Flourishing Business Canvas v2 Introduction

1. 1 www.FlourishingBusiness.org @FlourishingBiz www.SSBMG.com @StronglySustain #SSBMG a project by members of ThisworkislicensedunderaCreativeCommonsAttribution- NonCommercial-ShareAlike4.0UnportedLicense.Permissionsbeyondthescope ofthislicensemaybeavailableathttp://www.EdwardJames.biz/Permissions FlourishingBusinessesCanvasv2-Introduction Version1.52016-02-09 ©EdwardJamesConsultingLtd,SomeRightsReserved Flourishing Business Canvas Basic Walk-Through Why, How, What & What’s Next Feb 9, 2016 Antony Upward antony@EdwardJames.biz @aupward Builds on many Builds on many slides; download & slides; download & view in slide show view in slide show mode for improved mode for improved comprehension comprehension Lots ofLots of speaker notes, speaker notes,inc. references inc. references
2. 2 Objective • Provide an introduction to the Flourishing Business Canvas v2 • Make an invitation to accept our gift and make it your own – in your own hero’s journey* • Gift: Flourishing Business Canvas and • The opportunity to engage, contribute, to contribute to your own flourishing (See Project Update Presentation in SlideShare for more on this) • Question for You: – Will you accept our invitation? – How will you use our gift on your own journey? – Who will you pollinate? * The new story of business – mentors to their stakeholders – the provider of knowledge and resources for their hero’s journey. Sachs, J. (2012). Winning the story wars: Why those who tell (and live) the best stories will rule the future Harvard Business Review Press. (Hero’s Journey Video: https://vimeo.com/50791810)
3. 3 If You Wish to Use Our Canvas… • Canvas will be made available under a Creative Commons License – Free to use commercially & non-commercially – Current development version must be licensed before use – at no cost • Current version of canvas ready for use – Other elements of the Flourishing Business Innovation Toolkit at earlier stages, pending funding • Project seeking relationships with people willing to use the canvas now and / or fund the project – Improve canvas – Input to develop rest of toolkit Current version of canvas can be licensed for freefree – doing so establishes the relationship you need to get support and we need to get feedback contact us: inquiry@flourishingbusiness.org
4. 4
5. 5 Strive to sustain “the possibility that human and other life will flourish on this planet forever” – John Ehrenfeld, MIT • Audacious • Inspirational • Attractive • Universal • Practical • Values Based • Continuous You, Me, Us,You, Me, Us, Everyone, EverythingEveryone, Everything Flourishing as a Goal
6. 6 Our Vision for the Future of Enterprise • We imagine a world where human enterprises – No longer merely attempts to do less harm – Sets as their goal the flourishing of human and other life – Creates tri-impact by being tri-profitable: • Financially viable • Socially beneficial • Environmentally regenerative * Increasingly shared: see recent Flourishing & Prosperous Business Conference (www.globalforumbawb.com), the book “The Flourishing Enterprise” by Laszlo, Brown, Ehrenfeld et. al. and the Future Fit Business Benchmark (www.FutureFitBusiness.org)
7. 7  Clean air & water  Vibrant soil for food  Healthy eco-systems creating materials for us & rendering our wastes harmless Trusting relationships focused on well-being with all our fellow citizens (neighbours, communities, cities, regions & countries) Businesses choose to co- operate, collaborate and compete to best meet our needs today & in the future, whilst creating the wealth to meet shared needs (education, infrastructure, etc.) Individuals choosing to strive to flourish: emotionally, spiritually, physically, practically, artistically & economically Our Understanding: Requirements for Flourishing…Big PictureBig Picture Macro: Natural Sciences Micro: Physiology, Psychology, etc.Meso: Business, Organization, etc. Macro: Social Sciences
8. 8 Future fit businesses, operating forever, would not only do no harm, but do well by only doing good … creating the possibility that human and other life will flourish on the planet forever. … throughout its value constellation A flourishing enterprise is financially rewarding, socially beneficial and environmentally regenerative WHERE WHY WHAT Implications for Enterprise Vision & Mission for the Possibility for Flourishing* * Inspired by Future Fit Business Benchmark – a project of The Natural Step Canada & 3D Investment Foundation –FutureFitBusiness.org WHO … for all its stakeholders: founders, customers, employees, owners and communities
9. 9 = Do Good to Do Well We Believe Flourishing Enterprises are Simply Better… Compared to Profit-First Businesses, in our increasingly volatile, uncertain, complex and ambiguous world, flourishing enterprises have the possibility for: More Innovation, More Opportunity, Less Risk, More Resilience and as a Result Improved Financial Viability over the longer term Shared values and goal:Shared values and goal: sustaining the possibility forsustaining the possibility for flourishing for all foreverflourishing for all forever
10. 10 SUSTAINABILITY stages of development ORGANISATIONAL stages of development SOCIO-CULTURAL stages of development thriving thriving thriving sustainable sustainable sustainable improving improvingimproving SUSTAINABILITY stages of development SUSTAINABILITY stages of development ORGANISATIONAL stages of development ORGANISATIONAL stages of development SOCIO-CULTURAL stages of development SOCIO-CULTURAL stages of development thriving thriving thriving thriving thriving thriving sustainable sustainable sustainable improving improvingimproving improving improvingimproving improving improvingimproving ThriveAbility Foundation ThriveAbility Foundation Setting a Goal of Flourishing for Enterprises is a Growing Movement…
11. 11 APPROVE D
12. 12 But How? How can we enable flourishing in real operating businesses?
13. 13 But Why Business Models? Because they Integrate Many Views of an Enterprise Business modeling efforts integrate all the aspects of an enterprise – enabling you to learn more effectively to create the most compelling story of your endeavour YourYour BusinessBusiness ModelModel Operational PlanOperational PlanTransformation PlanTransformation Plan AssumptionsAssumptions Vision, Mission, ValuesVision, Mission, Values StrategyStrategy ContextContext
14. 14 Tri-Impact Enterprises Need More Your Business Model “A business model is a description of how an enterprise defines and achieves success over time.”* Design your Business Model so it creates the possibility for flourishing: financially, socially and environmentally * Upward, A., & Jones, P. H. (2016). An ontology for strongly sustainable business models: Defining an enterprise framework compatible with natural and social science. Organization & Environment, Special Issue: Business Models for Sustainability: Entrepreneurship, Innovation, and Transformation 29(1), 1-27. doi:10.1177/1086026615592933 & download manuscript: www.academia.edu/14461116
15. 15 Introducing … A tool that provides a common language in a useful visual framework to enable you to collaboratively sketch, prototype, design, improve, communicate, understand, measure, diagnose and tell stories about your flourishing business model
