Conscious Capitalism ROC
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Conscious Capitalism shows a path to sustained success in business by connecting to a higher purpose and integrating all stakeholders while developing conscious leaders and a conscious culture. The ...

Conscious Capitalism shows a path to sustained success in business by connecting to a higher purpose and integrating all stakeholders while developing conscious leaders and a conscious culture. The Greater Rochester Chapter of Conscious Capitalism aims to cultivate Firms of Endearment in Upstate New York to increase engagement, serve the community and jumpstart the economy!

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  • Doctors, Lawyers, Architects have a higher purpose, why not Businesspeople
  • Doctors, Lawyers, Architects have a higher purpose, why not Businesspeople
  • Win-Win-Win
  • SHORT TERM FOCUS

Conscious Capitalism ROC Presentation Transcript

  • 1. A WORLDWIDE CRISIS
  • 2. The "master of business administration" degree reflects that the educational emphasis is on managing finances and administrating processes. But good management also requires a focus on people, something that many companies currently lack. In far too many businesses, employees with the longest tenure or who have the greatest subject matter expertise are moved into management, regardless of whether they have an aptitude for managing people. A WORLDWIDE CRISIS
  • 3. ONLINE SURVEY IN 26 COUNTRIES INFORMED PUBLICS • 5 years in 20+ markets • 500 respondents in U.S. and China & 200 in other countries • 8 years in 10+ markets • Ages 25-64 • 31,000+ respondents GENERAL POPULATIO N • 1000 respondents per country surveyed • Ages 18+ • 2 years of data • College-educated • In top 25% of household income per age group in each country • Report significant media consumption and engagement in business news and public policy MARKET COMPARISONS Developed: US, UK, France, Germany and Japan Emerged: Brazil, Mexico, Russia, India and China EU SELECT COUNTRIES: UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, and Poland • 13 years of data EDELMAN STUDY AN EXPLORATION OF TRUST
  • 4. Edelman Trust Barometer reveals FIVE PERFORMANCE CLUSTERS: (listed here in rank order of importance) 1. ENGAGEMENT LISTENS TO CUSTOMER NEEDS AND FEEDBACK 4. PURPOSE TREATS EMPLOYEES WELL WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT PLACES CUSTOMERS AHEAD OF PROFITS ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS COMMUNICATES FREQUENTLY & HONESTLY ON THE STATE OF ITS BUSINESS 2. INTEGRITY CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS HAS ETHICAL BUSINESS PRACTICES TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 3. PRODUCTS & SERVICES 5. OPERATIONS HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADER RANKS ON A GLOBAL LIST OF TOP COMPANIES OFFERS HIGH QUALITY PRODUCTS OR SERVICES DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS THE FOUNDATION OF LOYALTY
  • 5. TREATS EMPLOYEES WELL LISTENS TO CUSTOMER NEEDS AND FEEDBACK PLACES CUSTOMERS AHEAD OF PROFITS HAS TRANSPARENT AND OPEN BUSINESS PRACTICES COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS 60% 14% 55% 11% 55% 13% 53% 12% OFFERS HIGH QUALITY PRODUCTS OR SERVICES TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICH THE COMPANY OPERATES HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 49% 13% 47% 15% 46% 12% 41% 13% 40% 13% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETAL ISSUES 52% 29% HAS ETHICAL BUSINESS PRACTICES WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 56% 19% 37% 22% 31% 13% 30% 10% 15% 13% 29% 27% EDELMAN STUDY TRUST BUILDING ATTRIBUTES EXPECTATION VS. PERFORMANCE
  • 6. LOW TRUST IN ETHICS AND MORALITY OF LEADERS Global public trusts business leaders to do the following: BUSINESS LEADERS 26% SOLVE SOCIAL OR SOCIETAL ISSUES 20% 19% 18% CORRECT ISSUES WITHIN INDUSTRIES THAT ARE EXPERIENCING PROBLEMS MAKE ETHICAL AND MORAL DECISIONS TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR IT IS EDELMAN STUDY A CRISIS IN LEADERSHIP
