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Strongly sustainable business models v1.2ss

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A presentation made to the Canadian Association of Management Consultants Energy & Climate Change Special Interest Group April 23, 2013, Toronto, Canada.

Slideshare appears to mess up some slides; also lots of speakers notes and builds (which aid comprehension) are only available by downloading.

An unedited recording of this presentation is available upon request.

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Strongly sustainable business models v1.2ss

  1. 1. TheStronglySustainableBusinessModels–AnIntroductionVersion1.0(Draft)2013-04-23©EdwardJamesConsultingLtd.SomeRightsReserved.1 www.SSBMG.comThisworkislicensedunderaCreativeCommonsAttribution-NonCommercial-ShareAlike3.0UnportedLicense.Permissionsbeyondthescopeofthislicensemaybeavailableathttp://www.EdwardJames.biz/PermissionsAntony Upward, CMC antony@EdwardJames.biz @aupward #SSBMGStrongly SustainableBusiness ModelsAn Introduction forCMC-Canada’s Energy & Climate Change SIGApril 23, 2013Lots of speaker notes,Lots of speaker notes,including referencesincluding referencesBuilds on many slidesBuilds on many slidesdownload and viewdownload and viewin slide show modein slide show modefor improvedfor improvedcomprehensioncomprehension
  2. 2. 2TopicsThe Big Problem:What do you mean by sustainability– Generally and in BusinessDesigning businesses– Profit-First and Strongly SustainableIntroducing the Strongly Sustainable BusinessModel Canvas– Comparison to (Profit-First) Business Model CanvasNext Steps to Bring the Canvas to the World– How can you help?Contact details, references, copyrightABCD
  3. 3. 3Assume hope all you who enter hereVaclav Havel
  4. 4. 4Experiment to Gain Experience
  5. 5. 5Why are wehere? What’s themeaning of allthis?No idea… but I wantus to keep going for along time… just likewe are now… what’s aword for that?The BIGProblem“Sustainability”… and how will youmeasure your“sustainability”?… and who willbenefit, for howlong and at whatcost?So tell me… whatis it exactlyexactly youwant to sustain?Don’t forgetnature is alwaysalwayschanging… it isn’tstatic…and what wevalue is alwaysalwayschanging… thatisn’t static either!Oh heck. I thoughtthis sustainability stuff wasgoing to be simple. I thinkI’ll take a nap…zzzzz
  6. 6. 6Maximization ofwealth creation so wecan afford the publicgoodWhat’sWhat’sYourYourResponseResponseWhat do you wantto sustain?• For whom?• For how long?• How much will it cost? (p.26)?“The possibility thathuman and other lifewill flourish on thisplanet forever.” (p.6)Our CurrentOur CurrentCollectiveCollectiveResponseResponseSo we’re onthe samepage...NotNot trying toconvince you!My PersonalMy PersonalResponseResponse
  7. 7. 7Goals Need Strategies……so Strategies are designed!Design is the process of “changingexisting conditions into preferredones” – Herbert A. Simon, 1969“Business people don’t just needto understand designers better.They need to bebe designers”– Roger Martin, 2006
  8. 8. 8Design brief for business……its been a huge success!(although clearly not perfect and there are alternatives)“There is one and onlyone social responsibilityof business – to increaseits profits within the rulesof the game” – MiltonFriedman, 1962generate the wealth to do good …
  9. 9. 9…The unintended consequences #1• Put Billions of Kg of toxic materials into theair, water and soil every year• Produce materials so dangerous as torequire constant vigilance by futuregenerations• Place gigantic amounts of waste,irretrievably in holes all over the planet• Slowly poison people and ecosystems,limited only by thousands of complexregulations• Create economic prosperity by reducingthe number of people with valued work• Create prosperity by digging up or cuttingdown natural resources then burying orburning them• Erode the diversity of species and culturalpractices with unknown consequencesMcDonough &Braungart, 2002 p.18