16. 16 Based on 3+ years of peer reviewed research*; Built on Alex Osterwalder’s 2004 PhD – the basis of the very practical and successful profit-first Business Model Canvas Introducing … * Upward, A., & Jones, P. H. (2016). An ontology for strongly sustainable business models: Defining an enterprise framework compatible with natural and social science. Organization & Environment, Special Issue: Business Models for Sustainability: Entrepreneurship, Innovation, and Transformation 29(1), 1-27. doi:10.1177/1086026615592933 & download manuscript: www.academia.edu/14461116
17. 17 V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. Flourishing Business Canvas – the language of tri-impactful enterprise: 16 necessary and sufficient questions to describe a flourishing business model: financially, socially, environmentally A Business Model Tool for Tri-Profitable Enterprise Design
18. 18 16 Necessary and Sufficient Questions •Outcomes 1. Goals 2. Benefits* 3. Costs* •People 4. Ecosystem Actors 5. Needs 6. Stakeholders* 7. Relationships* 8. Channels* •Value 9. Value Co-Creations* 10. Value Co-Destructions •Process 11. Partnerships* 12. Governance 13. Resources* 14. Biophysical Stocks 15. Activities* 16. Ecosystem Services 16 Questions to create the possibility for flourishing. *The 9 questions from the Business Model Canvas (profitability is part of flourishing)
19. 19 V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. 16 necessary and sufficient questions to create the possibility for flourishing – grouped by Perspective, related to Contexts Full ContextFull Context for all Businessfor all Business
20. 20 V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. 16 necessary and sufficient questions to create the possibility for flourishing – grouped by perspective, related to contexts WhoWhoWhatWhatHow & WhereHow & Where WhyWhy
21. 21 V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. 16 necessary and sufficient questions to create the possibility for flourishing – grouped by perspective, related to contexts $ = Question Business Model Canvas$ = Question Business Model Canvas asks – extended to include financial,asks – extended to include financial, social & environmental aspectssocial & environmental aspects $$$$ $$ $$ $$$$ $$$$ $$
22. 22 Key Points About Flourishing Business Canvas – 1 / 2 • Didn’t delete concepts compared to BMC • All 9 questions still there – you can move stickies that describe the profit making elements of a business model from the BMC to the FBC without any changes • AND then you’ll start to see, through the additional and expanded questions, new opportunities and new risks – that come from the integrated view of the economic, social and environment
23. 23 Key Points About Flourishing Business Canvas – 2 / 2 * • A common language for describing and designing flourishing organizations • Builds understanding of interconnections of the organization with the world: Economically, Socially, Environmentally • Enables broader, deeper and richer conversations about all aspect of value co-creation (and destruction) • Provides context to enable collaboration – enabling teams to align on key strategic decisions The Flourishing Business Canvas: A key component of a comprehensive innovation toolkit to collaboratively think through all the aspects of an enterprise to create the possibility for flourishing – sketch, prototype, design, improve, communicate, understand, measure, diagnose and tell stories * Separate articles, presentations, talks, videos, workshops, labs introduce / explain / give examples of the Flourishing Business Canvas
24. 24 Going Deeper • The following pages provide – An introduction to a key concept and the overall structure of the Flourishing Business Canvas • The definition of value • The three real contexts for business: Environment, Society, Economy • Four perspectives on any business: Outcomes, People, Value, Process – Walk through of the relationship between the contexts, perspectives and the 16 questions When you become a First Explorer you also get ~12 pages of help on each of the questions – including hints and tips
25. 25 Re-thinking Value “A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]”* Value isValue is the perception by a human or non-human actor of a need being met; measured in aesthetic, psychological, physiological, utilitarian and / or monetary terms† From To Value is created when needs are met via satisfiers that align with the recipients world-view, and destroyed when they don’t Necessary, but not Sufficient * p. 14 Osterwalder, A., & Pigneur, Y. (2009). Business Model Generation † Derived from Max-Neef – Fundamental Human Needs (1991)
26. 26 Real Context for Business Environment (Physical / Chemical / Biological) (Monetary) A Business (Social/Technological) Society Economy Each and every business relates to all three contexts: the environment that enables society that creates the economy Elements #1
27. 27 The Contexts for all Enterprises Elements #1 Each and every human enterprise relates to all three contexts: the environment that enables society that creates the economy Social & Technological Physical, Chemical & Biological Monetary V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved.
28. 28 The Contexts for Business Elements #1 Each and every human enterprise relates to all three contexts: the environment that enables society that creates the economy Financial Economy Environment Society
29. 29 The inconvenient truth is that flourishing enterprises, to avoid unintended consequences, have more considerations “And that, in simple terms, is how you start a profitable small business” Business is ComplexFlourishing Business is More Complex V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved.
30. 30 Outcomes PeopleProcess Value Perspectives on a Business Model © Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. Elements #2 There are four perspectives that group the concepts on the flourishing business canvas, making it more manageable: Why, Who, What and How
31. 31 Outcomes Process Value People Perspectives on a Business Model Who does an enterprise do it to, for and with? What does an enterprise do now and in the future? How, where & with what does the enterprise do it? Why: How does an enterprise define & measure success? (in Environmental, Social & Monetary units) © Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. Elements #2 There are four perspectives that group the concepts on the flourishing business canvas, making it more manageable: Why, Who, What and How V2.0
32. 32 Relating Contexts to Perspectives V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved.
33. 33 Understand What’s Unique Elements #3 We need to identify the boundary, what is unique about this business model and what is shared by each enterprise Enterprise
34. 34 Understand What’s Unique Elements #3 Unique to this business We need to identify the boundary, what is unique about this business model and what is shared by all human enterprises Everything shared with everyone Common to everyone & everything V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved.
35. 35 Ecosystem Actors Needs Understand What’s Shared Elements #4 Biophysical Stocks Ecosystem Services
