malik responsible soy syntegration

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© Malik 2016 © Malik System-cybernetic Malik ManagementSystems ® for mastering complexity Malik SuperSyntegration®, St. Gallen, January 26 – 29, 2016 Round Table on Responsible Soy - Malik Institute “100% Responsible Soy in Europe” February 15, 2016 Lic. Oec. Jens Ostergaard Organizer Dr. Constantin Malik Organizer, Exploration Team M.A. Econ. Maria Sourlas Lead Exploration Team Dipl. Oec. Josef Coellen Lead Exploration Team Dr. Christiane Gebhardt Exploration Team M.A. Jan Fischer Exploration Team Dr. Nam Nguyen Exploration Team Prof. Dr. Ockie Bosch Exploration Team

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Page 1: Malik Responsible Soy Syntegration

© Malik 2016 © Malik

System-cybernetic

Malik ManagementSystems®

for mastering complexity

Malik SuperSyntegration®, St. Gallen, January 26 – 29, 2016

Round Table on Responsible Soy - Malik Institute

“100% Responsible Soy in Europe”

February 15, 2016

Lic. Oec. Jens Ostergaard Organizer

Dr. Constantin Malik Organizer, Exploration Team

M.A. Econ. Maria Sourlas Lead Exploration Team

Dipl. Oec. Josef Coellen Lead Exploration Team

Dr. Christiane Gebhardt Exploration Team

M.A. Jan Fischer Exploration Team

Dr. Nam Nguyen Exploration Team

Prof. Dr. Ockie Bosch Exploration Team

Page 2: Malik Responsible Soy Syntegration

Topics Overview

© Malik 2016

© Malik

Summary Contents

page 2 © Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik.

© Malik 2016

This document, its content and the methods and concepts implemented in this document are protected by copyright laws,

trademarks and design rights of Malik. Any unauthorized use of this document, its content or the methods and concepts

implemented in this document will be considered a violation of Malik’s intellectual property rights. Unless otherwise stated in

this document, neither this document nor its content nor the methods and concepts implemented in this document may be

copied, distributed, published or used in any way, in whole or in part, without prior written consent of Malik.

Privileged Customer Content: All content of this document is for internal use only of RTRS and the participants of the

Responsible Soy Malik SuperSyntegration® January 2016.

Page 3: Malik Responsible Soy Syntegration

Topics Overview

© Malik 2016

© Malik

Summary Contents

page 3 © Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik.

On September 25th, 2015, 193 World Leaders committed to 17 Global Goals

to reach 3 crucial objectives towards a better world: End poverty, halt climate

change and fight injustice and inequality. This is the biggest attempt in the

history of the human race to make the world a better place.

On January 26th, 2016, 31 experts representing 26 organizations committed to

the “Responsible Soy Initiative” came together in Switzerland to make their

contribution towards these 3 objectives.

Their Goal: “100% Responsible Soy in Europe”

Page 4: Malik Responsible Soy Syntegration

Topics Overview

© Malik 2016

© Malik

Summary Contents

page 4 © Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik.

Content

1. Introduction page 5

2. Syntegration® results “100% Responsible Soy in Europe” page 14

Result 1: Transformation Initiated page 15

Result 2: Topics and Measures page 18

Result 3: Reflection 1 - based on the Malik Sensitivity Model page 29

Result 4: Reflection 2 - based on the Malik Viable System Model page 41

Result 5: Reflection 3 - based on the Malik Culture of Functioning Model page 48

Result 6: Reflection 4 - based on the Malik Navigation System page 58

Result 7: Effective Implementation via the “Transformation Navigation Hub” page 61

Page 5: Malik Responsible Soy Syntegration

page 5 April 1, 2016 © Malik

Summary Contents Topics Overview

1. Introduction and Executive Summary

“What do we have to do, with our stakeholders or all together, to

achieve 100% responsible soy products for food, feed and other

applications into and inside Europe by 2020?”

Page 6: Malik Responsible Soy Syntegration

Topics Overview

© Malik 2016

© Malik

Summary Contents

page 6 © Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik.

“100% Responsible Soy in Europe” This result report is a navigational instrument for the strategic and operative project management

This report contains the results of the participants and the Malik Exploration Team.

At the same time it provides useful insights for implementation and instruments

implementation control via a Transformation Navigation Hub (TNH).

1. Executive Summary

Overview of the result highlights (2 pages, blue slides)

Summary of in depth results (7 pages, green slides)

2. Results

Overview and highlights of the participants’ results

Reflections by the Malik Exploration Team

3. Appendix

Compilation of results of the participants

Page 7: Malik Responsible Soy Syntegration

Topics Overview

© Malik 2016

© Malik

Summary Contents

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31 experts shaping Europe‘s future towards responsible soy

Malik Institute, St. Gallen January 26-29 2016

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© Malik 2016

© Malik

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31 experts from 26 organizations contributed to the results Among them …

Page 9: Malik Responsible Soy Syntegration

Topics Overview

© Malik 2016

© Malik

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Start of fundamental change Syntegration = Synergy + Integration

31 experts participated in a Malik SuperSyntegration® event, which took place in

St.Gallen, Switzerland, from January 26 – 29, 2016. The goal was to collectively

master the challenge of achieving 100% responsible soy products in Europe by

2020. The results are documented in this report. The event took place based on the

initiative of Olaf Brugman, President of the RTRS.

The Malik SuperSyntegration® method used the collective knowledge of 31

experts. Compared to conventional methods, this process is 80 times as effective

and reduces the time invested by roughly 90%. What lies beneath is a novel

communication technology which coordinates the participants in such a way that

their knowledge, intelligence and creativity as well as their motivation is optimally

brought together in a vivid interaction to generate the best solutions for the opening

question. Already at the initial phase of the transformation process the participants

showed an impressive performance in generating a solution within the challenge at

hand under the guidance of the Malik team.

The Malik Exploration Team provides the system-cybernetic management

methodology and toolset needed for organizations to function under ultimate

complexity conditions in times of fundamental change. It helps determining the

current position, navigating the transition, and identifying the appropriate next

steps. Altogether, the Malik SuperSyntegration is a powerful social technology

designed to help transform.

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© Malik 2016

© Malik

Summary Contents

page 10 © Malik 2016. All rights reserved. Publication and distribution only with explicit consent of Malik.

Results on three levels

The Malik SuperSyntegration® method leads to results on three levels simultaneously:

1. On the operational level

Delivers optimal solutions for resolving the challenge posed by the Opening Question.

2. On the socio-cultural level

Ensures a common understanding and commitment around the developed solutions and

creates a robust pioneering spirit towards implementation. A first mindset change much required

to push the transformation forward becomes visible.

3. On the implementation level

Development of a master implementation plan controlled by a cybernetic “Transformation

Navigation Hub” ensuring effective and efficient implementation.

