Cooperrider Laszlo 2009

Sustainability for Value and Profit

David L. Cooperrider and Chris LaszloFebruary 2009

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A Time for Exciting InnovationThe Business Opportunity of the 21st Century?

Astonishing Surge of Interest• Sustainability and Managing as Design• How Do We Turn Social and Global Issues

Into Bona-fide Business Opportunities?

Appreciative Inquiry-- “AI”: How Do We Innovate, Design, and Change at the Scale of the Whole? The Strengths Revolution.

A Peter Drucker Moment to Remember

.

My “Peter Drucker Moment”The source of my two threads today!

“Every social and global issue of our day is a business opportunity in disguise”

******************************

“The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”

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Changing Context of BusinessThe Most Exciting Project I Have Ever Worked On

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8am Welcome and Big Picture

8.30 Introductions and Objectives

9.00 Re-framing Sustainability

9:30 Opening Inquiry

10.15 break

10.30 GE, Wal-Mart, Unilever Cases and Concepts: Cradle to Cradle; BOP

11.30 Group Dialogue: Images of Future

12.30 lunch

1.30 Innovations & Insights

2:00 Appreciative Inquiry: Strength-based & Whole System Methods

4-5:00 Stories, Tools, Vast Opportunities

8am Sustainable Value in Recession?

9.15 Set Up for Working Groups

10.45 break 10.00 Stakeholder Role Play

11:15 Working Group’s Projects

12.30 lunch

3:00 “Presentations to the Board”

4.30 Debrief and Closing Reflections

-5.00

Our Agenda

February 4th February 5th

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What Draws You To This Work?

1.What draws or attracts you to this work on sustainable value?

2. Your hopes for this session? Learning agenda? Management practice agenda?

(1-2 minutes)

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”

. 8

“Meeting the needs of the present without compromising the ability of future generations to

meet their own needs”

Brundtland Commission, 1987

“A business approach to creating long-term shareholder and stakeholder value by embracing opportunities and risks deriving from economic,

environmental, and social developments”

The Dow Jones Sustainability Group Index, 2001

Definition of sustainability: People, Planet and Prosperity

. 9

Stakeholders are now a powerful force in business

Customers

Investor groups

Employees

Suppliers

Universities

Government

NGOs

Communities

Media

EconomicStakeholders

SocietalStakeholders

Unions

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SustainableValue

Stakeholder Value¹

Shareholder Value

+

+

-

Unsustainable(Value Transfer)


Unsustainable(Lose/Lose)

Sustainable Value

-

fossil fuel ICE

Value is sustainable only when it is positive for shareholders and stakeholders

.

Top Rated Stars in Every Industry Are Becoming Leaders in Sustainable Value Innovation

Compete? Or Lead? “Firms of Endearment”High Purpose & high innovationFrom Strategy to Shop Floor It’s Fun, Surprising “Win-Win

Why are ‘firms of endearment”— industry leading stars that have created huge emotional bonds with the world such as Toyota, Whole Foods, GE, and Green Mountain Coffee Roasters—generating investor returns at a rate of some 1,026 percent over a ten year period compared to 122 percent for the S&P 500?

11

.Sustainable Value Partners © 2007

Differentiating products & services

Meeting needs for sustainability solutions

Developing sustainability brand identity. Becoming an employer-of-choice

Shaping legislation: “new rules of the game”

Complying to government regulations

Reducing costs

Sources of Business ValueLevels of Strategic Focus

BusinessContext

Brand/Culture

Market

Product

Process

Risk

Wha

t’s N

ext

The six levels of value creation

.

Opening Inquiry: 3 Questions for Reflection

1. Leading Positive Change: a “High-Point” Story? What were “root causes” of success? What was it about you…your best qualities/strengths?

1. Continuity Question: Things you want to keep? Strengths/assets to build on? Stories of innovation in sustainable value: (a) from your organization and

(b) innovations from organizations that you admire?

3. Images of the Future 2014? Describe: what’s happening new, different, better? I will be most proud of my organization in 2014 when…?