36. 36 Understand What’s Shared Elements #4 Biophysical Stocks Ecosystem Services V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved.
37. 37 Understand What’s Shared Elements #4 V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved.
38. 38 Suppliers & Partners Customers Customer Relationships Understand Creating, Delivering and Capturing Value – Financially* * From the Business Model Canvas described in Business Model Generation by Osterwalder & Pigneur (2009) Drives Drives Cost Structure Revenue Streams Customer Channels Value Propositions Acquired Resources Actions Fulfill Offered Elements #5
39. 39 Suppliers & Partners Customers Customer Relationships Understand Creating, Delivering and Capturing All Value Elements #5 Drives Drives Cost Structure Revenue Streams Customer Channels Value Propositions Acquired Resources Value Co-Creations Actions Stakeholder Partnerships Costs Benefits Stakeholders Value Co-Destructions Customer Relationships Customer Channels Stakeholder Relationships Acquired Resources Actions Customer ChannelsStakeholder Channels Governance Acquired Resources Actions Resources ActionsActivities Fulfill Offered
40. 40 Understand All Value V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. Elements #5
41. 41 Understanding Goals Elements #6 We need to identify the goals of the enterprise – as defined by the stakeholders with governance rights to do so. Goals are based the values of those stakeholders. Goals
42. 42 Understanding Goals V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. Elements #6
43. 43 V2.0© Antony Upward / Edward James Consulting Ltd., 2014 All rights reserved. The necessary and sufficient building blocks to create the possibility for flourishing – contexts, perspectives, question boxes
44. 44 Summary • A common language for describing and designing flourishing organizations • Builds understanding of interconnections of the organization with world: Economy, Society & Environment • Enables broader, deeper and richer conversations about all aspect of value co-creation (and destruction) • Provides context to enable collaboration – enabling teams to align on key strategic decisions The Flourishing Business Canvas: A tool to think through all the aspects of a business to create the possibility for flourishing – financially, socially and environmentally
45. 45 What’s Next? Can I Use It Now? How Can We Help You?
46. 46 Possibility for: More Innovation More Resilience More Opportunity with Less Risk We Imagine… Better Tools toBetter Tools to Help Apply thatHelp Apply that Logic & ScienceLogic & Science A NewA New Logic forLogic for FlourishingFlourishing EnterpriseEnterprise Toolkit ContentsToolkit Contents • Tool (canvas) • Design Principles for Flourishing Business • Methods for effective use of the tool while applying the principles • Patterns and case studies Based onBased on the Latestthe Latest ScienceScience Doing GoodDoing Good toto Do WellWell
47. 47 Destination • Canvas will be made available under a Creative Commons License – Free to use commercially & non-commercially – Current version must be licensed before use – at no cost • “How to” book describing the toolkit for flourishing business will be published • Global team of 12 assembled; some aspects of book development planned to be crowd-funded – www.FlourishingBusiness.org – See Project Update Presentation in SlideShare for more
48. 48 Status / Next Steps • Current development version of canvas ready for use • Other elements of the Toolkit at earlier stages, pending funding • Project seeking relationships with people willing to use the canvas now and / or fund the project – Improve canvas – Input to develop rest of toolkit Development version of canvas can be licensed for freefree – doing so establishes the relationship you need to get support and we need to get feedback
49. 49 Invitation We would love to help you go deeper: 1.Experience the Flourishing Business Canvas • Tailored workshops in your location 2.Use the canvas in your organization • Become a “First Explorer” – freefree license! 3.3.ContributeContribute to its further development • Financially or in-kind – join our “Marquee Supporters” 4.Undertake research using it • Collaborate with our community of researchers To explore how these possibilities can help you reach your goals please contact us: inquiry@flourishingbusiness.org
50. 50 How Can We Help? • We help enterprises to improve their tri-profitability – at all stages of their development We bring integrated Coaching, Assessment, Diagnosis, Design, Value Discovery, Learning services to enable your sustainable innovation journey Please contact us to explore how we can help you create your flourishing enterprise: inquiry@flourishingbusiness.org A Start-up From concept to proven business model B Find Funding to Scale Ensuring capability to grow and readiness for funding C Enterprise Succession From decision to sell through new owner control D Enterprise Innovation New product / service design and associated business model development and testing E Value Network Innovation Multi-stakeholder collaborations to resolve systemic barriers to tri-impact creation F Tri-Impact Performance Assessment Financial, social and environmental reporting, risk analysis and opportunity identification
51. 51 www.FlourishingBusiness.org @FlourishingBiz www.SSBMG.com @StronglySustain #SSBMG a project by members of ThisworkislicensedunderaCreativeCommonsAttribution- NonCommercial-ShareAlike4.0UnportedLicense.Permissionsbeyondthescope ofthislicensemaybeavailableathttp://www.EdwardJames.biz/Permissions FlourishingBusinessesCanvasv2-Introduction Version1.52016-02-09 ©EdwardJamesConsultingLtd,SomeRightsReserved Appendix / Back-up
52. 52 Help bring Flourishing Business Innovation to the World!  Become a “First Explorer” – Enables commercial use of the new Canvas now 40 organizations & individuals around the globe have joined so far  Join the quest – Crowd-funded collaborative book project Working Title: Flourishing Business Innovation – 12 International co-authors identified – Crowd-funding in 2016-17 Individuals and Organizations Backers also get immediate commercial rights to use new Canvas Everyone else will have to wait for the book – Self Publish 2016-17 Canvas released under a Creative Commons License free for commercial use  Connect to like-minded colleagues – Linkedin and Facebook 540+ Members from around the globe @FlourishingBiz # FlourishingBiz inquiry@FlourishingBusiness.org www.FlourishingBusiness.org
53. 53 Join 550+ colleagues: http://forum.SSBMG.com Monthly presentations – virtual & F2F www.facebook.com/ StronglySustainableBusinessModels @StronglySustain #SSBMG info@SSBMG.com www.SSBMG.com Learn More – ~3 minute Audio/Visual Overview about.SSBMG.com • Focus Areas – wiki.ssbmg.com/home/streams • Videos – youTube.com/ssBusinessModelTV • Learning Map – wiki.SSBMG.com/home/learning-map – Includes case studies • Blogs – blog.SSBMG.com Strongly Sustainable Business Model Resources
54. 54 Copyright • All images used under applicable creative commons licences – see notes on each page © Antony Upward / Edward James Consulting Ltd., 2016. Some rights reserved. – Permissions available at www.EdwardJames.biz /Permissions – This work is licensed under a Creative Commons Attribution- NonCommercial-ShareAlike 4.0 Unported License
55. 55