  10. 10. 10“The earth is full”….and there is no planet BPaul Guildinghttp://www.ted.com/talks/paul_gilding_the_earth_is_full.html…Evidence of the consequences Download to see theDownload to see thedetails of the worksdetails of the worksshown on the next 7shown on the next 7slides; References areslides; References arein notesin notes THISTHIS slideslide
  11. 11. 11“The earth is full”….and there is no planet BPaul Guilding…Evidence of the consequences
  12. 12. 12“The earth is full”….and there is no planet BPaul Guilding…Evidence of the consequencesHuman Developmentvs. EcologicalFootprint
  13. 13. 13“The earth is full”….and there is no planet BPaul Guilding…Evidence of the consequencesHuman Developmentvs. EcologicalFootprint
  14. 14. 14“The earth is full”….and there is no planet BPaul Guilding…Evidence of the consequencesHuman Developmentvs. EcologicalFootprint
  15. 15. 15“The earth is full”….and there is no planet BPaul Guilding…Evidence of the consequencesHuman Developmentvs. EcologicalFootprint
  16. 16. 16“The earth is full”….and there is no planet BPaul Guilding…Evidence of the consequencesHuman Developmentvs. EcologicalFootprint
  17. 17. 17…The unintended consequences #260% of firms in themanufacturing and servicesectors in 6 of the largerOECD countries ceasecease toexist within 7 years offounding (p.14, Figure VIII.5)
  18. 18. 18Alternative Design Briefs for BusinessConfidence not uncertainty anddistrustReduce speed of diversity lossErodes the diversity of species andcultural practices with unknownconsequencesHappiness not fearDigs up and cut down lessCreates prosperity by digging up orcutting down natural resources thenburying or burning themEnduring and resilience, not failingunexpectedlyFocused on creating greatereconomic prosperity not humanflourishingCreates wealth by reducing thenumber of people with valued workPositively contributes, not does lessdamageIncreases number, complexity andstringency of regulationSlowly poisons people andecosystems, limited only bythousands of complex regulationsFlourishing by being not languishingby havingProduces smaller amounts ofuseless / irretrievable wastePlaces gigantic amounts of waste,irretrievably in holes all over theplanetEveryone and everything forever notjust me nowProduces less while living in fearProduces materials so dangerous asto require vigilance for generationsAbundance not limitsReleases less toxic materials whileignoring long term impactsPut’s Billions of Kg of toxic materialsinto the air, water and soil every year… creates possibilities for:Design a business that is financially profitable and…NewNew: “Flourishing”“Strong Sustainable”“Eco-effectiveness”EmergingEmerging: “CSR”“Weak Sustainability”“Eco-efficiency”Current:Current:“Profit-first”
  19. 19. 19So…How doyoudesign abusiness?
  20. 20. 20and…What is abusinessdesign?• Business Plan• Strategy• Vision• Mission• Business Model• Value Statement• Simulation• Prototype
  21. 21. 21www.businessmodelgeneration.comBusiness Model Canvas ExplainedWatch this ~2 minute video athttps://www.youtube.com/watch?v=QoAOzMTLP5s
  22. 22. 22
  23. 23. 233. Channels3. ChannelsBut…does this help to design asustainable business?1. CustomerSegments1. CustomerSegments2. ValuePropositions2. ValuePropositions4. CustomerRelationships4. CustomerRelationships5. RevenueStreams5. RevenueStreams7. KeyResources7. KeyResources6. KeyActivities6. KeyActivities9. CostStructure9. CostStructure8. KeyPartners8. KeyPartnersWhat’s Missing?Why?
  24. 24. 24Lots about money, andthe people you financiallytransact with……(almost) nothingabout everyone andeverything else
  25. 25. 25But what if…
  26. 26. 26PassingBenefitCorporationLegislationPassingBenefitCorporationLegislationHow do you efficientlyHow do you efficientlydesign a business todesign a business toreliably consistently andreliably consistently andeffectively enableeffectively enablesustainability?sustainability?
