Dr. Pia Furchheim, this is "a stalemate between companies and customers: Both sides want to be more sustainable, but fail to accommodate the other".

Sustainability communication with the handbrake on

Although many companies have already achieved initial milestones, only a fraction of these are communicated to the public. On the one hand, companies want to be perceived as sustainable; on the other hand, the fear of "greenwashing" accusations hangs over companies like a sword of Damocles. As a result, many companies keep quiet about their successes and measures in terms of sustainability - an approach also known as "greenhushing." "What is problematic about this approach is that companies give away unused potential. It also slows down awareness-raising and transformation processes across the industry. If everyone only works for themselves in silence, how can we learn from each other?" says Prof. Dr. Brian Rüeger.

Sustainability efforts and public sustainability communication. (Graphic: ZHAW)

The credibility of sustainability efforts depends on various factors. The top priority is congruence between corporate action and communication. Sustainability should not just be lip service. A must-have is the provability of the statements made. It is also important that sustainability is lived by employees and communicated to the outside world. Sustainability is not a one-time project, but a continuous process that requires constant adjustments and reviews. Internal and external communication should be continuous and transparent, and failures and setbacks may also be communicated.

From "low-hanging fruits" to long-term vision

On the road to sustainability, most companies start with the "low-hanging fruits", i.e. measures that can generally be implemented quickly. For example, 45 percent of the companies surveyed are taking measures in the area of infrastructure and furniture (e.g., switching to energy efficiency), while 43 percent are taking measures in the area of human resources (e.g., equal pay). More complex measures that move away from a linear economy toward a circular economy (e.g., new business models such as Product as a Service, Circular by Design, Reverse Logistics, etc.) are still in their infancy. "The future lies in the circular economy. Even if the switch to sustainability sounds challenging, companies should not shy away from the path and set the necessary course early on. Sustainability must be anchored in the corporate strategy and culture for the long term," concludes Dr. Pia Furchheim's study.

Source: ZHAW

What to do with the staff?

The 19th East Switzerland Human Resources Day, which will take place on September 28, 2023 in St. Gallen, will focus on personnel development. In times of a shortage of skilled workers, companies are challenged to retain their employees and provide them with individual training.

What to do with staff? Answers will be provided at the 19th Ostschweizer Personaltag on September 28, 2023. (Image: Ostschweizer Personaltag / Galledia Event AG)

The world of work is changing: it is increasingly characterized by digitization and automation, the baby boomer generation is retiring from the workforce, and many industries are urgently looking for skilled workers. Attracting and retaining new, capable employees is becoming more challenging. Human resources management is challenged: Within the framework of personnel development, it must provide tools to drive the professional and personal development of employees as well as to shape leadership work, value attitudes and corporate culture.

How should companies find and promote their personnel in today's market environment? Answers are provided by the Ostschweizer Personaltag. For the 19th time, it brings together HR experts, HR specialists and managers from SMEs to present and discuss solutions to fundamental questions about personnel development.

How does the brain learn throughout life?

On September 28, 2023, this will take place with the help of six proven speakers. Brain researcher, neuroscientist and author Prof. Dr. Dr. Manfred Spitzer will talk about how memory, creativity and lifelong learning work. He heads the Psychiatric University Hospital in Ulm and founded the Transfer Center for Neuroscience and Learning some 20 years ago. Spitzer manages to describe even the most complicated processes vividly.

Dr. Kai Berendes, an expert in strategic HR management, addresses the challenges of data-driven strategic HR work. Barbara Ehrbar-Sutter, owner and managing director of Breitenmoser Appenzeller Fleischspezialitäten AG, tells the story from the perspective of a successful SME: in 2020 and 2022, her company won the "Swiss Employer Award" in the category 50 to 99 employees. As an experienced expert for HRM, Matthias Mölleney comments on the topic of leadership in today's world. His consulting firm, peopleXpert, advises companies on issues including professional personnel management. Dr. André Langenegger, owner of the IMC Institute for Management and Coaching, and Jürg Pauli, Chief Transformation Officer at Galenica, Switzerland's largest healthcare network, will explain how organizational and human resources development can optimally complement each other.

Registration via website

From now on, registrations for the Ostschweizer Personaltag 2023 - until the end of May with early bird discount - are possible via website: www.personaltag.ch. There you will also find the latest information, as well as impressions of the events of previous years.

The 19th East Switzerland Personnel Day will take place on September 28, 2023, starting at 12:30 p.m. in Hall 9.1B of Olma Messen St. Gallen. At 5 p.m., an aperitif riche will be served and, as usual, there will be the opportunity for extended networking.

Plan B: For a renewable, inclusive and fair economy

Breaking out of the status quo: B Lab Switzerland presents a "Plan B" for a regenerative, inclusive and fair economy. To this end, it has launched a large-scale awareness campaign.

With "Plan B", the non-profit foundation B Lab launches an awareness campaign. (Image: B Lab)

B Lab Switzerland, a non-profit foundation dedicated to the development of standards and legal frameworks for the benefit of society and the environment, launches its first awareness campaign entitled "Plan B". This initiative, carried out in collaboration with 13 Swiss B Corps, aims to stimulate a dialogue, on indispensable changes in our economic system, as well as on the role that companies can and must play as catalysts of change.

What makes the difference with B Corps

In the current climate of widespread distrust of financial markets and ongoing social and environmental crises, it is more necessary than ever to restore trust and actively initiate change in our economy, B Lab writes in a media release. B Corp-certified companies go beyond traditional financial criteria to measure their performance against rigorous social and environmental performance standards and commit to transparency and legal accountability. The B Corp movement, with more than 6,500 B Corps worldwide, including about 280 active B Corps in Switzerland, demonstrates that cross-industry collaboration is a solution to break out of the status quo and restore the lost trust of consumers, employees and investors.

Plan B to raise awareness and break out of the status quo.

B Lab Switzerland launches "Plan B", a bold initiative that brings the B Corp movement to the forefront. This "Plan B" aims not only to make B Corp certified companies more accessible to consumers, but also to show that B Corps are an effective choice as an employer as well as a business partner. Above all, however, B Lab wants to stimulate a discussion about indispensable changes in our economic system.

"In the face of a loss of trust and widespread mistrust, it is critical to turn to the change agents who embody hope and solutions to global challenges: businesses. With "Plan B", we are launching for the first time a public campaign to stimulate a dialogue on the necessary transformations and the crucial role of companies as catalysts of change in global challenges," said Jonathan Normand, Founder and CEO of B Lab Switzerland.

Source: B Lab

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