Editor's Notes

So why is flourishing the right and best goal?
(or any of t he other words that mean the same thing
- thriving
- abundance
- genuine wealth
- authentic happiness
- etc

So if we’re talking about flourishing enterprise we need first to step back and set the scene: what do we mean by flourishing?
John Ehrenfeld from MIT suggested about 15 years ago that humans collectively and individually need a new goal for conducting our lives – that we should all strive to sustain the possibility that we can all flourish along with all other life on this, our finite shared planet, forever
As a little experiment - try this – with a friend tell each other 4 stories: a time when (1) you survived something, (2) when you languished in a situation,(3) when you felt a situation was sustainable, and (4) a time when you flourished. Then ask each other: which do you want more of going forward? (Not flourishing includes happiness – but happiness is just one part of the moment-to-moment experience of flourishing – of being and caring vs. having). This scale survival to flourishing is the range of human potential as defined by positive (and ecological?) psychologists.
We like this definition for lots of reasons.
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I think you’ll agree that THAT’s a B.H.A.G. – a big hairy audacious goal!
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AND it’s also really inspiring and a good deal more attractive as a goal than merely being “sustainable” – after all, as Chris Laszlo from Case Western Reserve University in Cleveland, USA, has said recently: all who wants a sustainable marriage.
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AND flourishing is also a universal, practical / accessible idea. It’s something nearly all of us have experienced We’ve all had an experience of flourishing – being at the peek of our performance… being in a moment of flow where time flew by because we were so engaged, so excited, so at one with what we were doing…
Two other interesting things about the idea of flourishing are that
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One: what each of us means when we use the word for ourselves is personal – which means its connected to what we individually value and how we understand the world. This isn’t some top down definition being imposed.
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And two: flourishing is a process – it is continuous change, its not a state – so it aligns with the business reality that business is about the process of changing forever – continuously adapting to changing circumstances to enable you to stay in business.

So how does the goal of sustaining the possibility for flourishing apply to human organizations, our enterprises, our businesses?
&lt;Build Slide&gt;
This is about
win-win-win, creating positive outcomes
to paraphrase B Lab: using the power of business to enable human and other life to flourish on this planet forever
This is the future we see and the vision we’re seeking to create – its why we are doing this work with you here today.
We’d like to invite you to explore this future with us for the remainder of this workshop…
So with this vision for the future of business in mind…
Image: &lt;&lt;replace image with one with license for commercial reuse – http://blog.entrepreneurthearts.com/wp-content/uploads/2009/12/dreamstime_8430546.jpg

We’d like to take a couple of minutes to summarize our understanding on this topic
Our understanding is in two parts…
First, based on the latest science, is that in order to have the possibility for flourishing there are some big picture requirements that need to be met
We need personally, and in our businesses, to strive to create the following:
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&gt;&gt;Note for Build 2: aligns with the first 3 of The Natural Step System Conditions for a sustainable society
&gt;&gt;Note for Build 3: aligns with the 4 (and the new 5-8) system conditions
You’ll notice this is the same body of knowledge that informed the Dictionary of Flourishing Business (and hence the Flourishing Business Canvas) that we described earlier.
So the questions the Canvas asks are directly and explicitly aligned with this understanding of the requirements we need to fulfill in order to create the possibility for flourishing for all forever.
So what are the implications for individual enterprise… no longer just “sustainable” enterprises, but flourishing ones.
How from our perspective (and our client for today Seema Pabari) should an enterprise define success if it wants to contribute to a society so that the possibility for flourishing exists?

So the 2nd part of our learning concerns the vision and mission for a business that wishes to contribute to creating the big picture –
Recently, working with Dr. Bob Willard*, and others from the Natural Step around the world, we asked ourselves “what does the vision and mission for a business need to be to contribute to achieving the big picture” - creating the possibility for flourishing
Together we’ve come up with the following definition:
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Note for Build 2: Value constellation is latest systems / complexity thinking of a business value chain, value network, or “ecosystem”. Another biologically inspired way of saying this would be “through out the biome of that enterprise – throughout its business biome.”
______________
* Founder of this project is Dr. Bob Willard, author of the popular book “The New Sustainability Advantage” (which documents the financial business case for sustainability), see: http://futurefitbusiness.org

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A better business, by adopting the goal of creating the possibility for flourishing for itself and all its stakeholders, based on values held by all those stakeholders, means that business will be focused on doing good – environmentally, socially and economically – for all its stakeholders, and in doing so is more likely to be able to resiliently do well economically for itself.
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Better enterprises do well because:
First they do a better job at managing risk.
Using an example relevant to profit-first enterprises (left end of “bookshelf”), that a solely focuses on making money and who don’t recognize their true contexts, are increasingly very surprised when they are impacted by events that arise first in those broader contexts. Things like climate change, water shortages, income inequality, and other mega-forces now starting to impact firms world-wide (the mega-forces of change). Ultimately only focusing on doing well will have unintended consequences that will impact profits.
Second better businesses do a better job of understanding and exploiting the opportunities that are arising because of these same mega forces. Better businesses have more sources for innovation.
Finally, because they do a better job of managing risk and exploiting new opportunities, better businesses are also more resilient. They are more likely to survive and flourish for the long term.
______________
References
For Evidence of Better… http://www.bettermy.biz/Evidence_for_Better.html
For The Story of Why I Need a Flourishing Business Model See: http://www.slideshare.net/patkambitsch/i-need-a-flourishing-business-model-v20-comments-remove-pk-original-text1
See also:
Report by Deloitte Consulting: Sustainability Driven Innovation http://www.deloitte.com/view/en_US/us/Services/additional-services/deloitte-sustainability/65b2f6a461fe1410VgnVCM2000003356f70aRCRD.htm
1. Sustainability leaders are much more likely than average to be innovation leaders.
2. The evidence points to the relationship being causal, not just correlation.
3. Sustainability&apos;s ability to spark innovation can be harnessed, and it can be incorporated into organizations&apos; innovation processes.
Report by Booze: &quot;For Companies, It’s Not Easy Being Green&quot; which stated &quot;Leading companies that have implemented sustainable initiatives along their supply chains have seen a corresponding boost in their financial performance. But there’s no reward for a halfhearted implementation—companies that instituted only one aspect of a corporate responsibility program lost more money than they gained.“ http://www.strategy-business.com/blog/For-Companies-Its-Not-Easy-Being-Green
&lt;&lt;Images - Copyright&gt;&gt;
http://www.istockphoto.com/stock-photo-12372891-success-team.php?st=e968fda

