21st century organization models

Sustainability Learning Guide Instructor/Facilitator Materials

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Sustainable Enterprise Learning Guide Edited by: Catherine Mercer Bing, Jeana Wirtenberg

Chapter 7 Sustainable globalization: the challenge and the opportunity: Using the six lenses for analysis Created by: Victoria G. Axelrod

Victoria G. Axelrod Principal, Axelrod Becker Consulting

New York, NY [email protected]


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TABLE OF CONTENTS

Activity Introduction and Overview.............................................................................................................................................2

Activity Preparation .....................................................................................................................................................................3

Activity 1: Overview of and practice Using the six lenses............................................................................................................4

Activity Measurement ...............................................................................................................................................................14

Follow‐up: Resources/Actions ...................................................................................................................................................14

Activity 2: Why Sustainability is Now the Key Driver of Innovation ..........................................................................................15

Activity 3: Overview of and practice Using the six lenses..........................................................................................................15

Activity 4: Overview of and practice Using the six lenses..........................................................................................................15

Activity 5: Conduct Assessment.................................................................................................................................................16

ACTIVITY INTRODUCTION AND OVERVIEW

Objectives Upon completion of this activity, the learner will/will be able to:

1. Name each of the 6 lenses for sustainable globalization

2. Explain how each of the 6 lenses is interrelated (whole system view) to addressing the complexity of

sustainable globalization

3. Use 6 lenses to assess sustainable globalization in their organization

Activity Length: 90 minutes

Audience Description:

These activities are designed for the undergraduate, or graduate/practitioner level learners. Any level of audience may participate in this activity; however, the more knowledge and sophistication the audience has will influence the depth of the discussion.


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ACTIVITY PREPARATION

Activity Name Overview of 6 lenses for sustainable globalization

Preparation

Checklist

One week in advance of activity:

Re‐read The Sustainable Enterprise Fieldbook, Chapter 7, Sustainable globalization: the challenge and the opportunity

Assign chapter 7 reading to learners. Review slide deck: Sustainable globalization: 6 lenses for every organization Add relevant examples based on current events pertaining to each of the lenses. This may also

be a student assignment to be prepared.

Slide deck may be sent in advance of activity. Day before activity:

AV equipment and internet/web accessibility check.

Flipcharts or whiteboard (electronic). Review slide deck: Sustainable globalization: 6 lenses for every organization

Timing Flow Step 1: Activity set‐up

Step 2: Show slides, following script

Step 3: Go to online 6 lens tool, answer

questions as a demonstration

Step 4: Debrief of results of 6 lens online tool

Step 5: Activity measurement

5 minutes

60 minutes depending on discussion time for various

slides

15 minutes

15 minutes

(Variable) If 6 lenses are adopted by an organization,

an action team project to pursue may take up to

several weeks to complete

Total Time 90 minutes

Pre‐reading

Re‐read: The Sustainable Enterprise Fieldbook, Chapter7, Sustainable globalization: the challenge and the opportunity Assign chapter 7 reading to learners.

Prerequisite(s): Add relevant examples based on current events pertaining to each of the lenses. This may also be a student assignment to be prepared for discussion. Slide deck may be sent in advance of activity for review.


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ACTIVITY 1: OVERVIEW OF AND PRACTICE USING THE SIX LENSES

Sustainable globalization is not an oxymoron. It is a holistic, integrated approach to a world of mass complexity and speed. It is the assumption of the authors that each of 6 lenses is critical for an organization. Knowing the relevance and inter‐relationship of each of the lenses will enable the learner to assess their organization as well as assess commentary about globalization through an integrated or whole systems approach.

This 90 minute activity introduces the 6 lenses and includes an approach to use them for analysis.

Instructor Notes Activity Description

Step1: Activity setup of AV and internet connection. 5 minutes Step 2: Introduction to 6 lenses. Begin slide presentation. 60 minutes

Slide 1

Do: Show slide 1. Add relevant examples based on current events pertaining to each of the lenses. Say: Each of the six lenses are a topic of their own, however in our 90 min together we want to focus on the 6 lenses framework as an integrated whole system, give you time to discuss and some practical tools for assessing where an organization needs to improve its responsiveness to a particular lens. Companies in an “emerging economy” the BRICSAs, Brazil, Russia, India and China, Southeast Asia will have different results from an organization in a developed economy.

Capture on flip chart.