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© Malik 2016

© Malik

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The fundamental challenge: The Great Transformation of the Soy Industry

Responsible Soy

Soy Industry Today

Opening Question

“What do we have to do, with our

stakeholders or all together, to achieve 100%

responsible soy products for food, feed and

other applications into and inside Europe by

2020?”

Evo

lutio

na

ry p

ath

of re

leva

nt syste

ms a

sp

ects

Past

Today

Future Time

Optimal path of

development

Foundations of future existence

Foundations of present existence

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Executive Summary: 7 results at a glance (1/2)

1. The platform for “Responsible Soy” has been ignited.

The participants created breakthrough insights on how “Responsible Soy” can be fully achieved in

Europe through strategic collaboration, a common purpose and a governance structure.

2. The 12 most important challenges have been identified within which 34 measures have

been worked out.

Through the Syntegration method, the knowledge and ideas of the individual participants was

integrated in in such a way that a common starting ground with concrete initiatives towards solving

the opening question was developed in just 3.5 days.

3. The strong interconnection of subjects and measures calls for system-cybernetic

navigational methods.

The system reacts slowly. This is why a multitude of control levers have to be moved

simultaneously to advance the necessary transformation. Conventional management methods are

not effective enough for controlling the implementation, which calls for new knowledge and tools

from system cybernetics.

4. Only a “coalition of the able and willing” can turn the current reality of the soy industry

into the envisioned future.

Transforming today’s reality - a growing, lucrative soy industry will require effort from within and

outside the current system; a “coalition of the able and willing”. To mobilize such a coalition

placing the initiative within the bigger context of a sustainable world might prove helpful. Once the

network has been activated, it will require a governing body with a clear purpose to which all of the

relevant stakeholders can commit.

R3

R2

R1

R4

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Executive Summary: 7 results at a glance (2/2)

5. Culture eats strategy for breakfast! Common purpose and will for action can only be found

in the MSS® Initiatives

Strong individual values, diverse interests and expert knowledge characterize the “Responsible

Soy Community”. For the joint initiative to be successful, cultural change will be necessary. A

common agreed on inclusive purpose behind which everyone can commit will be the strongest

lever from a cultural point of view. It will trigger acceptance, a sense of accountability and trust

which at the moment are critically low.

6. Strategy is the blind spot in the “Responsible Soy Community”

To get a full strategic picture, two strategic issues must be discussed for the “Responsible Soy

Initiative”: a) The influence of substitution and b) The influence of disruptive strategies. Additionally

one could observe in the discussions that each organization within the community is following their

individual strategy. An alignment of these various strategies would be necessary so as to

concentrate the strategic power in a focal point.

7. Effective implementation through the “Transformation Navigation Hub” (TNH)

Conventional implementation methods often fail, especially when dealing with a network of

different stakeholders across industries. To safeguard implementation, central coordination is

crucial. A TNH can act as a governing body providing custom-designed solution labs for each of

the identified measures.

R7

R5

R6

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page 14 April 1, 2016 © Malik

Summary Contents Topics Overview

2. Syntegration® results in detail

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Result 1

The platform for responsible soy has been ignited

1. In just 3.5 days the Syntegration changed the participants’ perspective dramatically.

This led to a more realistic viewpoint of the challenge at hand in terms of the

feasibility of the developed action points.

2. The method facilitated the participants to create breakthrough insights on how

“Responsible Soy” can be fully achieved in Europe - especially by creating deeper

insights into options for strategic collaboration and awareness how we can steer and

develop a network of organizations around a common purpose.

3. Syntegration therefore, is already part of the inclusive and non-hierarchical

governing mechanism needed to make this network effective.

4. 34 key action points were developed; “more than any other method could have

provided”.

5. Forming a “coalition of the able and willing” will be key to push implementation of the

key action points forward.

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The Syntegration changed the participants’ perspective

1. Focus on crops 1. Focus on crops … value proposition of

stakeholders in the value chain

… value proposition of

stakeholders in the value chain

2. Perfection 2. Perfection … stepwise approach, living labs

and lessons learned

… stepwise approach, living labs

and lessons learned

4. Why 4. Why … What and How … What and How

5. Proliferating complexity

of the soy world

5. Proliferating complexity

of the soy world

… stakeholder driven strategic

pathways and pilot initiatives bring

clarity

… stakeholder driven strategic

pathways and pilot initiatives bring

clarity

6. Blockages 6. Blockages … opportunities … opportunities

3. Everything 3. Everything … Focussed … Focussed

7. Defensive 7. Defensive … experimental … experimental

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6 months

100%

Effect

Time

80%

50%

96% of the participants rated the effectiveness of the

Syntegration as „very good“ and „good“.

Conventional methods

Exploration /

Analysis Implementation

control

“100% Responsible

Soy in Europe”

With the Syntegration “100% Responsible Soy in Europe”, 31 participants representing 26 organizations reached a common ground to ignite the responsible soy platform

Implementation is the biggest challenge yet

ahead – it mostly fails if done with

conventional tools.

Supported by a system-cybernetic

“Transformation Navigation Hub” (TNH)

effective implementation can be realized at

maximum speed. 80% of the impact can

be achieved within twelve months.

92% of the participants rated the information and knowledge exchange triggered by

the Syntegration communication technology as „very good“ and „good“.

«Unique, world class tool! Very enriching and insightful.»

«It was a very valuable experience. I felt it has helped to

embed some of the challenges and opportunities the

group has and feels it belongs to all of us.»

«Really inspirational, great atmosphere, fantastic method.»

12 months

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Result 2

The 12 most important current challenges were identified and 34 actions have been jointly developed to address them

1. From hundreds of possible topics, participants have filtered, using a special process,

those 12 that they themselves considered to be the most important in answering the

opening question.

2. 12 optimally formulated working groups have worked in 3 steps on the best possible

solutions to these challenges.

3. For the implementation of these solutions a total of 34 actions have been identified.

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© Malik

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The twelve subjects of the Syntegration = action fields with the Syntegration‘s color codes

Hyperlinks: lead to the results of the according topics in the appendix

Government Engagement: How can we achieve stronger government engagement for responsible soy?

Red

Create Pull: How can we create more pull for responsible soy from the demand side?

Black

Global Mapping: How can we achieve more transparency and a traceable supply base through global mapping?

Orange

Stepwise to Responsible Soy: What steps do we need to take, in order to effectively channel the different responsible soy initiatives towards common goals?

Green

Responsible Soy Alliance: What do we need to do to create a Responsible Soy Alliance that can enhance government & stakeholder engagement most effectively?

Gold

Commodity Collaboration: How can we collaborate more effectively with responsibility initiatives of other commodities?

Silver

Incentives: What can we do to increase the incentives for responsible soy throughout the supply chain?

White

Area Approach: How can an integrated area approach (for soy and other crops) increase the effectiveness of responsible soy monitoring?

