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Cooperrider Laszlo 2009
 

Cooperrider Laszlo 2009

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David Cooperrider and Chris Laszlo team up for an executive education leadership program on creating sustainable value through whole system Appreciative Inquiry methods. The course is taught at the ...

David Cooperrider and Chris Laszlo team up for an executive education leadership program on creating sustainable value through whole system Appreciative Inquiry methods. The course is taught at the Weatherhead School of Management at Case Western Reserve University and in companies around the world.

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Cooperrider Laszlo 2009 Cooperrider Laszlo 2009 Presentation Transcript

  • Sustainability for Value and Profit David L. Cooperrider and Chris Laszlo February 2009
  • A Time for Exciting Innovation The Business Opportunity of the 21 st Century?
    • Astonishing Surge of Interest
    • Sustainability and Managing as Design
    • How Do We Turn Social and Global Issues Into Bona-fide Business Opportunities?
    • Appreciative Inquiry-- “AI”: How Do We Innovate, Design, and Change at the Scale of the Whole? The Strengths Revolution.
    • A Peter Drucker Moment to Remember
  • My “Peter Drucker Moment” The source of my two threads today!
    • “ Every social and global issue of our day is a business opportunity in disguise”
    • ******************************
    • “ The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”
  • Changing Context of Business The Most Exciting Project I Have Ever Worked On
    • 8am Welcome and Big Picture
    • 8.30 Introductions and Objectives
    • 9.00 Re-framing Sustainability
    • 9:30 Opening Inquiry
    • 10.15 break
    • 10.30 GE, Wal-Mart, Unilever Cases and Concepts: Cradle to Cradle; BOP
    • 11.30 Group Dialogue: Images of Future
    • 12.30 lunch
    • 1.30 Innovations & Insights
    • 2:00 Appreciative Inquiry: Strength- based & Whole System Methods
    • 4-5:00 Stories, Tools, Vast Opportunities
    • 8am Sustainable Value in Recession?
    • 9.15 Set Up for Working Groups
    • 10.45 break
    • 10.00 Stakeholder Role Play
    • 11:15 Working Group’s Projects
    • 12.30 lunch
    • 3:00 “Presentations to the Board”
    • 4.30 Debrief and Closing Reflections
    • -5.00
    Our Agenda February 4 th February 5 th
  • What Draws You To This Work?
    • 1.What draws or attracts you to this work on sustainable value?
    • 2. Your hopes for this session? Learning agenda? Management practice agenda?
    • (1-2 minutes)
  • Business as an Agent of World Benefit --More Than 2,000 Interviews --100s of Published Profiles “Positive Institutions” --s ee www.worldinquiry.org “Awe is What Moves Us Forward”
  • “ Meeting the needs of the present without compromising the ability of future generations to meet their own needs” Brundtland Commission, 1987 “A business approach to creating long-term shareholder and stakeholder value by embracing opportunities and risks deriving from economic , environmental , and social developments” The Dow Jones Sustainability Group Index, 2001 Definition of sustainability: People, Planet and Prosperity
  • Stakeholders are now a powerful force in business
  • Sustainable Value Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Value Transfer) Unsustainable (Lose/Lose) Sustainable Value - Value is sustainable only when it is positive for shareholders and stakeholders fossil fuel ICE
  • Top Rated Stars in Every Industry Are Becoming Leaders in Sustainable Value Innovation Compete? Or Lead?
    • “ Firms of Endearment”
    • High Purpose & high innovation
    • From Strategy to Shop Floor
    • It’s Fun, Surprising “Win-Win
    Why are ‘firms of endearment”— industry leading stars that have created huge emotional bonds with the world such as Toyota, Whole Foods, GE, and Green Mountain Coffee Roasters—generating investor returns at a rate of some 1,026 percent over a ten year period compared to 122 percent for the S&P 500?
  • Sustainable Value Partners © 2007 Complying to government regulations Reducing costs Sources of Business Value Levels of Strategic Focus Business Context Brand/ Culture Market Product Process Risk What’s Next The six levels of value creation Differentiating products & services Meeting needs for sustainability solutions Developing sustainability brand identity. Becoming an employer-of-choice Shaping legislation: “new rules of the game”
  • Opening Inquiry: 3 Questions for Reflection
    • Leading Positive Change: a “High-Point” Story?
