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Malik Responsible Soy Syntegration

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This is the public report of the Malik Soy Syntegration event that was initiated by the Round Table for Responsible Soy (RTRS) and Malik Institute. It shares the outcomes of what 32 soy beans supply chain specialists see as key opportunities and actions to achieve 100% responsible soy bean used in Europe, taking into account how critical factors impact each other. The event held in January 2016 at the Malik Institute in Sankt Gallen, Switzerland, following the Team Syntegration method developed by Stafford Beer and the Malik Institute, based on systems thinking principles. The outcomes are intended to facilitate the participants and their organizations to work towards transformative change and Better Functioning Agrofood Systems

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Malik Responsible Soy Syntegration

  1. 1. © Malik 2016© Malik System-cybernetic Malik ManagementSystems® for mastering complexity Malik SuperSyntegration®, St. Gallen, January 26 – 29, 2016 Round Table on Responsible Soy - Malik Institute “100% Responsible Soy in Europe” February 15, 2016 Lic. Oec. Jens Ostergaard Organizer Dr. Constantin Malik Organizer, Exploration Team M.A. Econ. Maria Sourlas Lead Exploration Team Dipl. Oec. Josef Coellen Lead Exploration Team Dr. Christiane Gebhardt Exploration Team M.A. Jan Fischer Exploration Team Dr. Nam Nguyen Exploration Team Prof. Dr. Ockie Bosch Exploration Team
  2. 2. Topics Overview © Malik 2016© Malik SummaryContents page 2© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. © Malik 2016 This document, its content and the methods and concepts implemented in this document are protected by copyright laws, trademarks and design rights of Malik. Any unauthorized use of this document, its content or the methods and concepts implemented in this document will be considered a violation of Malik’s intellectual property rights. Unless otherwise stated in this document, neither this document nor its content nor the methods and concepts implemented in this document may be copied, distributed, published or used in any way, in whole or in part, without prior written consent of Malik. Privileged Customer Content: All content of this document is for internal use only of RTRS and the participants of the Responsible Soy Malik SuperSyntegration® January 2016.
  3. 3. Topics Overview © Malik 2016© Malik SummaryContents page 3© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. On September 25th, 2015, 193 World Leaders committed to 17 Global Goals to reach 3 crucial objectives towards a better world: End poverty, halt climate change and fight injustice and inequality. This is the biggest attempt in the history of the human race to make the world a better place. On January 26th, 2016, 31 experts representing 26 organizations committed to the “Responsible Soy Initiative” came together in Switzerland to make their contribution towards these 3 objectives. Their Goal: “100% Responsible Soy in Europe”
  4. 4. Topics Overview © Malik 2016© Malik SummaryContents page 4© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Content 1. Introduction page 5 2. Syntegration® results “100% Responsible Soy in Europe” page 14 Result 1: Transformation Initiated page 15 Result 2: Topics and Measures page 18 Result 3: Reflection 1 - based on the Malik Sensitivity Model page 29 Result 4: Reflection 2 - based on the Malik Viable System Model page 41 Result 5: Reflection 3 - based on the Malik Culture of Functioning Model page 48 Result 6: Reflection 4 - based on the Malik Navigation System page 58 Result 7: Effective Implementation via the “Transformation Navigation Hub” page 61
  5. 5. page 5April 1, 2016© Malik SummaryContents Topics Overview 1. Introduction and Executive Summary “What do we have to do, with our stakeholders or all together, to achieve 100% responsible soy products for food, feed and other applications into and inside Europe by 2020?”
  6. 6. Topics Overview © Malik 2016© Malik SummaryContents page 6© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. “100% Responsible Soy in Europe” This result report is a navigational instrument for the strategic and operative project management This report contains the results of the participants and the Malik Exploration Team. At the same time it provides useful insights for implementation and instruments implementation control via a Transformation Navigation Hub (TNH). 1. Executive Summary Overview of the result highlights (2 pages, blue slides) Summary of in depth results (7 pages, green slides) 2. Results Overview and highlights of the participants’ results Reflections by the Malik Exploration Team 3. Appendix Compilation of results of the participants
  7. 7. Topics Overview © Malik 2016© Malik SummaryContents page 7© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. 31 experts shaping Europe‘s future towards responsible soy Malik Institute, St. Gallen January 26-29 2016
  8. 8. Topics Overview © Malik 2016© Malik SummaryContents page 8© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. 31 experts from 26 organizations contributed to the results Among them …
  9. 9. Topics Overview © Malik 2016© Malik SummaryContents page 9© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Start of fundamental change Syntegration = Synergy + Integration 31 experts participated in a Malik SuperSyntegration® event, which took place in St.Gallen, Switzerland, from January 26 – 29, 2016. The goal was to collectively master the challenge of achieving 100% responsible soy products in Europe by 2020. The results are documented in this report. The event took place based on the initiative of Olaf Brugman, President of the RTRS. The Malik SuperSyntegration® method used the collective knowledge of 31 experts. Compared to conventional methods, this process is 80 times as effective and reduces the time invested by roughly 90%. What lies beneath is a novel communication technology which coordinates the participants in such a way that their knowledge, intelligence and creativity as well as their motivation is optimally brought together in a vivid interaction to generate the best solutions for the opening question. Already at the initial phase of the transformation process the participants showed an impressive performance in generating a solution within the challenge at hand under the guidance of the Malik team. The Malik Exploration Team provides the system-cybernetic management methodology and toolset needed for organizations to function under ultimate complexity conditions in times of fundamental change. It helps determining the current position, navigating the transition, and identifying the appropriate next steps. Altogether, the Malik SuperSyntegration is a powerful social technology designed to help transform.
  10. 10. Topics Overview © Malik 2016© Malik SummaryContents page 10© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Results on three levels The Malik SuperSyntegration® method leads to results on three levels simultaneously: 1. On the operational level Delivers optimal solutions for resolving the challenge posed by the Opening Question. 2. On the socio-cultural level Ensures a common understanding and commitment around the developed solutions and creates a robust pioneering spirit towards implementation. A first mindset change much required to push the transformation forward becomes visible. 3. On the implementation level Development of a master implementation plan controlled by a cybernetic “Transformation Navigation Hub” ensuring effective and efficient implementation.
