At Prophet, we’ve been exploring AI’s potential for some time—experimenting, building and learning across teams. But our biggest leap forward didn’t come from a new tool or top-down policy. It came from a collective shift in focus. 

Earlier this year, we hit pause across all 15 global offices to host our AI Learning Jam—a firmwide sprint designed to upskill, energize and unlock new ideas. We brought in outside experts, spotlighted internal pioneers already integrating AI into their work, and carved out time for hands-on experimentation. Teams tackled real client challenges using AI—and the momentum was immediate. 

Feedback from the event was among the strongest we’ve seen for a firmwide initiative. But more powerful than any metric was what it set in motion. 

We followed it with our first AI Demo Day, inviting submissions in three categories: 

• How we’re using AI to enhance current work 
• How we’re guiding clients on AI strategy 
• How we’re building AI products and solutions 

Twenty demos. Ten teams were selected to present to our executive leadership. The range of use cases was eye-opening—from custom GPTs that accelerate insights and storytelling, to AI-powered tools that generate consulting outputs, to strategic frameworks helping clients define their AI vision. We carefully considered the potential for each demo and recognized the top contributors. We are now scaling these solutions firmwide. 

One team reported a 90% time savings on market mapping tasks—freeing them to focus on strategic thinking and creativity. Another team doubled their content output using a custom GPT trained on a specific tone of voice. 

Our focus on AI solutions isn’t a one-off initiative. It’s a cultural shift—and we’re seeing it in the data. The number of custom GPTs built internally has grown exponentially. 

We’re also applying our own Human-Centered Transformation Model to this journey: 

• MIND — Enable: The AI Learning Jam built foundational knowledge and shared capabilities across the firm. 
• SOUL — Motivate: AI Demo Day showcased what’s possible and celebrated early wins. 
• BODY — Direct: We’ve embedded AI into competencies and workflows, launched a Center of Excellence and built infrastructure to support scale. 

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10 years ago, in our London office, a group of employees had an idea to see if we could condense a month’s worth of project work into one day and create meaningful impact for five local charities. Based on the success of this event, Prophet Impact Day was born. Over time it was scaled globally and expanded to include community service and consulting opportunities.   

Over the past 10 years, we have… 

• Supported 270 organizations 
• Donated over 25,000 hours 
• Engaged over 4,000 employees 

Last month we hosted our 10th annual Prophet Impact Day – closing our offices across the globe to work together and give back to our local communities. We supported a wide range of local community organizations like Save the Children, Clean Up Munich and Caritas of Austin. Our teams were supported things like: 

• Packing, sorting and distributing food and meals 
• Cleaning up parks, gardens and other facilities
• Doing consulting work like developing value propositions and marketing strategies  

Year-after-year Propheteers proclaim that Prophet Impact day is their favorite day of the year.  This initiative puts all four of our values on display: create with courage, give and grow, share joy and open minds.  

“So much fun! I enjoy Impact Day and giving back to the community!”

Leslie Statemen, Office Manager & Executive Assistant

“I enjoy doing pro-bono consulting work on Impact Day because it feels like we’re adding unique value, but it’s also so satisfying to do something physical with your colleagues, and team up with folks you don’t often work with, and see the physical impact of your had work.”

Darcy Muñoz, Partner, Verbal Branding

“Truly enjoyed working with me fellow ATOers and also having my son join us in giving back.”

Ashely Burgess, Executive Assistant

“With this day, you do not only give back to community, you can also enjoy a day with your team. Isn’t that great?”

Loes van der Westerlaken, Marketing and Office Manager

“Fantastic experience! Great to connect with other Propheteers and spend some time doing good on behalf of the organization.”

Avery Gross, Group Creative Director

“The day was great and so much fun, with high levels of participation. It was great to have one location where we could do lots of activities. One of the best Impact days I’ve attended.”

Hailey Armstrong, Engagement Manager

“A very valuable and positive experience as it is a day we can actually leave the office and interact with the community.  Overall, I saw solid teamwork and love from the team in this event, and it was a truly satisfying experience.”

Frank Chan, Strategy Associate

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Prophet celebrated Earth Awareness Month with a series of events to raise internal awareness and find measurable ways to reduce our carbon footprint. Throughout the month, Prophet’s global offices held shoe and clothing drives leading to an impressive number of items (600+) being donated to local organizations to help combat the growing number of textiles ending up in U.S. landfills (85% of all discarded clothing). Offices also participated in an informative, earth-month-themed trivia event. Prophet partner, Tosson El Noshokaty hosted an internal learning session on decarbonization and how we can apply this thinking to assist our clients. Finally, the capstone event was a panel discussion on sustainability with representatives from two Prophet clients, Cool Earth and Rainforest Partnership.  