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Opening InterviewOpening Interview (Ai conversation in pairs)(Ai conversation in pairs)

A-->B (20 min)A-->B (20 min) B-->A (20 minB-->A (20 min))

Spirit of discovery— strengths, aspirations, Spirit of discovery— strengths, aspirations, opportunities, resultsopportunities, results Take brief notes Take brief notes

At the end.. At the end.. summary & thanks summary & thanks Return @Return @

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Business Value &

Societal Value

Observable Stages in Industry

Leadership

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Interview with Jeffrey Immelt, CEOEco-imagination as “spectacular business opportunity”

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Ecomagination’s Growth GE's research and development dedicated to green energy

overall is about $2.5 billion per year.

Revenues projected at $20 billion by 2010.

"Environmental thinking is no longer the purview of isolated, far-left thought. It is now a mainstream economic discussion. It is pervasive in almost every country in the world” -- Jeff Immelt

Ecomagination products: they are growing at 12 percent a year, faster than the company's overall revenue growth rate of 8 percent.

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A Question for You About the S-Revolution:

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?

.

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

.

Sustainability goals at

To be supplied 100% by renewable energy

Stores 25% more efficient in 7 years Fleet 25% more efficient in 3 years

To create zero waste

25% reduction in solid waste in 3 yrs Improve packaging of every product sold

To sell products that sustain our resources and the environment

20% supply base aligned in 3 years

Source: released in speech by Wal-Mart CEO Lee Scott October 24, 2005

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Sustainable Value… Design Networks

Global Greenhouse Gas StrategyBuildings Design Construction & MaintenanceGlobal LogisticsAlternative FuelsOperations & Internal ProcurementPackagingTextilesElectronicsFood & AgricultureForest Products (Wood & Paper)Chemical Intensive ProductsJewelrySeafoodChina

EnergyEnergy

WasteWaste

ProductsProducts

.

Stories Have Wings

.

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”

.

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

.

Fleet of Class 8 heavy trucks 25% more fuel efficient in 3 years

.

Existing stores 20% more efficient by 2012; new stores 25-30% by 2009

Interior with sales floor lighting in “full off” mode

LED Refrigerated Display Lighting

.

Sustainable products

One compact fluorescent light bulb:

Costs 7 times more and lasts 10 times longer

Uses 80% less electricity Saves $30-80 on power bill Prevents 500 pounds of coal or

1 barrel of oil from being burned

Keeps a ton of greenhouse gas (CO2) out of the air

=plant-basedpolymer

.

Risk and cost reduction Strategic growth opportunity

Next steps for sustainability in business

Environmental affairs

Firm’s own footprint

Incremental change

Internally-driven decisions

CEO agenda

Whole-system approach

Collaborative partnerships

What’s Next

Breakthrough innovation

Current Business Approach

Sustainable Value Partners © 2007

.

William McDonough and “Cradle to Cradle”

“I believe we can accomplish great and profitable things within a new conceptual framework—one that values our legacy, honors diversity, and feeds ecosystems and societies . . … It is time for designs that are creative, abundant, prosperous, and intelligent from the start.”

.

Cradle-to-Cradle (C2C) is a new design paradigm

C2C principles– Waste equals food– Use current solar

income– Celebrate diversity

BIOLOGICAL CYCLE

TECHNICAL CYCLE

Source: McDonough and Braungart (1998) and Green Blue Institute (2003)

.

It isn’t enough to do “less bad”. The biggest opportunity is “doing good” (Eco-Effectiveness)

Eco-Efficient

Eco-Effective

Impact on the environment

Source: MBDC

negative impact

positive impact

High

Low

The World’s Most Exciting Market?

•A $12 Trillion Dollar Market•Place of Immense Entrepreneurial

Opportunity•Places Where Your Company Can Make

Enduring Contributions

.

Social example: serving the Base of the Pyramid

1 billion people withincomes > $15,000 per year

1.5 billion people<$15,000 but >$1,500 per year

4 billion people<$1,500 per year

Saturated markets

Incremental adaptation

New market capability$13 trillion

.

34Source: FT, April 20, 2004

What You See is not What it is………..

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The Vision:The Base of the Pyramid Protocol

To create inclusive, mutually beneficial business processes

through which the private sector and local communities build

economic, social and environmental value.

