Patagonia - Flourishing Business Canvas Case Study
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Holonomics is a business consultancy that supports organisations in their transformation processes based on the New 4Ps – Platforms, Purpose, People and Planet. We elevate enterprises through our consultancy, we scale our knowledge globally through Holonomics Publishing, and we amplify impact through our Deep Tech Network. We are specialists in the areas of strategy, customer experience, employee experience, deep tech, cultural and digital transformation and the design and delivery of high- impact ESG initiatives. We define strategy through the New 4Ps of platforms, purpose, people and planet. With this framing, we help leadership teams develop an expanded view of their business models, ensuring that their organisations are fully equipped to grow, respond rapidly to changing global trends, and create a positive impact. As part of that we utilise the Flourishing Business Canvas which provides seventeen necessary and sufficient questions to describe any business model: financially, socially and environmentally. We have created this case study based on Patagonia, generally regarded as one of the most sustainable and authentic companies in the world, to help leaders, design teams and regenerative practitioners explore the canvas in detail.
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Patagonia - Flourishing Business Canvas Case Study
- 1. Patagonia: Flourishing Business Canvas Case Study 4th July 2023 Simon Robinson CEO (Worldwide) Holonomics
- 2. holonomics.co Holonomics is a business consultancy that supports organisations in their transformation processes based on the New 4Ps – Platforms, Purpose, People and Planet. We elevate enterprises through our consultancy, we scale our knowledge globally through Holonomics Publishing, and we amplify impact through our Deep Tech Network. We are specialists in the areas of strategy, customer experience, employee experience, deep tech, cultural and digital transformation and the design and delivery of high- impact ESG initiatives. We define strategy through the New 4Ps of platforms, purpose, people and planet. With this framing, we help leadership teams develop an expanded view of their business models, ensuring that their organisations are fully equipped to grow, respond rapidly to changing global trends, and create a positive impact. As part of that we utilise the Flourishing Business Canvas which provides seventeen necessary and sufficient questions to describe any business model: financially, socially and environmentally. We have created this case study based on Patagonia, generally regarded as one of the most sustainable and authentic companies in the world, to help leaders, design teams and regenerative practitioners explore the canvas in detail. Introduction
- 3. holonomics.co Patagonia's founder was Yvon Chouinard, a climber who started making his own climbing equipment in 1957. His business grew and became the most successful equipment manufacturer in the United States. Patagonia was founded in 1973 as a new company to start producing clothing for a range of outdoor sports, not just mountaineering. Patagonia have four main goals. • Build the best products which cause no harm • Save wild and beautiful places • Reverse the decline in the overall health of the planet • Build a company which can last at least for100 years These goals articulate the main purpose and ambition of the company and are the organisation’s definition of success. We can then look at their main value proposition which is to make highest quality clothing for outdoor sports enthusiasts. Patagonia is aimed at conscious consumers and they are not focused on fashion. Patagonia Photo: Wikipedia
- 4. holonomics.co Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. Our Reason for Being Patagonia grew out of a small company that made tools for climbers. Alpinism remains at the heart of a worldwide business that still makes clothes for climbing – as well as for skiing, snowboarding, surfing, fly fishing, paddling and trail running. These are all silent sports. None require a motor; none deliver the cheers of a crowd. In each sport, reward comes in the form of hard-won grace and moments of connection between us and nature. Our values reflect those of a business started by a band of climbers and surfers, and the minimalist style they promoted. The approach we take towards product design demonstrates a bias for simplicity and utility. For us at Patagonia, a love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet. We donate our time, services and at least 1% of our sales to hundreds of grassroots environmental groups all over the world who work to help reverse the tide. We know that our business activity – from lighting stores to dyeing shirts – creates pollution as a by-product. So we work steadily to reduce those harms. We use recycled polyester in many of our clothes and only organic, rather than pesticide- intensive, cotton. Staying true to our core values during thirty-plus years in business has helped us create a company we're proud to run and work for. And our focus on making the best products possible has brought us success in the marketplace. Mission Statement