Ask: Who has worked for a company with a sustainability policy, CSR or green initiatives? How many of these companies were thinking about a sustainability policy, CSR or green initiatives? How many of you are looking to work for a company that has incorporated sustainability in to the corporate strategy? Expected Responses:

Answers will vary

Sustainable Globalization AuditSustainable Globalization Audit

Six LensesSix LensesEconomic / financial

• ESG Framework

• Redefining GDP Technology

• Service sector• Leveling the

playing fieldSix Lenses for

Sustainable globalization

Holistic integration

Geopolitical• Governance• Terrorism and

security• Nationalism

vs. tribalism• Democratic

capitalism

Movement of talent

• Migration

• UrbanizationLimits to growth

• Manufacturing sector

• Ecosystems services

• Agribusinesses

Poverty and Inequity

• Bottom of the pyramid

• New market creation

• North-South• CSR

Copyright 2007 V. G. Axelrod, J. Harmon, W. C. Russell, and J. Wirtenberg

Do: Show slide 2. Say: These are the six lenses that we will be talking about.


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Slide 2 Do: Review each lens briefly with participants. Stop for questions, reactions to each lens. Add relevant examples based on current events pertaining to each of the lenses. Say: Sustainable globalization is not an oxymoron. It is a holistic, integrated approach to a world of mass complexity and speed. It is the assumption of the authors that each of these lenses is critical for an organization. In some instances the organization has control of the lens (such as Technology) . In other situations (such as Geopolitical), the organization may only influence, or at minimum, needs to understand their relationship to the lens.

Slide 3

Do: Show slide 3. Say: Integrate Innovation = Sustainability Our organizational challenge is to integrate new behavior that brings about innovation which equals sustainability

Slide 4

Do: Show slide 4.

Say: Let’s do this like speed networking – or what is called an “elevator pitch” – imagine you get into an elevator with someone very influential and you have only the length of a short elevator ride to explain what you want. Turn to your neighbor, get the answers to these questions and then we will do a fast report out. Do: Note: This is doable with large groups in 5 min. max. To keep it short, when debriefing and collecting their answers, only write on the flip charts what they want to know about the sustainable global enterprise.


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Slide 5

Do: Show slide 5 Say: Let me provide some background. Do: Give some context and re: Genesis of the book. Say: This book was published beginning of 2008. Much has happened since then – global financial meltdown, US health care reform process, BP oilrig disaster in US Gulf coast, the Japanese tsunami…

Do: Mention any other notable, recent events… List those on flip charts that you want the learners to use these for 6 lens question exercise.

Slide 6

Do: Show slide 6. Say: TSEF book chapters are inter‐related. However these highlighted in blue are particularly useful for sustainable globalization.

Slide 7

Do: Show slide 7 Say: Focus simultaneously on the People, the Planet, and Profits (Triple Bottom Line) Balancing/integrating social, environmental, and economic factors for optimal short‐ plus long‐term performance


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Slide 8

Do: Show slide 8 Say: Here are two of the most common definitions of societal and business sustainability. They have two aspects in common:

1. Bifocal – both near‐ and far‐sighted. 2. Balanced – balancing pursuit of profit with social responsibility and

environmental stewardship. These definitions reject the premise that social and environmental welfare degrade economic and profit maximization. In fact, it’s argued that in the 21st century interdependent global social and economic system, profit can only be sustained even in the moderate term by strengthening the social and environmental pillars of society and marketplaces.

Slide 9

Do: Show slide 9 Say: Another definition not in TSEF is the following by John Ehrenfeld. What is critical is the interconnected and emergent quality of sustainability. Remember a system is not just the sum total of its parts. Our hearts are a defined part of us, however they only function with the rest of our body. Or when diseased, interfere with the healthy function of our body system.

Slide 10

Do: Show slide 10 Say: What we currently manage and measure with all of our “green and CSR” programs. Think about this … to flourish is really our aspiration what motivates us. We are creative creatures we have been innovating from the cave forward, that is why… Do:


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Turn to the next slide

Slide 11

Do: Show slide 11 Say: Since TSEF came out, the focus of “green and CSR” alone has begun to shift to concepts like of Michael Porter’s Shared Value or the previously mentioned Sustainability = Innovation of Nidumolu and Prahalad. They are endeavors to move us beyond just stopping unsustainable practices toward rethinking business models. Our challenge is to ask leaders to fundamentally rethink how they approach a marketplace need in a manner that serves the triple bottom‐line – one that is sustainable. We have all the skills and tools for this type of change. Here are a few examples of business innovation … Bullet train Japan…designed to reduce wind noise and air pressure following biomimicry http://www.biomimicryinstitute.org/ of the beak of a Kingfisher. Eastgate Building, an office complex in Harare, Zimbabwe and a model of sustainability and biophilia. Impressive Architect Mick Pearce teamed up with Arup Associates to design Eastgate, and it has won numerous awards and been heralded for its innovation and place‐sensitive design. n 2004, SC Johnson became a key supporter in the development and promotion of a formal Base of the Pyramid Protocol™. The idea was to create a step‐by‐step process in which multinational corporations can identify and develop sustainable new products and businesses, working with the base of the pyramid community. By gaining a deep understanding of the consumers and their needs, a company would discover new business opportunities and ways to grow — including the possibility of business partnership with local community members who bring local know‐how and capabilities. The sustainable development profile of the project is threefold: to increase sales with small retailers who serve base of the pyramid consumers and are not as easily served by distributors, use an environmental (lower carbon footprint) mode of distribution, and create local jobs. Understanding Base of the Pyramid http://www.scjohnson.com/environment/creating_11.asp