  11. 11. Topics Overview © Malik 2016© Malik SummaryContents page 11© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. The fundamental challenge: The Great Transformation of the Soy Industry Responsible Soy Soy Industry Today Opening Question “What do we have to do, with our stakeholders or all together, to achieve 100% responsible soy products for food, feed and other applications into and inside Europe by 2020?” Evolutionarypathofrelevantsystemsaspects Past Today Future Time Optimal path of development Foundations of future existence Foundations of present existence
  12. 12. Topics Overview © Malik 2016© Malik SummaryContents page 12© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Executive Summary: 7 results at a glance (1/2) 1. The platform for “Responsible Soy” has been ignited. The participants created breakthrough insights on how “Responsible Soy” can be fully achieved in Europe through strategic collaboration, a common purpose and a governance structure. 2. The 12 most important challenges have been identified within which 34 measures have been worked out. Through the Syntegration method, the knowledge and ideas of the individual participants was integrated in in such a way that a common starting ground with concrete initiatives towards solving the opening question was developed in just 3.5 days. 3. The strong interconnection of subjects and measures calls for system-cybernetic navigational methods. The system reacts slowly. This is why a multitude of control levers have to be moved simultaneously to advance the necessary transformation. Conventional management methods are not effective enough for controlling the implementation, which calls for new knowledge and tools from system cybernetics. 4. Only a “coalition of the able and willing” can turn the current reality of the soy industry into the envisioned future. Transforming today’s reality - a growing, lucrative soy industry will require effort from within and outside the current system; a “coalition of the able and willing”. To mobilize such a coalition placing the initiative within the bigger context of a sustainable world might prove helpful. Once the network has been activated, it will require a governing body with a clear purpose to which all of the relevant stakeholders can commit. R3 R2 R1 R4
  13. 13. Topics Overview © Malik 2016© Malik SummaryContents page 13© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Executive Summary: 7 results at a glance (2/2) 5. Culture eats strategy for breakfast! Common purpose and will for action can only be found in the MSS® Initiatives Strong individual values, diverse interests and expert knowledge characterize the “Responsible Soy Community”. For the joint initiative to be successful, cultural change will be necessary. A common agreed on inclusive purpose behind which everyone can commit will be the strongest lever from a cultural point of view. It will trigger acceptance, a sense of accountability and trust which at the moment are critically low. 6. Strategy is the blind spot in the “Responsible Soy Community” To get a full strategic picture, two strategic issues must be discussed for the “Responsible Soy Initiative”: a) The influence of substitution and b) The influence of disruptive strategies. Additionally one could observe in the discussions that each organization within the community is following their individual strategy. An alignment of these various strategies would be necessary so as to concentrate the strategic power in a focal point. 7. Effective implementation through the “Transformation Navigation Hub” (TNH) Conventional implementation methods often fail, especially when dealing with a network of different stakeholders across industries. To safeguard implementation, central coordination is crucial. A TNH can act as a governing body providing custom-designed solution labs for each of the identified measures. R7 R5 R6
  14. 14. page 14April 1, 2016© Malik SummaryContents Topics Overview 2. Syntegration® results in detail
  15. 15. Topics Overview © Malik 2016© Malik SummaryContents page 15© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 1 The platform for responsible soy has been ignited 1. In just 3.5 days the Syntegration changed the participants’ perspective dramatically. This led to a more realistic viewpoint of the challenge at hand in terms of the feasibility of the developed action points. 2. The method facilitated the participants to create breakthrough insights on how “Responsible Soy” can be fully achieved in Europe - especially by creating deeper insights into options for strategic collaboration and awareness how we can steer and develop a network of organizations around a common purpose. 3. Syntegration therefore, is already part of the inclusive and non-hierarchical governing mechanism needed to make this network effective. 4. 34 key action points were developed; “more than any other method could have provided”. 5. Forming a “coalition of the able and willing” will be key to push implementation of the key action points forward.
  16. 16. Topics Overview © Malik 2016© Malik SummaryContents page 16© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. The Syntegration changed the participants’ perspective 1. Focus on crops1. Focus on crops … value proposition of stakeholders in the value chain … value proposition of stakeholders in the value chain 2. Perfection2. Perfection … stepwise approach, living labs and lessons learned … stepwise approach, living labs and lessons learned 4. Why4. Why … What and How… What and How 5. Proliferating complexity of the soy world 5. Proliferating complexity of the soy world … stakeholder driven strategic pathways and pilot initiatives bring clarity … stakeholder driven strategic pathways and pilot initiatives bring clarity 6. Blockages6. Blockages … opportunities… opportunities 3. Everything3. Everything … Focussed… Focussed 7. Defensive7. Defensive … experimental… experimental
  17. 17. Topics Overview © Malik 2016© Malik SummaryContents page 17© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. 6 months 100% Effect Time 80% 50% ∞ 96% of the participants rated the effectiveness of the Syntegration as „very good“ and „good“. Conventional methods Exploration / Analysis Implementation control “100% Responsible Soy in Europe” With the Syntegration “100% Responsible Soy in Europe”, 31 participants representing 26 organizations reached a common ground to ignite the responsible soy platform Implementation is the biggest challenge yet ahead – it mostly fails if done with conventional tools. Supported by a system-cybernetic “Transformation Navigation Hub” (TNH) effective implementation can be realized at maximum speed. 80% of the impact can be achieved within twelve months. 92% of the participants rated the information and knowledge exchange triggered by the Syntegration communication technology as „very good“ and „good“. «Unique, world class tool! Very enriching and insightful.» «It was a very valuable experience. I felt it has helped to embed some of the challenges and opportunities the group has and feels it belongs to all of us.» «Really inspirational, great atmosphere, fantastic method.» 12 months
  18. 18. Topics Overview © Malik 2016© Malik SummaryContents page 18© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 2 The 12 most important current challenges were identified and 34 actions have been jointly developed to address them 1. From hundreds of possible topics, participants have filtered, using a special process, those 12 that they themselves considered to be the most important in answering the opening question. 2. 12 optimally formulated working groups have worked in 3 steps on the best possible solutions to these challenges. 3. For the implementation of these solutions a total of 34 actions have been identified.