About the Panelists

Client Panel Recap

Hannah Peck, deputy director, Magda Pieta, partnerships manager at Cool Earth and Niyanta Spelman, Founder and CEO of Rainforest Partnership joined Prophet for a moderated conversation that focused on everyday actions that we can do impact rainforest conservationism and sustainability. 

Four takeaways from the discussion: 

1. Avoiding inaction in the face of the staggering size of the climate crisis is incredibly important. 

“[We must] keep banging the drum and continue talking about it to get as many people on board as you can. There is no one magical thing that will fix it all. We need to make sure that we keep staying front and center in people’s attention and focus”

Magda Pieta, Cool Earth 

“[We should think through] how we can be an example. Grab a glass instead of grabbing a plastic bottle. Find what is the easiest for you to start doing and incorporate it into your home”

Niyanta Spelman, Rainforest Partnership

2. Even in the face of the current odds and predictions, we can still dream big.  

“Stabilizing the climate is this generations biggest challenge”

Hannah Peck, Cool Earth

“Can you imagine what we can do together? A world where 145 countries would actually write something down that they are going to end deforestation by 2030″

Niyanta Spelman, Rainforest Partnership

3. Every small change has a waterfall effect that can create real change, beyond just recycling, e.g., getting involved with World Rainforest Day or contacting local politician(s).  

Let’s [drive change] together. The sum of our parts is so much larger. Everyone can be an amplifier, no matter where you are in the world, what role you play, and whomever you know”

Niyanta Spelman, Rainforest Partnership

“One thing I recently realized I could change easily is where I bank, I can choose a more ethical bank… You can also write to your local politician about something you care about in your local environment to make an impact”

Hannah Peck, Cool Earth

4. When choosing what organizations to work with or donate to, it is pivotal to choose ones that are working in partnership with individuals on the ground.    

“Funding is almost always the biggest challenge for every rainforest conservation organization. The most impactful organizations are the ones that work closely on the ground. You should choose where you give money carefully and pick those that are the most impactful and work in partnership with communities”

Niyanta Spelman, Rainforest Partnership

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For seasoned Propheteers and our newest employees alike, the bi-annual Prophet Impact Auction generates unparalleled excitement. The Prophet Impact Auction is a global fundraising effort to rally behind a cause as we seek to use our expertise and creativity to spark meaningful change. Since 2010, Prophet has supported a variety of causes, from building sanitation facilities in Uganda, to funding girls’ education in Tanzania, to raising $50K to support local Covid relief efforts in 2020. This year marked our 7^th auction and Propheteers upheld the beloved tradition by generously giving their time, talents and treasures, donating a variety of goods, services, and experiences to be bid on by colleagues.

Supporting Justice in Healthcare 

Through a firm-wide vote, Partners In Health was selected as our 2022 auction benefactor for its mission to provide high-quality healthcare to those who need it most. Partners In Health believes that every person has the same inalienable right to be healthy and achieve their full potential, regardless of their circumstances or where they are born.  

The money raised by Prophet was donated to Partners In Health’s global child malnutrition programs, which focus on providing lifesaving treatment to children in Malawi, Haiti and beyond. A single child’s nutritional support costs around $60 for six weeks of treatment. With $45K raised, we are grateful to contribute lifesaving nutritional support to at least 750 children. 

“Our deepest gratitude for your generous support of PIH’s child malnutrition treatment programs in Haiti and Malawi. Our teams are working hard to continue to deliver care amidst challenging circumstances, fighting cholera, and dealing with rising food insecurity. Your support helps them keep that important work going. We know that structural problems require sustained responses, which is why we are proud to partner with local governments and invest in systems, to continue to push for increased access to health care.” 

Patrick Ulysse, Partner in Health Chief Operations Officer

The Power of Propheteers  

With almost 70% firm participation, our employees donated 539 items valued anywhere between $10 to more than $1,000. Propheteers eagerly bid for these unique offerings that ranged from extravagant weekend getaways, such as a trip to a Mallorca townhouse, to sharing treasured family recipes, and hand-painted cookies. 

Check out some of the fun items that were donated: 

• A dozen homemade Swedish cinnamon buns baked by Senior Partner Tobias Baerschneider  
• A rap song and music video written for Prophet, created by our creative Associate Anton Gutierrez  
• A personalized cross-stitched art crafted by Prophet’s Senior Engagement Manager Reem El Sayed  
• A Manhattan Chinatown food tour with our Associate Kristen Wong  
• An oil portrait beautifully painted by our Asia Marketing Manager Charlotte Zhang  
• Weekly French lessons with our Prophet Francophiles 
• Wine and fries with Prophet President Chiaki Nishino  

Through this auction, it was clear that Propheteers were ready to fully embrace the firm’s new values. Prophet’s “Give and Grow” value especially came to life as the entire firm offered talents, time and money in support of Partners In Health. Item exchanges traversed continents, bidding wars sparked conversation on hidden abilities and our value of “Share Joy” emanated across global offices as we came together and celebrated one another’s creativity and artistry.    