Light

blue

Finance as Driver: How can we channel more money to “responsible operations” and thus use finance as a driver?

Brown

Sharing Responsibility: What are the cost drivers for responsible soy and how can responsibility be shared effectively?

Yellow

Deforestation-Free: How can we create synergy with the deforestation-free commitments that are already high on the agendas?

Dark

blue

National Initiatives: What can we learn from successful national initiatives in soy and other commodities, and how can we create effective new national initiatives?

Purple

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Subject Action

Government Engagement

1 Create a narrative and vision to show the need and necessity to work towards responsible

soy

2 Policy Road-Map to 2020 and beyond

3 Create a Task Force for Government Engagement

Incentives

1 Develop financial and long term incentives for Farmers

2 Specific and focused education for the farmers and the farming community

3 Drive a pull market through engagement with retailers, brand manufacturers and food service

providers.

Create Pull

1 Leveraging the retailers/ major brands/ private foodservice in order to create pull

2 Motivate finance sector to be a driver

3 Leveraging public procurement (Part of Action 3, Group: Red)

Area Approach 1 Create a learning network

2 Define the management information system

Global Mapping

1 Develop a Business Case for Global Mapping

2 Develop a Tool

3 Define the Governance

Finance as Driver

1 Use the Banks to drive the Agenda

2 Use input companies to drive the agenda

3 Use Pension Funds as a driver for change

Participants’ twelve priority subjects for transformation and according actions

(The Malik Exploration Team Reflections and the TNH will provide the necessary cybernetic integration for effective implementation)

Red

Black

Orange

White

Light

blue

Brown

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Subject Action

Stepwise to Responsible Soy

1 Determine multi-stakeholder governance

2 Define baseline

3 Define scaling and steps

Sharing Responsibility

1 Create a shared understanding amongst retailers/ key brands/ food service companies of

their embedded soy footprint

2 Display the cost for responsible soy over time during a gradual move to 100% responsible

soy

3 Manage the transition from credit scheme to mass balance scheme

Responsible Soy Alliance 1 Creating a Responsible Soy Alliance

Deforestation-Free

1 Use existing monitoring systems to assess the extent of the problem

2 Money drives the system

3 Developing unproductive and degraded land

4 Government driven land reclamation

Commodity Collaboration

1 Collaboration on European Policy*

2 Collaboration in matching production systems

3 Share resources on market outreach

National Initiatives

1 Complete success factor list

2 Elaborate a national initiative matrix for responsible soy

3 Set-up meeting with identified leaders in countries to sound possible interactions

Gold

Silver

Yellow

Dark

blue

Purple

Green

Participants’ twelve priority subjects for transformation and according actions

(The Malik Exploration Team Reflections and the TNH will provide the necessary cybernetic integration for effective implementation)

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Final group presentations on the twelve action fields

Government Engagement: How can we achieve stronger government engagement for responsible soy?

Red Incentives: What can we do to increase the incentives for responsible soy throughout the supply chain?

White

Source: Results Presentations by the Participants

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Final group presentations on the twelve action fields

Create Pull: How can we create more pull for responsible soy from the demand side?

Black

Area Approach: How can an integrated area approach (for soy and other crops) increase the effectiveness of responsible soy monitoring?

Light

blue

Source: Results Presentations by the Participants

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© Malik 2016

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Final group presentations on the twelve action fields

Global Mapping: How can we achieve more transparency and a traceable supply base through global mapping?

Orange Finance as Driver: How can we channel more money to “responsible operations” and thus use finance as a driver?

Brown

Source: Results Presentations by the Participants

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© Malik 2016

© Malik

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Final group presentations on the twelve action fields

Source: Results Presentations by the Participants

Stepwise to Responsible Soy: What steps do we need to take, in order to effectively channel the different responsible soy initiatives towards common goals?

Green

Sharing Responsibility: What are the cost drivers for responsible soy and how can responsibility be shared effectively?

Yellow

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Final group presentations on the twelve action fields

Source: Results Presentations by the Participants

Responsible Soy Alliance: What do we need to do to create a Responsible Soy Alliance that can enhance government & stakeholder engagement most effectively?

Gold

Deforestation-Free: How can we create synergy with the deforestation-free commitments that are already high on the agendas?

Dark

blue

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Topics Overview

© Malik 2016

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Final group presentations on the twelve action fields

Commodity Collaboration: How can we collaborate more effectively with responsibility initiatives of other commodities?

Silver

National Initiatives: What can we learn from successful national initiatives in soy and other commodities, and how can we create effective new national initiatives?

Purple

Source: Results Presentations by the Participants

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Responsible Soy Alliance Responsible Soy Alliance

Most topics that were developed and worked on during the Syntegration support the transition to the future responsible soy system

Evo

lutio

na

ry p

ath

of syste

ms p

ara

me

ters

Past

Today

Future Time

Government Engagement Government Engagement

Incentives Incentives

Create Pull Create Pull

Area Approach Area Approach

Finance as Driver Finance as Driver

Global Mapping Global Mapping

Stepwise to Responsible Soy Stepwise to Responsible Soy

Commodity Collaboration Commodity Collaboration

National Initiatives National Initiatives

Deforestation-Free Deforestation-Free

Sharing Responsibility Sharing Responsibility

Optimizing

«Running to the limit» of

the current system on the

red curve

Setting up the New

Timely setting up of the future system

on the green curve

Transitional strategy

Transition from the present to the

future – re-routing resources

Topics Topics

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Result 3

Reflection No. 1 - based on the Malik Sensitivity Model® Malik System-Cybernetic Exploration Team

The strong interconnection of topics and actions calls for system-cybernetic navigation methods

1. The system “Responsible Soy” is rather slow moving. Therefore, the transformation

can only be effective, if it is initiated simultaneously in all the right places within

the system.

2. Therefore, conventional management methods are not effective enough for

implementing the actions. It requires new knowledge and new tools for coping

with complexity.

3. Awareness of the complexity is there, but the necessary tools for coping with it seem

to be lacking. Special modelling methods exist, which are part of the Malik

Management System® and can be learnt fast and applied effectively.

4. Based on the modelling, Impact- and Risk-Maps can be used to develop and steer

the system “Responsible Soy” in a controlled way.

5. The 34 proposed actions affect the system in very different ways. It is vitally

important to implement the right combination of actions, in the right order and

intensity. These are also reflected through the system-cybernetic methods.

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Sensitivity Model 1 The 12 subjects of the Syntegration “100% Responsible Soy in Europe”

Colors of the topics in the Syntegration

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… and how they are interconnected. Systemically tackling all topics will effectuate 100% responsible soy in Europe

Colors of the topics in the Syntegration

System facts:

12 Variables (=topics)

42 Interrelations

296 Feedback loops

(=reinforcing loops)

System facts:

12 Variables (=topics)

42 Interrelations

296 Feedback loops

(=reinforcing loops)

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Sensitivity Model 2 The system “Responsible Soy” (RS) with regard to the Opening Question of the Syntegration

The color of each variable correlates with its position in the Impact Map.