  27. 27. 27Understand the Natural and Social Science of SustainabilityAsked what are the gaps in Osterwalder’s PhD Ontologyof Profit-First Businesses, based on the scienceDesigned an Ontology of Strongly SustainableBusiness ModelsCreated the Strongly Sustainable Business Model Canvas, avisual design tool, powered by my Ontology, and tested it1. Against standards of sustainable business2. Formally with 7 experts and 2 case study companies3. Informally with dozens of others:Business people, professors, students
  28. 28. 28Understand the Natural and Social Science of SustainabilityAsked what are the gaps in Osterwalder’s PhD Ontologyof Profit-First Businesses, based on the scienceDesigned an Ontology of Strongly SustainableBusiness ModelsUpward, A. (2013, Forthcoming). Towards an Ontology and Canvas for Strongly SustainableBusiness Models: A Systemic Design Science Exploration. (Masters of Environmental Studies /Graduate Diploma in Business + Environment, York University, Faculty of EnvironmentalStudies and Schulich School of Business), 1-889 (i-xx). doi:http://hdl.handle.net/10315/20777Created the Strongly Sustainable Business Model Canvas, avisual design tool, powered by my Ontology, and tested it1. Against standards of sustainable business2. Formally with 7 experts and 2 case study companies3. Informally with dozens of others:Business people, professors, students
  29. 29. 29Real Context of BusinessContext: Environment(Physical / Chemical / Biological)(Monetary)AllOrganizationsContext:Financial Economy(Social/Technology)Context:Society© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  30. 30. 30Revising Definitions…A description of how an organization defines and achieves success over time.A Business ModelA Business Model: the logic for an organization’sexistence: who it does it for, to and with; what itdoes now and the future; how, where and withwhat does it do it; and how it defines andmeasures its success.“A Business Model describes the rationale of how an organizationcreates, 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 inaesthetic, psychological, physiological, utilitarianand / or monetary terms.FromToValue is created when needs are met viasatisfiers that align with the recipientsworld-view, and destroyed when they don’tNecessary, but not Sufficient
  31. 31. 31UsefulPerspectivesWho does afirm do it to, forand with?What does a firmdo now and in thefuture?How, where andwith what doesthe firm do it?How does a firmdefine and measuresuccess (inEnvironmental,Social & Monetaryunits)?© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  32. 32. 32Context: Environment(Physical / Chemical / Biological)(Social/Technology)(Monetary)AllOrganizationsContext:SocietyReal Context & Perspectives on BusinessFinancial EconomyContext:© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  33. 33. 33…Flattened© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  34. 34. 34StronglySustainableBusinessModelCanvas–14QuestionsV1.032© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  35. 35. 35StronglySustainableBusinessModelCanvasV1.031© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  36. 36. 36Timberland’sBusinessModel
  37. 37. 37ComparingProfit-First &StronglySustainableBusiness ModelCanvases V1.031++Δ+Δ+++++ΔΔ Δ ++ΔΔΔΔΔΔ+
  38. 38. 38Reaction So Far?(From Confidential Expert Respondents)“I really liked is that itreally makes youmakes youthinkthink about thingsthat you would neverconsider before”Management Consultant“Youve ratcheted it upYouve ratcheted it up to thenext degree of specificity andmade sure that it is truly aboutsustainable businesses. Whereasthe current [tools] that I’ve seen,honestly could be applied to anykind of business”Sustainable Business NGO“The power of this thing isit’s really the first to takethe first to takethe social aspect and thethe social aspect and thebiophysical intobiophysical intoconsiderationconsideration. And Ihaven’t seen that that anyother business modelThat would take that intoconsideration”Business Architect / Professor /Consultant“This is animpressivebody of work”ManagementConsultant“I like the tool and thinkit provides a great wayto analyze a company”Leader Eco-Industrial Park“It’s about timeIt’s about timesomebody didsomething likethis”Author / Consultant“I recognize this firm.”“This gets the zeitgeist ofThis gets the zeitgeist ofwho we arewho we are, which is great”(Reacting to his businessdescribed using the Canvas)CTO Small Manufacturer“If I was starting abrand new business, asignificant business today,I would use thisI would use this businessmodel to help me defineand develop a puredetailed business plan”Management Consultant
  39. 39. 39Make it“better,better,faster,faster,strongerstronger” ?Learning byUsing / TestingTestingit out someit out somemoremore?But What About…?(Ideas from All Respondents)A better way tointroduce andsummarize thecanvasA methodologymethodology fordesigning greatsustainablebusiness models?An “app” so I cando this on mytablet with myclients?A communitycommunity ofpeople using andimproving it?Ensuring the designprinciples align withthe emerging “GoldStandard” forSustainable Business?Training /Workshops forSocial /EnvironmentalEntrepreneurs ?A Consulting Servicethat uses the Canvasto Diagnose andImprove theSustainability ofBusiness?The design principlesdesign principles tohelp me come up withgreat answers to the 14questions?How about somemore examples andcase studiescase studies?
  40. 40. 40What’s Next?Can I Use It Now?How Can I Help?
  41. 41. 41Design Principles for the Next Steps• Be the Change– Focus on Small / Medium Business(they can change more easily)• Existing and Start-ups– Think Local, Reach Global– Transparency– Creative Commons Licensing• Crowd Funded– Committed Individuals– Organizations• Build a Community– Collaborative• writing / testing / governance– Spread the word– Learn by Doing & from Each Other• Continuous Improvement• Have fun!