    • What were “root causes” of success?
    • What was it about you…your best qualities/strengths?
    • Continuity Question:
    • Things you want to keep? Strengths/assets to build on?
    • Stories of innovation in sustainable value: (a) from your organization and (b) innovations from organizations that you admire?
    • Images of the Future 2014?
    • Describe: what’s happening new, different, better?
    • I will be most proud of my organization in 2014 when…?
  • Opening Interview (Ai conversation in pairs)
    • A-->B (20 min)
    • B-->A (20 min)
    • Spirit of discovery— strengths, aspirations, opportunities, results
    • Take brief notes
    • At the end.. summary & thanks
    • Return @
  • Business Value & Societal Value Observable Stages in Industry Leadership
  • Interview with Jeffrey Immelt, CEO Eco-imagination as “spectacular business opportunity”
  • Ecomagination’s Growth
    • GE's research and development dedicated to green energy overall is about $2.5 billion per year.
    • Revenues projected at $20 billion by 2010.
    • "Environmental thinking is no longer the purview of isolated, far-left thought. It is now a mainstream economic discussion. It is pervasive in almost every country in the world” -- Jeff Immelt
    • Ecomagination products: they are growing at 12 percent a year, faster than the company's overall revenue growth rate of 8 percent.
  • A Question for You About the S-Revolution:
    • Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers?
    • It employs 1.9 million people
    • Its serves 138 million people per week.
    • It has approximately $350 billion in sales
    • It’s attracting the most brilliant and radical environmental minds e.g. Amory Lovins
    • It’s raising many eyebrows
  • Sustainability goals at
    • To be supplied 100% by renewable energy
    • Stores 25% more efficient in 7 years
    • Fleet 25% more efficient in 3 years
    • To create zero waste
    • 25% reduction in solid waste in 3 yrs
    • Improve packaging of every product sold
    • To sell products that sustain our resources and the environment
    • 20% supply base aligned in 3 years
    Source: released in speech by Wal-Mart CEO Lee Scott October 24, 2005
  • Sustainable Value… Design Networks Energy Waste Products Global Greenhouse Gas Strategy Buildings Design Construction & Maintenance Global Logistics Alternative Fuels Operations & Internal Procurement Packaging Textiles Electronics Food & Agriculture Forest Products (Wood & Paper) Chemical Intensive Products Jewelry Seafood China
  • Stories Have Wings
  • Implications of Packaging Eco- Innovation & People Turned On
    • Prevented millions of pounds of trash from reaching landfills
    • Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere
    • Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned.
    • “ The packaging is renewable in 90 days instead of 9 million years”
  • Implications of Packaging Sustainable Value Innovation
    • Broadening this initiative to 255 items in Toys:
    • This employee driven initiative saved 3,425 tons of corrugated materials
    • 1,358 barrels of oil annually
    • 5,190 trees
    • Millions of dollars in transportation costs
  • Fleet of Class 8 heavy trucks 25% more fuel efficient in 3 years
  • Existing stores 20% more efficient by 2012; new stores 25-30% by 2009 Interior with sales floor lighting in “full off” mode LED Refrigerated Display Lighting
  • Sustainable products
    • One compact fluorescent light bulb:
    • Costs 7 times more and lasts 10 times longer
    • Uses 80% less electricity
    • Saves $30-80 on power bill
    • Prevents 500 pounds of coal or 1 barrel of oil from being burned
    • Keeps a ton of greenhouse gas (CO2) out of the air
    =plant-based polymer
    • Risk and cost reduction
    • Strategic growth opportunity
    Next steps for sustainability in business Environmental affairs Firm’s own footprint Incremental change Internally-driven decisions What’s Next Current Business Approach Sustainable Value Partners © 2007 CEO agenda Whole-system approach Collaborative partnerships Breakthrough innovation
  • William McDonough and “Cradle to Cradle”
    • “ I believe we can accomplish great and profitable things within a new conceptual framework—one that values our legacy, honors diversity, and feeds ecosystems and societies . . … It is time for designs that are creative, abundant, prosperous, and intelligent from the start.”