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Level of complexity of the entire supply chain (SC):

- Number of SC actors and necessary intensity of interaction of different actors

- Degree of change in the SC environment; e.g. changing regulations

Effectiveness of monitoring the responsible soy (RS) system:

- Effective certification and verification processes

- Effective application of monitoring systems and methods; e.g. area approach

Incentives for SC actors (incl. consumer) to go for RS:

- At each stage of the supply chain

- Different types of incentives; e.g. financial, legal, sourcing security, climate change, etc.

Desire to go for RS by SC actors:

- Pull from the demand side: consumers, retailers, traders, etc.

- Created by various benefits, incentives, etc.

Effective communication, convincing different players and the general public of RS benefits:

- Reaching out to relevant stakeholders, using various channels of communication

- Joint communication with other responsibility initiatives

Level of awareness of RS of all players and the general public:

- The players understand the benefits of RS, incl. ethical considerations

- Achieved by effective communication and education

Level of engagement for RS by SC actors:

- Buying RS

- Joining RS initiatives and promoting RS in a wider circulation: political, society, etc.

Level of engagement for RS by governments and governmental institutions:

- Joining RS initiatives and raising RS issue in political discourse

- Legal regulations for RS (- buying RS for governments’ canteens, schools, etc.)

Availability of funding for RS activities:

- Different types of loans for farmers, traders, retailers, initiatives, technical innovation, etc.

- Effective risk assessment for RS investments

- Funding from different sources

Sensitivity Model 2 – description of variables (1/2)

The color of each variable correlates with its position in the Impact Map.

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Cost for all direct and indirect components of RS:

- Social responsibility, environmental protection

- Certification, verification, monitoring, communication

Clarity what RS is and can be:

- Definition of RS and transparency about different definitions

- Different sets of RS criteria by different schemes, possibility to easily compare different criteria

Level of collaboration of RS players:

- SC Actors and alliances among different stakeholders and schemes

- Governments and governmental institutions: EU, international trade associations, etc.

Effectiveness of RS strategies leading the RS system in a common direction:

- May include different specific definitions of RS, though the general direction is agreed upon

- Including quality of strategic radar: ability to also see the Green Curve of RS

Effectiveness of RS governance as a viable system:

- Functioning governance: the RS system is able to set and fulfill its objectives, adapt to a changing

environment, effectively include relevant players, and to self-organize

Effectiveness of management for achieving results:

- Within each actor's organization, of the RS system as a whole, and of the different types of RS

initiatives and collaborations

Level of RS:

- Percentage of responsible soy into and within the EU

Negative impact of soy industry:

- Environmental impacts, including deforestation, water resource depletion, etc.

- Social impacts - financial losses; e.g. by over-production of RS

Innovative solutions for the soy industry:

- Technical innovations for higher yields per hectare or in the supply chain: logistics / processing

- Management innovation within the RS system

Level of transparency:

- Openness of information related to RS certification and verification, enabling risk management

Sensitivity Model 2 – description of variables (2/2)

The color of each variable correlates with its position in the Impact Map.

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Sensitivity Model 2 19 key variables and their invisible feedback loops

The color of each variable correlates with its position in the Impact Map.

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Having a holistic understanding of the system is crucial before taking action

Interpretation:

1. The system is strongly

interconnected (degree

of networking 3.32 =

32% more than

average).

2. There are more

stabilizing than

reinforcing feedback

loops. This means the

Responsible Soy

System is rather slow

to move.

3. Though, there are

several short and

quickly reacting

reinforcing feedback

loops, e.g. 141214,

131413, 4164.

They can activate the

system, if the variables

are functioning

properly.

Interpretation:

1. The system is strongly

interconnected (degree

of networking 3.32 =

32% more than

average).

2. There are more

stabilizing than

reinforcing feedback

loops. This means the

Responsible Soy

System is rather slow

to move.

3. Though, there are

several short and

quickly reacting

reinforcing feedback

loops, e.g. 141214,

131413, 4164.

They can activate the

system, if the variables

are functioning

properly.

System Facts:

19 Variables

63 Interrelations

1874 Feedback loops

a) 981 stabilizing

feedback loops

b) 893 reinforcing

feedback loops

System Facts:

19 Variables

63 Interrelations

1874 Feedback loops

a) 981 stabilizing

feedback loops

b) 893 reinforcing

feedback loops

Confirming effect: The more/less, the more/less

Opposing effect: The more/less, less/more The color of each variable correlates with its position in the Impact Map.

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Effective Governance is the most essential variable for moving the system

System diagnosis:

If the variable “Effective

RS Governance” is

deactivated, the number

of reinforcing feedback

loops is reduced to 12%

(114 instead of 893).

System diagnosis:

If the variable “Effective

RS Governance” is

deactivated, the number

of reinforcing feedback

loops is reduced to 12%

(114 instead of 893).

The color of each variable correlates with its position in the Impact Map. Confirming effect: The more/less, the more/less

Opposing effect: The more/less, less/more

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How to control the system? The Impact/Risk Map Overcome the inert state of the “Responsible Soy” System with effective interventions

No. Variable name

1 Complexity of Supply Chain

2 Effective RS Monitoring

3 Incentives for RS

4 Pull for RS

5 Effective RS Communication

6 Awareness of RS

7 SC Actors Engagement

8 Government Engagement

9 Availability of Funding

10 Cost of RS

11 RS Clarity

12 Collaboration

13 Effective RS Strategy

14 Effective RS Governance

15 Managerial Effectiveness

16 Level of RS

17 Negative Impact

18 Innovative Solutions

19 Transparency

1. 15 “Managerial Effectiveness”, 14 “Effective RS Governance”,

and 11 “RS Clarity” are the most effective levers to initiate

change in the system.

2. 7 “Supply Chain Actors Engagement” and especially

12 “Collaboration” are critical accelerators. A change in

collaboration can have a strong effect on the system; but this

variable is also strongly influenced by the system. In order to

achieve effective collaboration, it requires simultaneous

intervention from various angles in the responsible soy system.

3. 1, 2, 5, 6, 8, 9, 10, 13, 18 and 19 are self regulators. They can

be used for implicit control. If the system is activated, they help to

stabilize it.

4. 3, 4, 16 and 17 are indicators. The intended status will result

from effective interventions in the active part of the system.

Directly influenceable levers

(explicit system control)

Indicators

Self regulators

(implicit control)

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Accumulated effect Single effect1 of 12 (=35%) of the 34 actions, which

account for 50% of the total systemic impact.

Single effect1 of the further 10 measures, which account for an

additional 30% of the total systemic impact, together =80%.

