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David Cooperrider Sustainability For Profit And Value Through Appreciative Inquiry

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David Cooperrider Sustainability For Profit And Value Through Appreciative Inquiry

  1. 1. Going Green for Value and Profit: Sustainable Value Creation “ Business as an Agent of World Benefit”
  2. 2. Business Innovators: the Most “Privileged Generation” <ul><li>The “Greatest Generation” </li></ul><ul><li>Meeting with Jeffery Sachs End of Poverty </li></ul><ul><li>Prospect of oil independence, renewable </li></ul><ul><li>Disruptive Innovations in Clean Tech </li></ul><ul><li>Every Social and Global Issue Is a Business Opportunity in Disguise </li></ul>
  3. 3. Today <ul><li>Sustainability 3.0 </li></ul><ul><li>New Horizons in Appreciative Inquiry question of change at “scale of the whole” </li></ul><ul><li>Stories From the Field and Research Into the Dynamics of Positive Change “Co-elevation”—United Nations; </li></ul><ul><li>Coca-Cola; BP; Fairmount Minerals; Green Mountain Coffee Roasters; Wal-Mart </li></ul>
  4. 4. Context <ul><li>A Startling Letter from the UN in 1992 </li></ul><ul><li>I couldn’t even respond. </li></ul><ul><li>A Second Chance in 2003: </li></ul><ul><li>This Time More Prepared </li></ul>
  5. 5. Business as an Agent of World Benefit Began June, 24 th 2004 at the UN <ul><li>“ Let us choose to unite the strengths of markets with the power of universal ideals… let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations” </li></ul><ul><li>--UN Secretary General </li></ul><ul><li>Kofi Annan </li></ul>
  6. 6. Business and Society Debate <ul><li>In today’s trust-starved climate, our market-driven system is under attack…large parts of the population feel that business has become detached from society—that business interests are no longer aligned with societal interests” </li></ul><ul><li>-- Klaus Schwab , </li></ul><ul><li>President, World Economic Forum </li></ul>
  7. 7. Harman’s Look at the Future: Other Side of the Debate <ul><li>Business, the motor of our society, has the opportunity to be the new creative force on the planet, a force which could contribute to the well-being of many…the modern corporation is as adaptable an organizational form as has ever been invented, so that in a time of fundamental change it may be expected to be on the cutting edge.” </li></ul><ul><li>--Stanford’s Willis Harman </li></ul>
  8. 8. <ul><ul><li>World-wide search new ways for business to live in mutual benefit with the earth’s ecosystems and the world’s societies </li></ul></ul><ul><ul><li>Ai & Positive Organizational Scholarship- How institutions can magnify and refract the prism of human strengths </li></ul></ul><ul><ul><li>Experiment in Global Anticipatory Learning— Club of Rome Challenge </li></ul></ul>
  9. 9. World Inquiry Interviews <ul><li>--Simply click </li></ul><ul><li>www. </li></ul><ul><li>Download interview guide </li></ul><ul><li>Contact leading innovators in your community or country </li></ul>BUSINESS AS AN AGENT OF WORLD BENEFIT MANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
  10. 10. <ul><li>Innovation Bank </li></ul><ul><li>More than two- thousand interviews </li></ul><ul><li>Over 500 reviewed submissions </li></ul><ul><li>121 accepted stories </li></ul><ul><li>74 published profiles of innovation </li></ul><ul><li>See </li></ul>BUSINESS AS AN AGENT OF WORLD BENEFIT MANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
  11. 12. Story Illustration <ul><li>Examples: </li></ul><ul><li>Miracle in Tefen </li></ul><ul><li>********* </li></ul><ul><li>Denmark’s Industrial Symbiosis </li></ul>
  12. 13. Sustainable Value Sustainable Value— From Obligation Mindset to Business Opportunity Mindset--Laszlo Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Value Transfer) Unsustainable (Lose/Lose) Sustainable Value - ¹ absolute standards or relative to competitors fossil fuel ICE clean energy vehicles
  14. 15. UN Global Compact AI Summit Results <ul><li>Innovations : HP, Novartis, BP, Ericcson, Novo Nordisk, Toyota, Green Mountain Coffee, Tata </li></ul><ul><li>Vision of PRI Project : Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets </li></ul><ul><li>Who Cares Wins — eclipse of “the great tradeoff illusion”—ESG issues move to the strategic core—25% greater stock appreciation </li></ul><ul><li>10 Stock Exchanges Commit & Climate Change Initiative </li></ul><ul><li>43 Local Networks…China Joins in a Huge Way </li></ul><ul><li>100% Growth in Members by 2007 Summit </li></ul><ul><li>Companies Calling for New MBA Leaders, OD Innovation, Learning </li></ul><ul><li>Vision for Global Forum for Business as an Agent of World Benefit </li></ul>
  15. 16. Why is this moving so quickly? Stakeholders are now a powerful force in business..