  • Cradle-to-Cradle (C2C) is a new design paradigm
    • C2C principles
      • Waste equals food
      • Use current solar income
      • Celebrate diversity
    BIOLOGICAL CYCLE TECHNICAL CYCLE Source: McDonough and Braungart (1998) and Green Blue Institute (2003)
  • It isn’t enough to do “less bad”. The biggest opportunity is “doing good” (Eco-Effectiveness) Eco-Efficient Eco-Effective Impact on the environment Source: MBDC High Low negative impact positive impact
  • The World’s Most Exciting Market?
    • A $12 Trillion Dollar Market
    • Place of Immense Entrepreneurial Opportunity
    • Places Where Your Company Can Make Enduring Contributions
  • Social example: serving the Base of the Pyramid 1 billion people with incomes > $15,000 per year 1.5 billion people <$15,000 but >$1,500 per year 4 billion people <$1,500 per year Saturated markets Incremental adaptation New market capability $13 trillion
  • Source: FT, April 20, 2004 What You See is not What it is………..
  • The Vision: The Base of the Pyramid Protocol To create inclusive, mutually beneficial business processes through which the private sector and local communities build economic, social and environmental value. A Process for Mutual Value Creation
  • The Jaipur Foot
  • Unilever’s Project Shakti
    • Unilever’s vision for Shakti is to scale it up across the country, covering 100,000 villages and touching the lives of 100 million rural consumers by 2010.
    • BAWB Video Archives:
  • Sustainable Value The opportunity for business is value creation (not only regulatory compliance) Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Lose/Lose) - ¹ environmental, social, and economic impacts Sustainable Value Partners © 2007 Sustainable Value Opportunities Enhanced reputation Product differentiation Motivated employees License to operate Entry into new markets Unsustainable (Value Transfer) Risks Customer de-selection Preemptive regulation Reputation damage Fines, penalties Loss of market share
  • Is Sustainability a Passing Fad?
  • We Have Unintentionally Produced Harm
    • Air pollution : 20% of world population breathes unsafe air (W.H.O.)
    • Soil depletion : two-thirds of the world’s agricultural land diminished
    • Forest losses : 40% of the world’s original forest cover destroyed
    • Water scarcity : one billion people without safe drinking water
    • Bio-diversity losses : Collapse of marine ecosystems by 2048
    • Poverty : 3 billion live on under $2 a day; the GDP/person gap between the 20 richest and 20 poorest nations has doubled in last 40 years
    • Climate change : 60% increase in atmospheric CO2. Extreme weather
    • To support the world’s population at Western consumption levels with current technology requires 4 more planet earths
    Sources: World Health Organization (W.H.O.), WorldWatch, United Nations EarthWatch, WRI, Conservation International ecologist
  • An area of intact forest the size of Panama is lost each year
  • A new study by Stanford University estimates that all commercial fish species will be lost by 2048
  • Over the last 50 years water use has tripled, increasing faster than population
  • An estimated 100 million tons of plastic trash circulates in the Pacific Ocean, concentrating toxins and entering the food chain
  • We Have Produced Tremendous Benefits For All
    • In modern times:
    • Life expectancy has more than doubled to 80 years
    • Infant mortality declined from 500 to 50 deaths per 1,000
    • Infectious diseases eliminated such as smallpox; nearly eliminated such as rubella and polio
    • World GDP per capita increased by a factor of 50
    • Yields for major food crops improved by factor of 10
    • Communication speed (transatlantic) from months to milliseconds
    • Human ingenuity always finds a way
    Source: WRI, WHO, Professor DeLong/ Berkeley (for World GDP per capita), Global Reach, UN Earthwatch economist
    • Value creation or destruction
    • Pro-growth consistent with quality of life. “Create the good”
    • Innovation
    • Moral, ethical
    • We need to limit growth to protect nature. “Stop the bad”
    • Regulation
    Environmentalism Sustainable Value Partners © 2007 Agenda is Vision is Tool is Reflects a shift in social movement The Politics of Possibility
  • Case Example: Benson Lee Core Technology: Simple, Low Cost Cell & Stack Design Slide Technology Management, Inc.,▼9718 Lake Shore Boulevard, Cleveland, Ohio 44108▼216-541-1000▼ [email_address]
    • Invented by SOHIO/BP
    • Full scale (2” diameter)
    • Electrolyte-supported
    • Internal manifolds for air and fuel
    • 3-4 Watts/Cell
    • ~400 Cells/kW (net)
    • No precious materials
    • Low cost fabrication
  • BioEnergy Platform + Plug-in Modules Support Rural Medical/Health Care Teams Slide Technology Management, Inc.,▼9718 Lake Shore Boulevard, Cleveland, Ohio 44108▼216-541-1000▼ [email_address] A&B C D E&F Clinical Telemedicine Public Health Global Health Delivery U.S. Manufacturing and Engineering Biomass to Energy @OSU College of Food, Ag, Env Sciences Fuel Cell Systems Biomass to Energy @OSU College of Food, Ag, Env Sciences
  • 3 Questions for Reflection from Interviews
    • Leading Positive Change: a “High-Point” Story?