A Process for Mutual Value Creation

.

The Jaipur Foot

.

Unilever’s Project Shakti

Unilever’s vision for Shakti is to scale it up across the country, covering 100,000 villages and touching the lives of 100 million rural consumers by 2010.

BAWB Video Archives:

.

SustainableValue

The opportunity for business is value creation (not only regulatory compliance)

Stakeholder Value¹

Shareholder Value

+

+

-


Unsustainable(Lose/Lose)

- ¹ environmental, social,and economic impacts

Sustainable Value

OpportunitiesEnhanced reputationProduct differentiationMotivated employees

License to operateEntry into new markets


RisksCustomer de-selectionPreemptive regulationReputation damage

Fines, penaltiesLoss of market share


39

Is Sustainability a Passing Fad?

.

40

We Have Unintentionally Produced Harm

Air pollution: 20% of world population breathes unsafe air (W.H.O.)

Soil depletion: two-thirds of the world’s agricultural land diminished

Forest losses: 40% of the world’s original forest cover destroyed

Water scarcity: one billion people without safe drinking water

Bio-diversity losses: Collapse of marine ecosystems by 2048

Poverty: 3 billion live on under $2 a day; the GDP/person gap between the 20 richest and 20 poorest nations has doubled in last 40 years

Climate change: 60% increase in atmospheric CO2. Extreme weather

To support the world’s population at Western consumption levels with current technology requires 4 more planet earths

Sources: World Health Organization (W.H.O.), WorldWatch, United Nations EarthWatch, WRI, Conservation International

ecologist

.

41

An area of intact forest the size of Panama is lost each year

.

42

A new study by Stanford University estimates that all commercial fish species will be lost by 2048

.

43

Over the last 50 years water use has tripled, increasing faster than population

.

44

An estimated 100 million tons of plastic trash circulates in the Pacific Ocean,concentrating toxins and entering the food chain

.

45

We Have Produced Tremendous Benefits For All

In modern times: Life expectancy has more than doubled to 80 years

Infant mortality declined from 500 to 50 deaths per 1,000

Infectious diseases eliminated such as smallpox; nearly eliminated such as rubella and polio

World GDP per capita increased by a factor of 50

Yields for major food crops improved by factor of 10

Communication speed (transatlantic) from months to milliseconds

Human ingenuity always finds a way

Source: WRI, WHO, Professor DeLong/ Berkeley (for World GDP per capita), Global Reach, UN Earthwatch

economist

.

Environmentalism


Value creation or destruction

Pro-growth consistent with quality of life. “Create the good”

Innovation

Moral, ethical

We need to limit growth to protect nature.

“Stop the bad”

Regulation

Agenda is

Vision is

Tool is

Reflects a shift in social movement

The Politics of Possibility

.

Slide 47

Technology Management, Inc.,▼9718 Lake Shore Boulevard, Cleveland, Ohio 44108▼216-541-1000▼ [email protected]

Case Example: Benson LeeCore Technology: Simple, Low Cost Cell & Stack Design

Invented by SOHIO/BPInvented by SOHIO/BP Full scale (2” diameter)Full scale (2” diameter) Electrolyte-supportedElectrolyte-supported Internal manifolds for air Internal manifolds for air

and fueland fuel 3-4 Watts/Cell3-4 Watts/Cell ~400 Cells/kW (net)~400 Cells/kW (net) No precious materialsNo precious materials Low cost fabricationLow cost fabrication

CathodeWith Seal

ElectrolyteYttria-Stabilized Zirconia

AnodeWith Seals

SeparatorMetal Alloy

FuelAirAir

RepeatingStack

.