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Slide 12

Do: Show slide 12 Say: And in the Jan. / Feb. 2011 HBR, Michael Porter and Mark Kramer are advocating a rethinking of capitalism to include society’s needs in order for organizations to thrive. The concept is called shared value. Their idea is that companies need to think beyond say Fair Trade to actually growing the pie larger for all participants in a supply chain. The ITC e‐Choupals for Indian soy bean farmers cited in Chapter 7 under the technology lens represents shared value. The farmers capabilities are improved by the support of ITC providing them access to farming knowledge, supplies and markets at the same time ITC improves their supply chain. Porter’s – the pie is larger for everybody.

Slide 13

Do: Show slide 13

Ask for Comments, Questions, Reactions

Do: This is a good point to take a break in the slides if there have been no questions and ask for reactions, comments, reflections from the group.

Allow them to “buzz” with neighbor for a minute to come up with comments, questions and observations.

Flip chart comments, questions, and observations.


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Slide 14

Do: Show slide 14 Say: Sustainable globalization can be weighty stuff to discuss. Sometimes a little humor makes the point. Although quite serious, the recent (at the time of developing this guide) turn of tables in Tunisia, Libya, Syria and other Mideast nations, exemplifies a groundswell of “base of the power pyramid” upheaval. Equity and social justice, freedom are universally sought.

Slide15

Do: Show slide 15 Say: Climate change is the “smoking gun.” It is the by‐product of our current path. Very few dispute this. Here is some information

Slide 16

Do: Show slide 16 Say: Effects from Global Warming have started. These include: Rising sea levels; shrinking arctic sea ice “The Death of Birth” – destruction of habitat and ecosystems is pushing increasing numbers of species to the brink of extinction Fresh water shortages – 40% of the world (more than 2 billion people) have no access to clean water or sanitation, increasing the spread of disease and risk of epidemics Ecological footprint – humanity’s consumption of resources exceeds the planet’s capacity for regeneration and recovery by 23%... i.e. it takes more than 1 year for the earth to remake and rebalance resources people use up each year. Effects from Global Warming have started ‐ shrinking Arctic sea ice


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Slide 17

Do: Show slide 17 Say: 834 million people are chronically undernourished in developing countries More than 3 billion people live on less than $2 a day The three richest people in the world control more wealth than 600 million people in the poorest countries Eighty of the world’s poorest countries are poorer now than they were 20 years ago

Slide 18

Do: Show slide 18 Say: One in five children in the world gets no schooling whatsoever Global population is expected to increase from 6 billion to 9.1 billion by 2050, with almost all increases in developing countries. At the same time, the balance of young/old is changing. In more developed countries the proportion of older people exceeds that of youths.

Slide 19

Do: Show slide 19 Do: Ask the questions on the slide. Expected Responses:

Benefit – Raise the socio‐economic status and participation of the 4 billion at the base of the pyramid, promote a more inclusive model of democratic capitalism. (See also Shared Value, Porter and Kramer article and Sustainability = Innovation article Nidumolu and Prahalad in activity 2 and 3).

Human behavior is the biggest hurdle


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But our creativity, meaning purpose and inventiveness – innovation are what will pull us in to a new future. Link behavior with innovation. Old 20th century thinking and acting will not create a new future.

Equi‐finality… Many paths are outlined in TSEF.

Slide 20

Do: Show slide 20 Say: What the best companies do. Data from AMA and ISE study. Take the best from The Sustainable Enterprise Fieldbook – the HR strategies and process and couple with … Do: Show next slide

Slide 21

Do: Show slide 21 Say: … the content of innovation using and enterprise or organization innovation focus. Ask: Where is your enterprise along the innovation stages? Where is your enterprise on the HR pyramid? Expected Responses: Responses will vary

Slide 22

Do: Show slide 22 Say: Innovation can take place in any of these 6 lenses and needs to – all infrastructures of the 20th century are failing us.


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Slide 23

Do: Show slide 23 Say: Issue from lens ‐ Technology for all peoples of the world. Innovation stage 4 – fundamentally rethought a PC for a rural environment. For us it is a Netbook or iPad! Google solar farms and their own fleet of cars operating off the extra energy.