Rela

tive s

yste

m-c

ybern

etic

eff

ect accum

ula

ted

Rela

tive s

yste

m-c

ybern

etic

eff

ect per

action

1) System-cybernetic

effect = percental effect

of each action on the

overall system compared

to effect of all actions.

64% of the actions equals 80% of the change effect within the Responsible Soy System Create a “Responsible Soy Alliance” and “Determine Multi-Stakeholder Governance” have the greatest systemic impact

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Complex systems are counterintuitive Ordinary rankings are in many cases drastically misleading as compared to a systemic diagnosis

The prioritization by the participants is focusing on initiatives, which according to our

systemic diagnosis will not have the desired effect, and thus will not bring about change.

But it may even destroy the whole system…

Systemic Impact Prioritization by Participants (final visual applause after 3rd iteration)

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Result 4

Reflection No. 2 - based on the Malik Viable System Model® Malik System-Cybernetic Exploration Team

Only a “coalition of the able and willing” can turn the current reality

of the soy industry into the envisioned future

1. The “Responsible Soy Initiative” is an attempt to transform today’s reality of the

soy industry (red curve) towards a more sustainable future (green curve).

2. Changing such a growing and lucrative industry requires effort from within

and outside the current system. Thus, only a “coalition of the able and willing”

could turn that current reality around. To form this coalition, we suggest:

a. Placing today’s soy industry and the “Responsible Soy Initiative” within the

“Sustainable World” context - this will put the initiative onto a globally

accepted agenda.

b. Making the “Responsible Soy Initiative” viable and effective – this will provide

todays’ lose and scattered network of the initiative with a governing

structure steering towards one common purpose.

3. The participants of the Syntegration recognized the importance of governance. One

crucial question though – was consciously left unanswered; at the very core of

a coalition: what is the purpose of the coalition?

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How to transform today’s successful reality into a sustainable tomorrow Seeing the bigger picture: Placing the soy industry in the context of a “burning platform”

1. The Syntegration has brought together representatives from various organizations dedicated to one common cause: “100%

Responsible Soy in Europe”.

2. From a systems perspective this endeavor can be looked at as follows:

i. What is the current system; the reality we are trying to change?

ii. What is the envisioned system; the new reality we are trying to create?

iii. How can our envisioned system reach the desired maturity level; a viable system status?

3. As the current system as such - todays’ soy industry -

is very successful and viable, the system will not

mobilize itself towards that change. So, how can we

embark such a successful system on a transformative

journey?

4. The answer can only be found by placing today’s soy

industry within the “Sustainable World” context.

5. This provides a rationale so as to why the change is

necessary, and places the “Responsible Soy Initiative”

into the context of a globally accepted initiative; an

existing “burning platform” much needed to mobilize

the system into the desired direction.

6. To understand what must happen for this

transformation to succeed it is helpful to look at the

soy industry from a holistic systems perspective.

7. For this we would like to introduce the Viable System

Model® (VSM®).

ii

iii

i

“Sustainable World” = to be understood in the context

of the “Global Goals for a more Sustainable World” initiative.

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Derived from the human nervous system, the most developed regulatory mechanism for the mastering of complexity, and based

on systems theory and cybernetics, the VSM comprises all the necessary and sufficient pre-conditions for the viable functioning

of any system. It is thus the only and most adequate reference model for complex systems diagnosis and design.

The Malik Viable System Model® (VSM®)

Using a cybernetic control model as a framework for systems design

The Viable System Model

Every system needs an identity-forming function providing its purpose and values. It

guards the balance and manages the transition between the present and future state of the

system.

To safeguard long-term viability, an outside & then perspective is required. This strategic

intelligence function is in constant dialogue with the overall system environment, gathering

and processing relevant information to build up future success potentials.

The operative functioning presupposes an inside & now perspective of the present state of

system. Via operative control mechanisms maximal effectiveness and efficiency within the

sub-systems can be ensured.

For the present system not get out of control, it is balanced via (self)-coordination

mechanisms. They foster a desired level of collaboration and information exchange

between the sub-systems.

Real-life feedback mechanisms provide the inside and now function with unfiltered

information by feeling the pulse of the current system at all times.

The sub-systems produce the desired output, ensuring maximum value towards the systems’

relevant environment (customers, society, ..). This requires a close dialogue with the

respective environment to keep up with its changing demands.

In order to permit for self-coordination, the sub-systems are designed such that they

can maintain the highest possible level of autonomy. This is ensured via the principle of

recursion, which applies the same principles of viability on all systems levels.

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Moving the system from red to green The “Responsible Soy Initiative” as an outside & then function of today’s soy industry

1. From a VSM perspective the organizations

represented by the participants of the

Syntegration have their own identity with their

own individual purpose and values. What they

have in common within this identity, however, is

a felt obligation towards a more sustainable

world within the soy context.

2. It is this common vision, to transform the reality

of today’s “Soy Industry System”, that brought

them together. Individual actions can only touch

certain angles of the system - moving the

system will take joined efforts.

3. In terms of the VSM, thus, the entire

“Responsible Soy Initiative” - and the

Syntegration that took place - takes an outside

& then perspective on today’s soy industry

system. It asks the question of how the future of

soy might look, what the green curve could be

and how this could be achieved.

4. If the “Responsible Soy Initiative” proves

successful, a new reality will arise; a new viable

responsible soy industry system will emerge and

replace today’s reality.

5. On the following slides we reflected the

discussions and the “Responsible Soy Initiative”

a bit more deeply based on the VSM logic.

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Reflecting the participants’ actions on the VSM framework The outside & then function of the “Responsible Soy Initiative” becomes visible

Reflecting the participants' discussions and mapping the

respective actions on the VSM in terms of the VSM-

Functions they address, we can observe that …

1. … the discussions support our preceding remarks

that the initiative is fulfilling an outside & then

function for the entire Soy Industry.

2. … the initiative requires the engagement of actors

within and outside the Soy Industry for it to work.

AS-IS Soy Industry AS-IS Soy Industry

Fin

an

cin

g t

he

Sys

tem

F

ina

nc

ing

th

e S

ys

tem

E

nd

Us

er

En

d U

se

r

Go

ve

rnm

en

t G

ove

rnm

en

t

NG

Os

N

GO

s

Responsible Soy Alliance Responsible Soy Alliance

Government Engagement Government Engagement Incentives Incentives

Create Pull Create Pull Area Approach Area Approach

Finance as Driver Finance as Driver Global Mapping Global Mapping

Stepwise to Responsible Soy Stepwise to Responsible Soy

Commodity Collaboration Commodity Collaboration National Initiatives National Initiatives

Deforestation-Free Deforestation-Free

Sharing Responsibility Sharing Responsibility

Re

taile

rs

Re

taile

rs

3

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Effectuating Collaboration to manage the transition from the red to the green curve The “Responsible Soy Initiative” as a temporary Viable System Model (VSM)

1. Based on the two foregoing observations and keeping in

mind the fact that the VSM comprises all the necessary

and sufficient pre-conditions for the viable functioning of

any system, the following thought surfaces: for the

initiative to be viable in fulfilling its purpose, it has to be

considered as a viable system in its own right.