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Websites:
http://www.grli.org/
http://aim2flourish.com
http://thriveability.zone/
http://twitter.com/Lean4Flourish
http://BetterMy.biz
http://www.bcorporation.net/what-are-b-corps/the-b-corp-declaration
http://50plus20.org/vision
Books:
- Flourishing Enterprise – 2014 – http://www.sup.org/books/title/?id=23936
- Getting Beyond Better – 2015 – https://hbr.org/product/getting-beyond-better-how-social-entrepreneurship-works/15009-HBK-ENG
&lt;&lt;have a whole other slide of logos of organizations – perhaps put in Workshop Leaders Guide – see FBIToolkit Update Presentation at Feb 9, 2016 SSBMG
For example Business Alliance for Local Living Economies - https://bealocalist.org/Why_we_work
&lt;&lt;Images - Copyright&gt;&gt;

And of course we are now, as a community of all nations, committed to implementing the 17 Global Goals for Sustainable Development – which was adopted at the UN Sustainable Development Summit this past September*.
* The Intergovernmental Negotiations on the Post 2015 Development Agenda (IGN) began in January 2015 and ended in August 2015. Following the negotiations, a final document was adopted at the UN Sustainable Development Summit September 25–27, 2015 in New York, USA.[4] The title of the agenda is Transforming our world: the 2030 Agenda for Sustainable Development
http://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=1579&menu=35
&lt;&lt;For subsequent workshop and / or Workshop Leaders Guide – based on Antony’s Key Note Talk (last version for Global Leadership Initiatives in Fall 2015)&gt;&gt;
The 17 individual goals, starting with ending extreme poverty, are important and necessary.
But if we’re all committed to achieving sustainable development and a sustainability society, how come just we reacted this way to the word “sustainable” compared to another word “flourishing”? (refeering to exercise done when giving key note talk live)
We all believe sustainability is a necessary and worthy goal… we’re the people leading the sustainability movement – right!
I wonder, is using the term “sustainable” really such a good idea?
Does it really align with what we want – individually and collectively?
Does it call to our highest aspirations?
This is concern is only magnified when one considers the noun we are saying with wish to sustain – development.
&lt;&lt;This was on slide&gt;&gt; But “sustainable development” also includes sustaining the growth in GDP – which is impossible on a finite planet
Unfortunately, today the word development including in its definition the growth in GDP… and even the people who originated the term GDP in the 1930’s knew it was a terrible measure of collective well-being**
** Simon Kuznets, one of the people who first suggested using GDP (a measure of national income) said about it at the time “The welfare of a nation can scarcely be inferred from a measurement of national income.” Simon Kuznets, 1934. &quot;National Income, 1929–1932&quot;. 73rd US Congress, 2d session, Senate document no. 124, page 7.http://library.bea.gov/u?/SOD,888

I’m sure you’re thinking buy now – this all sounds great – but how can a business meet these requirements?
How can these big requirements to enable flourishing business get translated into real operating businesses?
What about some practical help to make it easier to meet these requirement so business can flourish and create that possibility for everyone else.

But why this obsession with business models?
There are many things to think about around an enterprise – whether your starting a new one or striving to improve an existing one. We’re not saying the business model isn’t some magic thing that means you don’t think about any thing else for your business.
Quite the opposite
But the business model IS a central repository for a view on everything about your enterprise – which because of its shared language and simple structure makes it perfect to use to explain the whole in the stories you need to tell to everyone involved in your enterprise – all the stakeholders – this is what makes it so powerful.
Build
How does your enterprise relate to all its contexts; what knowledge - from science, of the market (customers / competitors), of society (“rights”, treaties, law, regulation, social norm, relationships), of all your stakeholders (existing and potential – drawn from your ecosystem actors) – do you need to understand this context, spot and assessment risks and find opportunities?
What is your product or service design?
What is your operational plan – detailed organizational design, business process model (plan-do-check-act), information systems (information capture, storage, processing, dissemination/reporting), budgets (mapped to “capitals”: human, knowledge, relationship, material / logistic, financial)
What is your transformational plan – to implement and begin executing your new business model according to your operational plan?
What assumptions have each of you made, and are making together (management, employees, and with all other stakeholders)? What mental models do you each have, are these shared, if so who shares them? (Be explicit)
What elements of your past experience enable your future? (Experience, Capabilities, Assets – all types of capital, Self-knowledge – personally, professionally, organizationally, socially) What is the future you’d like to see, that you expect to see? (Foresight)
What is the mission, vision and values of the enterprise – informed by the world-view/beliefs, values and needs those stakeholders with the governance rights to set them?
And last, but not least: What is your strategy (squiggly line) to realize your vision (X) while undertaking the mission in accordance with your values given what you can see through all the other lenses?
And of course when you put things together in a whole you see things you don’t see when you look at your business from other (more traditional) lenses.
This provides a powerful single and double loop learning opportunity that enables you more quickly see implications, risks and opportunities from different angles.
Many elements of your business model lens will:
Shape the detail you see through these other lenses
Be shaped by the detail you see through these other lenses
All the lenses are useful / important – they
Are all useful / important to your compelling vision
Must be developed iteratively due to the inter-dependencies between each of them, and between them and your overall business model
It is this ability to integrate elements from all the different lenses you have always looked at your business through that enables your business model to be a powerful accelerator for teams to achieve a much more rigorous level in your thinking – enabling you to move faster with more confidence, with lower levels of risk and high likelihood of spotting innovative opportunities.
Image: Blueprint - Public Domain - http://upload.wikimedia.org/wikipedia/commons/9/9f/Blueprint_for_Victory_-_NARA_-_534666.jpg
Image: Metamorphosis (modified) - &lt;&lt;Confirm Copyright&gt;&gt; - https://askabiologist.asu.edu/sites/default/files/resources/articles/monarchs/complete-metamorphosis.gif
Image: Other – Microsoft PowerPoint Clip Art