  19. 19. Topics Overview © Malik 2016© Malik SummaryContents page 19© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. The twelve subjects of the Syntegration = action fields with the Syntegration‘s color codes Hyperlinks: lead to the results of the according topics in the appendix Government Engagement: How can we achieve stronger government engagement for responsible soy? Red Create Pull: How can we create more pull for responsible soy from the demand side? Black Global Mapping: How can we achieve more transparency and a traceable supply base through global mapping? Orange Stepwise to Responsible Soy: What steps do we need to take, in order to effectively channel the different responsible soy initiatives towards common goals? Green Responsible Soy Alliance: What do we need to do to create a Responsible Soy Alliance that can enhance government & stakeholder engagement most effectively? Gold Commodity Collaboration: How can we collaborate more effectively with responsibility initiatives of other commodities? Silver Incentives: What can we do to increase the incentives for responsible soy throughout the supply chain? White Area Approach: How can an integrated area approach (for soy and other crops) increase the effectiveness of responsible soy monitoring? Light blue Finance as Driver: How can we channel more money to “responsible operations” and thus use finance as a driver? Brown Sharing Responsibility: What are the cost drivers for responsible soy and how can responsibility be shared effectively? Yellow Deforestation-Free: How can we create synergy with the deforestation-free commitments that are already high on the agendas? Dark blue National Initiatives: What can we learn from successful national initiatives in soy and other commodities, and how can we create effective new national initiatives? Purple
  20. 20. Topics Overview © Malik 2016© Malik SummaryContents page 20© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Subject Action Government Engagement 1 Create a narrative and vision to show the need and necessity to work towards responsible soy 2 Policy Road-Map to 2020 and beyond 3 Create a Task Force for Government Engagement Incentives 1 Develop financial and long term incentives for Farmers 2 Specific and focused education for the farmers and the farming community 3 Drive a pull market through engagement with retailers, brand manufacturers and food service providers. Create Pull 1 Leveraging the retailers/ major brands/ private foodservice in order to create pull 2 Motivate finance sector to be a driver 3 Leveraging public procurement (Part of Action 3, Group: Red) Area Approach 1 Create a learning network 2 Define the management information system Global Mapping 1 Develop a Business Case for Global Mapping 2 Develop a Tool 3 Define the Governance Finance as Driver 1 Use the Banks to drive the Agenda 2 Use input companies to drive the agenda 3 Use Pension Funds as a driver for change Participants’ twelve priority subjects for transformation and according actions (The Malik Exploration Team Reflections and the TNH will provide the necessary cybernetic integration for effective implementation) Red Black Orange White Light blue Brown
  21. 21. Topics Overview © Malik 2016© Malik SummaryContents page 21© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Subject Action Stepwise to Responsible Soy 1 Determine multi-stakeholder governance 2 Define baseline 3 Define scaling and steps Sharing Responsibility 1 Create a shared understanding amongst retailers/ key brands/ food service companies of their embedded soy footprint 2 Display the cost for responsible soy over time during a gradual move to 100% responsible soy 3 Manage the transition from credit scheme to mass balance scheme Responsible Soy Alliance 1 Creating a Responsible Soy Alliance Deforestation-Free 1 Use existing monitoring systems to assess the extent of the problem 2 Money drives the system 3 Developing unproductive and degraded land 4 Government driven land reclamation Commodity Collaboration 1 Collaboration on European Policy* 2 Collaboration in matching production systems 3 Share resources on market outreach National Initiatives 1 Complete success factor list 2 Elaborate a national initiative matrix for responsible soy 3 Set-up meeting with identified leaders in countries to sound possible interactions Gold Silver Yellow Dark blue Purple Green Participants’ twelve priority subjects for transformation and according actions (The Malik Exploration Team Reflections and the TNH will provide the necessary cybernetic integration for effective implementation)
  22. 22. Topics Overview © Malik 2016© Malik SummaryContents page 22© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Final group presentations on the twelve action fields Government Engagement: How can we achieve stronger government engagement for responsible soy? Red Incentives: What can we do to increase the incentives for responsible soy throughout the supply chain? White Source: Results Presentations by the Participants
  23. 23. Topics Overview © Malik 2016© Malik SummaryContents page 23© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Final group presentations on the twelve action fields Create Pull: How can we create more pull for responsible soy from the demand side? Black Area Approach: How can an integrated area approach (for soy and other crops) increase the effectiveness of responsible soy monitoring? Light blue Source: Results Presentations by the Participants
  24. 24. Topics Overview © Malik 2016© Malik SummaryContents page 24© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Final group presentations on the twelve action fields Global Mapping: How can we achieve more transparency and a traceable supply base through global mapping? Orange Finance as Driver: How can we channel more money to “responsible operations” and thus use finance as a driver? Brown Source: Results Presentations by the Participants
  25. 25. Topics Overview © Malik 2016© Malik SummaryContents page 25© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Final group presentations on the twelve action fields Source: Results Presentations by the Participants Stepwise to Responsible Soy: What steps do we need to take, in order to effectively channel the different responsible soy initiatives towards common goals? Green Sharing Responsibility: What are the cost drivers for responsible soy and how can responsibility be shared effectively? Yellow
  26. 26. Topics Overview © Malik 2016© Malik SummaryContents page 26© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Final group presentations on the twelve action fields Source: Results Presentations by the Participants Responsible Soy Alliance: What do we need to do to create a Responsible Soy Alliance that can enhance government & stakeholder engagement most effectively? Gold Deforestation-Free: How can we create synergy with the deforestation-free commitments that are already high on the agendas? Dark blue
  27. 27. Topics Overview © Malik 2016© Malik SummaryContents page 27© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Final group presentations on the twelve action fields Commodity Collaboration: How can we collaborate more effectively with responsibility initiatives of other commodities? Silver National Initiatives: What can we learn from successful national initiatives in soy and other commodities, and how can we create effective new national initiatives? Purple Source: Results Presentations by the Participants
  28. 28. Topics Overview © Malik 2016© Malik SummaryContents page 28© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Responsible Soy AllianceResponsible Soy Alliance Most topics that were developed and worked on during the Syntegration support the transition to the future responsible soy system Evolutionarypathofsystemsparameters Past Today Future Time Government EngagementGovernment Engagement IncentivesIncentives Create PullCreate Pull Area ApproachArea Approach Finance as DriverFinance as Driver Global MappingGlobal Mapping Stepwise to Responsible SoyStepwise to Responsible Soy Commodity CollaborationCommodity Collaboration National InitiativesNational Initiatives Deforestation-FreeDeforestation-Free Sharing ResponsibilitySharing Responsibility Optimizing «Running to the limit» of the current system on the red curve Setting up the New Timely setting up of the future system on the green curve Transitional strategy Transition from the present to the future – re-routing resources TopicsTopics
  29. 29. Topics Overview © Malik 2016© Malik SummaryContents page 29© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 3 Reflection No. 1 - based on the Malik Sensitivity Model® Malik System-Cybernetic Exploration Team The strong interconnection of topics and actions calls for system-cybernetic navigation methods 1. The system “Responsible Soy” is rather slow moving. Therefore, the transformation can only be effective, if it is initiated simultaneously in all the right places within the system. 2. Therefore, conventional management methods are not effective enough for implementing the actions. It requires new knowledge and new tools for coping with complexity. 3. Awareness of the complexity is there, but the necessary tools for coping with it seem to be lacking. Special modelling methods exist, which are part of the Malik Management System® and can be learnt fast and applied effectively. 4. Based on the modelling, Impact- and Risk-Maps can be used to develop and steer the system “Responsible Soy” in a controlled way. 5. The 34 proposed actions affect the system in very different ways. It is vitally important to implement the right combination of actions, in the right order and intensity. These are also reflected through the system-cybernetic methods.
  30. 30. Topics Overview © Malik 2016© Malik SummaryContents page 30© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Sensitivity Model 1 The 12 subjects of the Syntegration “100% Responsible Soy in Europe” Colors of the topics in the Syntegration
  31. 31. Topics Overview © Malik 2016© Malik SummaryContents page 31© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. … and how they are interconnected. Systemically tackling all topics will effectuate 100% responsible soy in Europe Colors of the topics in the Syntegration System facts: 12 Variables (=topics) 42 Interrelations 296 Feedback loops (=reinforcing loops) System facts: 12 Variables (=topics) 42 Interrelations 296 Feedback loops (=reinforcing loops)
  32. 32. Topics Overview © Malik 2016© Malik SummaryContents page 32© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Sensitivity Model 2 The system “Responsible Soy” (RS) with regard to the Opening Question of the Syntegration The color of each variable correlates with its position in the Impact Map.
