asae online summit cooperrider slides
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Leveraging the Power of Associations To Create a New Magnitude of Sustainable Value
David Cooperrider, Fairmount Minerals Professor and Chair
Center for Business as an Agent of World Benefit
Case Western Reserve University
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Opening Excitement & Today’s Session:It’s Great to Re-connect With You
What do associations uniquely bring to the world of social responsibility and sustainability?
Is this arena of sustainable value creation truly the biggest business opportunity of the 21st Century?
Are there emerging examples—associations helping whole industries—and do these stories show how “doing good and doing well” can help the world, the industry, and strengthen the association as a leader?
Why is the “temptation to do good” less effective than the goal to create sustainable value?
How fast is all this happening?
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A Story:The Most Exciting Project I Have Ever Worked On
Business as an Agent of World Benefit--More Than 2,000 Interviews--100s of Published Profiles “Positive Institutions” --see www.worldinquiry.org
“Awe is What Moves Us Forward”
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Sustainable Value —From Obligation to Design Mindset
Stake-holder Value¹
Shareholder Value
Unsustainable(Value Transfer)
Unsustainable(Value Transfer)
Unsustainable(Lose/Lose)
Sustainable Value
¹ absolute standards orrelative to competitors
Clean energy vehicles
Fossil fuel ICE
6
Is Sustainability a Passing Fad?
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My “Peter Drucker Moment”two threads—DNA of today’s exploration
“Every social and global issue of our day is a business opportunity in disguise”
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“The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”
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Appreciative Inquiry Involves a Shift
“No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.”
“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”
– Albert Einstein
Why conventional change approaches don’t work
Small groups of experts working in a series of meetings
Focus is on technical/science challenges
Planning teams hand solutions to implementation teams
Typical results:
– A Few Try to Convince Many That Change is Needed
– Change is Perceived as a Disruption of “Real Work”
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Fairmount Minerals StoryBirth of the “Sustainable Design Factory”
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Multi-stakeholder Large Group Designing
External Stakeholders: Customers Suppliers NGO’s Neighbors/Communities Board of Directors
Imagine 300—Three days Stakeholders—designing new products, services.
Internal Stakeholders Operations Administration & Corporate
Services Customer Service Engineering Logistics Quality Sales Technical Support / R&D
Sustainable Designing
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Highlights 40% Annual Growth in Earnings Past Two Years
2007 US Chamber of Commerce’s #1 Corporate Citizenship Award
A Culture of Community Partnership and Innovation
New Employee Owned Businesses, New Markets
Emerging as Top Rated Star in the Industry
Industrial Minerals Association & Fairmount Minerals
Associations Helping Make Members Successful
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Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years
Faimount Sales & EBITDA History (For Recurring Operations)
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Sources of Business ValueLevels of Design Focus
Business& WorldContext
Brand/Culture
Market
Product
Process
RiskAnticipating regulations, going beyond legal requirements
Reducing energy, waste & process costs—future of totally renewable energy
Sustainable-value, green products
New stakeholder relationships, new markets
Brand story, promise, customer experiences
Designing industries, policy contexts, better world
Business and society value created
In June, dairy leaders met in Rogers, Arkansas for the inaugural Sustainability Summit: Creating Value Through Dairy Innovation.
The Summit was an unprecedented gathering of 250 leaders representing producers, processors, non-governmental organizations, university researchers and government agencies.
Together, these stakeholders generated action steps and made an industry-wide commitment to reduce fluid milk’s carbon footprint while increasing business value, from farm to consumer.
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Sustainability Summit: Creating Value Through Dairy Innovation
The Call to Reduce Greenhouse Gas Emissions At the University of Arkansas Center for Applied Sustainability
Dairy Management IncInternational Dairy Foods
Association (IDFA) and Others
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Goals:
Reduce greenhouse gas emissions in the fluid milk value chain
ANDIncrease business value in the fluid milk category
Outcomes:Launch a set of initiatives that leverages industry collaboration
Summit Goal
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Appreciative Inquiry System-in-the-Room:
Broad Enrollment: Special Configuration of People Whole system represented; innovation inspired by collaboration and co-creation Leverages strengths and maintains continuity with the best of the past Full voice
Success Factors for Innovation and System Change
Success requires:•right conditions for engagement
•right people in the room
Big Change Fast Accomplishes months of work in 2-3 days Action focus around clear task Creates momentum for implementation
Breakthrough Results Lens of sustainability opens new possibilities Design “Rapid Prototypes” Honoring differences & common ground
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OUR DEFINITION:Providing consumers with the nutritious dairy products they want in a way that
makes the industry, people and the earth economically, environmentally and socially better – now and for future
generations.
