david cooperrider sustainability for profit and value through appreciative inquiry
DESCRIPTION
every single social and global issue of our day is a business opportunity and the sustainable design process is empowered by the strength-based methodology of appreciative inquiry.TRANSCRIPT
Going Green for Value and Profit:
Sustainable Value Creation“Business as an Agent of
World Benefit”
Business Innovators: the Most “Privileged Generation”
The “Greatest The “Greatest Generation”Generation”
Meeting with Jeffery Sachs End of Meeting with Jeffery Sachs End of Poverty Poverty
Prospect of oil independence, Prospect of oil independence, renewablerenewable
Disruptive Innovations in Clean TechDisruptive Innovations in Clean Tech
Every Social and Global Every Social and Global Issue Is a Business Issue Is a Business Opportunity in DisguiseOpportunity in Disguise
Today
Sustainability 3.0Sustainability 3.0
New Horizons in Appreciative Inquiry New Horizons in Appreciative Inquiry question of change at “scale of the whole” question of change at “scale of the whole”
Stories From the Field and Research Into the Stories From the Field and Research Into the Dynamics of Positive Change “Co-elevation”—Dynamics of Positive Change “Co-elevation”—
United Nations;United Nations;
Coca-Cola; BP; Fairmount Minerals; Green Coca-Cola; BP; Fairmount Minerals; Green Mountain Coffee Roasters; Wal-MartMountain Coffee Roasters; Wal-Mart
Context
A Startling Letter from the UN in 1992A Startling Letter from the UN in 1992
I couldn’t even respond.I couldn’t even respond.
A Second Chance in 2003: A Second Chance in 2003:
This Time More PreparedThis Time More Prepared
Business as an Agent of World Benefit
Began June, 24th 2004 at the UN
““Let us choose to unite the Let us choose to unite the strengths of markets with strengths of markets with the power of universal the power of universal ideals… let us choose to ideals… let us choose to reconcile the creative reconcile the creative forces of private forces of private entrepreneurship with the entrepreneurship with the needs of the disadvantaged needs of the disadvantaged and the requirements of and the requirements of future generations”future generations”
--UN Secretary General--UN Secretary General
Kofi AnnanKofi Annan
Business and Society Debate
In today’s trust-starved climate, our market-In today’s trust-starved climate, our market-driven system is under attack…large parts driven system is under attack…large parts of the population feel that business has of the population feel that business has become detached from society—that become detached from society—that business interests are no longer aligned business interests are no longer aligned with societal interests” with societal interests”
----Klaus SchwabKlaus Schwab, ,
President, World Economic ForumPresident, World Economic Forum
Harman’s Look at the Future:Other Side of the Debate
Business, the motor of our society, has the Business, the motor of our society, has the opportunity to be the new creative force on the opportunity to be the new creative force on the planet, a force which could contribute to the well-planet, a force which could contribute to the well-being of many…the modern corporation is as being of many…the modern corporation is as adaptable an organizational form as has ever been adaptable an organizational form as has ever been invented, so that in a time of fundamental change invented, so that in a time of fundamental change it may be expected to be on the cutting edge.”it may be expected to be on the cutting edge.”
--Stanford’s Willis Harman--Stanford’s Willis Harman
Center for Business as an Agent of World Benefit
• World-wide search new ways for business to live in mutual benefit with the earth’s ecosystems and the world’s societies
• Ai & Positive Organizational Scholarship- How institutions can magnify and refract the prism of human strengths
•Experiment in Global Anticipatory Learning—Club of Rome Challenge
BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
World Inquiry Interviews
--Simply click www. worldinquiry.org
1. Download interview guide
2. Contact leading innovators in your community or country
BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
Innovation Bank
• More than two- thousand interviews
• Over 500 reviewed submissions
• 121 accepted stories
• 74 published profiles of innovation
• See www.worldinquiry.org
Story Illustration
Examples:Examples:
Miracle in TefenMiracle in Tefen
******************
Denmark’s Industrial SymbiosisDenmark’s Industrial Symbiosis
.
SustainableValue
Sustainable Value— From Obligation Mindset to Business Opportunity Mindset--Laszlo
Stakeholder Value¹
Shareholder Value
+
+
-
Unsustainable(Value Transfer)
Unsustainable(Value Transfer)
Unsustainable(Lose/Lose)
Sustainable Value
- ¹ absolute standards orrelative to competitors
fossil fuel ICE
clean energy vehicles
.
BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
UN Global CompactAI Summit Results
InnovationsInnovations: HP, Novartis, BP, Ericcson, Novo Nordisk, Toyota, : HP, Novartis, BP, Ericcson, Novo Nordisk, Toyota, Green Mountain Coffee, TataGreen Mountain Coffee, Tata
Vision of PRI ProjectVision of PRI Project: Goldman Sachs and Other Investment : Goldman Sachs and Other Investment Firms, Representing Firms, Representing $10 Trillion$10 Trillion in Assets in Assets
Who Cares WinsWho Cares Wins— eclipse of “the great tradeoff illusion”—ESG — eclipse of “the great tradeoff illusion”—ESG issues move to the strategic core—25% greater stock issues move to the strategic core—25% greater stock appreciationappreciation
10 Stock Exchanges10 Stock Exchanges Commit & Climate Change Initiative Commit & Climate Change Initiative 43 Local Networks…China43 Local Networks…China Joins in a Huge Way Joins in a Huge Way 100% Growth100% Growth in Members by 2007 Summit in Members by 2007 Summit Companies Calling for NewCompanies Calling for New MBA Leaders, OD Innovation, MBA Leaders, OD Innovation,
LearningLearning VisionVision for Global Forum for Business as an Agent of World for Global Forum for Business as an Agent of World
BenefitBenefit
Why is this moving so quickly? Stakeholders are now a powerful force in business..
Customers
Investor groups
Employees
Suppliers
Universities
Government
NGOs
Communities
Media
EconomicStakeholders
SocietalStakeholders
Unions
Growth of Non-Governmental Organizations (NGOs)—and instant world wide web
information
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1970 1975 1980 1985 1990 1995 2000 2005
Num
ber
of N
GO
s
Source: UIA Yearbooks and SVP research
Nu
mb
er
of L
aw
sNumberof Laws
US Environmental regulations
Source: US EPA
What is Appreciative Inquiry?An Inspiring Strengths-based Approach to
Change
““The task of The task of leadership is to leadership is to create an create an alignment of alignment of strengths, making strengths, making our weaknesses our weaknesses irrelevant”.irrelevant”.
-- Peter Drucker-- Peter Drucker
Appreciative Inquiry Involves a Shift
““No problem can be solved from the same level of No problem can be solved from the same level of consciousness that created it. We must learn to see consciousness that created it. We must learn to see the world anew.”the world anew.”
““There are only two ways to live your life. One is as There are only two ways to live your life. One is as though nothing is a miracle. The other is as though though nothing is a miracle. The other is as though everything is a miracle.”everything is a miracle.”
– – Albert EinsteinAlbert Einstein
Change at the Change at the ScaleScale of the Whole:of the Whole:
Many FascinatingMany Fascinating QuestionsQuestions
New HorizonsNew Horizons •Science of Human StrengthsScience of Human Strengths
•Collaboration with Collaboration with The Field of DesignThe Field of Design
AI’sAI’sStrengths-BasedStrengths-Based
Approach to Approach to Catalyzing ChangeCatalyzing Change
Fairmount Minerals Story Birth of the “Sustainable Design
Factory”
The Sustainable Design Factory
“every global issue is a business opportunity” It’s a large group innovation “design studio”It’s a large group innovation “design studio”
Whole system in the room—all stakeholders—and Whole system in the room—all stakeholders—and innovatorsinnovators
Sustainable Value Mindset—search for high Sustainable Value Mindset—search for high shareholder value and high stakeholder value shareholder value and high stakeholder value
Appreciative Inquiry— “4-D” cycle—Three daysAppreciative Inquiry— “4-D” cycle—Three days
Power of questions, analogous stories, positive Power of questions, analogous stories, positive energy energy
Designing in hot teams: brainstormer process; rapid Designing in hot teams: brainstormer process; rapid prototyping: How might we…?prototyping: How might we…?
Tremendous action and follow-throughTremendous action and follow-through
Whole System Sustainable Value Design
Exchanging Lessons with IDEO
External Stakeholders:External Stakeholders: CustomersCustomers SuppliersSuppliers NGO’sNGO’s Neighbors/CommunitiesNeighbors/Communities Board of DirectorsBoard of Directors
Imagine 300 Stakeholders Imagine 300 Stakeholders coming together across every coming together across every boundary without a plan—coming boundary without a plan—coming together to design and create together to design and create new sustainability products, new sustainability products, processes, and businesses processes, and businesses throughout the supply chain. throughout the supply chain.
Internal StakeholdersInternal Stakeholders OperationsOperations Administration & Corporate Administration & Corporate
ServicesServices Customer ServiceCustomer Service EngineeringEngineering LogisticsLogistics QualityQuality SalesSales Technical Support / R&DTechnical Support / R&D
Con’t
.
