Appreciative Inquiry and the Discovery and Design of Positive Institutions

David Cooperrider

Center for Business as an Agent of World Benefit

Case Western Reserve University

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Creating New Models of Possibility With All Creating New Models of Possibility With All Points of Departure

Idea of Positive Institutions

1. Strengths-Elevating—positive psychology’s shift

2. Strengths-Combining/Magnifying

3. Strengths-Extending Organizations

Egalitarian Design• Question of Change at the Scale of the Whole?• ““Everyone designs” Everyone designs” --Herb Simon--Herb Simon• New Horizons in New Horizons in Appreciative InquiryAppreciative Inquiry

The Sustainability Revolution• Why “design attitude” matters more• Blessed unrest and business & society innovation

Image PlaceholderImage Placeholder

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Three Ways to Understand Accelerating Strengths based “AI”

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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”

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

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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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Positive Psychology Encyclopedia of Human StrengthsPeterson and Seligman (2006)

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• World-wide searchWorld-wide search new new ways for business to live ways for business to live in mutual benefit with the in mutual benefit with the earth’s ecosystems and earth’s ecosystems and the world’s societiesthe world’s societies

• Public trustPublic trust of best of best business innovations for business innovations for sustainable futuresustainable future

• Global dialogueGlobal dialogue about about the role and the future of the role and the future of business in societybusiness in society•The Club of Rome The Club of Rome ChallengeChallenge

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BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

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Appreciative Inquiry Summit Method at the UN Global Compact With 500 CEOs

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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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Why is this moving so quickly? Stakeholders are now a powerful force in business

Customers

Investor groups

Employees

Suppliers

Universities

Government

NGOs

Communities

Media

EconomicStakeholders

SocietalStakeholders

Unions

Opening Inquiry

Three Questions for Reflection

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1. Images of 2020: Your Visions of a 1. Images of 2020: Your Visions of a Better World Better World

Wake Up 2020: Wake Up 2020:

A. What Does Our World Look Like? A. What Does Our World Look Like?

B. How About the Role of Business? B. How About the Role of Business? Images of Healthy (Ideal) Organizations? Images of Healthy (Ideal) Organizations? How are they Designed and Led to Bring How are they Designed and Led to Bring

OutOut Best in Human Beings & Superior Best in Human Beings & Superior

Profitability? Profitability? To Maximize Environmental and Social To Maximize Environmental and Social

Well-being?Well-being?What’s Happening New, Different, What’s Happening New, Different,

Better?Better?

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2.2. Today’s golden innovations: Today’s golden innovations: Where are the exemplars of business as an agent of Where are the exemplars of business as an agent of world benefit?world benefit?

Please identify one example — a Please identify one example — a business and society innovation which business and society innovation which begins to illustrate your vision of what begins to illustrate your vision of what is possible— is possible— when business is an agent when business is an agent of world benefit?of world benefit?

Where? When? Insights? Where? When? Insights?

What do you value most in this What do you value most in this example? Implications?example? Implications?

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3. Future of OD and Management Education

A. On a scale from 1-10 where do you think our management schools and OD training programs are as it relates to preparing managers and change agents for creating industry leading stars in sustainable value creation (eco-innovation, social entrepreneurship, sustainability)?

B. Looking to the future please finish the following: I will be most proud of the field of OD and management education in the future when____________________________?

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

A-->B (15 min)A-->B (15 min) B-->A (15 min) plus a coffee break.B-->A (15 min) plus a coffee break.

Spirit of discovery— strengths, Spirit of discovery— strengths, aspirations, opportunities, resultsaspirations, opportunities, results

Take brief notes Take brief notes At the end.. At the end.. summary & thanks summary & thanks Return @Return @

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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

Egalitarian Designing & Magnificence of Multiple Realities

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Sources of Business ValueLevels of Design Focus

BusinessContext

Brand/Culture

Market

Product

Process

RiskAnticipating regulations, going beyond legal requirements

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

Sustainable-value, green products

New stakeholder relationships, new markets

Brand story, promise, customer experiences

Designing industries, policy contexts

business value created

Source: Chris Lazslo The Sustainable Company

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Next Generation Ai Summit:The Sustainable Design Factory

CollaborativeDiscovery

•Appreciative Inquiry•Analogous storytelling•Poeticizing Capacities

CollaborativeDiscovery

•Appreciative Inquiry•Analogous storytelling•Poeticizing Capacities

CollaborativeDream

•Anticipatory Images•Visualization &

•Enactment of Future

CollaborativeDream

•Anticipatory Images•Visualization &

•Enactment of Future

CollaborativeDesign

•Deep Dive• Rapid Prototyping

CollaborativeDesign

•Deep Dive• Rapid Prototyping

CollaborativeDestiny

Co-emergent arisingImprovisational learning

Distributed reflexivity

CollaborativeDestiny

Co-emergent arisingImprovisational learning

Distributed reflexivity

Affirmative TopicFraming

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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—44 new countries