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The last few years have proven that disruption is the only “normal” in business. The world is still slogging through seismic plot twists of the previous few years, making inflation, supply chains, Ukraine and hybrid workplaces a critical topic on virtually every corporate agenda.   

While most forecasts call for nothing but grey skies, we disagree. History shows that periods of economic uncertainty heighten innovation and lead to new products, services and business models. After all, companies like General Motors, Microsoft and Electronic Arts formed during recessionary times.  

In 2023 we expect to see new ideas and products emerge from the rubble of disruption we’ve experienced on a global scale. But to get there, c-suite leaders will need to rethink how they lead their organizations.   

We expect the most successful c-suite leaders to lean into these six key leadership trends in the coming year.  

1. Productivity Improvements Will be a Critical Path to Profitability   

Over the last few years, a handful of digitally native organizations have chosen growth over profitability and had ample investors who were happy to take risks on future opportunities.    

Rising interest rates have ended that party. And as a result, investors are pressuring companies to continue to grow and make money or at least commit to concrete paths to profitability.   

Throughout the second half of 2022, many organizations abruptly shifted their focus from growth at all costs, even if that meant risking profitability, to achieving profitability by cost-cutting measures. 

 And while some companies may need to lean into cost-cutting efforts in 2023, more c-suite leaders will look to enhancing productivity within their workforce to achieve sustainable growth and profitability. For these leaders, the productivity improvements will come from technology, data and analytics.  

2. Balancing Short-Term and Future-Back Planning to Drive Sustainable Growth  

Long-term planning will always be a core component of business strategy. But the upheaval of the last few years has made it painfully clear that companies need to speed up the journey from thinking to doing. And that means integrating quick wins with future vision, so that the results you drive today do not hinder your long-term progress. 

Take, for example, Disney’s recent decision to increase prices for park admissions, annual passes and vacation clubs. This decision infuriated loyal Disney fans, who accused the company of price gouging. While the company may have achieved a quick win from this plan, the long-term effects of the decision may slow Disney’s progress toward its vision.  

In 2023, c-suite leaders will need to carefully balance short-term and future-back planning:  

• Short-term planning: This type of planning requires leaders to think and make at the same time. Risks are reduced with small bets to show progress quickly. Using data and behavioral insights, companies can identify things they know, which they can execute now. They can also explore what they think they know with new and near-term concepts. And those efforts will inform what they think, allowing them to hypothesize, and validate along the way.
• Future-back planning: This approach is about creating predictive models of the future, nine years or more out, to model the probable and preferable future. Which levers should a company pull to get there? Might they do better to build, buy or partner? It considers complex elements, such as politics and socioeconomic shifts, so leaders can confidently see where the business fits in the future and the immediate steps they need to take to get there.    

C-suite leaders who successfully lean into this leadership trend will be well-positioned to achieve immediate wins while also investing in the future of their organizations.   

3. Purposeful Data-Driven Decision-Making Will Reduce Risks   

Data-driven decision-making is critical to increasing confidence and reducing risks. And while that’s been true for decades, more and more companies realize they may have too much historical data and need more predictive data to better inform their decisions. As a result, many executives are making different demands of their AI and analytics teams, aiming to sharpen their business strategy.   

But being data-driven in your decision-making is only one part of the equation. During times of uncertainty, it’s essential to be purposeful in utilizing data to inform your decision-making.   

Amazon has long aced this approach, using analytics to evaluate whether a decision is a one-way-door or a two-way-door.    

Two-way-door decisions are safer and relatively easy decisions to reverse. For example, if the pricing strategy for a new service is hindering performance, it is possible to right-size and reposition the offering or pricing strategy.    

One-way door decisions are more complex, nearly impossible to undo, and require rigorous scrutiny. For instance, a company that misjudges the demand for a product or service has no opportunity to take that decision back. These decisions require rigor and high confidence levels that predictive data modeling can provide.    

In constrained business environments, risky decision-making can be detrimental to the success of your organization, which is why it is more critical than ever to understand the true impact of the decision and be purposeful in how you evaluate the opportunity.   

4. Environmental, Social and Governance (ESG) Regulations Will Require Businesses to Rethink Their Global Approach 

There was a time when everyone building a global business and a global brand thought they could have one approach that would work across different countries: One operating model. One brand positioning. One value proposition. That time is over. Every country has divergent priorities, consumers and governments requiring differentiated business strategies.   