Sustainability in the Dairy Industry
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Why Lead?
OPPORTUNITY – PART OF THE SOLUTION “Waste” to revenue (energy from cows) More efficient operations Farming practices that reduce emissions Carbon credits Innovative products Dairy seen as green
RISKS – NOT AT TABLE TO SHAPE THE NEW ENVIRONMENT
Greenhouse gas legislation does not provide farmers and processors with offset opportunities
Utilities not required to purchase clean energy from farmers
Consumers could see dairy as part of the problem
v
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Waste &Pollution
Resources&Energy
Sustainability Requires a Life Cycle Perspective
Consumer/ End of Life
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DISCOVERStrengths
Innovations & InsightsPositive Core
DISCOVERStrengths
Innovations & InsightsPositive Core
DREAMOpportunities
Images of a Better WorldDairy Innovation
DREAMOpportunities
Images of a Better WorldDairy Innovation
DESIGNAspirations
Brainstorm PossibilitiesRapid Prototyping
DESIGNAspirations
Brainstorm PossibilitiesRapid Prototyping
DEPLOYResults
Initiatives and PilotsMomentum & Learning
DEPLOYResults
Initiatives and PilotsMomentum & Learning
Create breakthrough approaches to
reduce greenhouse gas emissions and increase business value in the dairy
industry
4-D Cycle & Summit Task
Current Potential
Dairy Industry Today
2.7 million U.S. passenger vehicle emissions per year
Emissions today: 30 million metric tons per year
Identified potential reductions:15 million metric tons per year
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Review Preliminary Opportunities,Identify New Opportunities
Vision statement
and guiding principlesTruck & Route
Efficiency + Renewable
Fuels
blank
Pastured Dairy/Seasonal Milk Production
Product Innovation
blankblank
CarbonMarkets
Energy efficiencies
Renewable Energy
Infrastructure
Industry Infrastructure
Branding, Communication
, Training
Production Efficiencies
Alternative Fuels
Human Resources, Education, Awareness, Acceptance
Funding and alliances
Enteric Methane capture
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Methane DigestersOpportunity Transform manure into renewable
energy Create revenue source and air/water
quality benefits for producers
Barriers Challenging for individual farmers to
finance, permit, build, operate and maintain
Lack of appropriate technology Utility pricing structures
Potential Strategy Develop third-party owner/financer model
to scale Lobby for regulations on utility incentives,
carbon offsets and RECs Pilot models in states with favorable
regulatory environments
Milk Production
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Agriculture Process ImprovementOpportunity Conservation tillage, efficient fertilizer use
and precision agriculture can:– Reduce fertilizer use– Minimize fuel use– Sequester carbon
Barriers Lack of producer access to successful
examples, capital, training, and support Risk perceptions and lack of incentives
Potential Strategy Partner with co-ops and land-grant
universities Partner with feed companies to create
demand for sustainable feeds Collaborate with commodity initiatives to
set sustainable feed targets Secure the market for carbon offset
credits
Crop Production
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Manure & Nutrient ManagementOpportunity Manure nutrient use offsets use of
commercial fertilizers and associated emissions and costs
Barriers Storage and transportation constraints Ease of use Access to necessary information and
demonstration cases
Potential Strategy Leverage co-ops and land grant
universities to spread best practices and identify effective and economic solutions
Develop third party service providers models and create demand for manure nutrients
Ensure appropriate carbon offset credits are available to producers
Crop Production
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Pastured DairyOpportunity Pastures sequester carbon and can
reduce net emissions from the farm and can lower production costs for small farms
Barriers Lack of access to information to
implement or improve pastured dairy practices
Infrastructure development costs Land availabilityPotential Strategy Drive outreach through academic
institutions,co-ops, processors and NGOs
Use industry leverage to prioritize competitive funding for pasture enhancement projects
Enable carbon credit creation and commercialization
Crop Production
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Animal Nutrition ManagementOpportunity Animal nutrition management can
reduce methane emissions– Feed additives– Alternative feeds– Methane vaccine
Barriers Limited demand to reduce methane
emissions from cows Consumer perception