  33. 33. Topics Overview © Malik 2016© Malik SummaryContents page 33© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Level of complexity of the entire supply chain (SC): - Number of SC actors and necessary intensity of interaction of different actors - Degree of change in the SC environment; e.g. changing regulations Effectiveness of monitoring the responsible soy (RS) system: - Effective certification and verification processes - Effective application of monitoring systems and methods; e.g. area approach Incentives for SC actors (incl. consumer) to go for RS: - At each stage of the supply chain - Different types of incentives; e.g. financial, legal, sourcing security, climate change, etc. Desire to go for RS by SC actors: - Pull from the demand side: consumers, retailers, traders, etc. - Created by various benefits, incentives, etc. Effective communication, convincing different players and the general public of RS benefits: - Reaching out to relevant stakeholders, using various channels of communication - Joint communication with other responsibility initiatives Level of awareness of RS of all players and the general public: - The players understand the benefits of RS, incl. ethical considerations - Achieved by effective communication and education Level of engagement for RS by SC actors: - Buying RS - Joining RS initiatives and promoting RS in a wider circulation: political, society, etc. Level of engagement for RS by governments and governmental institutions: - Joining RS initiatives and raising RS issue in political discourse - Legal regulations for RS (- buying RS for governments’ canteens, schools, etc.) Availability of funding for RS activities: - Different types of loans for farmers, traders, retailers, initiatives, technical innovation, etc. - Effective risk assessment for RS investments - Funding from different sources Sensitivity Model 2 – description of variables (1/2) The color of each variable correlates with its position in the Impact Map.
  34. 34. Topics Overview © Malik 2016© Malik SummaryContents page 34© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Cost for all direct and indirect components of RS: - Social responsibility, environmental protection - Certification, verification, monitoring, communication Clarity what RS is and can be: - Definition of RS and transparency about different definitions - Different sets of RS criteria by different schemes, possibility to easily compare different criteria Level of collaboration of RS players: - SC Actors and alliances among different stakeholders and schemes - Governments and governmental institutions: EU, international trade associations, etc. Effectiveness of RS strategies leading the RS system in a common direction: - May include different specific definitions of RS, though the general direction is agreed upon - Including quality of strategic radar: ability to also see the Green Curve of RS Effectiveness of RS governance as a viable system: - Functioning governance: the RS system is able to set and fulfill its objectives, adapt to a changing environment, effectively include relevant players, and to self-organize Effectiveness of management for achieving results: - Within each actor's organization, of the RS system as a whole, and of the different types of RS initiatives and collaborations Level of RS: - Percentage of responsible soy into and within the EU Negative impact of soy industry: - Environmental impacts, including deforestation, water resource depletion, etc. - Social impacts - financial losses; e.g. by over-production of RS Innovative solutions for the soy industry: - Technical innovations for higher yields per hectare or in the supply chain: logistics / processing - Management innovation within the RS system Level of transparency: - Openness of information related to RS certification and verification, enabling risk management Sensitivity Model 2 – description of variables (2/2) The color of each variable correlates with its position in the Impact Map.
  35. 35. Topics Overview © Malik 2016© Malik SummaryContents page 35© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Sensitivity Model 2 19 key variables and their invisible feedback loops The color of each variable correlates with its position in the Impact Map.
  36. 36. Topics Overview © Malik 2016© Malik SummaryContents page 36© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Having a holistic understanding of the system is crucial before taking action Interpretation: 1. The system is strongly interconnected (degree of networking 3.32 = 32% more than average). 2. There are more stabilizing than reinforcing feedback loops. This means the Responsible Soy System is rather slow to move. 3. Though, there are several short and quickly reacting reinforcing feedback loops, e.g. 141214, 131413, 4164. They can activate the system, if the variables are functioning properly. Interpretation: 1. The system is strongly interconnected (degree of networking 3.32 = 32% more than average). 2. There are more stabilizing than reinforcing feedback loops. This means the Responsible Soy System is rather slow to move. 3. Though, there are several short and quickly reacting reinforcing feedback loops, e.g. 141214, 131413, 4164. They can activate the system, if the variables are functioning properly. System Facts: 19 Variables 63 Interrelations 1874 Feedback loops a) 981 stabilizing feedback loops b) 893 reinforcing feedback loops System Facts: 19 Variables 63 Interrelations 1874 Feedback loops a) 981 stabilizing feedback loops b) 893 reinforcing feedback loops Confirming effect: The more/less, the more/less Opposing effect: The more/less, less/more The color of each variable correlates with its position in the Impact Map.
  37. 37. Topics Overview © Malik 2016© Malik SummaryContents page 37© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Effective Governance is the most essential variable for moving the system System diagnosis: If the variable “Effective RS Governance” is deactivated, the number of reinforcing feedback loops is reduced to 12% (114 instead of 893). System diagnosis: If the variable “Effective RS Governance” is deactivated, the number of reinforcing feedback loops is reduced to 12% (114 instead of 893). The color of each variable correlates with its position in the Impact Map. Confirming effect: The more/less, the more/less Opposing effect: The more/less, less/more
  38. 38. Topics Overview © Malik 2016© Malik SummaryContents page 38© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. How to control the system? The Impact/Risk Map Overcome the inert state of the “Responsible Soy” System with effective interventions No. Variable name 1 Complexity of Supply Chain 2 Effective RS Monitoring 3 Incentives for RS 4 Pull for RS 5 Effective RS Communication 6 Awareness of RS 7 SC Actors Engagement 8 Government Engagement 9 Availability of Funding 10 Cost of RS 11 RS Clarity 12 Collaboration 13 Effective RS Strategy 14 Effective RS Governance 15 Managerial Effectiveness 16 Level of RS 17 Negative Impact 18 Innovative Solutions 19 Transparency 1. 15 “Managerial Effectiveness”, 14 “Effective RS Governance”, and 11 “RS Clarity” are the most effective levers to initiate change in the system. 2. 7 “Supply Chain Actors Engagement” and especially 12 “Collaboration” are critical accelerators. A change in collaboration can have a strong effect on the system; but this variable is also strongly influenced by the system. In order to achieve effective collaboration, it requires simultaneous intervention from various angles in the responsible soy system. 3. 1, 2, 5, 6, 8, 9, 10, 13, 18 and 19 are self regulators. They can be used for implicit control. If the system is activated, they help to stabilize it. 4. 3, 4, 16 and 17 are indicators. The intended status will result from effective interventions in the active part of the system. Directly influenceable levers (explicit system control) Indicators Self regulators (implicit control)
  39. 39. Topics Overview © Malik 2016© Malik SummaryContents page 39© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Accumulated effectSingle effect1 of 12 (=35%) of the 34 actions, which account for 50% of the total systemic impact. Single effect1 of the further 10 measures, which account for an additional 30% of the total systemic impact, together =80%. Relativesystem-cybernetic effectaccumulated Relativesystem-cybernetic effectperaction 1) System-cybernetic effect = percental effect of each action on the overall system compared to effect of all actions. 64% of the actions equals 80% of the change effect within the Responsible Soy System Create a “Responsible Soy Alliance” and “Determine Multi-Stakeholder Governance” have the greatest systemic impact
  40. 40. Topics Overview © Malik 2016© Malik SummaryContents page 40© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Complex systems are counterintuitive Ordinary rankings are in many cases drastically misleading as compared to a systemic diagnosis The prioritization by the participants is focusing on initiatives, which according to our systemic diagnosis will not have the desired effect, and thus will not bring about change. But it may even destroy the whole system… Systemic Impact Prioritization by Participants (final visual applause after 3rd iteration)
  41. 41. Topics Overview © Malik 2016© Malik SummaryContents page 41© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 4 Reflection No. 2 - based on the Malik Viable System Model® Malik System-Cybernetic Exploration Team Only a “coalition of the able and willing” can turn the current reality of the soy industry into the envisioned future 1. The “Responsible Soy Initiative” is an attempt to transform today’s reality of the soy industry (red curve) towards a more sustainable future (green curve). 2. Changing such a growing and lucrative industry requires effort from within and outside the current system. Thus, only a “coalition of the able and willing” could turn that current reality around. To form this coalition, we suggest: a. Placing today’s soy industry and the “Responsible Soy Initiative” within the “Sustainable World” context - this will put the initiative onto a globally accepted agenda. b. Making the “Responsible Soy Initiative” viable and effective – this will provide todays’ lose and scattered network of the initiative with a governing structure steering towards one common purpose. 3. The participants of the Syntegration recognized the importance of governance. One crucial question though – was consciously left unanswered; at the very core of a coalition: what is the purpose of the coalition?