Slide 48

Technology Management, Inc.,▼9718 Lake Shore Boulevard, Cleveland, Ohio 44108▼216-541-1000▼ [email protected]

TMI Energy Platform

Waste to Fuel Module

24/7 MED SURG HEALTH CENTER

Animal Waste

Electricity

Heat

TMI Fuel Cell System (single module shown)

Heat Exchanger

Power Conditioners and Voltage Conversion

Pumping, DistillingReverse OsmosisDesalinization, UV

Fertilizer

Anerobic Digester

Plant Biomass

Bedding

Solids

Solids

Conventional Fuels

· Natural Gas· Propane· Kerosene

Loca

lB

IOG

AS

Clean Water

Electricity· Power instruments· Charge batteries &

portable devices · Lighting

Heat (high T) · Cooking· Hot Water

· Laundry· Showering

· Comfort· Sterilizing

Military Logistic Fuel

Human Waste

Food Waste

Indigenous (Renewable)

Fuels

· Ethanol· Biodiesel· Vegetable Oil· Used Cooking Oil· Ammonia

· JP-8· Diesel

· Prevention/Treatment · AIDS/HIV· Malaria· Vaccinations· Women’s Health

· Dental· Laboratory· Emergency/Trauma · Surgical

Cooling & Refrigeration· Vaccines/Drugs· Food Storage

Tele-Communications· Broadband

· Images· Voice· Data

· Store and Forward

Premium Power

University-basedMDs & Specialists

(linked via Satellite)

(On-site) DoctorsNurses

Paramedics

Medical Databank & Knowledge

Transfer

Wire

less

link

sTe

le M

edic

ine

Plug-in Utility Modules

Premium Power

BioEnergy Platform + Plug-in Modules Support Rural Medical/Health Care Teams

A&BA&BCC

DD

E&FE&F

Clinical Telemedicine

Public HealthGlobal Health Delivery

U.S. Manufacturing and Engineering

Biomass to Energy @OSUCollege of Food, Ag, Env Sciences

Fuel Cell Systems

Biomass to Energy @OSUCollege of Food, Ag, Env Sciences

.

3 Questions for Reflection from Interviews

1. Leading Positive Change: a “High-Point” Story? What were “root causes” of success? What was it about you…your best qualities/strengths?

1. Continuity Question: Things you want to keep? Strengths/assets to build on? Stories of innovation in sustainable value: (a) from your organization and

(b) innovations from organizations that you admire?

3. Images of the Future 2014? Describe: what’s happening new, different, better? I will be most proud of my organization in 2014 when…?

.

Form Groups2+2+2=6…return _____

Introduce your partners vis-à-vis your interviews—share highlights….

Everyone listen for patterns/insights in three areas:

1. High Point Stories : And Analysis Root Causes of Success? Life-giving factors?

2. Continuity themes : Things Best, To Keep , Strengths. Example sustainability innovations.

3. Images of the Future: Key Visions 2014

.

1. HIGH 1. HIGH POINTSPOINTSPatterns & Patterns & ThemesThemes

Be ready to Be ready to share one best share one best story from story from groupgroup

2. 2. CONTINUITY: CONTINUITY: THINGS TO THINGS TO KEEP EVEN AS KEEP EVEN AS WE CHANGE:WE CHANGE:

--example --example sustainability sustainability innovations: innovations: your company your company and others you and others you admire:admire:

3. IMAGES OF 3. IMAGES OF THE FUTURE THE FUTURE WE WANT—WE WANT—WHAT IT WHAT IT LOOKS LIKE IN LOOKS LIKE IN 20142014

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10.15 break



12.30 lunch








12.30 lunch



-5.00

Our Agenda


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Question What are some of the eco-sustainability-related business

opportunities in a value chain of your choice

--energy productivity and efficiency/ eliminating costs

--product opportunities & new markets

--brand and reputation

--energizing the workforce

--game changes in industry/society

What are some of the social-sustainability (BoP) business opportunities in your business?

– Poor

– Rural & Inner cities

– Emerging markets

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8am Introduction


9.15 Opening Inquiry

10.15 break

10.30 Wal-Mart, DuPont, GE Cases

11.30 Is Sustainability the Flavor-of-Day?

12.30 lunch

1.45 Stakeholder Role-play

3.15 The Base of the Pyramid

4.00 Working Group Sessions- 5.30

8am The AI Organizational Summit

9.45 The Financial Analyst Perspective

10.15 break 10.30 working groups continue

12.30 lunch

2.30pm “Presentations to the Board”

4.00 Take-aways and Challenges

4.30 Closing Discussion-5.00

Agenda

February 12 February 13

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Is sustainability the “flavor-of-the-day”?