Our approach is also to design, adapt or redesign a business – where the artefact being designed is the enterprise’s business model.
But we extend this approach so that as we design our business model we understand how the business model relates to the full context for the enterprise – not just financial/economic, but social and environmental as well.
This means we now have the possibility to design your business model so it embeds all the elements needed to create the possibility for flourishing

Our objective in all of this is to create a useful tool that provides a common language to enable you to collaboratively sketch, prototype, design, improve, communicate, understand, measure, diagnose and tell stories about your flourishing business model.
In the copy of the slides, next you’ll find 17 additional slides that step by step walk you through how the elements of the Flourishing Business Canvas that you explored earlier related to one another on the canvas. You may wish to refer to these during the rest of the workshop, along with the help written on the canvas itself. Beyond this a further help is already available and a handbook is in the works.
We’re not going to formally cover this material in the workshop: you’ve already had a chance to use the canvas and then explore the elements we thought it would be better to use the time in class with some more hands-on…

Our canvas is the result of 3 years of graduate research at York University’s Faculty of Environmental Studies and Schulich School of Business, plus more than a years subsequent development by a project team of 12 – all members of the Strongly Sustainable Business Model Group hosted by the OCAD University Strategic Innovation Lab.
We choose to build our tool on one that has been proven useful in practice by millions of people around the world – the business model canvas.
But our research told us that minor tweaks to this practical tool were going to make it compatible with all the research!
So we went back to the original PhD research that lead to the BMC – Alex Osterwalder’s Business Model Ontology – and, then adding to it all the knowledge mentioned earlier, developed a Strongly Sustainable Business Model Ontology – which was recently published in the first special issue on Business Models for Sustainability, Entrepreneurship, Innovation & Transformation of the well respected peer reviewed Journal, Organization & Environment.
Like Alex Osterwalder, it was from our integrated, systemic, inter-/trans-disciplinary albiet technical ontology that we developed the practical Flourishing Business Model Canvas that we’re sharing with you today.
Our tool takes this proven approach to designing for financial profitability and adds the elements needed to design for flourishing enterprises – enterprises that meet the big picture requirements we introduced earlier.
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http://www.businessmodelgeneration.com/

But let me quickly summarize and give you the labels we use to refer to different parts of the canvas – and highlight one key feature.
First: The Context elements set the broad conceptual frame for any human enterprise – any enterprise we can imagine on this planet must be somewhere within all three of these contexts – there will be some economic aspects, some social aspects and some environmental aspects.

Second: The Perspective elements serves to group the other elements into 4 broad groups or “big questions” / “important things” that every enterprise must think about in some way –
(1) Why does it exist?
(2) Who does it do it to, for and with?
(3) What does it do for those people?
(4) How and where does it do it?
The remaining 16 elements of the flourishing business canvas are placed within and grouped by the perspectives – we call these the question boxes.
These pose the questions that need to be responded to in order to describe any enterprise, including those that choose to strive to create the possibility for flourishing.
The relationship between the question boxes and the contexts remind you to think about all the aspects of each question.
The Flourishing Business Canvas asks 16 questions that if answered well, significantly increase the likelihood of creating a business that will at a minimum do less harm – avoiding unintended risks and consequences (and thus be more profitable) – but may also avoid risks and capture new opportunities to create new value for stakeholders – including the possibility for flourishing.

Didn’t delete anything from the BMC
All 9 questions still there – you can move sticky that describe the profit making elements of a business model from the BMC to t he FBC without changes
AND then you’ll start to see, through the expanded questions, new opportunities and new risks – that come from the integrated view of the economic, social and environmental taken by the FBC
The perspectives and contexts blocks set a conceptual frame for any business.
All the 9 questions related to profitability from the business model canvas are all still here.
The Flourishing Business Canvas has 16 questions, grouped by the perspectives and framed by the contexts; we call these the 16 question boxes
The relationship between the question and the contexts remind you to think about all the aspects of each question – all the aspects needed to create the possibility of meeting the big picture requirements for flourishing business we introduced earlier.

Build 1
But before putting the first elements together you may have noticed in many of the elements we’ve implicitly been thinking about value in a way that is not typical for business today.
Build 2
This is because we’ve come to understand that considering value only financially is not sufficient if you want to meet the big picture requirements we introduced earlier. If one is trying to create a flourishing business, you must recognize, if only to a small degree the need to create different types of value for lots of different stakeholders – not just to generate profit for owners.
Value is no longer measured solely in monetary units, but rather in what ever combination of in aesthetic, psychological, physiological, utilitarian and / or monetary units the organizations stakeholders think is useful.
But that’s not saying monetary profit isn’t still extremely important: After all Peter Drucker has said “Profit is needed to pay for attainment of the objectives of the business. Profit is a condition of survival. It is the cost of the future.”
Formally*:
“Value is created when needs are met via “satisfiers” (Max-Neef et al., 1991, p.8-16) that align with the recipient’s world-view and destroyed when previously met needs go unmet due to: the withdrawal of satisfiers, the application of inappropriate (“pseudo”) satisfiers, or the application of satisfiers that do not align with the recipient’s world-view. ” (Upward & Jones, 2016)
Max-Neef, M., Elizalde, A., & Hopenhayn, M. (1991). Human scale development: Conception, application and further reflections. Uppsala, Sweden: Dag Hammarskjöld Foundation; The Apex Press. Also https://en.wikipedia.org/wiki/Fundamental_human_needs#Classification_of_needs
Upward, A., & Jones, P. H. (2016). An ontology for strongly sustainable business models: Defining an enterprise framework compatible with natural and social science. Organization & Environment, Special Issue: Business Models for Sustainability: Entrepreneurship, Innovation, and Transformation 29(1), 1-27. doi:10.1177/1086026615592933 & download manuscript: www.academia.edu/14461116
Build 3
In a flourishing business we need to be flexible in the way we understand and measure value.
Now we’re going to assemble the elements into the canvas… and we’re going to do this interactively – using the exploration cards you used during the workshop.
So please follow along…

The first thing we say that is required to conceive and describe a flourishing business is the real context for business…
1. The real context for business isn’t just the economy….
2. Because of course the economy, the financial system, is something created by society; And society has far broader concerns than simply money.
Societies care about the well-being of people, and seek to help everyone achieve their potential. In other words the highest purpose of a human society is to give all its members the possibility of flourishing.
3. But the context of business doesn’t stop there because society is entirely dependent upon the environment. Without clean air, water, and healthy soil society would go bankrupt and we would ALL about out of business.
So, a flourishing business model is one whose definition of success recognizes and must relate to all these contexts: the economy, society AND the environment.