- 5. holonomics.co Patagonia’s target market is the outdoor sports community, and we can locate these people in the Stakeholders section. The main channels are Patagonia’s shops and online store, and other retailers. A key resource are the textile mills and sewing factories which Patagonia do not own. Value Co-Destructions are also known as the negative value propositions of the enterprise and are an inevitable consequence of being in business. For example Patagonia have worked hard to reduce the harmfulness of the water resistant coating on their jackets, but the coating is still harmful to the environment. If they replace the chemicals totally, the result is a jacket that will last for just two years instead of 15 or 20, so there is always a balance. Fossil fuels are also used to extract nylon and polyester polymers. This results in two costs - pollution and waste. The Value Proposition Photo: Patagonia
- 6. holonomics.co Patagonia are focused on the repair and reuse of their clothes, and they have partners like iFixed to help them. They use recycled polyester and wool and are always looking at how to reduce resource consumption. Patagonia are a company who are conscious of their impact on both biophysical stocks, and biophysical services, in this instance organic cotton, clean water and organic soil. Patagonia work hard to ensure that factories provide quality and are also socially and environmentally compliant, and they work with a wide of partners to help them monitor their activities and share data with other brands using the same factories and mills. For example the Fair Labour Association helps them to audit factories. Patagonia support small NGOs and environmental activities, and they do so by donating 1% of their sales to hundreds of grassroots environmental groups all over the world. This is a good example showing why the Flourishing Business Canvas does not just focus on customer segments but stakeholders. Patagonia’s Partnerships
- 7. holonomics.co Another major goal of Patagonia is to provide good working conditions for every worker who sews. For Patagonia better working conditions are a non-financial benefit of their business. We can therefore add farmers, factory workers and local labour communities to the list of stakeholders who are all impacted in the business ecosystem. The Flourishing Business Canvas makes the systemic connections between business activities, stakeholders and society and the environment explicit. Patagonia were one of the first companies in the U.S. to offer child care for their staff, and they also provide comprehensive medical care and paid internships for environmental groups. Patagonia has been so successful because they have managed to achieve long-term profitability through loyal customers. The company is as transparent as possible, allowing customers to understand where their products came from and the resources required to create them through their Footprint Chronicles initiative. The New Footprint Chronicles
- 8. holonomics.co In the Flourishing Business Canvas ecosystem actors are individuals, groups, organisations, or non-humans who may be impacted by the business in any way. Patagonia’s efforts have resulted in major energy savings for them, but there are many other people who benefit from Patagonia’s efforts and activities. Patagonia for example make sure that no children are employed in the factories and mills which they use. And they are also concerned with ensuring that all outdoor sports enthusiasts are able to enjoy their sports in natural locations which are clean, healthy and beautiful. Patagonia are not just focused on those people who purchase their products. And finally the Flourishing Business Canvas addresses our higher needs, such as protection in extreme weather conditions, protection for those working in factories, and ensuring that we as people have the freedom to enjoy our leisure time out in nature. Systemic Impact Photo: Patagonia
- 9. holonomics.co PRODUCTS Outdoor recreation clothing for ‘silent’ sports
- 11. holonomics.co GOAL Build the best products which cause no harm GOAL Save wild and beautiful places GOAL Build a company which can last at least for100 years GOAL Reverse the decline in the overall health of the planet
- 12. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Outdoor recreation clothing
- 13. holonomics.co VALUE CO- CREATION The highest quality clothing for outdoor sports enthusiasts VALUE CO- CREATION Conscious consumption - not fashion targeted STAKEHOLDERS Outdoor sports community RESOURCES Textile mills Sewing factories CHANNELS Patagonia shops On-line sales Other retailers
- 14. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Outdoor recreation clothing
- 15. holonomics.co COSTS Pollution Waste VALUE CO- DESTRUCTIONS Toxic water-repellant chemicals VALUE CO- DESTRUCTIONS Use of fossil fuels to extract nylon and polyester polymers
- 16. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Pollution Waste Toxic chemicals Use of fossil fuels Outdoor recreation clothing
- 17. holonomics.co BIOPHYSICAL STOCKS Organic cotton Clean water RESOURCES Recycled polyester Recycled wool PARTNERSHIPS iFixit helps customers repair their own clothes BIOPHYSICAL STOCKS Organic soil ACTIVITIES Repair clothes ACTIVITIES Evaluate and reduce resource consumption
- 18. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Pollution Waste Toxic chemicals Use of fossil fuels Organic cotton Soil Repair clothes iFixit Repairs Recycled polyester and wool Clean water Reduce resource consumption Outdoor recreation clothing