  • 7. WHAT DO YOU THINK IS THE BIGGEST CAUSE OF THESE SCANDALS? – GLOBAL (ASKED OF RESPONDENTS WHO ARE FAMILIAR WITH BANKING/FINANCIAL SERVICES SCANDALS OVER PAST YEAR – 56% GLOBALLY) LACK OF REGULATION CORPORATE CULTURE DRIVEN BY COMPENSATION/BONUSES 20% BANKS ARE TOO LARGE 23% 59% of causes of scandals are internal and within business’ control 13% 25% 6% CHANGES IN THE ECONOMY 11% CORPORATE CORRUPTION CONFLICTS OF INTEREST EDELMAN STUDY TRUST DEFICIT IN BANKS LINKED TO CULTURE
  • 8. 2:24-5:24
  • 9. 92% of millennials believe that business should be measured by more than just profit and should focus on a societal purpose *Deloitte 2011 Millennials Survey MACRO TRENDS
  • 10. ―Darwin talked about ‗survival of the fittest,‘ not ‗survival of the winner.‘ Among human beings, the ―fittest are not necessarily those who subdue, conquer and control others. In the long run, the fittest tend to be those who know how to cooperate.‖ MACRO TRENDS
  • 11. More than 80 percent of the executives responding said they would cut expenditures on R&D and marketing to ensure that they met their quarterly earnings targets—even if they believed that the cuts were destroying long-term value. SHORT-TERM FOCUS
  • 12. 1347 – The first corporation was created as a not-for profit entity 1600 – Queen Elizabeth creates the East India Company –Corporations are chartered by the state for public purposes (building hospitals, bridges, roads, universities) –Charters could be revoked if corporations failed to fulfill their public purpose 1844 – The modern form of corporations traces its origins to an 1844 act in Britain that allowed them to define their own purpose rather than serve a societal purpose 1870 – Large companies commonly operate company towns EVOLUTION OF CORPORATIONS
  • 13. Consciousness Age Cultural capital is the new frontier of competitive Cultural Capital advantage. Richard BarrettInformation / Knowledge Age Intellectual Capital Industrial Age Quality of Product Agricultural Age Manpower 1800 1900 2000 MACRO TRENDS
  • 14. FOUR PILLARS CONSCIOUS CAPITALISM
  • 15. FIRMS OF ENDEARMENT
  • 16. ―We need red blood cells to live, but the purpose of life is more than to make red blood cells.‖ Ed Freeman HIGHER PURPOSE
  • 17. Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well merchandised stores. vs. To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. HIGHER PURPOSE
  • 18. ―When you tug at a single thing in nature, you find it attached to the rest of the world.‖ –John Muir Responsible for full lifetime of products. Four-step process for suppliers to sustainably obtain wood. C.A.F.E. Practices (Coffee and Farmer Equity) $.10/lb of sales STAKEHOLDER ORIENTATION FINDING THE WIN-WIN-WIN
  • 19. ―Leaders have to grow for the business to grow‖ -John Mackey, CEO, Whole Foods -Servant leaders -Focus on ―we‖ rather than ―me‖ -Cultivate a values-driven culture -Embody the higher purpose CONSCIOUS LEADERSHIP
  • 20. ―Culture eats strategy for lunch.‖ -Peter Drucker 10% Time Culture Committee – ―doing whatever it takes to create, enhance, and enrich the special Southwest sprit and culture that has made it such a wonderful family.‖ Pays employees 40% more than Sam‘s Club, but maintains higher profit per employee ―Cultural Capital is the new frontier of competitive advantage.‖ –Richard Barrett CONSCIOUS CULTURE
  • 21. Retail Average Training Time? 7 hours Container Store Training Time? Year 1: 235 hours Every year after: 160 hours Product Knowledge: Assembly, Operation, Recom mendations Payoff: -Turnover below 10% (Retail average 40-70%) -Increased sales/employee -Increased productivity TRAINING AND DEVELOPMENT
  • 22. CONSCIOUS CAPITALISM
  • 23. In a physical system, entropy provides a measure of the amount of energy that cannot be used to do work. Richard Barrett, a thought leader in measuring and developing corporate values, has adopted the term entropy to name the relative amount of ―energy” that is not being used to achieved company goals. Thus entropy is an indicator of an organization‗s ability to perform. “IF YOU CAN MEASURE IT, YOU CAN MANAGE IT!”
