The Nature of Business: redesign for resilience

Transcription

1 The Nature of Business: redesign for resilience Giles Hutchins 12 May 2013 BCI Framework Metamorphosis Measure, Monitor Control, Reduce Incremental Reduction New ways of operating, new products & mind-sets Reaching Zero Unlocking the creative potential, empowerment Attaining Positive > 50% of all organisations today will have died by

2 : VOLATILITY (The Age of Fear Wall Street Journal) volatile input costs volatile prices volatile consumer buying patterns increasing complexity and risk in supply chains changing demographics/world population shifts shift to a multipolar world increasing socio-economic/political tensions increasing scarcity of finite natural resources increasing propensity of food and water shortages increasing frequency of natural disasters and epidemics climate change, peak oil, peak elements, and so on ocean acidification and dead zones rapid decline in biodiversity increasing inequality, rising world poverty increasing mental health issues and stress-related illnesses exponential growth in population and consumption rates. Decade of Hell - Harvard Business Review Adapt or Die - Business As Usual Will Not Work The current prevailing business paradigm is no longer fit for purpose Prof. Michael Porter: the old models of corporate strategy and capitalism are dead... paradigm shift from hurting to helping, with externalities turned into opportunities 2

3 ? How much % of materials from source go into our final products (for durables)? -- 60% -- 40% -- 25% -- 10%? How efficient is our economy? Ray Anderson (former Global CEO, Interface) We have been, and still are, in the grips of a flawed view of reality a flawed paradigm, a flawed world view and it pervades our culture putting us on biological collision course with collapse. It is the paradigm that is reflected in our culture s infatuation with stuff and our willful ignorance of nature. 3

4 Gregory Bateson The creature that wins against its environment destroys itself Our sense of separation from nature corrupts us, it fuels an arrogance a hubris whereupon common sense becomes insanity. 4

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6 FIRM OF THE FUTURE Redesigning for Resilience... The journey of transformation has begun... Halving the environmental footprint of their products 100% sustainable agricultural sourcing Zero emissions by reporting P&L for environment and social 100% products considered by

7 Firm of The Past Firm of The Future Nature-Inspired Paradigm Shift Nature has been dealing with volatility for 3.8bn yrs Business Nature linear Old School networked systems-thinking New School 7

8 Old top down control New collective intelligence Predictable & Mechanistic Emergent & Empowering 8

9 Firm of The Future Decentralised, distributed, diverse Encourage life Net positive good Working with Nature Life Supporting Levering disturbance as an opportunity Resilient Optimizing Fitting form to function Economies of scope, multi-functioning Nature s Principles Knowing what s important Values Led Systems Based Adaptive Sensing and responding Opportunistic to the landscape & resources Clarity of deep core values Self, team, community behaviours Integrating synergies Dynamic interdependencies Industrial ecology, ecosystem-thinking 9

10 Multi-layered Shift Purpose People Processes Products Places Emergence: Incremental Change & Radical Transformation Profit Value Shared Value Intrinsic Values Measure, Monitor Control, Reduce Incremental Reduction New ways of operating, new products & mind-sets Reaching Zero Unlocking the creative potential, empowerment Attaining Positive 10

11 Real Sustainability is Harmony with Nature nature people economy business A Business Inspired By Nature one where the purpose, people, process, products and places are inspired by and in harmony with nature. Where business helps the re-connection of ourselves to our authentic human nature and to the world around us, to life itself. Business as a force for good, business that helps life rather than hurts life. This is the new business paradigm and we are on the cusp of it: Machine Nature 11

12 Simply the best book in business and management in many years! Hazel Henderson, President of Ethical Markets A bold, paradigm-shifting book, a must-read for those seeking to make positive change Hunter Lovins, President of Natural Capitalism Solutions A must-read for everyone involved in the business of the future and aren t we all? Mick Bremans, Chairman of Ecover 12