2. Looking at it in this way allows to detect which functions

and cybernetic control mechanisms are already in place

and which have yet to be built up.

3. Thus, the governance mentioned by the participants and

throughout our reflections is not to be equated with some

kind of “authority”. All of the above can be realized by

mechanisms that are inclusive, non-hierarchical and

self-organizing.

4. This is especially true as many - if not all of the topics -

addressed in the Syntegration can only be achieved

by effective collaboration of the stakeholders of the

“Responsible Soy Initiative”; the engagement of

actors within and outside the Soy Industry. Group Gold

explicitly called for the establishment of a Soy Alliance

as an action. Such an alliance would serve as a kind of

inclusive governing platform.

5. And when the “Responsible Soy Initiative” will have

fulfilled its purpose, transforming the soy industry into a

responsible soy industry it will no longer be necessary.

System in Focus System in Focus

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Diagnosing the “Responsible Soy Initiative” in terms of its viability

1. The discussions raised some questions around the viability of

the “Responsible Soy Initiative”. The answers remained largely

vague:

2. One of the twelve topics – group green – was dedicated to the

question “what does responsible soy mean?” This question

is pointing at the very essence of the initiative; its purpose.

3. The participants decided that there need not be one common

definition. How can we ensure the commitment of the required

actors within and outside the soy industry – how can we form

a “coalition of the able (= the ones that can bring about

change) and willing” in light of a vaguely defined

purpose?

4. Recalling a viable system needs an identity-forming function

providing its purpose and values; can a viable system allow

for multiple interpretations around its very purpose?

5. Could this explain what became clear in the discussions; that

at the moment the “Responsible Soy Initiative” presents itself

as a loose network without “government”; a collection of

initiatives and ideas?

6. Could this also explain another fact; that the participants

were reluctant and vague around the question of

responsibility and accountability - their only partial

commitment behind the measures / initiatives they

suggested themselves? System in Focus:

The “Responsible Soy Initiative”

System in Focus:

The “Responsible Soy Initiative”

Projects and Initiatives

Projects and Initiatives

Governance

Governance

Red

Black Orange

Green Gold

Silver White Light

blue Brown Yellow

Dark

blue Purple

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Result 5

Reflection No. 3 - based on the Malik Culture of Functioning Malik System-Cybernetic Exploration Team

Culture eats strategy for breakfast!

Common purpose and will for action can only be found in the MSS Initiatives

1. Strong individual values, diverse interests as well as expert knowledge characterize

the “Responsible Soy Community”. In the complex and non-committal soy world

identity building is interactive and a slow process. A common purpose cannot be

found.

2. The soy world is an open member platform organization: Inclusion of new members,

transparency and capacity building for the green curve may stimulate members to

meet better world targets. The soy world thrives on openness and needs

complexity for proliferation.

3. Governance and Effective Management necessary for an active transition and

governance of the transition were not profoundly discussed by MSS participants.

The implementation of the identified initiatives must be seen critical without

good governance and management.

4. Accountability for these initiatives holds the biggest promise to reverberate in

the system and to mobilize forces quickly and effectively – without losing the prolific

openness.

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Six values safeguard the functioning of organisations:

The Framework used to reflect culture for the present Soy System” is the “Culture of Effective Functioning”

1. Culture of Professionalism 1. Culture of Professionalism 2. Culture of Innovation 2. Culture of Innovation

3. Culture of Performance 3. Culture of Performance 4. Culture of Purpose 4. Culture of Purpose

5. Culture of Trust 5. Culture of Trust 6. Culture of Accountability 6. Culture of Accountability

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There is a distinct misbalance between superb expert knowledge and the lack of management know how for mastering change in a transition phase

Findings

1. The participants have a deep understanding of the complexity of

the soy world and the current role of their respective organisation

within the context is clear. The focus is on individual expertise rather

than on functionality of the organisation to meet common targets.

2. There is no coherent identity and governance for the entire soy

group as different values, expert organizations shape different

models and address different stakeholders.

3. The importance of Managerial Effectiveness and Governance of

the entire system seems irrelevant in this situation although it may

be different for the participants on the home turf in the mother

organizations.

Indicators

a. Participants do not reflect strategic management for innovation in

the group.

b. Lack of awareness that rising complexity is costly and will attract

green curve solutions.

c. The participants acknowledge their individual expert status; “We are

content focussed”, but they do not sense the urgency to implement

the results professionally.

Culture of Professionalism

Effective executives master the managerial

tool kit regardless of diverse “Expert

Cultures”. Does our strategic management

and implementation follow professional

pathways? For managing change rules and

regulations for actions and decision making

matter. Do we agree upon management

and leadership rules? (The HOW, not the

WHAT)

Culture of Professionalism

Effective executives master the managerial

tool kit regardless of diverse “Expert

Cultures”. Does our strategic management

and implementation follow professional

pathways? For managing change rules and

regulations for actions and decision making

matter. Do we agree upon management

and leadership rules? (The HOW, not the

WHAT)

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The Soy World was pushed further into an innovative and transformational mode

Findings

1. The current mandates dominate strategy and innovation.

2. In terms of the green curve, the discussions during the Syntegration

did not go beyond Responsible Soy.

Indicators

Ideas for the future of the Responsible Soy green curve quickly were

abandoned in the discussion. „How to produce and even double the

amount of protein rich food without damaging environment and health

could be the right starting point and challenge to trigger out of the box

thinking on solutions.”

The Results of the Syntegration

… indicate that:

1. The self enforcing loop or the land use chain is a vicious circle and

the old model comes to an end. The platform is burning.

2. The group is crop centred rather than customer value or solution

based.

3. A change of perspective occurred during the Syntegration:

A value proposition regarding farmers, retailers as well as consumer

behaviour will be a step towards a green curve.

Culture of Innovation

What drives innovation is the fact that there

might be other solutions to existing

problems. Do we actively reflect this? Do

we embrace or do we resist change? Is

change conceived as an opportunity rather

than a threat? Do we follow an Outside-

Inside perspective for strategy or is the

focus rather on optimizing existing

patterns?

Culture of Innovation

What drives innovation is the fact that there

might be other solutions to existing

problems. Do we actively reflect this? Do

we embrace or do we resist change? Is

change conceived as an opportunity rather

than a threat? Do we follow an Outside-

Inside perspective for strategy or is the

focus rather on optimizing existing

patterns?

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Tolerance and Indifference must not be taken for Trust

Findings

1. Many Participants have long standing relationships and know their

respective positions. They tolerate other opinions and mandates.

2. Identity building works around the strong values everybody brings to

the table and the ongoing discourse.

3. Trust based culture as a stronghold for joint action is not relevant in

open platform organization.