Potential Strategy Create a transparent evaluation process
to test new technologies and methods for efficacy & safety
Create market incentives for proven methane reduction methods
Milk Production
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Processing EfficienciesOpportunity Profitably reduce emissions:
– More efficient systems (steam, refrigeration, compressed air, motors and lighting)
– Energy production technologies (cogeneration, waste-to-energy)
Barriers Capital budgeting Lack of technical assistance and
training Time and human resources Accurate baseline measures
Potential Strategy Executive commitment and industry-wide
targets Pool resources to develop technical
expertise Encourage alternative financing models Pilot demonstration projects
Processing
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Low Carbon PackagingOpportunity Reduce packaging material inputs and costs Reduce energy use to mold and form packaging
Barriers Industry has already pushed the
envelope in reducing material Limited examples of energy efficient
equipment Consumer acceptance Maintain properties important for
product quality, sterility and durability
Potential Strategy Launch a dairy-focused effort to
accelerate a broad set of sustainable packaging innovation opportunities, including:– Best practices and new products for each
package size– Targets for energy efficient equipment
Packaging
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Truck and Route EfficiencyOpportunity Advancements in heavy duty vehicle technology
can:– Save money – Reduce carbon emissions
Barriers Lack of capital to make efficiency
improvements Difficulty of changing behaviorsPotential Strategy Collaborate with fleet efficiency leaders to
improve:– Fuel economy– Route optimization– Refrigerant management
Join EPA’s SmartWay Program Work with Small Business Administration
(SBA) approved lenders, etc., to help owner-operators and small trucking companies
Transport & Distribution
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Shelf-stable ProductsOpportunity Eliminate the need for refrigeration Merchandise milk in non-traditional retail
spaces
Barriers Consumer acceptance Processing technology and training
Potential Strategy Explore improvements in processing
technology Encourage research to improve taste and
gather consumer insights Pilot non-refrigerated shelf-stable milk in
target markets
Retail
DISCOVERStrengths
Innovations & InsightsPositive Core
DISCOVERStrengths
Innovations & InsightsPositive Core
DREAMOpportunities
Images of a Better WorldDairy Innovation
DREAMOpportunities
Images of a Better WorldDairy Innovation
DESIGNAspirations
Brainstorm PossibilitiesRapid Prototyping
DESIGNAspirations
Brainstorm PossibilitiesRapid Prototyping
DEPLOYResults
Initiatives and PilotsMomentum & Learning
DEPLOYResults
Initiatives and PilotsMomentum & Learning
Create breakthrough approaches to
reduce greenhouse gas emissions and increase business value in the dairy
industry
4-D Cycle & Summit Task
Leveraging the Power of Associations To Create a New Magnitude of Sustainable Value
Three Essential Success Factors
#1. Avoid the “Temptation to Do Good”
Embrace the Opportunity to Create Sustainable Value
Make it Part of Association and Industry/Profession Strategy
37
Today’s Business Practices
SustainableBusiness Practices
A “bigger win” for business and a “win” for society
Focused on a “win” for business
Unintended negative consequences for society
Sustainable Pathway
Quick Wins
Use existing technology and business models
Value of industry collaboration
Innovation Projects
Require technology and/ or business innovations
System Changers
Require “changing the rules of the game”
Creating Business Value Throughthe “Lens” of Sustainability
#2. Embrace and Play to Your Strengths
Strength to Convene
Strength to Accelerate Spread of Innovation
Strength to Scale Up
#3. Don’t Misread the Management Trends
Sustainability is the business opportunity of the 21st century. It is an innovation engine unlike anything we have ever seen in management-- and it’s a lens which will dominate the management agenda for the next generation of thirty or more years. Even more important, the outcomes will define the next episode in creative capitalism and, ultimately, will determine the well-being of our imperiled planet. Association management may be the most important piece of the puzzle—associations offer the possibilities speed, spread and scale—exactly what we need.
A Vision…How Might We?
•Let’s Do 50 Association Catalyzed
“Sustainable Value Creation Summits”
•Across 50 Professions and Industries Using the Strengths-Based Appreciative Inquiry Approach
•David.Cooperrider@Case.Edu
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