  42. 42. Topics Overview © Malik 2016© Malik SummaryContents page 42© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. How to transform today’s successful reality into a sustainable tomorrow Seeing the bigger picture: Placing the soy industry in the context of a “burning platform” 1. The Syntegration has brought together representatives from various organizations dedicated to one common cause: “100% Responsible Soy in Europe”. 2. From a systems perspective this endeavor can be looked at as follows: i. What is the current system; the reality we are trying to change? ii. What is the envisioned system; the new reality we are trying to create? iii. How can our envisioned system reach the desired maturity level; a viable system status? 3. As the current system as such - todays’ soy industry - is very successful and viable, the system will not mobilize itself towards that change. So, how can we embark such a successful system on a transformative journey? 4. The answer can only be found by placing today’s soy industry within the “Sustainable World” context. 5. This provides a rationale so as to why the change is necessary, and places the “Responsible Soy Initiative” into the context of a globally accepted initiative; an existing “burning platform” much needed to mobilize the system into the desired direction. 6. To understand what must happen for this transformation to succeed it is helpful to look at the soy industry from a holistic systems perspective. 7. For this we would like to introduce the Viable System Model® (VSM®). ii iii i “Sustainable World” = to be understood in the context of the “Global Goals for a more Sustainable World” initiative.
  43. 43. Topics Overview © Malik 2016© Malik SummaryContents page 43© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Derived from the human nervous system, the most developed regulatory mechanism for the mastering of complexity, and based on systems theory and cybernetics, the VSM comprises all the necessary and sufficient pre-conditions for the viable functioning of any system. It is thus the only and most adequate reference model for complex systems diagnosis and design. The Malik Viable System Model® (VSM®) Using a cybernetic control model as a framework for systems design The Viable System Model Every system needs an identity-forming function providing its purpose and values. It guards the balance and manages the transition between the present and future state of the system. To safeguard long-term viability, an outside & then perspective is required. This strategic intelligence function is in constant dialogue with the overall system environment, gathering and processing relevant information to build up future success potentials. The operative functioning presupposes an inside & now perspective of the present state of system. Via operative control mechanisms maximal effectiveness and efficiency within the sub-systems can be ensured. For the present system not get out of control, it is balanced via (self)-coordination mechanisms. They foster a desired level of collaboration and information exchange between the sub-systems. Real-life feedback mechanisms provide the inside and now function with unfiltered information by feeling the pulse of the current system at all times. The sub-systems produce the desired output, ensuring maximum value towards the systems’ relevant environment (customers, society, ..). This requires a close dialogue with the respective environment to keep up with its changing demands. In order to permit for self-coordination, the sub-systems are designed such that they can maintain the highest possible level of autonomy. This is ensured via the principle of recursion, which applies the same principles of viability on all systems levels.
  44. 44. Topics Overview © Malik 2016© Malik SummaryContents page 44© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Moving the system from red to green The “Responsible Soy Initiative” as an outside & then function of today’s soy industry 1. From a VSM perspective the organizations represented by the participants of the Syntegration have their own identity with their own individual purpose and values. What they have in common within this identity, however, is a felt obligation towards a more sustainable world within the soy context. 2. It is this common vision, to transform the reality of today’s “Soy Industry System”, that brought them together. Individual actions can only touch certain angles of the system - moving the system will take joined efforts. 3. In terms of the VSM, thus, the entire “Responsible Soy Initiative” - and the Syntegration that took place - takes an outside & then perspective on today’s soy industry system. It asks the question of how the future of soy might look, what the green curve could be and how this could be achieved. 4. If the “Responsible Soy Initiative” proves successful, a new reality will arise; a new viable responsible soy industry system will emerge and replace today’s reality. 5. On the following slides we reflected the discussions and the “Responsible Soy Initiative” a bit more deeply based on the VSM logic.