Indicators

a. “Participants see their role as non committal (Chatham House

Rules) and serve their respective organization.”

b. Who is taking the lead?: “You need committed implementing

companies.”

c. NOT ME Culture: “Government must be an initiator and facilitator of

change.”

Relevant Syntegration results

1. “We should not be afraid of differences, because there will be

differences.”

2. Interaction, mutual learnings, and shared knowledge facilitate trust

building.

Culture of Trust

Trust provides a robust base for dealing

with the social complexity coming

alongside the implementation of strategic

actions and change. Do we have a

common purpose as a basis for action? Is

there predictability of behaviour?

Culture of Trust

Trust provides a robust base for dealing

with the social complexity coming

alongside the implementation of strategic

actions and change. Do we have a

common purpose as a basis for action? Is

there predictability of behaviour?

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Performance hampered by the organisational setting

Findings

1. Organizational readiness to approach the burning platform is not

given.

2. Management Know How and Business / entrepreneurial rationality

(Time to market, profitability and feasibility) is driving the

supranational and global value chain while the European discourse is

politically driven.

3. Accountability for the transition is not installed in the soy world

Indicators

a. “Try for volume instead of perfection”

b. “We find parallel worlds of High level concept versus strategic

pathways not linked to each other”

c. “The participants show a defensive culture“.

Relevant Syntegration results

Pilots, such as the initiatives from the Syntegration, E.g. Area Approach

or National Initiatives, would allow a Living Lab situation and learnings in

many ways:

1. Define adequate management tools to implement high level concepts

and manage change (Goals, CPCs, capacity building).

2. Show feasibility in everyday situations and for stakeholders.

3. Communicate results to stakeholders.

4. Add credibility by a step by step approach.

Culture of Performance

Are we doing the right things in the right

way? Do we link our performance to

stakeholder value? Are individual targets

clear? Do we know whether we contribute

to strategy implementation? Are actions

followed through? Will individual

assignments build on strengths? Is our

attitude towards performance directed by a

strong result orientation?

Culture of Performance

Are we doing the right things in the right

way? Do we link our performance to

stakeholder value? Are individual targets

clear? Do we know whether we contribute

to strategy implementation? Are actions

followed through? Will individual

assignments build on strengths? Is our

attitude towards performance directed by a

strong result orientation?

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Different values and belief systems drive the “Responsible Soy Community” apart rather than unifying it

Findings

Participants represent the interests of their home organizations and

gather information for them. The Soy World is too big and to diverse to

completely align members. The Purpose of the Soy World is to inform

and gather information for the respective organization and create

transparency.

Indicators

a. “There is no WE!”

b. “WHY is not followed by WHAT and HOW“

c. “The market is big enough for more than one solution.”

Relevant Syntegration results

Use forces do not fight them – with a step by step approach.

Culture of Purpose

Values and Belief Systems are a strong

motivators to commit to the mission of the

organization and to actively engage in

change projects. A common purpose

provides meaning and sense making for

members of a group and provides the base

to work together in joint action. Do we feel

that loyalty, commitment and solidarity to

help each other? These are strong

indicators of an unifying purpose.

Culture of Purpose

Values and Belief Systems are a strong

motivators to commit to the mission of the

organization and to actively engage in

change projects. A common purpose

provides meaning and sense making for

members of a group and provides the base

to work together in joint action. Do we feel

that loyalty, commitment and solidarity to

help each other? These are strong

indicators of an unifying purpose.

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Accountability on initiatives is the key trigger for the Governance of the Transition

Findings

1. Accountability is not given.

2. Actions have to be brought to the respective organisation and

ownerships of actions has to be clarified.

Indicators

a. “Governance of the implementation must be organized.”

b. On Control: “What would it take for an authority to be credible: A

saint!”

Relevant Syntegration results

The Syntegration raised the awareness of a lacking accountability and

governance:

1. Who is taking the responsibility for steering, monitoring and

communicating the implementation of initiatives identified during the

Syntegration?

2. Who is responsible for organizing the rules for sharing results ? Who

will monitor the continued improvement of a step to step approach?

3. There must be an organizational element such as a board above

RSRT to take on this role with a dedicated board.

Culture of Accountability

Am I responsible for actions and

accountable for my decisions? Is the

complexity of the system under control? Is

there a way to control and monitor

progress?

Culture of Accountability

Am I responsible for actions and

accountable for my decisions? Is the

complexity of the system under control? Is

there a way to control and monitor

progress?

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Transformation starts with Purpose

1. An unambiguous Purpose can be used to trigger the required cultural change.

2. It is the premise for creating a sense of accountability among the different stakeholders within the system.

3. Accountability for joint (pilot) initiatives will foster implementation, increase performance and innovation capacity, create

success stories and build trust around the responsible soy initiative.

4. Professionalism regarding the HOW will increase alongside the implementation progress.

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Keep it open: The Soy World thrives on complexity of Proliferation and Capacity Building Show results: Strongest Reverberation and Impact comes from better Accountability for Key Initiatives

Action 1: Focus on Key initiatives / Pilots for Collaboration

Install Good Governance for Key Initiatives from the Syntegration. These initiatives are a group result that

integrates individual knowledge, purpose and values of the participants to a robust base for collaborative action.

They are best run in an experimental way* and with an stepwise approach (living and learning labs). Each of

these pilots should be assigned to key individuals of the “Responsible Soy Community”, implemented with high

managerial professionalism and clear accountabilities. Accountability of these assignments will further trigger

innovation, transition and also commitment and trust.

Action 2: Safeguard Implementation via a “Transformation Navigation Hub”

Assign members of the Soy World to a Transformation Navigation Hub (TNH) to manage, monitor and support

all of the Key Initiatives from the Syntegration. It helps to flank the progress with a good communication concept

for high transparency and visibility and speed.

* Experimental Design

1. The culture of perfectionism leads to high standard setting.

2. The process for standard setting in a large group without strong governance is too time consuming for a burning platform.

3. In a complex world unintended consequences are likely to occur and alignments will be necessary. Fixed Standards will fail or

will be bypassed.

4. In an experimental design the objectives are based on hypotheses. Trial-and-error is an inbuilt concept. The Project design

leaves room for coordinated changes at specified mile stones. This step to step approach allows for a better pace than finding

a perfect standard solution a priori.

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Result 6

Reflection No. 4 - based on the Malik Navigation System Malik System-Cybernetic Exploration Team

Strategy is the blind spot in the “Responsible Soy Initiative”

1. The discussions during the Syntegration demonstrated a deep understanding of the

soy value chain and the interactions between the different players and stakeholders.

2. Unfortunately a one common strategy for the “Responsible Soy Initiative” could not

be identified. Every organization has their own strategy – a real alignment is

missing.

3. Typical long term strategy issues such as “How to deal with diffusion and

substitution?” or “Who is our real customer?” were not discussed.