Q: How important are future sustainability issues?

. 56

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

. 57

Ageless Management Philosophy for Appreciative Inquiry—”AI”

“The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”.

--Peter Drucker

. 58

Could it Be…Organization Change Might Be All About Strengths?

• Why would strength connected to strength…create change?

Its often been said that strengths perform, but how about the idea that…. strengths do more than perform, they transform?

What would it mean to create an entire change theory around strengths?

.

Appreciate “Best of what is” Imagine “What might be” Design “What should be” Create “What will be”

Identify problem Conduct root cause analysis Brainstorm solutions & analyze Develop treatment - action

plans or interventions

(deficit based change) (strengths-focused innovation)

Deficit Management Appreciative Inquiry

Problem Metaphor:Organizations are machines“problems to be solved”

Mystery Metaphor:Living systems; webs of relatedness“worlds of infinite strengths”

. 60

The AI The AI Organization Summit MethodOrganization Summit Method

Creating an Alignment of Strengths Creating an Alignment of Strengths Using Large Group MethodsUsing Large Group Methods

. 61

5 Common Approaches to Change5 Common Approaches to Change

Top Down StrategiesTop Down Strategies Bottom Up StrategiesBottom Up Strategies

Representative Cross-Section StrategiesRepresentative Cross-Section Strategies Pilot StrategiesPilot Strategies

Back RoomBack Room

. 62

Typical ResultsTypical Results Less Informed and Ultimately Less Less Informed and Ultimately Less

Effective Change EffortsEffective Change Efforts A Few Try to Convince Many That A Few Try to Convince Many That

Change is NeededChange is Needed Partial Responsibility MindsetPartial Responsibility Mindset Change Occurs SequentiallyChange Occurs Sequentially Change is Perceived as a Disruption of Change is Perceived as a Disruption of

“Real Work”“Real Work”

. 63

Typical Results (cont)Typical Results (cont)

Pace of Change is Too SlowPace of Change is Too Slow Substantial Change in Part or Modest Substantial Change in Part or Modest

Change in an Entire OrganizationChange in an Entire Organization Breakdown at ImplementationBreakdown at Implementation

. 64

The AI “Organization Summit”

“Whole System” in the Room Strategic Task is Clear...

Future Focus & Continuity Search

Self-Management and Dialogue Narrative Rich

From Common Ground to Inspired Action Designing Real Prototypes

2-3 Day event/100 to 1000 Participants

Uncommon Action/Follow Through

. 65

Nutrimental FoodsThe Results One Year Later

Rodrigo Loures, CEO 300 % Increase in Profitability

75 % Decrease in Absenteeism Appointment to President Lula’s Economic

and Social Council World Business Academy Award

Rise to Best 100 Companies in the Nation

. 66

AI Summits: Three Ways to Understand Positive Change

. 67

Why Does Experience of Wholeness…

Bring out the best in human beings?

Propel innovation?

New life?

Eclipse old patterns?

So easy?

. 68

The AI 4-D Model of Strengths-Based ChangeThe AI 4-D Model of Strengths-Based Change

DiscoveryDiscovery““What gives life?”What gives life?”

The best of what is.The best of what is.AppreciatingAppreciating

DreamDream““What might be?”What might be?”EnvisioningEnvisioning

Results/ImpactResults/Impact

DesignDesign““What should be – What should be –

the ideal?”the ideal?”Co-constructingCo-constructing

DestinyDestiny““How to empower, How to empower,

learn, and improvise?”learn, and improvise?”SustainingSustaining

AffirmativeAffirmativeTopicTopic

.

69

Topic Re-framing Can Lead to Exciting Breakthrough Results

Is environmental regulation or “social responsibility” a burden or a business opportunity for breakthrough profit and new value?