Consider the increase in ESG regulations that have surfaced globally. For example, the European Union (EU) recently passed the Corporate Sustainability Reporting Directive (CSRD). This new directive will soon require large companies that meet specific requirements or are listed on EU-regulated markets to disclose environmental and social metrics across their supply chains. It will also hold these companies legally responsible for their ESG commitments. To meet CSRD targets, large companies doing business in the EU will have to rethink their supply chains and operations and their entire value chain from product and service design to business models and innovation.   

And in the U.S., the Securities and Exchange Commission’s new proposed rule amendments will require domestic and foreign companies to disclose climate-related risks, governance of climate-related risks, greenhouse gas emissions, climate-related financial statement metrics, and information about climate-related targets and goals.  

Global businesses need to ditch their one-size-fits-all approach to international expansion to meet evolving government regulations and consumer preferences. Instead, these companies will need to find new innovative ways to tailor their brands, business strategies and operations to meet the diverse needs of each market. 

5. New Models of Production Will Unlock Sustainability, Efficiency and Customer Intimacy   

The era of mass production may be ending right in front of our eyes. As a result, we’re seeing a new leadership trend emerge from the c-suite: decentralization. Not only is this a solution for the supply chain challenges it is also a more sustainable and efficient way to impact local communities.    

Many leaders also realize that decentralization can get their products into the hands of their customers in a quicker and more sustainable way. Localized production also allows for co-creation with their customers, improving service and a low-cost path to differentiated and more relevant product offerings.   

There are risks, however. Getting decentralization right will require leaders to closely re-examine their operating models, decision rights, and leadership skills. Without leadership setting a solid direction for the organization, leaders risk efficiency without innovation or innovation without efficiency.   

6. Leaders Will Walk a Tight(er) Rope When It Comes to Political Issues   

The purpose-driven gospel of recent years insists that companies take a stand on issues–or risk losing employees and customers. But figuring out how to do so keeps CEOs, CPOs and CMOs up at night.     

BlackRock’s struggles are emblematic of this challenge. Six states (thus far) have yanked billions in investments from the world’s largest money manager, protesting its commitment to environmental and social change.    

Over the last few years, organizations have been called upon to take a stance on hot-topic political issues ranging from healthcare to ESG. But taking a stance (or not) has become more complicated as companies increasingly navigate accusations of being either too woke or not woke enough.    

In the year ahead, leaders will strive to sort out political agendas with three different pathways:    

• Publicly support political issues     
• Stay silent on political issues     
• Show support for political issues within their workforce policies without publicly supporting the cause     

Regardless of where you or your company stand, the decision to engage publicly on political issues needs to consider the full range of potential consequences that might arise. Speaking out quickly might feel good in the first 24 hours, but unintentionally create outcomes that fly in the face of the very values you espouse. 

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In an era marked by the convergence of business and activism, many believe that “silence speaks louder than words.” While silence on environmental, social and governance issues may draw the attention of stakeholders looking for statements, empty words and promises may pose greater risks.  

The pandemic, wildfires, controversial Supreme Court rulings, water shortages, mass shootings and global conflict have shone a bright light on the role of business in society, underscoring the need to integrate ESG into business strategy as stakeholders gravitate towards companies that align with their values.  

As a result, business leaders are dedicating more time to responding to these environmental and social issues – both internally and externally. In fact, 66% of American consumers say their social values shape their shopping choices and 86% of employees prefer to work or support companies that care about the same issues they do. 

See Something, Say Something or Say Nothing? 

Taking a stand (or not taking a stand) will invite attention — both negative and positive. In this piece, we will share our framework on when and how businesses should act on ESG issues with authenticity to avoid risks of being perceived as opportunistic or greenwashing.  

Purpose-led companies with ironclad ESG response strategies have the necessary foundation for success. Those that are investing in environmental issues or social issues as part of their core strategy will have more credibility in proactively engaging in topics in addition to responding to events. For example, Patagonia’s self-imposed Earth tax gives credibility to its proactive and reactive environmental activism, and Ben & Jerry’s ongoing commitment to racial justice supports public stances on social movements. While there is no perfect strategy that will please all stakeholders, keep these principles in mind when thinking about how to engage on issues. 

We understand this is difficult work because we are still figuring it out ourselves. Developing these guidelines has encouraged us to shine a brighter light on our own ESG response strategy. While we are far from perfect and still have a long way to go in our own ESG journey, we have identified five essentials for how to respond and engage authentically.  

1. Know Your Company’s Purpose and Build the ESG Response Strategy 

The foundation of a successful ESG response strategy is dependent on an unwavering brand purpose. Purpose acts as a North Star, guiding a business as it makes difficult decisions. If issue engagement is treated as a temporary initiative rolled out for the sake of promoting goodwill, stakeholders will perceive a company as opportunistic. 

