Developing a Product and Service Strategy that Combines Financial Returns with Societal Impact
In today’s rapidly evolving business landscape, integrating financial performance with societal impact is no longer just a noble aspiration—it’s a strategic imperative. At Hangar 75, we believe in harnessing the power of innovation to drive both commercial success and positive societal change. This approach is deeply aligned with the United Nations Sustainable Development Goals (SDGs), providing a clear framework for measuring and achieving impact.
Our strategy centers around three core principles: Adapt Existing, Consolidate, and Invent. This triad forms the backbone of our methodology, ensuring that we maximize both financial and societal returns.
Adapt Existing
The first pillar of our strategy focuses on leveraging and optimizing existing products and services. This involves a thorough assessment of current offerings to identify opportunities for enhancement in alignment with the SDGs.
Example: A financial institution might adapt its loan products to include favorable terms for green initiatives, thus contributing to SDG 13 (Climate Action). By offering lower interest rates for projects that focus on renewable energy or sustainable agriculture, the institution not only attracts environmentally conscious clients but also helps drive the transition to a greener economy.
Consolidate
The second pillar involves streamlining and integrating efforts across different areas of the business to create synergies that amplify impact. By consolidating resources, processes, and initiatives, businesses can achieve greater efficiency and a more cohesive strategy for societal impact.
Example: A bank might consolidate its various financial literacy programs into a single comprehensive initiative aimed at underserved communities, targeting SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth). By focusing on improving financial literacy and economic opportunities in these communities, the bank can foster long-term customer relationships and contribute to economic development.
Invent
The third pillar is about innovation—developing new products, services, or business models that directly address specific SDGs. This is where the entrepreneurial spirit truly shines, enabling businesses to explore uncharted territories and create transformative solutions.
Example: An investment firm might invent a new financial product that allows investors to directly fund social enterprises aligned with SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities). This product not only provides a new avenue for socially responsible investing but also supports enterprises that are making a tangible difference in reducing poverty and inequality.
The Hangar 75 Approach
At Hangar 75, we apply these principles through a structured process that combines rigorous analysis, creative ideation, and disciplined execution. Our Community Catalyst Program, for instance, is designed to deliver both Commercial Return on Investment (CROI) and Social Return on Investment (SROI). Each initiative within the program is meticulously crafted to ensure it meets our high standards for both financial performance and societal impact.
Measuring Success
To verify the societal returns of our initiatives, we map each project to the relevant SDGs and establish clear metrics for success. This includes both qualitative and quantitative measures, from environmental impact assessments to community feedback surveys. By doing so, we ensure that our efforts are not only well-intentioned but also genuinely impactful.
Conclusion
Incorporating societal impact into product and service strategies is not just an ethical choice; it’s a strategic advantage. By adapting existing offerings, consolidating efforts, and inventing new solutions, businesses in the financial services sector can achieve significant financial returns while contributing to a better world. At Hangar 75, we are committed to leading the way in this transformative approach, proving that profitability and purpose can—and should—go hand in hand.
This strategy, aligned with the United Nations SDGs, provides a robust framework for financial institutions to navigate the complexities of today’s market while making a meaningful difference. By embracing this integrated approach, companies can unlock new opportunities, drive sustainable growth, and create a lasting legacy of positive impact.
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