  45. 45. Topics Overview © Malik 2016© Malik SummaryContents page 45© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Reflecting the participants’ actions on the VSM framework The outside & then function of the “Responsible Soy Initiative” becomes visible Reflecting the participants' discussions and mapping the respective actions on the VSM in terms of the VSM- Functions they address, we can observe that … 1. … the discussions support our preceding remarks that the initiative is fulfilling an outside & then function for the entire Soy Industry. 2. … the initiative requires the engagement of actors within and outside the Soy Industry for it to work. AS-IS Soy IndustryAS-IS Soy Industry FinancingtheSystemFinancingtheSystemEndUserEndUser GovernmentGovernment NGOsNGOs Responsible Soy AllianceResponsible Soy Alliance Government EngagementGovernment Engagement IncentivesIncentives Create PullCreate Pull Area ApproachArea Approach Finance as DriverFinance as DriverGlobal MappingGlobal Mapping Stepwise to Responsible SoyStepwise to Responsible Soy Commodity CollaborationCommodity Collaboration National InitiativesNational Initiatives Deforestation-FreeDeforestation-Free Sharing ResponsibilitySharing Responsibility RetailersRetailers
  46. 46. Topics Overview © Malik 2016© Malik SummaryContents page 46© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Effectuating Collaboration to manage the transition from the red to the green curve The “Responsible Soy Initiative” as a temporary Viable System Model (VSM) 1. Based on the two foregoing observations and keeping in mind the fact that the VSM comprises all the necessary and sufficient pre-conditions for the viable functioning of any system, the following thought surfaces: for the initiative to be viable in fulfilling its purpose, it has to be considered as a viable system in its own right. 2. Looking at it in this way allows to detect which functions and cybernetic control mechanisms are already in place and which have yet to be built up. 3. Thus, the governance mentioned by the participants and throughout our reflections is not to be equated with some kind of “authority”. All of the above can be realized by mechanisms that are inclusive, non-hierarchical and self-organizing. 4. This is especially true as many - if not all of the topics - addressed in the Syntegration can only be achieved by effective collaboration of the stakeholders of the “Responsible Soy Initiative”; the engagement of actors within and outside the Soy Industry. Group Gold explicitly called for the establishment of a Soy Alliance as an action. Such an alliance would serve as a kind of inclusive governing platform. 5. And when the “Responsible Soy Initiative” will have fulfilled its purpose, transforming the soy industry into a responsible soy industry it will no longer be necessary. System in FocusSystem in Focus
  47. 47. Topics Overview © Malik 2016© Malik SummaryContents page 47© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Diagnosing the “Responsible Soy Initiative” in terms of its viability 1. The discussions raised some questions around the viability of the “Responsible Soy Initiative”. The answers remained largely vague: 2. One of the twelve topics – group green – was dedicated to the question “what does responsible soy mean?” This question is pointing at the very essence of the initiative; its purpose. 3. The participants decided that there need not be one common definition. How can we ensure the commitment of the required actors within and outside the soy industry – how can we form a “coalition of the able (= the ones that can bring about change) and willing” in light of a vaguely defined purpose? 4. Recalling a viable system needs an identity-forming function providing its purpose and values; can a viable system allow for multiple interpretations around its very purpose? 5. Could this explain what became clear in the discussions; that at the moment the “Responsible Soy Initiative” presents itself as a loose network without “government”; a collection of initiatives and ideas? 6. Could this also explain another fact; that the participants were reluctant and vague around the question of responsibility and accountability - their only partial commitment behind the measures / initiatives they suggested themselves?System in Focus: The “Responsible Soy Initiative” System in Focus: The “Responsible Soy Initiative” Projects and InitiativesProjects and Initiatives GovernanceGovernance Red Black Orange GreenGold SilverWhite Light blue BrownYellow Dark blue Purple
  48. 48. Topics Overview © Malik 2016© Malik SummaryContents page 48© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 5 Reflection No. 3 - based on the Malik Culture of Functioning Malik System-Cybernetic Exploration Team Culture eats strategy for breakfast! Common purpose and will for action can only be found in the MSS Initiatives 1. Strong individual values, diverse interests as well as expert knowledge characterize the “Responsible Soy Community”. In the complex and non-committal soy world identity building is interactive and a slow process. A common purpose cannot be found. 2. The soy world is an open member platform organization: Inclusion of new members, transparency and capacity building for the green curve may stimulate members to meet better world targets. The soy world thrives on openness and needs complexity for proliferation. 3. Governance and Effective Management necessary for an active transition and governance of the transition were not profoundly discussed by MSS participants. The implementation of the identified initiatives must be seen critical without good governance and management. 4. Accountability for these initiatives holds the biggest promise to reverberate in the system and to mobilize forces quickly and effectively – without losing the prolific openness.
  49. 49. Topics Overview © Malik 2016© Malik SummaryContents page 49© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Six values safeguard the functioning of organisations: The Framework used to reflect culture for the present Soy System” is the “Culture of Effective Functioning” 1. Culture of Professionalism1. Culture of Professionalism 2. Culture of Innovation2. Culture of Innovation 3. Culture of Performance3. Culture of Performance 4. Culture of Purpose4. Culture of Purpose 5. Culture of Trust5. Culture of Trust 6. Culture of Accountability6. Culture of Accountability
  50. 50. Topics Overview © Malik 2016© Malik SummaryContents page 50© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. There is a distinct misbalance between superb expert knowledge and the lack of management know how for mastering change in a transition phase Findings 1. The participants have a deep understanding of the complexity of the soy world and the current role of their respective organisation within the context is clear. The focus is on individual expertise rather than on functionality of the organisation to meet common targets. 2. There is no coherent identity and governance for the entire soy group as different values, expert organizations shape different models and address different stakeholders. 3. The importance of Managerial Effectiveness and Governance of the entire system seems irrelevant in this situation although it may be different for the participants on the home turf in the mother organizations. Indicators a. Participants do not reflect strategic management for innovation in the group. b. Lack of awareness that rising complexity is costly and will attract green curve solutions. c. The participants acknowledge their individual expert status; “We are content focussed”, but they do not sense the urgency to implement the results professionally. Culture of Professionalism Effective executives master the managerial tool kit regardless of diverse “Expert Cultures”. Does our strategic management and implementation follow professional pathways? For managing change rules and regulations for actions and decision making matter. Do we agree upon management and leadership rules? (The HOW, not the WHAT) Culture of Professionalism Effective executives master the managerial tool kit regardless of diverse “Expert Cultures”. Does our strategic management and implementation follow professional pathways? For managing change rules and regulations for actions and decision making matter. Do we agree upon management and leadership rules? (The HOW, not the WHAT)
  51. 51. Topics Overview © Malik 2016© Malik SummaryContents page 51© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. The Soy World was pushed further into an innovative and transformational mode Findings 1. The current mandates dominate strategy and innovation. 2. In terms of the green curve, the discussions during the Syntegration did not go beyond Responsible Soy. Indicators Ideas for the future of the Responsible Soy green curve quickly were abandoned in the discussion. „How to produce and even double the amount of protein rich food without damaging environment and health could be the right starting point and challenge to trigger out of the box thinking on solutions.” The Results of the Syntegration … indicate that: 1. The self enforcing loop or the land use chain is a vicious circle and the old model comes to an end. The platform is burning. 2. The group is crop centred rather than customer value or solution based. 3. A change of perspective occurred during the Syntegration: A value proposition regarding farmers, retailers as well as consumer behaviour will be a step towards a green curve. Culture of Innovation What drives innovation is the fact that there might be other solutions to existing problems. Do we actively reflect this? Do we embrace or do we resist change? Is change conceived as an opportunity rather than a threat? Do we follow an Outside- Inside perspective for strategy or is the focus rather on optimizing existing patterns? Culture of Innovation What drives innovation is the fact that there might be other solutions to existing problems. Do we actively reflect this? Do we embrace or do we resist change? Is change conceived as an opportunity rather than a threat? Do we follow an Outside- Inside perspective for strategy or is the focus rather on optimizing existing patterns?