    • What were “root causes” of success?
    • What was it about you…your best qualities/strengths?
    • Continuity Question:
    • Things you want to keep? Strengths/assets to build on?
    • Stories of innovation in sustainable value: (a) from your organization and (b) innovations from organizations that you admire?
    • Images of the Future 2014?
    • Describe: what’s happening new, different, better?
    • I will be most proud of my organization in 2014 when…?
  • Form Groups 2+2+2=6…return _____
    • Introduce your partners vis-à-vis your interviews—share highlights….
    • Everyone listen for patterns/insights in three areas:
    • High Point Stories : And Analysis Root Causes of Success ? Life-giving factors?
    • Continuity themes : Things Best, To Keep , Strengths. Example sustainability innovations.
    • Images of the Future : Key Visions 2014
  • 1. HIGH POINTS Patterns & Themes Be ready to share one best story from group 2. CONTINUITY: THINGS TO KEEP EVEN AS WE CHANGE: --example sustainability innovations: your company and others you admire: 3. IMAGES OF THE FUTURE WE WANT—WHAT IT LOOKS LIKE IN 2014
    • 8am Welcome and Big Picture
    • 8.30 Introductions and Objectives
    • 9.00 Re-framing Sustainability
    • 9:30 Opening Inquiry
    • 10.15 break
    • 10.30 GE, Wal-Mart, Unilever Cases and Concepts: Cradle to Cradle; BOP
    • 11.30 Group Dialogue: Images of Future
    • 12.30 lunch
    • 1.30 Innovations & Insights
    • 2:00 Appreciative Inquiry: Strength- based & Whole System Methods
    • 4-5:00 Stories, Tools, Vast Opportunities
    • 8am Sustainable Value in Recession?
    • 9.15 Set Up for Working Groups
    • 10.45 break
    • 10.00 Stakeholder Role Play
    • 11:15 Working Group’s Projects
    • 12.30 lunch
    • 3:00 “Presentations to the Board”
    • 4.30 Debrief and Closing Reflections
    • -5.00
    Our Agenda February 4 th February 5 th
  • Question
    • What are some of the eco-sustainability-related business opportunities in a value chain of your choice
    • --energy productivity and efficiency/ eliminating costs
    • --product opportunities & new markets
    • --brand and reputation
    • --energizing the workforce
    • --game changes in industry/society
    • What are some of the social-sustainability (BoP) business opportunities in your business?
      • Poor
      • Rural & Inner cities
      • Emerging markets
    • 8am Introduction
    • 8.15 Re-framing Sustainability
    • 9.15 Opening Inquiry
    • 10.15 break
    • 10.30 Wal-Mart, DuPont, GE Cases
    • 11.30 Is Sustainability the Flavor-of-Day?
    • 12.30 lunch
    • 1.45 Stakeholder Role-play
    • 3.15 The Base of the Pyramid
    • 4.00 Working Group Sessions
    • - 5.30
    • 8am The AI Organizational Summit
    • 9.45 The Financial Analyst Perspective
    • 10.15 break
    • 10.30 working groups continue
    • 12.30 lunch
    • 2.30pm “Presentations to the Board”
    • 4.00 Take-aways and Challenges
    • 4.30 Closing Discussion
    • -5.00
    Agenda February 12 February 13
      • Is sustainability the “flavor-of-the-day”?
    Q: How important are future sustainability issues?
  • Appreciative Inquiry Involves a Shift
    • “ No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.”
    • “ There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”
    • – Albert Einstein
  • Ageless Management Philosophy for Appreciative Inquiry—”AI”
    • “ The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”.
    • --Peter Drucker
  • Could it Be… Organization Change Might Be All About Strengths?
    • Why would strength connected to strength…create change?
    • Its often been said that strengths perform, but how about the idea that…. strengths do more than perform, they transform?