Sources of Business ValueLevels of Strategic Focus
BusinessContext
Brand/Culture
Market
Product
Process
Risk Anticipating regulations, reducing risk
Reducing energy, waste & process costs— renewable energy; eco-supply chains
Sustainable-value, green products
Using BOP and Blue Ocean strategy to open new markets
New story of sustainable value, identity—internal and external branding
Rising industry stars, associations, policy
business value created
Source: Chris Lazslo The Sustainable Company
What a Moment………
Initiative Samples: From One Sustainable Design Summit
Recover, Recycle & Re-Use: biodeisel example— Recover, Recycle & Re-Use: biodeisel example— $mutlti-million new $mutlti-million new business unitbusiness unit
Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves labor: labor: $300,000 annual savings$300,000 annual savings
Truck to rail conversion: Conserves fuel, satisfied neighbors, Truck to rail conversion: Conserves fuel, satisfied neighbors, $125,000 annual savings$125,000 annual savings
Habitat Restoration and ReplenishmentHabitat Restoration and Replenishment Fast Track site development: Transparency, environment, community Fast Track site development: Transparency, environment, community
impact:impact: $6 million (one year of early operations)$6 million (one year of early operations)
BoP Initiatives—example: water filter prototype: whole new market BoP Initiatives—example: water filter prototype: whole new market partnershipspartnerships
38% 38% Increase Sales Growth. Empowerment measures up.Increase Sales Growth. Empowerment measures up. 2007 2007 #1 Corporate Citizen Award#1 Corporate Citizen Award, US Chamber of Commerce, US Chamber of Commerce Emerging as Top Rated Star in the Industry—IMA-NAEmerging as Top Rated Star in the Industry—IMA-NA
Fairmount Started with Appreciative Inquiry in 1990
With a Focus on Empowerment40% CAGR Past Four Years
Faimount Sales & EBITDA History (For Recurring Operations)
0
50
100
150
200
250
300
350
198
31
984
198
51
986
198
71
988
198
91
990
199
11
992
199
31
994
199
51
996
199
71
998
199
92
000
200
12
002
200
32
004
200
52
006
Sa
les
($'s
in M
illio
ns)
0
10
20
30
40
50
60
70
80
90
100
EB
ITD
A (
$'s
in M
illio
ns)
EBITDA Sales
FML – Positive Image/Positive Action
WHY is AI Whole SYSTEM APPROACH
POWERFUL? Positive Organizational
ScholarshipBarbara Fredrickson’s Broaden-and-Build TheoryBarbara Fredrickson’s Broaden-and-Build Theory
Jonathan Haight’s Research into “Elevation”Jonathan Haight’s Research into “Elevation”
Wayne Baker’s work on the activation Wayne Baker’s work on the activation
of positive energy networksof positive energy networks
Boyatzis on Resonant Leadership Boyatzis on Resonant Leadership
A New Magnitude of ChangeA Question for You
Which organization will help save more lives in Which organization will help save more lives in the next five years than any other— children, the next five years than any other— children, women, and men—who are picking cotton in women, and men—who are picking cotton in toxic and chemically treated fields all over the toxic and chemically treated fields all over the world—fields that are so toxic that when you world—fields that are so toxic that when you touch the cotton it feels like an electric jolt touch the cotton it feels like an electric jolt around your fingers? around your fingers?
Which international organization might you Which international organization might you guess? guess?
It employs 1.9 million peopleIt employs 1.9 million people
Its serves 138 million people per week.Its serves 138 million people per week.
It has approximately $350 billion in salesIt has approximately $350 billion in sales
It’s attracting the world’s most brilliant It’s attracting the world’s most brilliant and radical environmental minds such as and radical environmental minds such as
Amory LovinsAmory Lovins
It’s raising many eyebrowsIt’s raising many eyebrows
Wal-Mart’s Early StepsMany are Watching
1.1. Be supplied by Be supplied by 100% renewable 100% renewable energyenergy
2.2. Create zero wasteCreate zero waste
3.3. Sell products that Sell products that sustain the sustain the environmentenvironment
Implications of Packaging Sustainable Value Innovation and a Turned
on Workforce
Is already preventing millions of pounds of trash from reaching Is already preventing millions of pounds of trash from reaching landfillslandfills
Across the supply chain, the initiative will save 667,000 metric Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere tons of carbon dioxide from entering the atmosphere
Equal to taking 213,000 trucks off the road annually, and Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned. fuel from being burned.