- 19. holonomics.co PARTNERSHIPS B Corporation Blue Fair Labour Sustainable Apparel RELATIONSHIPS Share data with other brands doing business in the same factories (Fair Factories Clearing House) STAKEHOLDERS Environmental activities and small NGOs GOVERNANCE Audit factories with Fair Labour Association ACTIVITIES Ensure factories provide quality plus are socially and environmentally compliant COSTS Donate 1% of sales revenue to grassroots activists
- 20. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Pollution Waste Toxic chemicals Use of fossil fuels Organic cotton Soil Repair clothes iFixit Repairs Recycled polyester and wool Clean water Reduce resource consumption Donate 1% of sales revenue BCorp. Fair Labour Blue Sign Share data with other brands Activists and small NGOs Audit factories Ensure factory compliance Outdoor recreation clothing
- 21. holonomics.co GOVERNANCE Customers can ask questions ECOSYSTEM SERVICES Rock faces Clean oceans and rivers BENEFITS Long-term profitability through loyal customers ECOSYSTEM ACTORS Children Humanity ECOSYSTEM ACTORS Climbers, skiers, surfers, fishermen, runners, BENEFITS Energy savings (LEED Certification)
- 22. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Pollution Waste Toxic chemicals Use of fossil fuels Organic cotton Soil Repair clothes iFixit Repairs Recycled polyester and wool Clean water Reduce resource consumption Donate 1% of sales revenue BCorp. Fair Labour Blue Sign Share data with other brands Activists and small NGOs Audit factories Ensure factory compliance Better working conditions Customer questions Energy savings Climbers, surfers, skiers etc Children Humanity Outdoor recreation clothing
- 23. holonomics.co NEEDS Subsistence - clothing Protection - working conditions Leisure - Freedom to choose NEEDS Self-esteem - achieving mastery, recognition and respect COSTS Insurance Child care Internships
- 24. holonomics.co Wild and beautiful places Best products no harm Reverse ecological decline Company of 100 years Quality outdoor clothing Conscious consumption Outdoor sports community Mills and sewing factories Patagonia shops On-line site Other retailers Pollution Waste Toxic chemicals Use of fossil fuels Organic cotton Soil Repair clothes iFixit Repairs Recycled polyester and wool Clean water Reduce resource consumption Donate 1% of sales revenue BCorp. Fair Labour Blue Sign Share data with other brands Activists and small NGOs Audit factories Ensure factory compliance Better working conditions Customer questions Energy savings Climbers, surfers, skiers etc Children Humanity Insurance Child care Internships Subsistence Protection Leisure Mastery Recognition Respect Outdoor recreation clothing
- 26. Maria Moraes Robinson Maria is an economist, internationally recognised as a leading inspirational woman in tech and for her innovation in the fields of Balanced Scorecard, Deep Tech and agile strategy. She is CEO (Brasil) of Holonomics, advisory board member, a Harvard Business Review author and coauthor of Deep Tech and the Amplified Organisation, Customer Experiences with Soul and Holonomics: Business Where People and Planet Matter. Simon Robinson Simon is an internet pioneer, an award-winning innovator, and is respected globally for his contributions to customer experience and Deep Tech, creating numerous design frameworks such as the New 4Ps and the Holonomic Circle. He is the CEO (Worldwide) of Holonomics, and coauthor of Deep Tech and the Amplified Organisation, Customer Experiences with Soul and Holonomics: Business Where People and Planet Matter. holonomics.co About Us
- 27. Our Approach Transformation that matters holonomics.co Holonomics employs a unique approach driven by deep thinking, the honouring of universal human values, and the belief that long-lasting, impactful change can only be achieved through work that is, at its core, authentic. With our deep expertise and commitment to these values, we integrate into our clients’ environments to gain the truest understanding of their challenges. We then apply this deep understanding to develop targeted solutions that generate high- impact results, quickly. What makes Holonomics different Trusted Advisors Deep Thinking Exclusive tools and techniques
- 28. Our Services holonomics.co Holonomics Our services are based on the concept of transformation. Our methodologies contain elements of dialogue, storytelling and gamification that combine to produce focused, consistent and long-term results. We offer a variety of education and consulting programs including topics such as strategy, customer experience, deep tech, digital transformation, agile strategy and leadership in various formats suited to the specific needs and characteristics of each organisation. We develop workshops and lectures that allow organisations to improve their skills such as dialogue, engagement, values and customer experience. We offer consultancy using established methodologies and education programs developed from a systemic view, which involve and engage people throughout the organisation. Courses and Learning Programmes Dialogue Consultancy Workshop/ Lectures Coaching and Mentoring
- 30. ©2023 holonomics.co Strategy and Change Management Co-authorship and Technical Revision
- 31. ©2023 holonomics.co International Recognition - Thought Leadership integrates our Holonomics approach to systemic strategy mapping, value proposition elevation, deep tech discovery, customer experience design, employee experience, augmented agility, strategic