    • What would it mean to create an entire change theory around strengths?
    • Appreciate “Best of what is”
    • Imagine “What might be”
    • Design “What should be”
    • Create “What will be”
    • Identify problem
    • Conduct root cause analysis
    • Brainstorm solutions & analyze
    • Develop treatment - action plans or interventions
    Deficit Management (deficit based change) (strengths-focused innovation) Appreciative Inquiry Problem Metaphor: Organizations are machines “ problems to be solved” Mystery Metaphor: Living systems; webs of relatedness “ worlds of infinite strengths”
  • The AI Organization Summit Method Creating an Alignment of Strengths Using Large Group Methods
  • 5 Common Approaches to Change
    • Top Down Strategies
    • Bottom Up Strategies
    • Representative Cross-Section Strategies
    • Pilot Strategies
    • Back Room
  • Typical Results
    • Less Informed and Ultimately Less Effective Change Efforts
    • A Few Try to Convince Many That Change is Needed
    • Partial Responsibility Mindset
    • Change Occurs Sequentially
    • Change is Perceived as a Disruption of “Real Work”
  • Typical Results (cont)
    • Pace of Change is Too Slow
    • Substantial Change in Part or Modest Change in an Entire Organization
    • Breakdown at Implementation
  • The AI “ Organization Summit”
    • “ Whole System” in the Room
    • Strategic Task is Clear...
    • Future Focus & Continuity Search
    • Self-Management and Dialogue
    • Narrative Rich
    • From Common Ground to Inspired Action
    • Designing Real Prototypes
    • 2-3 Day event/100 to 1000 Participants
    • Uncommon Action/Follow Through
  • Nutrimental Foods The Results One Year Later
    • Rodrigo Loures, CEO
    • 300 % Increase in Profitability
    • 75 % Decrease in Absenteeism
    • Appointment to President Lula’s Economic and Social Council
    • World Business Academy Award
    • Rise to Best 100 Companies in the Nation
  • AI Summits: Three Ways to Understand Positive Change
  • Why Does Experience of Wholeness…
    • Bring out the best in human beings?
    • Propel innovation?
    • New life?
    • Eclipse old patterns?
    • So easy?
  • The AI 4-D Model of Strengths-Based Change Discovery “ What gives life?” The best of what is. Appreciating Dream “ What might be?” Envisioning Results/Impact Design “ What should be – the ideal?” Co-constructing Destiny “ How to empower, learn, and improvise?” Sustaining Affirmative Topic
  • Topic Re-framing Can Lead to Exciting Breakthrough Results
    • Is environmental regulation or “social responsibility” a burden or a business opportunity for breakthrough profit and new value?
    • Is the topic how to reduce harm?
    • Or how to unleash “eco-imagination” & “high purpose profit?”—Fairmount Minerals Case Clipping
  • Fairmount Minerals Story Unleashing Eco-innovation and Business Breakthrough
  • Whole System Sustainable Value Design
    • External Stakeholders:
    • Customers
    • Suppliers
    • NGO’s
    • Neighbors/Communities
    • Board of Directors
    • Imagine 300 Stakeholders—designing new products, services.
    • Internal Stakeholders
    • Operations
    • Administration & Corporate Services
    • Customer Service
    • Engineering
    • Logistics
    • Quality
    • Sales
    • Technical Support / R&D
    Collaborative Innovation
  • Images of the Sustainable Design AI Summit
  • Highlights
    • 40% Annual Growth in Earnings Past Two Years
    • 2007 US Chamber of Commerce’s #1 Corporate Citizenship Award
    • A Culture of Community Partnership and Innovation
    • New Employee Owned Businesses, New Markets
    • Emerging as Top Rated Star in the Industry
  • Sources of Business Value Levels of Strategic Focus Business Context Brand/ Culture Market Product Process Risk business value created Source: Chris Lazslo The Sustainable Company Anticipating regulations Reducing energy, waste & process costs—future of totally renewable energy Sustainable-value, low-energy products Using BOP and Blue Ocean strategy to open new markets New story, identity, passion Leading industry stars, associations, policy
  • Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years
  • Why High Engagement? The Business Case
    • Approaches to competitive advantage:
      • Low price – less than 60 days
      • Operational/technical expertise – less than 3 years
      • Fully engaged employees (people think and act like owners) –
      • more than 7 years
  • Gallop Study: 1.7 Million Employees
    • “ I have the opportunity to do what I do best”
    • What percentage of people do you think - 1.7 million people from 101 companies - strongly agreed that they are empowered to do what they do best in their work and company?