““The packaging is renewable in 90 days instead of 90 million The packaging is renewable in 90 days instead of 90 million years”years”
Kathleen Bader, CEO Nature WorksKathleen Bader, CEO Nature Works
Implications of Packaging Sustainability Innovations
Broadening this initiative to 255 items in Broadening this initiative to 255 items in Toys: Toys:
This employee driven initiative saved This employee driven initiative saved 3,425 tons of corrugated materials 3,425 tons of corrugated materials
1,358 barrels of oil annually1,358 barrels of oil annually
5,190 trees5,190 trees
Millions of dollars in transportation costsMillions of dollars in transportation costs
363636
36Business Sustainability
36
Sustainable Value Networks (source: Dave Sherman)
Global Greenhouse Gas Strategy
Buildings Design Construction & Maintenance
Global Logistics
Alternative Fuels
Operations & Internal Procurement
Packaging
Textiles
Electronics
Food & Agriculture
Forest Products (Wood & Paper)
Chemical Intensive Products
Jewelry
Seafood
China
Energy
Waste
Products
373737
37Business Sustainability
Magazine System Map
Publisher
Retailer
Consumer
Printer
Advertiser
•Subscription channel
National Distributor Services:
•Billing & Crediting Service for publishers & titles
•Coordinated field services for wholesaler/retail
•Single source cashflow & publisher accounting
•Central location to handle problems/claims
•National presence to coordinate marketing & merchandising
Wholesaler Services
•Deliver product to retailers to hit on-sale dates
•Single source for collection of returns / payments for sold copies
•Recording sale/return data by title/issue/retailer
•Face-to-face contact w/ retailers
•Product merchandising
•Retail marketing
•Manage Assortment
•File RDA claims•Collect Incentives /rebates
RDA
Consultant
•Manufactures Product
•Circulation Management
•Creates Products•Retail Marketing
•Display & sell product
•Manage assortment
National Distributor
WholesalerMerchandiserLogistics Provider
•Wal-Mart•Target
•Hearst•Conde Nast•Rodale•DSR•Bower
•CMG•Time Warner•Curtis•Kable
•Anderson•The Source / Levy•Hudson News•Harrisburg•News Group•ProLogix
Freight
•Donneley
37
The Organic Cotton Project
One of 12 Sustainable One of 12 Sustainable Value Creation Value Creation Networks—huge Networks—huge implications for supply implications for supply chain OD theorychain OD theory
Involves the purchase Involves the purchase of 10 million pounds of of 10 million pounds of organic cottonorganic cotton
will keep 3 million will keep 3 million pounds of synthetic pounds of synthetic chemicals from chemicals from entering the entering the environment. environment.
Activation of Inquiry into “What Gives Life?”“Appreciable World”
Advancing
Exte
nsio
n o
f R
ela
ted
ness
& U
niv
ers
al C
apaci
ty
Hig
h
InitiatingLo w
AI’s Strengths-based Change Dynamic
• Elevate-and-Extend• Broaden-And-Build Theory of Co-elevation• Establish-and-Eclipse
AI’s Strengths-based Change Dynamic
• Elevate-and-Extend• Broaden-And-Build Theory of Co-elevation• Establish-and-Eclipse
Elevation and
Extension of Inquiry
Pro-Fusion of Strengths“Broaden and
Build”
Activation of
EnergyEstablish and
Eclipse
Please Visit our Centerhttp://worldbenefit.cwru.edu
BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
A question about the future of management education:
If anything imaginable were possible…?
Business Innovators Most Privileged Generation
ML King…. “Thank God Our Time is Now”
Every Global Issue of Our Day Every Global Issue of Our Day is A Business Opportunity is A Business Opportunity
Power of Positive Intention: Power of Positive Intention:
Cradle to Cradle; BOP; Blue Cradle to Cradle; BOP; Blue OceanOcean
Sustainable Design Factory—Sustainable Design Factory—Power of Collaborative Power of Collaborative Creativity.Creativity.
Why this is the future of the Why this is the future of the top rated stars in every top rated stars in every industry.industry.
More Learning Resources For leadership training—see the Weatherhead For leadership training—see the Weatherhead
School of Management’s Certificate Program in School of Management’s Certificate Program in Appreciative Inquiry and Positive Business and Appreciative Inquiry and Positive Business and Society ChangeSociety Change (next session in December in (next session in December in Longboat Key Florida)—contact: Longboat Key Florida)—contact: [email protected]@case.edu 216-368-6413 216-368-6413
New program Sustainablity for Profit and Value New program Sustainablity for Profit and Value with contact (with Chris Laszlo author: The with contact (with Chris Laszlo author: The Sustainable Company) contact James Van Doren.Sustainable Company) contact James Van Doren.
Call Pat Petty for Masters in Positive Call Pat Petty for Masters in Positive Organization Development 216-368-2055 Organization Development 216-368-2055