Leadership for Sustainable Value The HR Opportunity of the 21st Century

How to Magnify Human Strengths Through Appreciative Inquiry’s “Whole System” Approach to Sustainable Value Creation

David Cooperrider, Fairmount Minerals Professor of Organizational Behavior

Weatherhead School of Management

Center for Business as an Agent of World Benefit

Case Western Reserve University

David.Cooperrider@Case.Edu

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Setting the Context for Huge HR Opportunities--Insights and Global Trends--

A Positive Revolution in HR Research

1. Strengths-Elevating

2. Strengths-Combining

3. Strengths-Extending Organizations

Appreciative Inquiry: Turning Green to Gold &

Turning on the Entire Workforce

Tom Brokow’s “Greatest Generation” to our Most Privileged Generation?

Image PlaceholderImage Placeholder

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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 Innovation Mindset (source: Chris Lazslo)

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

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BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

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AI at the UN World Summit With Business and Industry CEOs and Civil Society Leaders

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UN Global CompactAI Summit Results—and Surprises

Innovations: HP, Novartis, BP, Ericcson, Tata, etc

Vision of PRI Project: Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets

Who Cares Wins— eclipse of “the great tradeoff illusion”—ESG issues move to the strategic core—25% greater stock appreciation

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Results (cont.)

10 Stock Exchanges & Climate Change Initiative

43 Local Networks…China 100% Growth in Members by 2007 Summit Companies Calling for New Leaders

Counter-Summit Collaborative Innovation But Why? How?

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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

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Theory AI: Co-elevation

Elevate-and-Extend Spirit of Inquiry & Ethos of Appreciation Resonating Patterns of Positive Emotions High Quality Connections

Broaden-And-Build Pro-fusion of Strengths Magnification (analysis, synthesis) Savoring (ritual, story, meaning)

Establish-and-Eclipse Generative Imagination and Energy Doing & Undergoing (“undoing”) Upward spiral

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Fairmount Minerals StoryBirth of the “Sustainable Design Factory”

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Whole System Sustainable Value Design

External Stakeholders: Customers Suppliers NGO’s Neighbors/Communities Board of Directors

Imagine 300 Stakeholders—designing new products, services.

Internal Stakeholders Operations Administration & Corporate

Services Customer Service Engineering Logistics Quality Sales Technical Support / R&D

Accelerating Strengths-based Learning Indiv. to Institution

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Images of the Sustainable Design AI Summit

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Initiative Samples: From One Sustainable Design Summit

Spent Sand: Recover, Recycle & Re-Use: $mutlti-million new business unit

Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves labor: $300,000 annual savings

Truck to rail conversion: Conserves fuel, satisfied neighbors, – $125,000 annual savings…MUCH MORE

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Initiative Samples: From One Sustainable Design Summit

Fast Track site development: Transparency, environment, community impact:– $6 million (one year of early operations)

BoP Initiatives—example: water filter prototype: whole new market partnerships

38% Increase Sales Growth. ALL empowerment measures up “valuing and recognizing my strengths”

2007 #1 Corporate Citizen Award, US Chamber of Commerce

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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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50

100

150

200

250

300

350

198

31

984

198

51

986

198

71

988

198

91

990

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11

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199

31

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199

51

996

199

71

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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

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EB

ITD

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$'s

in M

illio

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EBITDA Sales

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Implications for Human Resources Leadership

Sustainable Value is a Huge Business Opportunity

Our CEOs Know It.

HR Leading the Way. Enormous Changes Lie Ahead.

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New High Engagement Turbocharger

A Question for You:

Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers?

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It employs 1.9 million people Its serves 138 million people per week.

It has approximately $350 billion in sales It’s attracting the most brilliant and radical

environmental minds e.g. Amory Lovins It’s raising many eyebrows

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Wal-Mart’s Early StepsMany are Watching.

1. Be supplied by 100% renewable energy

2. Create zero waste

3. Sell products that sustain the environment

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Sustainable Value Networks

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

EnergyEnergy

WasteWaste

ProductsProducts

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The Recent Magazine Summit on Sustainability

One of 12 Sustainable Value Creation Networks

64% of Magazines Put on Shelf Don’t’ Get Sold

2.6 Billion—are Shredded

Would Circle the Earth 13 Times

Amazing AI Summit

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PublisherPublisher

PrinterPrinter

National National DistributorDistributor

WholesalerWholesalerMerchandiserMerchandiser

Logistics Logistics ProviderProvider

FreightFreight

AdvertiserAdvertiser

RetailerRetailer ConsumerConsumer

RDA RDA ConsultantConsultant

Magazine Industry System MapMagazine Industry System Map

2424

3,63,6

1,2,3,4,61,2,3,4,61,2,4,5,61,2,4,5,6

1,2,3,51,2,3,5

1,21,2

1. Aligning Incentives

2. Metrics for Success

3. Print forecasting

4. POS Replenishment

5. Modular Planning

6. Stagger on-sale dates

7. Industry Network

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24

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Results: “Something that’s never happened in 50 years”

Consensus on 50% Improvement in Sustainability in First Year

12 major prototype entrepreneurial initiatives

An improvement of 50% = Saving 443,572 trees

= 4,640,816 gal. diesel fuel

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Call to high purpose, sustainable value creation turns on an entire workforce--strengths come alive

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Implications of Packaging Eco- Innovation & People Turned On

Prevented millions of pounds of trash from reaching landfills

Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere

Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned.

“The packaging is renewable in 90 days instead of 9 million years”

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Implications of Packaging Sustainable Value Innovation

Broadening this initiative to 255 items in Toys:

This employee driven initiative saved 3,425 tons of corrugated materials

1,358 barrels of oil annually 5,190 trees

Millions of dollars in transportation costs

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Magnifying the Strengths-Revolution in HR StrategyThrough Appreciative Inquiry

Strengths-elevating

Strengths-combining/amplifying

Strengths-extending organizations

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Three Ways to Understand Accelerating Strengths based “AI”

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THE POWER OF APPRECIATION

(3 facts about all human beings)

Exceptionality

Essentiality

Equality of Voice

For more tools and resources on Appreciative Inquiry

http://appreciativeinquiry.case.edu/