Is the topic how to reduce harm? Or how to unleash “eco-imagination” & “high purpose

profit?”—Fairmount Minerals Case Clipping

Faimount Sales & EBITDA History (For Recurring Operations)

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. 70

Fairmount Minerals StoryUnleashing Eco-innovation and Business Breakthrough

. 71

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

Collaborative Innovation

. 72

Images of the Sustainable Design AI Summit

. 73

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

. 74

Sources of Business ValueLevels of Strategic Focus

BusinessContext

Brand/Culture

Market

Product

Process

Risk Anticipating regulations

Reducing energy, waste & process costs—future of totally renewable energy

Sustainable-value, low-energy products

Using BOP and Blue Ocean strategy to open new markets

New story, identity, passion

Leading industry stars, associations, policy

business value created

Source: Chris Lazslo The Sustainable Company

. 75

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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. 76

Why High Engagement?Why High Engagement?The Business CaseThe Business Case

Approaches to competitive advantage:Approaches to competitive advantage:

– Low price – less than 60 daysLow price – less than 60 days– Operational/technical expertise – less than 3 yearsOperational/technical expertise – less than 3 years– Fully engaged employeesFully engaged employees

(people think and act like owners) – (people think and act like owners) – more thanmore than 7 years7 years

. 77

Gallop Study: 1.7 Million Employees

“I have the opportunity to do what I do best”

What percentage of people do you think - 1.7 million people from 101 companies - strongly agreed that they are empowered to do what they do best in their work and company?

Hint: The wealth of unrealized capacity in enormous - people are dying to be tapped on the shoulder and asked for more engagement in the strategic issues of the day - like the Navy example.

. 78

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

. 79

UN Global CompactAI Summit Results—and Surprises

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

Counter Summit and Surprise of Friendship

Vision of PRI Project: Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets Together With Civil Society Organizations

Who Cares Wins— eclipse of “the great tradeoff illusion”

. 80

Results (cont.) 10 Stock Exchanges & Climate Change

Initiative

43 Local Multi-sectoral Networks…China

100% Growth in Members by 2007 Summit

Huge Data Base for Studies of “Positive Institutions”—What Do They Look Like? What Enables? Refract Strengths? Which?

. 81

The AI Summit Can Be Adapted in Many Ways

Web casts and video conferencing Small “rapid design” summits—like kaiezen events for small

wins, project launches, alliance formation.

Key Success Factors: It is Easy When-- Right Task Right People —multiple stakeholders Right Questions — AI continuity search and future search. Right match — with the organizational, and community culture

.

AI Summit Planning

Forming summit planning team Defining summit task and topics Mapping summit stakeholders Designing the summit format & Logistics Creating the summit design Preparing the opening AI questions Preparing summit communication strategy Envisioning post-summit momentum

. 83

AI Summit Planning: Steering Committee

1. Defining summit task and topics

2. Mapping summit stakeholders

3. Designing the summit format & Logistics

4. Preparing summit communication and marketing strategy

5. Envisioning post-summit momentum

Imagine It: (in pairs)

Where and how might an AI summit add value in your organization…if anything imaginable were possible?

. 84

“What if we used our size and resources to make this country and this earth an even better place for all of us: customers, Associates, our children, and generations unborn?

“What if the very things that many people criticize us for - our size and reach - became a trusted friend and ally to all, just as it did in Katrina?"

"Katrina asked this critical question, and I want to ask it of you: What would it take to be that company, at our best, all the time?

An Historic Opportunity

. 8585

Sustainable Value Networks

Global Greenhouse Gas StrategyBuildings Design Construction & MaintenanceGlobal LogisticsAlternative FuelsOperations & Internal ProcurementPackagingTextilesElectronicsFood & AgricultureForest Products (Wood & Paper)Chemical Intensive ProductsJewelrySeafoodChina

Energy

Waste

Products

. 8686

Each Network Created A Sustainable Pathway source: Dave Sherman

Today’s Business Practices

SustainableBusiness Practices

Sustainable Pathway

Using competitive forces to create a race to the top

• A “bigger win” for business and a “win” for society

Quick WinsCan be

implemented with existing

technology and business models

Innovation ProjectsRequire

technology and/or business model

innovations

System Change“Changing the rules of the game”

• Focused on a “win” for business

86

. 87

This Week’s 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

. 88

Publisher

Printer

National Distributor

WholesalerMerchandiser

Logistics Provider

Freight

Advertiser

Retailer Consumer

RDA Consultant

Magazine Industry System Map

88

. 89

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

.