This is how we arrange these three contexts on the canvas as a set of nested boxes.
You might want to arrange the exploration cards on your table in the same way… and do the same as we add the other exploration cards…

So given this idea of value – and starting again from the big picture – which of all the elements that you have on the exploration cards do you think might be important to help us describe the context for any business?
&lt;Give time for them to find them&gt;
Build
Find the three exploration cards – Environment, Society and Economy – in the flourishing business canvas we call these the contexts for business.
Looking at the big picture requirements it clear that if we want to design a business with the possibility for flourishing we must explicitly put that business into its full context; businesses are not self-contained or even just economic entities. (And its increasingly well understand that that considering businesses from a pure economic perspective generates an increasingly material level of reputational, operational and financial risk and systematically means opportunities will be missed)
1. The real context for business isn’t just the financial economy….
2. Because of course the economy, the financial system, is something created by society; And society has far broader concerns than simply money.
Societies care about the well-being of people, and seeking to help everyone achieve their potential. In other words the highest purpose of a human society is to give all its members the possibility of flourishing.
3. But the context of business doesn’t stop there because society is entirely dependent upon the environment. Without clean air, water, and healthy soil society would go bankrupt and we would ALL about out of business.
So, the vision and mission of a flourishing business, a flourishing business is one whose goal recognizes and must relate to all these contexts: the economy, society AND the environment.

But businesses, even ones just seeking profitability, are not simple! There is an awful lot to juggle.
Build
But now, when you place a business into its real contexts a really inconvenient truth emerges: there are even more things to think about if you want to create the possibility for economic, social and environmental flourishing.
So given the need for this additional complexity – how might we manage all this complexity? what might be a good way of doing that?
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http://2.bp.blogspot.com/-xToytUgrp2M/TzILZebtZ2I/AAAAAAAABgE/sqAM5qV-8Io/s1600/starting+a+small+biz.jpg

One way to help manage this complexity is to group other related but more detailed concepts together.
Build
In the Flourishing Business Canvas we call these groups perspectives and we have four of them.
So which of all the elements exploration cards do you think might be useful to use as the four perspectives?
Build
Find the four exploration cards – Outcomes, People, Value and Process – in the flourishing business canvas we call these the perspectives on a business
Grouping other concepts important to flourishing business within these perspectives helps us manage the complexity – it makes the canvas more manageable.

On the canvas we show these four perspectives like this:
1. First is the outcomes perspective. This captures the why of the firm by asking “How does a firm define…” This generalizes away from just the financial view of value to include the broader definition of value we introduced a moment ago.
2: Second is the People perspective “Who a firm…”.
3: Third is the Value perspective “What does a firm…”. These are the firms value propositions.
Note how we’re no longer just concerned with today’s value propositions but also the value propositions related to a firms continued development over time.
4. And forth is the Process Perspective, “how, where and with what does a firm do it”.
Note that since we’ve recognized society and the environment we now need to explicitly think about how we do things, which stakeholders are involved, and where things are done.

So putting the contexts and perspectives together we find an interesting picture.
Contexts – Although only shown in 2D - we keep the hold of the reality that the contexts are nested system – the economy would go bankrupt without a trusting society, and an environment with fresh air, clean water and fertile soil
Now adding the perspectives starts to help us understand that there are parts of a business that are related to all three contexts, but there are other parts which only relate to two or perhaps even just one of the contexts – give one example of each.

Its important to understand the boundary around a business model – what’s unique about it and what’s shared… the space between the shaded areas is what’s unique to the enterprise.
Which of the element exploration cards do you think we need to help us understand the boundary of a business?
&lt;Give time for them to find it&gt;
Build
Find the exploration card: Enterprise

Hidden Side for Participant and Workshop Leader Reference – Section &lt;&lt;XX&gt;&gt;
On the canvas the centre are is what is unique to this enterprise – the edge represents what is shared by each and every enterprise.
This is shown by the shading on the right and left.
Note: Everyone includes business, individuals and all other life
By identifying the “edge” of a business model we recognize that no enterprise is an island – that there are and indeed must be unique aspects of a business – its goals, value propositions, processes, market and geographic location for example

So what are the elements that describe the things which every human enterprise shares, not only with other businesses, but in fact but the whole of society and the environment?
Build
Find the element exploration cards: Ecosystem Actors, Needs, Biophysical Stocks and Ecosystem Services
So how are these shown on the canvas – how do these relate to the contexts and perspectives?

Since these are the things that are shared by all human enterprises they are show to the left and right of the unique aspects of the business model.
On the right we have Ecosystem Actors and Needs; now how they overlay all three contexts – and so may be humans with an economic concern (and hence due to the nesting some social and environmental concerns too), they could be humans with a social concern (and hence a social concern) or they could be humans or non-humans with an environmental concern.
Note the touch-point between the unique elements of a business model and an ecosystem actor is a human actor – in society (and perhaps the economy) - any non-humans must be represented by a humans to the enterprise – for example via another enterprise, for example an environmental NGO.

In contrast on the left Biophysical Stocks and Ecosystem Services are purely environmental – there is no social or economic dimension to these.
They exist only within the environmental context.
It is only when an enterprise gains preferred access to a biophysical stocks, so they become resources in a business model, may a biophysical stocks acquire additional contexts as it becomes a resource for a specific enterprise
In the same way, it is only when the benefits of an ecosystem service are required by or impacted by an enterprise’s activities that they acquire additional contexts: social and environmental.