4. In present times disruptive strategies are a very common and quite powerful pattern.

It combines two elements: reconstructing the value chain and digitalization.

5. We thus strongly recommend to:

a. Challenge the “Responsible Soy Community” by encouraging an open

discussion around substitution and disruptive strategy scenarios.

b. Align the individual strategies of the various organizations in “Responsible Soy

Initiative” to one common strategy. A strategy that is more than just “the smallest

common denominator”.

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Following a clear strategy is essential for long term viability – be that in a single business context or within a network of businesses aiming towards a common goal

1. The participants of the Syntegration have their own identity (e.g.

purpose and values) and follow their own strategies. The Malik

Navigation System describes a consistent framework and the

right levers to stay long term viable.

2. Strategy is a pentathlon. To stay in a top position, an organization

must perform in five disciplines. These strategic levers – and the

questions behind – are as follows:

a. Market Position: How can we improve our market position –

relative to our competitors within the soy industry? Are service

quality, price or image (reputation) the right instruments to

differentiate?

b. Experience Curve (= Cost position): How experienced are we

in delivering services? Are we following a learning curve or are

we “inventing our solution time and again”? How about

increasing productivity?

c. Customer Problem: Who is our “end customer” and what is

his/her invariant customer problem? Are we aware that our

solutions are covering only a “specific part” of the total cosmos

of possible solutions?

d. New Technical Solutions (= Innovations): How innovative are

we? Are we creating new services, enhanced processes for

customers or are we able to develop and implement “new

business models”?

e. Dynamics of Substitution: Diffusion (= spread of a new idea)

and substitution(= replacement of an old idea) are two

elementary processes in nature, technology and society.

The Malik Navigation System

Originally the Malik Navigation System was created as a model for companies (profit orientation).

Nowadays the “strategic level” (see red box) is also valid for “Not for Profit-Organizations”.

The diffusion of cars and the substitution of horses in the US

Source: N. Nakicenovic “The Automobile Road to Technological Change. In: Technological

Forecasting and Social Change; vol. 29.

b

c d

e a

Diffusion

Substitution

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A common strategy is the blind spot of the protagonists in the “Responsible Soy Community”

The participants of the Syntegration demonstrated a deep knowledge of the actual soy value chain (e.g. volumes, flow, certified

vs. non-certified soy etc.). However, there are two major strategic issues they did not address:

1. Substitution: As previously mentioned, substitution is a process which re-places existing solutions by a new and better

solution. The new solution creates - in general – greater advantages for the customer or reflects a dramatic change in

customer behavior.

E.g. 1: If the European trend to vegetarianism is a growing trend, the need for responsible soy is diminishing.

E.g. 2: Bio-technological developments could potentially substitute soy.

Recommendation: Keep an eye on “Substitution” of any kind.

The sailing-ship effect

With the advent of modern steam boats the existing sail ships got more and more

disadvantages. The reaction of the sail boat dockyards was to built seven-masters instead

of the traditional three/four-masters. A last attempt to stay in business ...

2. Disruptive strategies (Innovations): Businesses which are

following this type of strategy are analyzing the existing value

chain of an industry. Their goal is to deconstruct and to

reconstruct the existing value chain by internet technology. They

try to create new business models which give them the advantage

of a first mover (e.g. Amazon is deconstructing/reconstructing the

existing value chain from publishing house to bookstore by

generating “more value for the customer”). It is well known from

strategy research that the sailing ship effect (the old solution

generates some pseudo-innovations) and the cannibalization

effect (the “early adopters” switch to the new solution) are typical

for such transition periods.

3. Recommendation: Consider “disruptive strategies”

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Result 7

Effective implementation through the “Transformation Navigation Hub” (TNH)

1. For the implementation of the identified actions to be effective, central coordination

is crucial, as we are dealing with …

a. Highly interconnected topics and measures

b. An inert system

c. A network of stakeholders which need to push and carry the actions

d. Inexistent governance structures

2. We thus strongly recommend installing TNH

a. Acting across the relevant network; the “coalition of the able and willing”

b. Ensuring that critical projects will be accompanied by Real Time Controls on

three crucial levels; subject-level, staff-level, information-level.

c. Providing the necessary Malik GovernanceSystems introduced by Malik Experts

in custom-designed solution labs.

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Black Silver

Yellow Dark

blue Purple

Red Gold Orange

White Light

blue Brown

Green

Topics/Actions/Projects

1 2 3 4 5 6 7 8

The Transformation Navigation Hub (TNH): How to turn initiatives into actions with clear accountability to drive them forward?

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 34

Many different stakeholders

Black Silver

Yellow Dark

blue Purple

Red Gold Orange Light

blue Brown

Green

Topics/Actions/Projects

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 34

Many different stakeholders

White

The interconnection of the 12 topics, the 34 measures and the relevant

stakeholders of the “Responsible Soy Initiative” is immense (reaching a

potential of around 650’000).

This demonstrates once again the level of complexity of the system.

Without governance and coordination the implementation will be

cumbersome, conflict-laden and slow.

The interconnection of the 12 topics, the 34 measures and the relevant

stakeholders of the “Responsible Soy Initiative” is immense (reaching a

potential of around 650’000).

This demonstrates once again the level of complexity of the system.

Without governance and coordination the implementation will be

cumbersome, conflict-laden and slow.

TNH TNH

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Red

Black

Orange

Green

Silver

Yellow

Dark

blue

Purple

Brown

Light

blue

Gold

White

Pattern Filter

Action (initiating Solution Camps, providing

impulses, communication)

Environment

Δt: Adaptive regulation

Object Level Control Level

Information Data

Start Animation

The Transformation Navigation Hub (TNH) is based on the Real Time Control Principle

Transformation

Navigation

Hub

(TNH) Meta-Control

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The Transformation Navigation Hub (TNH): Design of TNH Control Room

1.Project plan:

Work packages, deadlines, resources,

team

2. Real-Time status

3. Critical events

4. Cybernetic perspective of “Responsible

Soy Initiative”

5. Governance structures / cybernetic control

mechanisms

6. Overview of resources

7. Dynamic simulation & scenario planning

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Malik Institute

Geltenwilenstrasse 16

CH-9001 St. Gallen, Switzerland

T +41 71 274 34 00

F +41 71 274 34 99

[email protected]

www.malik-management.com

System-cybernetic

Malik ManagementSystems®

for mastering complexity

April 1, 2016 © Malik

Lic. Oec. Jens Ostergaard Organizer

Dr. Constantin Malik Organizer, Exploration Team

M.A. Econ. Maria Sourlas Lead Exploration Team

Dipl. Oec. Josef Coellen Lead Exploration Team

Dr. Christiane Gebhardt Exploration Team

M.A. Jan Fischer Exploration Team

Dr. Nam Nguyen Exploration Team

Prof. Dr. Ockie Bosch Exploration Team