  16. 17. Growth of Non-Governmental Organizations (NGOs)—and instant world wide web information Source: UIA Yearbooks and SVP research
  17. 18. US Environmental regulations Source: US EPA Number of Laws Number of Laws
  18. 19. What is Appreciative Inquiry? An Inspiring Strengths-based Approach to Change <ul><li>“ The task of leadership is to create an alignment of strengths, making our weaknesses irrelevant”. </li></ul><ul><li>-- Peter Drucker </li></ul>
  19. 20. Appreciative Inquiry Involves a Shift <ul><li>“ No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.” </li></ul><ul><li>“ 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.” </li></ul><ul><li>– Albert Einstein </li></ul>
  20. 21. Change at the Scale of the Whole: Many Fascinating Questions <ul><li>New Horizons </li></ul><ul><li>Science of Human Strengths </li></ul><ul><li>Collaboration with </li></ul><ul><li>The Field of Design </li></ul> AI’s Strengths-Based Approach to Catalyzing Change
  21. 22. Fairmount Minerals Story Birth of the “Sustainable Design Factory”
  22. 23. The Sustainable Design Factory “every global issue is a business opportunity” <ul><li>It’s a large group innovation “design studio” </li></ul><ul><li>Whole system in the room—all stakeholders—and innovators </li></ul><ul><li>Sustainable Value Mindset—search for high shareholder value and high stakeholder value </li></ul><ul><li>Appreciative Inquiry— “4-D” cycle—Three days </li></ul><ul><li>Power of questions, analogous stories, positive energy </li></ul><ul><li>Designing in hot teams: brainstormer process; rapid prototyping: How might we…? </li></ul><ul><li>Tremendous action and follow-through </li></ul>
  23. 24. Whole System Sustainable Value Design Exchanging Lessons with IDEO <ul><li>External Stakeholders: </li></ul><ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>NGO’s </li></ul><ul><li>Neighbors/Communities </li></ul><ul><li>Board of Directors </li></ul><ul><li>Imagine 300 Stakeholders coming together across every boundary without a plan—coming together to design and create new sustainability products, processes, and businesses throughout the supply chain. </li></ul><ul><li>Internal Stakeholders </li></ul><ul><li>Operations </li></ul><ul><li>Administration & Corporate Services </li></ul><ul><li>Customer Service </li></ul><ul><li>Engineering </li></ul><ul><li>Logistics </li></ul><ul><li>Quality </li></ul><ul><li>Sales </li></ul><ul><li>Technical Support / R&D </li></ul>Con’t
  24. 25. Sources of Business Value Levels of Strategic Focus Business Context Brand/ Culture Market Product Process Risk business value created Source: Chris Lazslo The Sustainable Company 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
  25. 26. What a Moment………
  26. 27. Initiative Samples: From One Sustainable Design Summit <ul><li>Recover, Recycle & Re-Use: biodeisel example— $mutlti-million new business unit </li></ul><ul><li>Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves labor: $300,000 annual savings </li></ul><ul><li>Truck to rail conversion: Conserves fuel, satisfied neighbors, </li></ul><ul><ul><li>$125,000 annual savings </li></ul></ul><ul><li>Habitat Restoration and Replenishment </li></ul><ul><li>Fast Track site development: Transparency, environment, community impact: </li></ul><ul><ul><li>$6 million (one year of early operations) </li></ul></ul><ul><li>BoP Initiatives—example: water filter prototype: whole new market partnerships </li></ul><ul><li>38% Increase Sales Growth. Empowerment measures up. </li></ul><ul><li>2007 #1 Corporate Citizen Award , US Chamber of Commerce </li></ul><ul><li>Emerging as Top Rated Star in the Industry—IMA-NA </li></ul>
  27. 28. Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years
  28. 29. FML – Positive Image/Positive Action
  29. 30. WHY is AI Whole SYSTEM APPROACH POWERFUL? Positive Organizational Scholarship <ul><li>Barbara Fredrickson’s Broaden-and-Build Theory </li></ul><ul><li>Jonathan Haight’s Research into “Elevation” </li></ul><ul><li>Wayne Baker’s work on the activation </li></ul><ul><li>of positive energy networks </li></ul><ul><li>Boyatzis on Resonant Leadership </li></ul>
  30. 31. A New Magnitude of Change A Question for You <ul><li>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? </li></ul><ul><li>Which international organization might you guess? </li></ul>
  31. 32. <ul><li>It employs 1.9 million people </li></ul><ul><li>Its serves 138 million people per week. </li></ul><ul><li>It has approximately $350 billion in sales </li></ul><ul><li>It’s attracting the world’s most brilliant and radical environmental minds such as Amory Lovins </li></ul><ul><li>It’s raising many eyebrows </li></ul>