    • Hint: The wealth of unrealized capacity in enormous - people are dying to be tapped on the shoulder and asked for more engagement in the strategic issues of the
    • day - like the Navy example.
  • AI at the UN World Summit With Business and Industry CEOs and Civil Society Leaders
  • UN Global Compact AI Summit Results—and Surprises
    • Innovations : HP, Novartis, BP, Ericcson, Tata, etc
    • Counter Summit and Surprise of Friendship
    • Vision of PRI Project : Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets Together With Civil Society Organizations
    • Who Cares Wins — eclipse of “the great tradeoff illusion”
  • Results (cont.)
    • 10 Stock Exchanges & Climate Change Initiative
    • 43 Local Multi-sectoral Networks…China
    • 100% Growth in Members by 2007 Summit
    • Huge Data Base for Studies of “Positive Institutions”—What Do They Look Like? What Enables? Refract Strengths? Which?
  • The AI Summit Can Be Adapted in Many Ways
    • Web casts and video conferencing
    • Small “rapid design” summits—like kaiezen events for small wins, project launches, alliance formation.
    • Key Success Factors: It is Easy When--
    • Right Task
    • Right People —multiple stakeholders
    • Right Questions — AI continuity search and future search.
    • Right match — with the organizational, and community culture
  • AI Summit Planning
    • Forming summit planning team
    • Defining summit task and topics
    • Mapping summit stakeholders
    • Designing the summit format & Logistics
    • Creating the summit design
    • Preparing the opening AI questions
    • Preparing summit communication strategy
    • Envisioning post-summit momentum
  • AI Summit Planning: Steering Committee
    • Defining summit task and topics
    • Mapping summit stakeholders
    • Designing the summit format & Logistics
    • Preparing summit communication and marketing strategy
    • Envisioning post-summit momentum
    • Imagine It: (in pairs)
    • Where and how might an AI summit add value in your organization…if anything imaginable were possible?
    • “ What if we used our size and resources to make this country and this earth an even better place for all of us: customers, Associates, our children, and generations unborn?
    • “ What if the very things that many people criticize us for - our size and reach - became a trusted friend and ally to all, just as it did in Katrina?&quot;
    An Historic Opportunity &quot;Katrina asked this critical question, and I want to ask it of you: What would it take to be that company, at our best, all the time?
  • Sustainable Value Networks Energy Waste Products Global Greenhouse Gas Strategy Buildings Design Construction & Maintenance Global Logistics Alternative Fuels Operations & Internal Procurement Packaging Textiles Electronics Food & Agriculture Forest Products (Wood & Paper) Chemical Intensive Products Jewelry Seafood China
  • Each Network Created A Sustainable Pathway source: Dave Sherman Today’s Business Practices Sustainable Business Practices Sustainable Pathway Using competitive forces to create a race to the top
    • A “bigger win” for business and a “win” for society
    Quick Wins Can be implemented with existing technology and business models Innovation Projects Require technology and/or business model innovations System Change “ Changing the rules of the game”
    • Focused on a “win” for business
  • This Week’s Magazine Summit on Sustainability
    • One of 12 Sustainable Value Creation Networks
    • 64% of Magazines Put on Shelf Don’t’ Get Sold
    • 2.6 Billion—are Shredded
    • Would Circle the Earth 13 Times
    • Amazing AI Summit
  • Publisher Printer National Distributor Wholesaler Merchandiser Logistics Provider Freight Advertiser Retailer Consumer RDA Consultant Magazine Industry System Map
    • Results: “Something that’s never happened in 50 years”
    • Consensus on 50% Improvement in Sustainability in First Year
    • 12 major prototype entrepreneurial initiatives
    • An improvement of 50% = Saving 443,572 trees
    • = 4,640,816 gal. diesel fuel
  • Sustainability Index Summit Taking Action to Address a Global Imperative…Universities in Partnership With Business and Society Saving people money so they can live better July 14-16, 2008
  • Mature Phase: (Textiles example) SKU specific questions add greater level of detail and insight into specific product performance Hypothetical and illustrative Emphasis moves to product-specific scoring. Product scores roll up to influence supplier score. (Up to 1 score per SKU; products of the same profile could be grouped in one score) Weight Raw Material Inputs Manufacturing/ Processing Transport/ Packaging/ Sales Product Use End-of-Life/ Recycling Supply Chain Goals Energy and Climate 40% Suppliers track on-farm energy use? (Y/N) Energy use per unit of finished product? (ranges will be provided) Hang tag on energy use during garment care? (Y/N) To reduce the use of non-renewable energy and greenhouse gas emissions. Material Efficiency 20% Uses fibers or irrigation practices that reduce field water use? (Y/N) Water consumption per unit of finished product? (ranges will be provided) Use of recycled materials in fabric production? (Y/N) To maximize efficient use of all materials, minimizing waste and costs. Natural Resources 20% Is the product organic or transition? (Y/N) Use of a restricted substances list for factory practices? (Y/N) Hang tag on use of laundry detergents? (Y/N) To ensure the integrity of ecosystems and a safe, reliable supply of raw materials. People and Community 20% Is product Fair Trade certified? (Y/N) To protect quality of life and safeguard human health.