So now let’s explore the unique aspects of an enterprise.
Let’s start with the profiting making aspects of a business model – since this is a critical piece of flourishing
What are the elements that a business needs to be concerned with in order to drive value financially, to be financially viable?
We’re lucky in this regard: Our key antecedent, the Business Model Canvas, has already established and structured the 9 elements in a business model are critical to understanding financial viability.
Value propositions are offered to customers and to do this organizations must figure out what relationships are required and the channels through which those relationships are going to be developed and maintained.
So find the exploration cards: Customers, Customer Relationships, Customer Channels, Revenue Streams, Value Propositions, Suppliers & Partners, Acquired Resources, Actions and Cost Structure
Build
From the Business Model Canvas we understand that the building blocks on the right are the drivers of financial revenue and the building blocks on the left are the drivers of the financial cost structure of any business.
And of course the net of costs and revenues determines if we’re financially viable or not – in the red or in the black – and to what degree (net-zero for an NGO / Not-for-Profit and greater than zero for a for-profit enterprise).
But in a flourishing business we’re not just interested in value from a financial perspective – we’re also interested in social and environmental value.
In a flourishing enterprise we’re interested in all value an enterprise may generate or destroy.
Given we’re going to place these elements on top of the three contexts – which of course includes the economic context - we don’t need to explicitly call out the financial value.
But to keep the total number of elements to the smallest number, means we need to generalize these financially oriented elements so they include related concepts when we look at a business from the social and environmental contexts…

So with the element exploration cards you have left – what would you say is the generalization of &lt;each elements that includes the economic, social and environmental contexts&gt;
&lt;Give time for them to find them and discuss&gt;
Build
1. Value Propositions -&gt; Value Co-Creations (now includes value created for all stakeholders not just customers and the recognition that all value is co-created and is not simply a matter of the enterprise delivering a product or offering a service)
2. + Value Co-Destructions – because we recognize that the actions of this enterprise may make it harder for an ecosystem actor to meet one of their needs
3. Customer (Segments) -&gt; Stakeholders (that includes customers as one stakeholder)
4.(Customer) Relationships -&gt; (Stakeholder) Relationships (now function of relationships with all stakeholders not just customers)
5. (Customer) Channels -&gt; (Stakeholder) Channels (now channels with all stakeholders not just customers)
6. Revenues Streams -&gt; Benefits (i.e. revenues in any unit not just money)
7. (Supplier) Partnerships -&gt; (Stakeholder) Partnerships (now formalized partnerships with any stakeholder – not just suppliers of resources and capability to perform activities)
8. + Governance – because we recognize that how much power we give to our stakeholders can make a material difference to whether or not they can meet their needs or not
9. (Acquired) Resources -&gt; Resources (now all resources, not just those you can afford financially, i.e. own, and still make a profit – but all those you have privileged access to)
10. (Actions) -&gt; Activities (now all activities, not just those actions that incur monetary cost)
11 (Financial) Cost Structure -&gt; Costs (but in any units of costs not just money)
So how do these appear on the canvas?

&lt;Build… mentioning how these question boxes relate to the perspectives and the contexts&gt;

So what’s still missing? Which of the Element Exploration Cards that you have left do you think is necessary and sufficient?
&lt;Give time for them to find it&gt;
Build
Defining the goals of an enterprise enables us to express the goals, the definition of success, for a business.
This allows us to capture a range of reasons why the stakeholders may wish an enterprise to exist – including, of course, their desired level of financial viability – from net zero profit to some higher amount.
Critically it gives us an opportunity to connect the values of the stakeholders to the objectives of the enterprise right on the business model!
Unlike the business model canvas which assumes the only valid goal is short term profit maximization on the Flourishing Business Canvas you must be explicit. And of course this includes the choice to set the goal to maximize short term financial profit – because, as you’ve now seen the Flourishing Business Canvas still includes all the elements of the financially oriented Business Model Canvas – we can still design based on any goal we like – from goals that can only measured using financial units, to goals that are measured in any unit we can imagine and operationalize.
And where do you think Goals belongs on the canvas?

So this is the complete Flourishing Business Canvas.
Our original research – the Strongly Sustainable Business Model Ontology – has far more elements – but based on our research we believe that while these additional elements can be important – they are at lower level of detail that the ones shown on the canvas.
&lt;Examples of Elements included on the Strongly Sustainable Business Model Ontology but omitted from the canvas are…
Success – an alternative term for goals
Valuation Method – which is the process by which benefits and costs are calculated
Assets – which are a valuation (financially, socially or environmentally) of a stock of one or more resources
Perhaps those you wrote down on the blank cards

The Flourishing Business Canvas has the necessary and sufficient elements to design a business that has the possibility of flourishing – if you choose that goal - or any other goal you choose to set from your business.
Critically the Flourishing Business Canvas gives us an opportunity to connect the values of the stakeholders to the goals and objectives of the enterprise right on the business model!
Unlike the business model canvas which assumes the only valid goal is short term profit maximization on the Flourishing Business Canvas you must be explicit. This makes it much more likely communications will be easier amongst the stakeholders as the explore and synthesize their (inevitably) diverse goals informed by their diverse values and world-view.
And of course this includes choosing to set the goal to maximize short term financial profit – because, as you’ve now seen the Flourishing Business Canvas still includes all the elements of the financially oriented Business Model Canvas – we can still design based on any goal we like – from goals that can only measured using financial units, to goals that are measured in any unit we can imagine and operationalize.

So perhaps your wondering what’s next?
Can I use the flourishing business canvas in my business now? Soon? Later?
How can we help you – to enable to us to put bread and water on the table so we can continue the development of this new tool
Image purchased from http://www.imagedirekt.com/en/royaltyfree-images-photos/1633288.html

The team that is bringing the Flourishing Business Canvas to the world imagines…
A new operating logic for business which integrates the achievement of environmental, social and economic benefits
2. Now imagine creating a toolkit to help people create these businesses
Now, what if that toolkit
Used the latest natural and social science of sustainability – so it was as good as our best current knowledge allowed
Contained an attractive visual design tool,
A set of strongly sustainable business design principles
Steps for its effective use
And example case studies
Imagine how such a toolkit would help you bring into the world your strongly sustainable business idea!
How could it help you improve the sustainability of your business ?

Flourishing Business Canvas v2 Introduction

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Flourishing Business Canvas v2 Introduction

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