Step 3: Online 6 lenses tool assessment. 15 minutes

Slide 24

Exercise of Activity: Optional: Organizational use: If this workshop is for an organization: each group takes a lens and determines how well their organizations perform against that lens. As a baseline, members of the organization complete the assessment at: http://www.toolpack.com/axelrod/try6.php Results are displayed immediately.

Do: Show slide 24 Do: Depending on the size of the class or group, divide into 6 groups.

Do: Classroom use: If used in a classroom: Select an organization as a case example. Create 6 groups. Each group assesses the chosen organization through one of the 6 lenses. 15 minutes for assessment. 15 minutes for debrief. As a baseline, a member of each group completes the lens assessment together at: http://www.toolpack.com/axelrod/try6.php Results are displayed immediately.

Step 4: Debrief Assessment

Ask: How does the selected case company perform against the five stages

presented in Nidumolu, Ram; Prahalad, C. K.; Rangaswami, M. R., Why sustainability is now the key driver of innovation. Harvard Business Review, Vol. 87 Sep2009, Issue 9, p56‐64. Or for a company Ask:


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ACTIVITY MEASUREMENT

Type of measurement:

Organizational use:

Results from the groups assessment of their company using the 6 Lens Tool may create an opportunity for the organization

to design an action project to improve their performance in one or more of the lens domains. A group may also choose to

develop additional questions to analyze a len(s) in more depth.

Classroom use:

Based on the initial 6 lens assessment of a company, groups may decide to develop a full case over several weeks of a

course.

(Optional Activity). A group may also choose to develop additional questions to analyze a len(s) in more depth.

FOLLOW‐UP: RESOURCES/ACTIONS

1. The Sustainable Enterprise Fieldbook

2. www.sustainableenterprise.ning.com Sustainable Enterprise Network

3. http://open‐sustainability.org/wiki/WSE Wikisourcing Sustainabe Enterprises

4. 21st Century Organization http://c21org.typepad.com

5. Six Lens Tool http://www.toolpack.com/axelrod/try6.php

6. Porter, Michael E.; Kramer, Mark R., Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review, Vol. 89 Jan/Feb2011, Issue 1/2, p62‐77

How does your company perform against the five stages presented in Why sustainability is now the key driver of innovation? Expected Responses: Answers will vary depending on the organization assessed.

Optional Activity Optional Activity: Create additional questions for each of the 6 lenses and add them to the wiki. Questions will be evaluated and added to the 6 Lens Tool at http://www.toolpack.com/axelrod/try6.php


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ACTIVITY 2: WHY SUSTAINABILITY IS NOW THE KEY DRIVER OF INNOVATION

Reading:

Nidumolu, Ram; Prahalad, C. K.; Rangaswami, M. R., Why sustainability is now the key driver of innovation. Harvard Business Review, Vol. 87 Sep2009, Issue 9, p56‐64

http://hbr.org/2009/09/why‐sustainability‐is‐now‐the‐key‐driver‐of‐innovation/ar/1 Article will need to be purchased for class distribution. Organizations and educational institutions with online subscriptions can access. Often large public libraries with online periodical databases allow for personal downloads as well. Do: Show Slide #21 from Sustainable Globalization: 6 Lenses for every Organization refers to 5 Stages of sustainable Innovation. Have learners read and discuss.


Do: Assign learners to go to Wikisourcing Sustainable Enterprises (WSE) at http://www.open‐sustainability.org/wiki/WSE and add in a real company profile or person who exemplifies one of the Nidumolu/Prahalad five stages of sustainable innovation. Have them print out a copy and turn it in as an assignment


Do:

Show or ask learners to watch video of Michael Porter Interview with HBR on Creating Shared Value or rethinking capitalism – a bold thought, however what less is demanded of a sustainable future! Porter, Michael E.; Kramer, Mark R., Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review, Vol. 89 Jan/Feb2011, Issue 1/2, p62‐77

http://www.fsg.org/tabid/191/ArticleId/241/Default.aspx?srpush=true Registration with name and organization is required. Do this before working with a group to facilitate easy access. Reading:


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Porter, Michael E.; Kramer, Mark R., Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review, Vol. 89 Jan/Feb2011, Issue 1/2, p62‐77

Do:

Discuss with group after viewing video and reading article. Flip chart reactions, observations comments.

ACTIVITY 5: CONDUCT ASSESSMENT

Do:

Assign learners (in groups) to choose an actual company facing sustainability challenges such as FIJI Water and have them work together to apply Porter and Kramer’s approach to resolution. Resources: Example page from FUJI case study is on the wiki from a French MBA student in the joint ISM, Paris – St. John’s University, Peter J. Tobin College of Business.

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