  • 24. Cultural Entropy Staff Engagement Tier 1 (Best) 5% 89 % Tier 2 8% 76 % Tier 3 15 % 55 % Tier 4 (Worst) 21 % 40 % This research of 163 organisations in Australia was carried out by Hewitt Associates and Barrett Values Centre in 2008. CULTURALMEASURE” FOR ENTROPY A “LEAD ENGAGEMENT
  • 25. Entropy Level 3 Year Revenue Growth % <10 % 32.87% 10 % – 19 % 24.90% 20 % – 29 % 11.39% >29 % 11.07% CULTURAL MEASURE” FOR ENTROPY A “LEAD REVENUE GROWTH
  • 26. Makes it possible to translate qualitative data into quantitative data Provides a baseline measurement instrument for monitoring changes in the organisational culture Provides a method for measuring cultural capital MEASURING CULTURE
  • 27. "Which values best describe who you actually are / not who you would like to be?―  Personal Values  Current Culture Values "Which values best describe the current culture of your organization?―  Desired Culture Values "Which values would you like to represent your organization's future culture?" “CROWDSOURCE” YOUR VALUES
  • 28. Self-actualization Know and Understand Knowing / Understanding Richard Barrett Abraham Maslow Esteem Love, Belonging Safety Physiological, basic needs Needs Consciousness BARRETT MODEL
  • 29. Service Making a Difference Spiritual Internal Cohesion Transformation Mental Self-esteem Emotional Relationship Survival Physical BARRETT MODEL
  • 30. JOIN THE MOVEMENT! WWW.CONSCIOUSCAPITALISM.ORG WWW.CONSCIOUSCAPITALISMROC.WORDPRESS.CO @CONSCIOUSCAPROC
  • 31. Service Personal Health Making a Difference Financial Stability Security Internal Cohesion Transformation Organizational Profit Self-Esteem Shareholder value Employee health/safety Relationship Job security Survival Control…Exploitation SURVIVAL CONSCIOUSNESS
  • 32. Service Personal Family Making a Difference Friendship Listening Internal Cohesion Transformation Organizational Customer satisfaction Self-Esteem Open communication Respect Relationship Conflict resolution Employee recognition Survival Blame…Manipulation RELATIONSHIP CONSCIOUSNESS
  • 33. Service Personal Self-confidence Making a Difference Success Ambition Internal Cohesion Transformation Organizational Efficiency Self-Esteem Productivity Quality Relationship Best practices Results orientation Survival Bureaucracy…Complacency ESTEEM AND EFFICIENCY
  • 34. Service Personal Courage Making a Difference Personal growth Adventure Internal Cohesion Transformation Organizational Innovation Self-Esteem Diversity Teamwork Relationship Accountability Risk-taking Survival Employee participation TRANSFORMATION
  • 35. Service Personal Trust Making a Difference Enthusiasm Honesty Internal Cohesion Transformation Optimism Organizational Integrity Self-Esteem Co-operation Shared vision Relationship Commitment Creativity Survival Transparency INTERNAL COHESION
  • 36. Service Personal Mentoring Making a Difference Volunteer work Empathy Internal Cohesion Transformation Organizational Employee fulfilment Self-Esteem Leadership development Customer collaboration Relationship Strategic alliances Community involvement Survival Environmental awareness COLLABORATION
  • 37. Service Personal Wisdom Making a Difference Humility Forgiveness Internal Cohesion Transformation Organizational Ethics Self-Esteem Future Generations Long-Term Perspective Relationship Vision Sustainability Survival SELFLESS SERVICE
  • 38. Service Long-term Viability Making a Difference Collaboration Internal Cohesion Shared Vision Transformation Continuous Improvement Self-Esteem Best Practices Relationship Customer Satisfaction Survival Financial Stability FULL-SPECTRUM CONSCIOUSNESS