  • Leveraging the Power of Associations for a New Magnitude of Socially Responsible Leadership
  • What OvationNet’s Technology Made Possible
  • Technology…Behind the Scenes Streaming video presentations help dissolve the boundaries of location
  • Jeffrey Sachs Streaming Live To Virtual Participants At the Gaylord
  • Full participants in Day One Connected Locations
  • Virtual Roundtables
    • 8am Welcome and Big Picture
    • 8.30 Introductions and Objectives
    • 9.00 Re-framing Sustainability
    • 9:30 Opening Inquiry
    • 10.15 break
    • 10.30 GE, Wal-Mart, Unilever Cases and Concepts: Cradle to Cradle; BOP
    • 11.30 Group Dialogue: Images of Future
    • 12.30 lunch
    • 1.30 Innovations & Insights
    • 2:00 Appreciative Inquiry: Strength- based & Whole System Methods
    • 4-5:00 Stories, Tools, Vast Opportunities
    • 8am Sustainable Value in Recession?
    • 9.15 Set Up for Working Groups
    • 10.45 break
    • 10.00 Stakeholder Role Play
    • 11:15 Working Group’s Projects
    • 12.30 lunch
    • 3:00 “Presentations to the Board”
    • 4.30 Debrief and Closing Reflections
    • -5.00
    Our Agenda Tomorrow With Chris Lazslo February 4 th February 5 th
  • 1970 1999 1980 1995 Integration level Social Responsible Investments Investments in Environmental Technology Investment in Eco-Efficiency Triple Bottom-line Investment 2000-8 Value-based negative screening Low diversification High volatility Higher value creation Lower eco-footprint Single Bottom line = Shareholder Value Triple evaluation Not market driven Innovest EcoValue‘21 & Intangible Value Assessment Perspective of SRI Rating Agencies Source: Innovest F E S 3 in 1
  • Environmental, Social, and Governance Performance Risk Reduction Product Differentiation Process/ Cost Reduction Reputation Enhancement Human Capital – New Markets Entry Recruitment and Retention Innovation Capacity Superior Earnings and Share Price Differentiation and Competitive Advantage Sustainability as driver of share price Source: Innovest
  • Sustainability key messages for managers
    • Sustainability provides new insights into business strategy and the competitive environment
      • A “lens” through which line managers can innovate along their extended supply chains
      • Sustainability is not about trade-offs. Investments can have pay-backs of ≤1 year
      • Moral responsibility remains the foundation but not the primary motivator for action
    • Sustainability solutions require collaboration with key stakeholders
      • Partnering with stakeholders can reduce opposition and bring new knowledge
      • Effective stakeholder relationships must take into account perceptions and emotions
      • Managers must accept that they cannot please all stakeholders all the time
    • Sustainability solutions require new organizational competencies
      • Skills include assessing and managing stakeholder impacts along the supply chain
      • Many companies lack the organizational capacity for listening and empathy
      • Whole-system strength-based methods are well suited to innovation and game change
    Case Weatherhead School of Management David L. Cooperrider Chris Laszlo
  • The Power of Appreciation: 3 Facts About All Human Beings (closing end of day one)
    • Exceptionality
    • Essentiality
    • Equality of Voice/Opportunity