Brand purpose does not have to be one and the same with ESG strategy. However, connecting your ESG response strategy to your purpose and values demonstrates genuine commitment and gives the company credibility to play in the ESG arena.    

For example, Patagonia is a “purpose native” company that has an ESG strategy entwined with its purpose. As a company that sells apparel for exploring the outdoors, it has spearheaded several initiatives to protect and preserve the environment.  

2. Identify Issues Your Stakeholders Care About and That You Can Authentically Engage on 

“The goal is to reinforce existing brand identities on issues that matter to customers and employees. If they’re authentic in what they stand for and they reinforce it consistently, then it’s credible.”

Marisa Mulvihill, partner at Prophet, in the ‘Wall Street Journal’ 

With a new set of issues dominating the news cycle every week, businesses may feel pressure to react to every topic, which could potentially result in missteps if there isn’t a concrete ESG response plan in place. By demonstrating authentic action through a robust ESG response strategy, businesses can build their credibility to make their voices heard on a multitude of issues. 

Conducting a materiality assessment will determine what issues are the most important to your stakeholders, ensuring that your company can focus efforts on the most relevant and authentic ESG issues. To stay attuned to evolving customer behaviors, consistently undertaking market research on customer attitudes can propel companies forward by allowing them to proactively strategize where they can meet the needs of their customers. 

Nike has already successfully leaned into contentious conversations. With its bold advertisement featuring Colin Kaepernick, the company fueled the fire of a subset of customers uncomfortable with the company’s embrace of the athlete. However, its younger, diverse consumers immediately rallied behind the cause, showing that the company had done its research on its core customer group by making a strategic, calculated move to solidify its relationship with them. 

In 2020, Prophet was overwhelmed, in the best way possible, with the discussions within the firm to do more and better in the face of systemic racism, particularly as it impacts the Black community in the U.S. As part of our commitments to promote racial and social equity both within our firm and broader communities, we pledged $4M of pro-bono hours to organizations supporting racial justice. As we continue to work towards achieving this commitment, Prophet’s pro-bono program enables teams to connect their passions and share their expertise to support organizations and movements on the ground. We know that racial justice and equity will never be achieved by one leader or one group alone, but we are using our core competencies and influence to do our part in advancing the cause. 

3. Execute With Commitment to Action and Transparency 

Authenticity is key. How your company executes can make or break a response, even if the issue it is addressing is material to stakeholders. While purpose provides the foundation, concrete action on a promise is crucial for an ESG response strategy that leaves an impact.  

Before taking a stand, ask yourself: Is your company contributing value by engaging? Are you shining a light on the core issue and supporting a solution, or are you detracting from the issue or potentially causing harm? 

There are times in which showing up might be perceived as performative, especially if a company’s past actions paint a conflicting picture, or if the response is perceived as reactionary and disingenuous. Purpose washing — touting shallow commitments for marketing purposes without driving tangible change — is a real risk that can discredit a company’s ESG response strategy. While 73% of consumers say companies must act now for the good of society and the planet, 71% don’t believe companies will deliver on their promises. 

For example, financial services firm State Street was behind the infamous “Fearless Girl” statue on Wall Street, highlighting the need to combat gender inequality. However, further digging unveiled that the company’s gender diversity fund did not always vote in favor of gender diversity or pay equity proposals for the companies it invests in. 

Engaging in issues will pose a risk if there is a gap between what a company says and what it does. However, if a company is ready to show up on issues it hasn’t performed well on, it will need to do so with transparency and commitment to action. 

4. Thoughtfully Balance the Needs of Multiple Stakeholders 

The actions of a company ripple across the full system of stakeholders. When developing a response strategy, it’s crucial to understand the diverse needs of customers, employees, local communities, suppliers and more. If companies decide to act, they will need to evaluate whether to act internally to address the topic with their employees, or also externally to engage with customers and the community.   

Thorny issues often pull in multiple stakeholders at once, with each group having different levels of impact and involvement. When companies were deciding on how their responses to the invasion of Ukraine might impact customers in Russia and across the world, they also needed to consider how to support their employees, especially those who had to leave Ukraine and care for their families. Suspending business in Russia may put pressure on the country, but it also affects civilians trapped in the conflict. 

5. Continually Monitor and Evolve 

Taking a stand doesn’t stop after making an announcement. Action must be continually monitored to understand the impact of your ESG response strategy on stakeholders. Metrics can help you understand how to improve and iterate on your strategy: Did your company’s response support the issue in a way that resonated with the stakeholders who were the most impacted in the issue? How did stakeholders view your company’s response to the issue? Did the response address your stakeholders’ needs? 

