Scaling up
inclusive business
Solutions to overcome internal barriers

November 2013
Why this brief?
• Companies of all sizes, including
many WBCSD members, are actively
testing and rolling out inclusive bus...
Why this brief?
So far: lots of focus on external
market barriers
•
•
•
•
•
•
•

Informality
Insufficient market informati...
Why this brief?
But what about internal organizational
barriers?
• Much less commonly acknowledged or
discussed
• Solution...
Process
Builds on hands-on experience of
a dozen WBCSD members
• CEMEX, Grundfos, ITC, Lafarge, Masisa, Nestlé,
Novartis, ...
Results

Barrier 1
Opportunity cost
of investment

Barrier 3
Capability
gaps

Barrier 2
Strategic and
operational
misalign...
Solutions
Barrier 1
Opportunity cost
of investment

Barrier 3
Capability
gaps

Solutions
• Adopt a portfolio approach
• Ob...
Solutions

8
Taking action
This piece is a contribution to the
WBCSD’s Action2020 platform for action

Our aim: catalyze further action...
Filippo Veglio
veglio@wbcsd.org
Tel. +41 22 839 31 08

www.inclusive-business.org
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WBCSD issue brief: Scaling up Inclusive Business – Solutions to overcome internal barriers

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What are the solutions that can help companies scale up inclusive business ventures? In this issue brief, the World Business Council for Sustainable Development (WBCSD) zooms in on the internal organizational barriers large companies face when trying to scale up inclusive business. However, the WBCSD did not limit itself to highlighting problems, but also identified solutions that have been put in place by WBCSD members to overcome those barriers.

The issue brief features insights from CEMEX, Grundfos, ITC, Lafarge, Masisa, Nestlé, Novartis, Novozymes, SABMiller, Schneider Electric, and The Coca-Cola Company, and Vodafone.

The brief organizes the range of possible internal organizational barriers to scale up inclusive business into three main categories: opportunity cost of investment; strategic and operational misalignment; capability gaps.

For each of these three categories of barriers, the brief describes a range of solutions (a dozen in total) illustrated by company examples – from obtaining the support of senior leadership and establishing centers of excellence, to bringing core capabilities in-house, adjusting performance targets and quantifying the total value created by inclusive business ventures.

This piece is a contribution to Action2020, the WBCSD platform for business to contribute solutions to environmental and social challenges.

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WBCSD issue brief: Scaling up Inclusive Business – Solutions to overcome internal barriers

  1. 1. Scaling up inclusive business Solutions to overcome internal barriers November 2013
  2. 2. Why this brief? • Companies of all sizes, including many WBCSD members, are actively testing and rolling out inclusive business models… • …but scale has so far proven elusive…even for multinational corporations • Inclusive business models will not scale without a solid understanding of what works and what doesn’t 2
  3. 3. Why this brief? So far: lots of focus on external market barriers • • • • • • • Informality Insufficient market information Inadequate infrastructure Ineffective regulation Uneven cash flows Limited skills Etc. 3
  4. 4. Why this brief? But what about internal organizational barriers? • Much less commonly acknowledged or discussed • Solutions lie within direct control of companies themselves How to analyze the key barriers and showcase WBCSD member solutions to overcome them? 4
  5. 5. Process Builds on hands-on experience of a dozen WBCSD members • CEMEX, Grundfos, ITC, Lafarge, Masisa, Nestlé, Novartis, Novozymes, SABMiller, Schneider Electric, The Coca-Cola Company, Vodafone Expert insights • Erik Simanis (Cornell University), Ezequiel Reficco (Universidad de los Andes), Mike Kubzansky (Omidyar Network) WBCSD Regional Network partner inputs • BCSD Argentina • Center of Excellence for Sustainable Development, Confederation of Indian Industry 5
  6. 6. Results Barrier 1 Opportunity cost of investment Barrier 3 Capability gaps Barrier 2 Strategic and operational misalignment 6
  7. 7. Solutions Barrier 1 Opportunity cost of investment Barrier 3 Capability gaps Solutions • Adopt a portfolio approach • Obtain senior leadership support • Quantify total value created • Find outside investors Barrier 2 Strategic and operational misalignment Solutions Solutions • Utilize external partners • Bring core capabilities in-house • Support professional development • Establish centers of excellence • Start with the business plan • Get out of the corporate greenhouse • Adjust performance targets • Establish a separate company 7
  8. 8. Solutions 8
  9. 9. Taking action This piece is a contribution to the WBCSD’s Action2020 platform for action Our aim: catalyze further action, gain greater insights, and create an environment that is more conducive to scaling up inclusive business 9
  10. 10. Filippo Veglio veglio@wbcsd.org Tel. +41 22 839 31 08 www.inclusive-business.org
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