12/05/2013

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The Nature of Business: redesign for resilience

Giles Hutchins

12 May 2013 BCI Framework

Measure, Monitor Control, Reduce

‘Incremental Reduction’

Unlocking the creative potential,

empowerment ‘Attaining Positive’

New ways of operating, new

products & mind-sets ‘Reaching Zero’

> 50% of all organisations today will have died by 2020

Metamorphosis

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2010 – 2020: 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

Prof. Michael Porter: ‘the old models of corporate strategy

and capitalism are dead... paradigm shift from hurting to

helping, with externalities turned into opportunities’

The current prevailing business paradigm is no longer fit for purpose

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? 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.’

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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.

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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 2020

2010 reporting P&L for environment and social

100% products ‘considered’ by 2020

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Firm of The Past Firm of The Future

Nature-Inspired Paradigm Shift

Business Nature

linear

Old School

networked systems-thinking

New School

Nature has been dealing with volatility for 3.8bn yrs

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Old New top down

control collective

intelligence

Predictable & Mechanistic Emergent & Empowering

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Firm of The Future Decentralised, distributed, diverse

Economies of scope, multi-functioning

Opportunistic to the landscape & resources

Nature’s Principles

Resilient

Optimizing

Adaptive Values

Led

Life Supporting

Systems Based

Levering disturbance as an

opportunity

Fitting form to function

Sensing and responding

Integrating synergies

Knowing what’s important

Working with Nature

Clarity of deep core values Self, team, community behaviours

Encourage life Net positive good

Dynamic interdependencies Industrial ecology, ecosystem-thinking

www.thenatureofbusiness.org

www.thenatureofbusiness.org

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Multi-layered Shift

Purpose

People

Processes

Products

Places

Measure, Monitor Control, Reduce

‘Incremental Reduction’

Unlocking the creative potential,

empowerment ‘Attaining Positive’

New ways of operating, new

products & mind-sets ‘Reaching Zero’

Emergence: Incremental Change & Radical Transformation Profit Value Shared Value Intrinsic Values

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Real Sustainability is Harmony with Nature

nature

people

economy

business

www.thenatureofbusiness.org

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

www.thenatureofbusiness.org

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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