Additionally, a company’s response strategy shouldn’t be set in stone. With a relentless influx of issues pulling companies in, the strategy should be dynamic and leverage the expertise of multiple departments within a company to adapt to whatever new challenges arise. In a multi-stakeholder environment, determine who within your company should own the response strategy, whether that be HR, consumer marketing, internal communications or another expertise group. 

Lastly, continue to revisit the approach and assess where you can evolve to meet the changing needs of stakeholders. 

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In response to the rising demands of stakeholders, companies are racing to put out sustainability commitments, with 92% of the S&P 500 now publishing these reports.  

It’s an important shift. Companies with established environmental, social, governance structures have integrated ESG thinking into every aspect of their business – increasing transparency, rethinking environmental impact and improving how they treat employees and other stakeholders. Job seekers, particularly the newest entrants to the workforce, will disproportionately want to work for organizations with an established ESG strategy over others. New hires are also more likely to stay if the intensity of the business’ actions matches the commitments. Lastly, ESG matters more to investors, with 85% of investors now mulling a company’s ESG status before buying shares. 

Many companies, though, are struggling to connect their commitments to action. They set ambitious targets–and that’s a good start. But once it comes to integrating ESG across the business, change leaders often don’t know how to navigate the path from ambition to demonstrable impact. It can be hard to build positive business cases for ESG initiatives. This is because there often isn’t a clear operating model for driving durable change and an ESG strategy requires collaboration across all parts of the business.  

We think another major problem is that many companies still see ESG primarily as a compliance and risk mitigation tool, almost exclusively. 

But we recognize it as a bigger opportunity, offering the potential for shared value creation. And there are many reasons to believe that ESG will be the next big driver of growth and transformation in the coming decade.  

As companies use ESG strategies to find more purposeful, inclusive and regenerative business models, they create value in important ways: 

Attract Talent, Boost Retention and Increase Employee Well-Being

It’s hard to overstate how important positive environmental, social and governance practices are to the modern workforce. A recent study from Marsh & McLennan finds a strong correlation between high employee satisfaction and companies with the best ESG scores. These ESG outperformers are also especially attractive to students and young professionals, with 86% of employees preferring to work for companies that care about the same issues they do.  

Improve Customer Acquisition and Retention to Build Brand Strength

People care–and deeply–about how companies contribute to solving key issues in our culture and society today. Consumers and B2B buyers alike want to do business with organizations that are environmentally responsible and fair to employees. They want businesses to stand for something.  

Ipsos reports that 66% of U.S. adults say they prefer to buy brands that reflect their values, up from 50% in 2013. The global average is even higher, at 70% of respondents, with those in emerging markets especially likely to agree. 

Optimize Supply Chains, Drive Efficiencies and Create New Opportunities

While pandemic-era shortages may have vaulted supply-chain concerns to the popular consciousness, they’ve been growing in complexity for some time. They present dizzying ESG challenges, with the average company having 3,000 suppliers for every $1 billion it spends. Supply chains are fraught with risk, with the World Economic Forum estimating they account for about 90% of all emissions and widespread human-rights problems. 

Using ESG principles to optimize and build resilience into supply chains is a huge growth tool, as companies with advanced supplier collaboration and innovation outperformed their peers by 2x in growth. 

Power Innovation and Lead to New Business Models, Products and Services

As companies move through the early phases of ESG–from mitigating risks and achieving efficiencies–they reach the point where the assets and capabilities that power ESG performance can simultaneously become growth tools for competitive strategy and innovation. This requires deeper bridge-building across all parts of the organization. ESG may have first emanated from investor and regulatory pressures, but as it becomes more understood throughout organizations – including product, commercial, and go-to-market leaders. This should open up new pathways to business model innovation, new services and inspire new ways of working.  

Here again, bold and clear goals pay off. In a study of 1,000 companies with climate objectives, those with the most ambitious carbon targets invested the most and made significant operational changes. The result? They also drove the most innovation. 

We clearly see how the principles of sustainable and socially responsible business can unlock opportunities for new products and services. The circular economy offers a $4.5 trillion economic opportunity. New business models focused on reuse, recycle and regenerate are unlocking new opportunities for innovation. Additionally, inclusive design, which embraces a larger view of the human spectrum, has proven to drive innovation that leads to business advantage.  

Moving From Ambition to Impact

Companies must find new and better ways to close the gap between ambition and impact. This requires designing scalable ESG solutions, exploring requirements for change throughout the organization and developing plans that integrate ESG into companywide strategies and operations. 