  32. 33. Wal-Mart’s Early Steps Many are Watching <ul><li>Be supplied by 100% renewable energy </li></ul><ul><li>Create zero waste </li></ul><ul><li>Sell products that sustain the environment </li></ul>
  33. 34. Implications of Packaging Sustainable Value Innovation and a Turned on Workforce <ul><li>Is already preventing millions of pounds of trash from reaching landfills </li></ul><ul><li>Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere </li></ul><ul><li>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. </li></ul><ul><li>“ The packaging is renewable in 90 days instead of 90 million years” </li></ul><ul><li>Kathleen Bader, CEO Nature Works </li></ul>
  34. 35. Implications of Packaging Sustainability Innovations <ul><li>Broadening this initiative to 255 items in Toys: </li></ul><ul><li>This employee driven initiative saved 3,425 tons of corrugated materials </li></ul><ul><li>1,358 barrels of oil annually </li></ul><ul><li>5,190 trees </li></ul><ul><li>Millions of dollars in transportation costs </li></ul>
  35. 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
  36. 37. Magazine System Map Publisher Retailer Consumer Printer Advertiser <ul><li>Subscription channel </li></ul><ul><li>National Distributor Services: </li></ul><ul><li>Billing & Crediting Service for publishers & titles </li></ul><ul><li>Coordinated field services for wholesaler/retail </li></ul><ul><li>Single source cashflow & publisher accounting </li></ul><ul><li>Central location to handle problems/claims </li></ul><ul><li>National presence to coordinate marketing & merchandising </li></ul><ul><li>Wholesaler Services </li></ul><ul><li>Deliver product to retailers to hit on-sale dates </li></ul><ul><li>Single source for collection of returns / payments for sold copies </li></ul><ul><li>Recording sale/return data by title/issue/retailer </li></ul><ul><li>Face-to-face contact w/ retailers </li></ul><ul><li>Product merchandising </li></ul><ul><li>Retail marketing </li></ul><ul><li>Manage Assortment </li></ul><ul><li>File RDA claims </li></ul><ul><li>Collect Incentives /rebates </li></ul>RDA Consultant <ul><li>Manufactures Product </li></ul><ul><li>Circulation Management </li></ul><ul><li>Creates Products </li></ul><ul><li>Retail Marketing </li></ul><ul><li>Display & sell product </li></ul><ul><li>Manage assortment </li></ul>National Distributor Wholesaler Merchandiser Logistics Provider <ul><li>Wal-Mart </li></ul><ul><li>Target </li></ul><ul><li>Hearst </li></ul><ul><li>Conde Nast </li></ul><ul><li>Rodale </li></ul><ul><li>DSR </li></ul><ul><li>Bower </li></ul><ul><li>CMG </li></ul><ul><li>Time Warner </li></ul><ul><li>Curtis </li></ul><ul><li>Kable </li></ul><ul><li>Anderson </li></ul><ul><li>The Source / Levy </li></ul><ul><li>Hudson News </li></ul><ul><li>Harrisburg </li></ul><ul><li>News Group </li></ul><ul><li>ProLogix </li></ul>Freight <ul><li>Donneley </li></ul>
  37. 38. The Organic Cotton Project <ul><li>One of 12 Sustainable Value Creation Networks—huge implications for supply chain OD theory </li></ul><ul><li>Involves the purchase of 10 million pounds of organic cotton </li></ul><ul><li>will keep 3 million pounds of synthetic chemicals from entering the environment. </li></ul>
  38. 39. Activation of Inquiry into “What Gives Life?” “ Appreciable World” Advancing Extension of Relatedness & Universal Capacity High Initiating Lo w <ul><li>AI’s Strengths-based Change Dynamic </li></ul><ul><li>Elevate-and-Extend </li></ul><ul><li>Broaden-And-Build  Theory of Co-elevation </li></ul><ul><li>Establish-and-Eclipse </li></ul>Elevation and Extension of Inquiry Pro-Fusion of Strengths “ Broaden and Build” Activation of Energy Establish and Eclipse
  39. 40. Please Visit our Center [email_address]
  41. 42. A question about the future of management education: If anything imaginable were possible…?
  42. 43. Business Innovators Most Privileged Generation ML King…. “ Thank God Our Time is Now” <ul><li>Every Global Issue of Our Day is A Business Opportunity </li></ul><ul><li>Power of Positive Intention: </li></ul><ul><li>Cradle to Cradle; BOP; Blue Ocean </li></ul><ul><li>Sustainable Design Factory—Power of Collaborative Creativity. </li></ul><ul><li>Why this is the future of the top rated stars in every industry. </li></ul>
  43. 44. More Learning Resources <ul><li>For leadership training—see the Weatherhead School of Management’s Certificate Program in Appreciative Inquiry and Positive Business and Society Change (next session in December in Longboat Key Florida)—contact: [email_address] 216-368-6413 </li></ul><ul><li>New program Sustainablity for Profit and Value with contact (with Chris Laszlo author: The Sustainable Company) contact James Van Doren. </li></ul><ul><li>Call Pat Petty for Masters in Positive Organization Development 216-368-2055 </li></ul>

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