  52. 52. Topics Overview © Malik 2016© Malik SummaryContents page 52© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Tolerance and Indifference must not be taken for Trust Findings 1. Many Participants have long standing relationships and know their respective positions. They tolerate other opinions and mandates. 2. Identity building works around the strong values everybody brings to the table and the ongoing discourse. 3. Trust based culture as a stronghold for joint action is not relevant in open platform organization. Indicators a. “Participants see their role as non committal (Chatham House Rules) and serve their respective organization.” b. Who is taking the lead?: “You need committed implementing companies.” c. NOT ME Culture: “Government must be an initiator and facilitator of change.” Relevant Syntegration results 1. “We should not be afraid of differences, because there will be differences.” 2. Interaction, mutual learnings, and shared knowledge facilitate trust building. Culture of Trust Trust provides a robust base for dealing with the social complexity coming alongside the implementation of strategic actions and change. Do we have a common purpose as a basis for action? Is there predictability of behaviour? Culture of Trust Trust provides a robust base for dealing with the social complexity coming alongside the implementation of strategic actions and change. Do we have a common purpose as a basis for action? Is there predictability of behaviour?
  53. 53. Topics Overview © Malik 2016© Malik SummaryContents page 53© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Performance hampered by the organisational setting Findings 1. Organizational readiness to approach the burning platform is not given. 2. Management Know How and Business / entrepreneurial rationality (Time to market, profitability and feasibility) is driving the supranational and global value chain while the European discourse is politically driven. 3. Accountability for the transition is not installed in the soy world Indicators a. “Try for volume instead of perfection” b. “We find parallel worlds of High level concept versus strategic pathways not linked to each other” c. “The participants show a defensive culture“. Relevant Syntegration results Pilots, such as the initiatives from the Syntegration, E.g. Area Approach or National Initiatives, would allow a Living Lab situation and learnings in many ways: 1. Define adequate management tools to implement high level concepts and manage change (Goals, CPCs, capacity building). 2. Show feasibility in everyday situations and for stakeholders. 3. Communicate results to stakeholders. 4. Add credibility by a step by step approach. Culture of Performance Are we doing the right things in the right way? Do we link our performance to stakeholder value? Are individual targets clear? Do we know whether we contribute to strategy implementation? Are actions followed through? Will individual assignments build on strengths? Is our attitude towards performance directed by a strong result orientation? Culture of Performance Are we doing the right things in the right way? Do we link our performance to stakeholder value? Are individual targets clear? Do we know whether we contribute to strategy implementation? Are actions followed through? Will individual assignments build on strengths? Is our attitude towards performance directed by a strong result orientation?
  54. 54. Topics Overview © Malik 2016© Malik SummaryContents page 54© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Different values and belief systems drive the “Responsible Soy Community” apart rather than unifying it Findings Participants represent the interests of their home organizations and gather information for them. The Soy World is too big and to diverse to completely align members. The Purpose of the Soy World is to inform and gather information for the respective organization and create transparency. Indicators a. “There is no WE!” b. “WHY is not followed by WHAT and HOW“ c. “The market is big enough for more than one solution.” Relevant Syntegration results Use forces do not fight them – with a step by step approach. Culture of Purpose Values and Belief Systems are a strong motivators to commit to the mission of the organization and to actively engage in change projects. A common purpose provides meaning and sense making for members of a group and provides the base to work together in joint action. Do we feel that loyalty, commitment and solidarity to help each other? These are strong indicators of an unifying purpose. Culture of Purpose Values and Belief Systems are a strong motivators to commit to the mission of the organization and to actively engage in change projects. A common purpose provides meaning and sense making for members of a group and provides the base to work together in joint action. Do we feel that loyalty, commitment and solidarity to help each other? These are strong indicators of an unifying purpose.
  55. 55. Topics Overview © Malik 2016© Malik SummaryContents page 55© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Accountability on initiatives is the key trigger for the Governance of the Transition Findings 1. Accountability is not given. 2. Actions have to be brought to the respective organisation and ownerships of actions has to be clarified. Indicators a. “Governance of the implementation must be organized.” b. On Control: “What would it take for an authority to be credible: A saint!” Relevant Syntegration results The Syntegration raised the awareness of a lacking accountability and governance: 1. Who is taking the responsibility for steering, monitoring and communicating the implementation of initiatives identified during the Syntegration? 2. Who is responsible for organizing the rules for sharing results ? Who will monitor the continued improvement of a step to step approach? 3. There must be an organizational element such as a board above RSRT to take on this role with a dedicated board. Culture of Accountability Am I responsible for actions and accountable for my decisions? Is the complexity of the system under control? Is there a way to control and monitor progress? Culture of Accountability Am I responsible for actions and accountable for my decisions? Is the complexity of the system under control? Is there a way to control and monitor progress?
  56. 56. Topics Overview © Malik 2016© Malik SummaryContents page 56© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Transformation starts with Purpose 1. An unambiguous Purpose can be used to trigger the required cultural change. 2. It is the premise for creating a sense of accountability among the different stakeholders within the system. 3. Accountability for joint (pilot) initiatives will foster implementation, increase performance and innovation capacity, create success stories and build trust around the responsible soy initiative. 4. Professionalism regarding the HOW will increase alongside the implementation progress.
  57. 57. Topics Overview © Malik 2016© Malik SummaryContents page 57© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Keep it open: The Soy World thrives on complexity of Proliferation and Capacity Building Show results: Strongest Reverberation and Impact comes from better Accountability for Key Initiatives Action 1: Focus on Key initiatives / Pilots for Collaboration Install Good Governance for Key Initiatives from the Syntegration. These initiatives are a group result that integrates individual knowledge, purpose and values of the participants to a robust base for collaborative action. They are best run in an experimental way* and with an stepwise approach (living and learning labs). Each of these pilots should be assigned to key individuals of the “Responsible Soy Community”, implemented with high managerial professionalism and clear accountabilities. Accountability of these assignments will further trigger innovation, transition and also commitment and trust. Action 2: Safeguard Implementation via a “Transformation Navigation Hub” Assign members of the Soy World to a Transformation Navigation Hub (TNH) to manage, monitor and support all of the Key Initiatives from the Syntegration. It helps to flank the progress with a good communication concept for high transparency and visibility and speed. * Experimental Design 1. The culture of perfectionism leads to high standard setting. 2. The process for standard setting in a large group without strong governance is too time consuming for a burning platform. 3. In a complex world unintended consequences are likely to occur and alignments will be necessary. Fixed Standards will fail or will be bypassed. 4. In an experimental design the objectives are based on hypotheses. Trial-and-error is an inbuilt concept. The Project design leaves room for coordinated changes at specified mile stones. This step to step approach allows for a better pace than finding a perfect standard solution a priori.
  58. 58. Topics Overview © Malik 2016© Malik SummaryContents page 58© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 6 Reflection No. 4 - based on the Malik Navigation System Malik System-Cybernetic Exploration Team Strategy is the blind spot in the “Responsible Soy Initiative” 1. The discussions during the Syntegration demonstrated a deep understanding of the soy value chain and the interactions between the different players and stakeholders. 2. Unfortunately a one common strategy for the “Responsible Soy Initiative” could not be identified. Every organization has their own strategy – a real alignment is missing. 3. Typical long term strategy issues such as “How to deal with diffusion and substitution?” or “Who is our real customer?” were not discussed. 4. In present times disruptive strategies are a very common and quite powerful pattern. It combines two elements: reconstructing the value chain and digitalization. 5. We thus strongly recommend to: a. Challenge the “Responsible Soy Community” by encouraging an open discussion around substitution and disruptive strategy scenarios. b. Align the individual strategies of the various organizations in “Responsible Soy Initiative” to one common strategy. A strategy that is more than just “the smallest common denominator”.