We’re not suggesting a common path. It’s essential to address what’s material to your industry. For example, water usage and resource availability will be crucial to CPG companies but less to professional services firms. In an analysis of 2,000 U.S. companies, a Harvard Business School study found that companies that consistently addressed material issues in ESG strategies significantly outperformed competitors. Those that paid more attention to immaterial problems, however, significantly underperformed.  

Stakeholders and consumers know when companies are authentically supporting their stances with strategy and when they are greenwashing, rainbow washing and virtue signaling. 70% of Gen-Z and Millennials are skeptical of virtue signaling from organizations, and roughly 80% of companies are just going through the motions and not holding themselves accountable with measurable action, continuing to erode public trust.  

It’s also important to take the ESG maturity of the organization into account. Some have been establishing and finetuning policies and programs for decades, while others are just beginning. 

That said, there are five fundamental shifts common to every organization seeking to sharpen ESG strategies to create new value. 

Companies must move from… 

Embarking on Your ESG Journey

Moving from ambition to action is a complex journey. Targets fluctuate as external factors and pressures increase. And as test-and-learn efforts enrich the company’s knowledge, they become agile and confident enough to take on new endeavors. 

To drive meaningful change, leaders need to evangelize the ESG mindset. Acting on these new tenets of sustainable and responsible business, they need to build coalitions, think creatively, iterate continuously and take risks. It’s a unique skill set but essential if ESG is to come to life throughout the company.  

We’ve found meaningful analogies to these shifts in digital transformation. We’ve helped dozens of companies take the role of digital executives from a single department to an enterprise-wide commitment. Digital thinking now forms the backbone of a modern company’s culture, operations, go-to-market strategies and business models. In many ways, chief sustainability officers are already traveling the same path. They’re driving the ESG mindset and bringing it to life throughout the company.  

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Embarking on Prophet’s Sustainability Journey

In 2020, Prophet embarked on a sustainability journey to assess our climate choices and identify steps we can take towards a greener future. We partnered with South Pole to understand our current environmental impacts, see how we stack up against peers and identify potential areas for improvement. Over the last year, we have gone through piles of data and reports from our enterprise-wide audit across global offices to understand Prophet’s carbon emissions and climate change risks.

SBT’s. GHG. CO2te. Net-Zero. Scopes 1-3. What does this all mean? How does a circular design affect the way we look at our economy? How do we interpret the results of our GHG emission report to guide climate actions? How do we inspire our people to act and have a tangible impact on our clients and in our communities? These are just some of the questions we’ve been asking since we began our sustainability journey and Earth Month presented an opportunity to pose these questions to our larger community at Prophet. We knew it was critical to engage Propheteers to share Prophet’s progress in our sustainability journey and be a part of the conversation.

Earth Month Recap

One day is simply not enough to immerse in conservation and celebrate this beautiful planet we call home. So, with Earth Day on April 22nd, the Prophet Impact Sustainability Team took Propheteers on a month-long sustainability journey. This April, we spotlighted Mother Earth through a variety of programming to spark learning, conversation and action around sustainability across the firm.

Our first event was an inspiring start to Earth Month and exposed Propheteers to the different actors that are working together to slow down the negative impacts of climate change. Special guest panelists, Marc O’Brien, Co-founder of Climate Designers, Rosalia Lugo, Environmental Health Activist, Austin Whitman, Founder and CEO of Climate Neutral, and our very own Tosson El Noshokaty, Founding Partner and Advisor for Good Carbon and Oceans2050, shared their perspectives on the climate crisis and how they are leading a more sustainable future across sectors.

Our second educational event was all about circular design. Propheteers learned about shifting to a circular economy and key design principles to create more sustainable products, services and solutions. Propheteers had a chance to break out into small groups and ideate around a real-life design challenge to apply these circular design principles and learn how these concepts might play into our lives and work at Prophet. We also shared some of the client stories that put sustainability at the center: from working with a nonprofit to protect biodiversity in Vietnam, to partnering with a high growth organization focused on building a sustainable and productive food system, to envisioning a fast-food brand’s future kitchen where material and energy waste is designed out.

Our final event looked internally and provided Propheteers with an overview of our sustainability journey from the South Pole team. Propheteers gained insight into key climate terms like Scope 1-2-3 emissions, carbon credits, and net-zero. In addition to sharing Prophet’s GHG footprint from 2019 and 2020, we also began to explore what actions we might take to start reducing our carbon footprint such as setting a science-based target, leveraging renewable energy, and investing in climate credits.

“We know that our own sustainability journey can always be enhanced and Prophet and our clients can continue to do better for our planet.”

