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NON-CONFIDENTIAL AND ENTIRELY SHAREABLE Purpose+, Amstel 95, Amsterdam, The Netherlands Transformation

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Page 1: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

NON-CONFIDENTIAL AND ENTIRELY SHAREABLEPurpose+, Amstel 95, Amsterdam, The Netherlands

Transformation

Page 2: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 1: The stick and the essence of value creation

Supplier surplus

Willingness To Pay (WTP)

Price

Costs

Willingness to Sell (WTS)

Tota

l val

ue c

reat

ed

Producer surplus

Customer surplus

Source: Harvard Business School

Page 3: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 2: Multiple stakeholder impact, short term and long term

Stakeholder Likely short-term impact Likely long-term impact

Stakeholder 1

Stakeholder 2

Stakeholder 3

Stakeholder 4

Stakeholder 5

Stakeholder 6

Stakeholder 7

Etc.

Source: A Framework for Ethical Reasoning, Sandra Sucher (Harvard University)

Page 4: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 3: The purpose+profit framework

Purpose

Profit

Purpose+ProfitCash cow

Irrelevant Foundation

Source: Purpose+

Page 5: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 4: Shaping the century by choice

Adaptation

Free

dom

of c

hoic

e

Boundary Shapers

ParadigmPrisoners

Market Shapers

Source: Purpose+

Stra

tegi

c ch

oice

Forc

ed c

ompl

ianc

e

Implicit(Reporting, internal regulation etc.)

Explicit(Products, branding, marketing etc.)

Century Shapers

Page 6: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 5-1: The purpose fit framework...

Source: United Nations SDGs, Purpose+

Page 7: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 5-2: ...purpose fit examples...

“Making sustainable living commonplace.”

“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

“To create a better everyday life for the many people.”

“To design eyewear at a revolutionary price, while leading the way forward for socially-conscious business.”

“To organize the world’s information, and make it universally accessible and useful.”

“To give everyone the power to create and share ideas and information instantly, without barriers.”

“Give ordinary folks the chance to buy the same things as rich people.”

“Changing business for good.”

“To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”

“To bring health through food to as many people as possible.”

Source: United Nations SDGs, Purpose+

Page 8: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 5-3: ...and a purpose fit checklist (long)

Current neglect• How many resources are already being

dedicated to tackling the problem through other players?

• Is there reason to expect that this problem cannot be solved by either markets or governments or other philantropy?

Scale of impact• What is the magnitude of the

problem that you’re trying to solve?• How will the scale most likely

develop over time?

Tractability• How easy is it to tell if you’re

making progress?• Do interventions with this

cause exist, and how strong is the evidence behind those interventions?

• Do you expect to discover new promising interventions within this cause?

Company fabric• Does it fit the company’s

historic mission and DNA?• Does it fit the current company

branding?• Does it fit the company values?• Can it be a logical fit in the

current/future strategy of the company?

Best Purpose FitCombines high impact with natural fit

Source: Purpose+, Effective Altruism

Page 9: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 5-4: ...and a purpose fit checklist (short)

Source: Purpose+

Purpose fit framework, short version for leadership meetings

Yes No Do you find this purpose personally inspiring? If so, how much (1-10)?

Yes No Does the purpose help you think expansively about the long-term possibilities and range of activities the organization can consider over the next 100 years, beyond its current products, services, markets, industries, and strategies?

Yes No Does the purpose help you to decide what activities to not pursue?

Yes No Is this purpose authentic - something true to what the organization is all about -not merely words on paper that "sound nice"?

Yes No When telling your children and/or other loved ones what you do for a living, would you feel proud in describing your work in terms of this purpose?

Page 10: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 6: Competitive advantage is temporary

2,2 3,1

1,3 2,2

Don’t adapt

Don

’t ada

pt

Patagonia

Häg

lofs

Adapt

Adap

t

2,2 3,1

1,3 2,2

Don’t adapt

Don

’t ada

pt

Patagonia

Häg

lofs

Adapt

Adap

t

Result: both Häglofs and Patagonia promote their brands as radically sustainable

Source: Purpose+

Page 11: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 7: Use competing frames to get the proper commitment

Source: Clark Gilbert, Harvard Business School

High commitment, rigid plan

High commitment, flexible plan

Low commitment, rigid plan

Low commitment, flexible plan

Fram

ing

in th

e re

sour

ce a

lloca

tion

phas

e

Framing in the venture building process

Thre

atO

ppor

tuni

ty

Threat Opportunity

Page 12: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 8: Strategic behavior

Behavior A

From… …To

Behavior B

Behavior A Behavior B

Behavior A Behavior B

Behavior A Behavior B

Behavior A Behavior B

Behavior A Behavior B

Source: McKinsey & Company

Page 13: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 9: The Iceberg

Behaviour

Thoughts

Emotions

Norms & Values

Beliefs

Needs

Fears

Source: McKinsey & Company

Page 14: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

Framework 10: Explicit dilemmas

Purpose Profit

Freedom Framework

Short term Long term

Local Global

CooperationCompetition

Explore Exploit

Stakeholders Shareholders

??? ???

Source: Purpose+

Page 15: P+P Transformation FINAL 261017 - purposeplus.com · Transformation. Framework 1: The stick and the essence of value creation Supplier surplus Willingness To Pay (WTP) Price Costs

For more information

• Rens ter Weijde• Mail: [email protected]• LinkedIn: www.linkedin.com/in/rensterweijde