  42. 42. 42Not your typical business “book”• Due Summer 2014“Book” is Focus for Crowd-Funding• Sufficient Funding Gate~Sept 2013• “app”• Community Revenue Opportunities via– Training Service “Toolkit”– Consulting Service “Toolkit”• Full alignment with emerging “GoldStandard” for Sustainable Business• Best Practices• More Case StudiesNowLater
  43. 43. 43Table of Contents
  44. 44. 44Current Activities• Develop Business Model using canvas• Identify Core Writing Team (3-5)• Collaborative platform (for Fund Raising & Writing)• Develop Learning Map• “Soft Launch” activities• Applied for SSHRC Funding– Methodology development• Start 3 trials / case studies– More in the pipelineWant to use theCanvas Now? Ask me!Based on MutualSharing / NDAAgreement
  45. 45. 45Collaborator / FunderCollaborator / FunderValue PropositionValue Propositionread content first& exclusivelyuse thecanvas inyour ownbusiness now!try it out – bea case studyinteract withStronglySustainableBusiness ThoughtLeadersinfluencewriting team &thecommunityshare yourexperience,gain fromothersdemonstrate yourthought leadershipto your peersexclusivewebinarsearly access toimprovementspreferred access tosubsequent training &consulting revenueopportunitiesyour name /organizationlogo in bookcreditsdiscount on finalbook pricebe a part ofthe changewe need toflourishbe a part ofsomething BIGBIG: aglobal stronglysustainable businesscommunityhaveFun!
  46. 46. 46Survey: How Much…(The complete survey will be available on-line in May 2013 – see www.SSBMG.com)• would you pay?– You participate in the community– Your name appears in credits of‘book’ to be published in 2014 $100 $200 $250 $300 $400 Other _______ Double priceevery time100 people join• would your organization pay?– 3 colleagues can participate– Names and organization logo,website URL appear in credits of‘book’ to be published in 2014$2,000$4,000$6,000$10,000Other _______Donate services inkind to the project
  47. 47. 47www.SSBMG.com• About the Strongly Sustainable BusinessModel Canvas ~3 minute Audio Visual Overview• About the research project– 300 words– 1 page– 4 page deeper dive• Blogs– blog.SSBMG.com– slab.ocad.ca/blogs/antony-upward– http://www.facebook.com/StronglySustain– @aupward #SSBMG– info@SSBMG.comhttp://blog.SSBMG.com
  48. 48. 48References• Allen, T. F. H. (2003). In Hoekstra T. W., Tainter J. A. (Eds.), Supply-side sustainability. New York: Columbia University Press; Summary availablehttp://www.slideshare.net/AntonyUpward/supply-side-sustainability-summaryupward-av102• Ehrenfeld, J. (2008). Sustainability by design: a subversive strategy for transforming our consumer culture. New Haven, Connecticut, U.S.A.: Yale UniversityPress.– http://www.johnehrenfeld.com/2013/02/sustainability-and-resilience.html• Ehrenfeld, J., & Hoffman, A. J. (2013). Flourishing: a frank conversation about sustainability• Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2002). The Sustainability Balanced Scorecard - linking sustainability management to business strategy.Business Strategy and the Environment, 11(5), 269.• Friedman, M. (1962). Capitalism and freedom. Chicago: University of Chicago Press.• IPCC Core Writing Team. (2007). Climate Change 2007: Synthesis Report: Contribution of Working Groups I, II and III to the Fourth Assessment Report of theIntergovernmental Panel on Climate Change. ( No. Synthesis of AR4). Geneva, Switzerland: International Panel on Climate Change (IPCC).• Kaplan, R. S. (1996). In Norton D. P., NetLibrary I. (Eds.), The balanced scorecard: translating strategy into action. Boston, Massachusetts, U.S.A.: HarvardBusiness School Press.• Layard, R. (2006). Happiness and Public Policy: a Challenge to the Profession. The Economic Journal, 116(510), C24-C33. doi:10.1111/j.1468-0297.2006.01073.x• Lidwell, W., Holden, K., Butler, J., & Elam, K.,. (2010). Universal principles of design : 125 ways to enhance usability, influence perception, increase appeal,make better design decisions, and teach through design. Beverly, Mass.: Rockport Publishers.• Martin, R. L. (2009). The design of business: why design thinking is the next competitive advantage. 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  49. 49. 49Copyright• All images used under applicable creativecommons licences – see notes on each page© Antony Upward / Edward James Consulting Ltd.,2013. Some rights reserved.– Permissions available at www.EdwardJames.biz/Permissions– This work is licensed under aCreative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
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