Alongside these educational events, we held an Earth Day Every Day photo challenge, where Propheteers were invited to submit photos in three categories: #Act Now, #Natural Beauty and #Nature Selfie. From photos of a glacier park in Iceland to the mighty Iguazu Falls, Propheteers captured the scenic wonders of our Planet. There were also photos of trash piling up in Hawai’i and an overflowing makeshift trash can that highlighted the urgent need to take action now to build a greener future together. Propheteers across the firm also gathered with their local office teammates in person and virtually to celebrate Earth Day. There was fun to be had- from panting succulents to enjoying a plant-based meal together, to participating in a sustainability-themed trivia.

Prophet’s Next Steps

So where are going from here?

At the individual level, we hope that Earth Month inspired Propheteers around what it means to live more sustainably. Many have committed to making more sustainable choices daily and volunteering their time to participate in sustainability-focused activities during our upcoming Prophet Impact Day.

At the firm level, Prophet will be continuing to partner with South Pole to declare a greenhouse gas reduction goal (e.g., Net Zero), and subsequently develop sustainability strategies and a roadmap to reduce our carbon footprint. On the client-side, Prophet has dedicated resources to building a suite of ESG offers to help business leaders apply a systems thinking mindset that involves the planet and elevates sustainability in their organizations. ESG efforts will be critical to making sustainability more “real” across the business world.

Finally, at the global level, we will continue to spotlight and drive action for more sustainable practices, both within our firm, to our clients and to our networks. We know that our own sustainability journey can always be enhanced and Prophet and our clients can continue to do better for our planet.

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We’re shaking things up at Prophet Impact! This year we are using a new rotation model to offer uninterrupted support and build stronger relationships with our non-profit partners. Though pro-bono work with organizations that speak to our heart continues to fuel our passion to make the world a better place, we’re doing it differently.

We’ve dedicated a team of Propheteers that’s sole responsibility is to dive into the pro-bono work for non-profits, including the sourcing of organizations as well as the projects themselves for a month or more at a time. By fully immersing themselves in the project, the Prophet Impact team finds solutions that are on target and transformative, helping worthy nonprofits achieve next-level growth, just like our corporate clients.

Our First Pro-Bono Client

KenSAP, an educational organization based in Kenya, became the first to benefit from this pod-based transformation, thanks to Shina Leboo, a senior associate based out of Chicago. The nonprofit guides gifted students, many from remote rural areas, to distinguished U.S. colleges by helping them navigate the complexities of the U.S. immigration system, college entrance exams and university applications.

Shina, an alumna of the program and on KenSAP’s board of directors, knew the organization could benefit from Prophet’s insights and strategy work, specifically when it came to storytelling and communications. It needed a formalized brand and a standardized story.

“The deliverables were exactly what we needed and came with a level of detail we wouldn’t have reached on our own.”

With Prophet’s expertise in developing brands and brand stories, KenSAP was a natural fit for the first pod-based approach. “Pitching KenSAP for Prophet Impact was a quick conversation, and I didn’t feel like I had to struggle at all to explain it,” Shina says. “It made me realize what a good decision I’d made in joining Prophet. In some companies, you need to be around for years before you can speak that openly.”

Jill Steele, partner and leader of Prophet Impact, says Shina’s intense connection to the organization kicked off the program strongly. “She had so much passion for KenSAP – both as a participant and a board member – and that’s what makes the difference,” Jill said.“There are many great nonprofits we could work with. But by selecting those that are not only aligned with Prophet’s social impact focus areas but also deeply meaningful to our people, we can create solutions that have maximum impact.”

Elevating Brand Story and Impact

Free from other client duties, the team dug right in with a four-week, agile sprint to develop the brand story and corresponding tactical communication tools. Building on interviews with stakeholders — students, alumni and donors – the work showcases what makes KenSAP unique and important. Instead of focusing simply on programs and activities, it elevated the brand story, emphasizing aspirations and impact.

Most importantly, the frameworks were designed to easily adapt across audiences and channels and effortlessly executed by the organization’s small staff, which is often pulled in different directions. The marketing roadmap provided a foundation for communicating with universities, employers and donors and functioned well on its website, in digital communications and in the organization’s annual report.

The result was a major win for KenSAP. “The Prophet team listened, not overwhelming us and understanding that we’re a small organization,” says Alan Davidson, Executive Director of KenSAP.

Rewarding Work For Prophet’s People:

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Summary

On Prophet for Nonprofit day, Propheteers put their regular work responsibilities on pause and shift their energies toward volunteering or helping local charities solve a brand, business or marketing challenge.

To date we’ve helped over 140 nonprofits around the globe grow better; as a result, the charities we serve are better equipped to deliver on their missions to make the world a safer, healthier and happier place. These are the highlights from our teams, who helped nonprofits “do good across the globe” on Prophet for Nonprofit Day 2019.

Prophet for Nonprofit is now Prophet Impact! Learn more about the program!

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