  59. 59. Topics Overview © Malik 2016© Malik SummaryContents page 59© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Following a clear strategy is essential for long term viability – be that in a single business context or within a network of businesses aiming towards a common goal 1. The participants of the Syntegration have their own identity (e.g. purpose and values) and follow their own strategies. The Malik Navigation System describes a consistent framework and the right levers to stay long term viable. 2. Strategy is a pentathlon. To stay in a top position, an organization must perform in five disciplines. These strategic levers – and the questions behind – are as follows: a. Market Position: How can we improve our market position – relative to our competitors within the soy industry? Are service quality, price or image (reputation) the right instruments to differentiate? b. Experience Curve (= Cost position): How experienced are we in delivering services? Are we following a learning curve or are we “inventing our solution time and again”? How about increasing productivity? c. Customer Problem: Who is our “end customer” and what is his/her invariant customer problem? Are we aware that our solutions are covering only a “specific part” of the total cosmos of possible solutions? d. New Technical Solutions (= Innovations): How innovative are we? Are we creating new services, enhanced processes for customers or are we able to develop and implement “new business models”? e. Dynamics of Substitution: Diffusion (= spread of a new idea) and substitution(= replacement of an old idea) are two elementary processes in nature, technology and society. The Malik Navigation System Originally the Malik Navigation System was created as a model for companies (profit orientation). Nowadays the “strategic level” (see red box) is also valid for “Not for Profit-Organizations”. The diffusion of cars and the substitution of horses in the US Source: N. Nakicenovic “The Automobile Road to Technological Change. In: Technological Forecasting and Social Change; vol. 29. b cd e a Diffusion Substitution
  60. 60. Topics Overview © Malik 2016© Malik SummaryContents page 60© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. A common strategy is the blind spot of the protagonists in the “Responsible Soy Community” The participants of the Syntegration demonstrated a deep knowledge of the actual soy value chain (e.g. volumes, flow, certified vs. non-certified soy etc.). However, there are two major strategic issues they did not address: 1. Substitution: As previously mentioned, substitution is a process which re-places existing solutions by a new and better solution. The new solution creates - in general – greater advantages for the customer or reflects a dramatic change in customer behavior. E.g. 1: If the European trend to vegetarianism is a growing trend, the need for responsible soy is diminishing. E.g. 2: Bio-technological developments could potentially substitute soy. Recommendation: Keep an eye on “Substitution” of any kind. The sailing-ship effect With the advent of modern steam boats the existing sail ships got more and more disadvantages. The reaction of the sail boat dockyards was to built seven-masters instead of the traditional three/four-masters. A last attempt to stay in business ... 2. Disruptive strategies (Innovations): Businesses which are following this type of strategy are analyzing the existing value chain of an industry. Their goal is to deconstruct and to reconstruct the existing value chain by internet technology. They try to create new business models which give them the advantage of a first mover (e.g. Amazon is deconstructing/reconstructing the existing value chain from publishing house to bookstore by generating “more value for the customer”). It is well known from strategy research that the sailing ship effect (the old solution generates some pseudo-innovations) and the cannibalization effect (the “early adopters” switch to the new solution) are typical for such transition periods. 3. Recommendation: Consider “disruptive strategies”
  61. 61. Topics Overview © Malik 2016© Malik SummaryContents page 61© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Result 7 Effective implementation through the “Transformation Navigation Hub” (TNH) 1. For the implementation of the identified actions to be effective, central coordination is crucial, as we are dealing with … a. Highly interconnected topics and measures b. An inert system c. A network of stakeholders which need to push and carry the actions d. Inexistent governance structures 2. We thus strongly recommend installing TNH a. Acting across the relevant network; the “coalition of the able and willing” b. Ensuring that critical projects will be accompanied by Real Time Controls on three crucial levels; subject-level, staff-level, information-level. c. Providing the necessary Malik GovernanceSystems introduced by Malik Experts in custom-designed solution labs.
  62. 62. Topics Overview © Malik 2016© Malik SummaryContents page 62© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Black Silver Yellow Dark blue Purple Red GoldOrange White Light blue Brown Green Topics/Actions/Projects 1 2 3 4 5 6 7 8 The Transformation Navigation Hub (TNH): How to turn initiatives into actions with clear accountability to drive them forward? 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 34 Many different stakeholders Black Silver Yellow Dark blue Purple Red GoldOrange Light blue Brown Green Topics/Actions/Projects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 34 Many different stakeholders White The interconnection of the 12 topics, the 34 measures and the relevant stakeholders of the “Responsible Soy Initiative” is immense (reaching a potential of around 650’000). This demonstrates once again the level of complexity of the system. Without governance and coordination the implementation will be cumbersome, conflict-laden and slow. The interconnection of the 12 topics, the 34 measures and the relevant stakeholders of the “Responsible Soy Initiative” is immense (reaching a potential of around 650’000). This demonstrates once again the level of complexity of the system. Without governance and coordination the implementation will be cumbersome, conflict-laden and slow. TNHTNH
  63. 63. Topics Overview © Malik 2016© Malik SummaryContents page 63© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. Red Black Orange Green Silver Yellow Dark blue Purple Brown Light blue Gold White Pattern Filter Action (initiating Solution Camps, providing impulses, communication) Environment Δt: Adaptive regulation Object Level Control Level Information Data Start Animation The Transformation Navigation Hub (TNH) is based on the Real Time Control Principle Transformation Navigation Hub (TNH)Meta-Control
  64. 64. Topics Overview © Malik 2016© Malik SummaryContents page 64© Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik. The Transformation Navigation Hub (TNH): Design of TNH Control Room 1.Project plan: Work packages, deadlines, resources, team 2. Real-Time status 3. Critical events 4. Cybernetic perspective of “Responsible Soy Initiative” 5. Governance structures / cybernetic control mechanisms 6. Overview of resources 7. Dynamic simulation & scenario planning
  65. 65. Malik Institute Geltenwilenstrasse 16 CH-9001 St. Gallen, Switzerland T +41 71 274 34 00 F +41 71 274 34 99 info@malik-mzsg.ch www.malik-management.com System-cybernetic Malik ManagementSystems® for mastering complexity April 1, 2016© Malik Lic. Oec. Jens Ostergaard Organizer Dr. Constantin Malik Organizer, Exploration Team M.A. Econ. Maria Sourlas Lead Exploration Team Dipl. Oec. Josef Coellen Lead Exploration Team Dr. Christiane Gebhardt Exploration Team M.A. Jan Fischer Exploration Team Dr. Nam Nguyen Exploration Team Prof. Dr. Ockie Bosch Exploration Team

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