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)

0

50

100

150

200

250

300

350

198

31

984

198

51

986

198

71

988

198

91

990

199

11

992

199

31

994

199

51

996

199

71

998

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

100

EB

ITD

A (

$'s

in M

illio

ns)

EBITDA Sales

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Barely Scratching the Surface

Sustainable value is a huge creative opportunity

Interactive design in configurations of the whole

brings out the best in human beings

Moving into “the ever expanding domain of relatedness”

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Collaborative Designing in Unexpected Places

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… Design 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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Each Network Created A Sustainable Pathway

Today’s Today’s Business Business PracticesPractices

SustainableSustainableBusiness Business PracticesPractices

Sustainable Pathway

Sustainable Pathway

Using competitive forces to create a race to the top

Using competitive forces to create a race to the top

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

Quick Quick WinsWins

Can be Can be implemented implemented with existing with existing technology technology

and business and business modelsmodels

Innovation Innovation ProjectsProjectsRequire Require

technology technology and/or business and/or business

model model innovations innovations

System System ChangeChange““Changing Changing the rules of the rules of the game”the game”

•Focused on Focused on a “win” for a “win” for businessbusiness

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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

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

Consensus on 50% Improvement in Sustainability in First Year

12 major prototype 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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Is Sustainability a Passing Fad?

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OUR DEFINITION:OUR DEFINITION:Providing consumers with the nutritious Providing consumers with the nutritious dairy products they want in a way that dairy products they want in a way that

makes the industry, people and the earth makes the industry, people and the earth economically, environmentally and economically, environmentally and socially better – now and for future socially better – now and for future

generations.generations.

Sustainability in the Dairy Industry

Sustainability Index SummitTaking Action to Address a Global

Imperative…Universities in Parntnership With Business and Society

SavinSaving g people people moneymoney so so they they can can live live betterbetter

July 14-16, 2008July 14-16, 2008

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Imagine the Impact of Sustainability Scorecard

Mature Phase: (Textiles example)Mature Phase: (Textiles example)

SKU specific questions add SKU specific questions add greater level of detail and greater level of detail and insight into specific product insight into specific product performanceperformance

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 and

Hypothetical andillustrativeillustrative

Emphasis moves to product-specific Emphasis moves to product-specific scoring. Product scores roll up to scoring. Product scores roll up to

influence supplier score.influence supplier score.(Up to 1 score per SKU; products of (Up to 1 score per SKU; products of the same profile could be grouped in the same profile could be grouped in

one score)one score)

Emphasis moves to product-specific Emphasis moves to product-specific scoring. Product scores roll up to scoring. Product scores roll up to

influence supplier score.influence supplier score.(Up to 1 score per SKU; products of (Up to 1 score per SKU; products of the same profile could be grouped in the same profile could be grouped in

one score)one score)

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Leveraging the Power of Associations for a New Magnitude of

Socially Responsible Leadership

Leveraging the Power of Associations for a New Magnitude of

Socially Responsible Leadership

What OvationNet’s Technology Made Possible

What OvationNet’s Technology Made Possible

The Summit Design Team WebsiteDesigning the SummitDesigning the Summit

The Summit Design Team WebsiteDesigning the SummitDesigning the Summit

Virtual Roundtables

Virtual Roundtables

Full participants in Day One

Full participants in Day One

Connected LocationsConnected Locations

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The Egalitarian Design of Positive InstitutionsThrough Appreciative Inquiry

Strengths-elevating

Strengths-combining/amplifying

Strengths-extending organizations

WHY is AI Whole SYSTEM APPROACH

POWERFUL? Positive Organizational

ScholarshipBarbara Fredrickson’s Broaden-and-Build TheoryBarbara Fredrickson’s Broaden-and-Build Theory

Jonathan Haight’s Research into “Elevation”Jonathan Haight’s Research into “Elevation”

Wayne Baker’s work on the activation Wayne Baker’s work on the activation

of positive energy networksof positive energy networks

Boyatzis on Resonant Leadership Boyatzis on Resonant Leadership

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1. Elevate-and-Extend2. Broaden-And-Build3. Establish-and-Eclipse

1. Elevate-and-Extend2. Broaden-And-Build3. Establish-and-Eclipse

Theory AI- Positive Change as “Co-Elevation”

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A question about the future of management education and design:If anything imaginable were possible…?

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THE POWER OF APPRECIATION

(3 facts about all human beings)

Exceptionality

Essentiality

Equality of Voice

To Down-load this Slide set go to Case Western Reserve University Sponsor Booth or

http://appreciativeinquiry.case.edu/

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Figure 1: Three Circles for Understanding the Strengths Revolution and the Design of Strengths-based Organizations

The Spirit ofThe Spirit ofAppreciativeAppreciative

InquiryInquiry