Sustainability Index SummitTaking Action to Address a Global Imperative…Universities in Partnership With Business and Society

Saving people money

so they can live

better

July 14-16, 2008

90

.

Mature Phase: (Textiles example)SKU specific questions add greater level of detail and insight into specific

product performance

WeightRaw

Material Inputs

Manufacturing/ Processing

Transport/ Packaging/

Sales

Product Use End-of-Life/Recycling

SupplyChainGoals

Energy and Climate

40%Suppliers

track on-farm energy use?

(Y/N)

Energy use per unit of finished

product? (ranges will be provided)

Hang tag on energy use

during garment care? (Y/N)

To reduce the use of non-renewable energy and greenhouse gas emissions.

Material Efficiency

20%

Uses fibers or irrigation

practices that reduce field water use?

(Y/N)

Water consumption per unit of finished

product? (ranges will be provided)

Use of recycled materials in fabric production? (Y/N)

To maximize efficient use of all materials, minimizing waste and costs.

Natural Resources

20%Is the product

organic or transition?

(Y/N)

Use of a restricted substances list for factory practices?

(Y/N)

Hang tag on use of laundry

detergents? (Y/N)

To ensure the integrity of ecosystems and a safe, reliable supply of raw materials.

People and Community

20%Is product Fair Trade certified?

(Y/N)

To protect quality of life and safeguard human health.

Hypothetical andillustrative

Emphasis moves to product-specific scoring. Product scores

roll up to influence supplier score.(Up to 1 score per SKU; products

of the same profile could be grouped in one score)

91

.

Leveraging the Power of Associations for a New Magnitude of Socially Responsible Leadership

.

What OvationNet’s Technology Made Possible

.

Technology…Behind the Scenes

Streaming video presentations helpdissolve the boundaries of location

.

Jeffrey Sachs

Streaming LiveTo Virtual Participants

At the Gaylord

.

Full participants in Day One

Connected Locations

.

Virtual Roundtables

.





10.15 break



12.30 lunch








12.30 lunch



-5.00

Our Agenda Tomorrow With Chris Lazslo


.

1970 19991980 1995

Inte

grat

ion

leve

l

Social Responsible Investments

Investments in Environmental Technology

Investment in Eco-Efficiency

Triple Bottom-lineInvestment

2000-8

F E SF E S 3 in 13 in 1

Value-based negative

screening

Low diversification High volatility

Higher value creation Lower eco-footprint

Single Bottom line = Shareholder

Value

Triple evaluation Not market driven

Innovest EcoValue‘21& Intangible Value Assessment

Perspective of SRI Rating Agencies

Source: Innovest

.

Environmental, Social, and Governance Performance

Risk Reduction Product DifferentiationProcess/ Cost Reduction Reputation EnhancementHuman Capital – New Markets EntryRecruitment and Retention Innovation Capacity

Superior Earnings

and Share Price

Differentiation and Competitive Advantage

Sustainability as driver of share price

Source: Innovest

.

Sustainability key messages for managers

Sustainability provides new insights into business strategy and the competitive environment

– A “lens” through which line managers can innovate along their extended supply chains– Sustainability is not about trade-offs. Investments can have pay-backs of ≤1 year– Moral responsibility remains the foundation but not the primary motivator for action

Sustainability solutions require collaboration with key stakeholders– Partnering with stakeholders can reduce opposition and bring new knowledge– Effective stakeholder relationships must take into account perceptions and emotions– Managers must accept that they cannot please all stakeholders all the time

Sustainability solutions require new organizational competencies– Skills include assessing and managing stakeholder impacts along the supply chain– Many companies lack the organizational capacity for listening and empathy– Whole-system strength-based methods are well suited to innovation and game change

Case Weatherhead School of Management

David L. Cooperrider Chris Laszlo

.

The Power of Appreciation: 3 Facts About All Human Beings

(closing end of day one)

Exceptionality Essentiality

Equality of Voice/Opportunity