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12/05/2013
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The Nature of Business: redesign for resilience
Giles Hutchins
12 May 2013 BCI Framework
Measure, Monitor Control, Reduce
‘Incremental Reduction’
Unlocking the creative potential,
empowerment ‘Attaining Positive’
New ways of operating, new
products & mind-sets ‘Reaching Zero’
> 50% of all organisations today will have died by 2020
Metamorphosis
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2010 – 2020: VOLATILITY
(The Age of Fear – Wall Street Journal)
• volatile input costs
• volatile prices
• volatile consumer buying patterns
• increasing complexity and risk in supply chains
• changing demographics/world population shifts
• shift to a multipolar world
• increasing socio-economic/political tensions
• increasing scarcity of finite natural resources
• increasing propensity of food and water shortages
• increasing frequency of natural disasters and epidemics
• climate change, peak oil, peak elements, and so on
• ocean acidification and dead zones
• rapid decline in biodiversity
• increasing inequality, rising world poverty
• increasing mental health issues and stress-related illnesses
• exponential growth in population and consumption rates….
‘Decade of Hell’ - Harvard Business Review
Adapt or Die - Business As Usual Will Not Work
Prof. Michael Porter: ‘the old models of corporate strategy
and capitalism are dead... paradigm shift from hurting to
helping, with externalities turned into opportunities’
The current prevailing business paradigm is no longer fit for purpose
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? How much % of materials from source go into
our final products (for durables)?
-- 60%
-- 40%
-- 25%
-- 10%
? How efficient is our economy?
Ray Anderson (former Global CEO, Interface)
‘We have been, and still are, in the grips of a
flawed view of reality – a flawed paradigm,
a flawed world view – and it pervades our culture
putting us on biological collision course with
collapse. It is the paradigm that is reflected in our
culture’s infatuation with stuff and our willful
ignorance of nature.’
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Gregory Bateson
‘The creature that wins against its environment
destroys itself’
Our sense of separation from nature corrupts us, it
fuels an arrogance a ‘hubris’ whereupon common
sense becomes insanity.
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FIRM OF THE FUTURE
Redesigning for Resilience....
The journey of transformation has begun...
Halving the environmental footprint of their products 100% sustainable agricultural sourcing
Zero emissions by 2020
2010 reporting P&L for environment and social
100% products ‘considered’ by 2020
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Firm of The Past Firm of The Future
Nature-Inspired Paradigm Shift
Business Nature
linear
Old School
networked systems-thinking
New School
Nature has been dealing with volatility for 3.8bn yrs
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Old New top down
control collective
intelligence
Predictable & Mechanistic Emergent & Empowering
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Firm of The Future Decentralised, distributed, diverse
Economies of scope, multi-functioning
Opportunistic to the landscape & resources
Nature’s Principles
Resilient
Optimizing
Adaptive Values
Led
Life Supporting
Systems Based
Levering disturbance as an
opportunity
Fitting form to function
Sensing and responding
Integrating synergies
Knowing what’s important
Working with Nature
Clarity of deep core values Self, team, community behaviours
Encourage life Net positive good
Dynamic interdependencies Industrial ecology, ecosystem-thinking
www.thenatureofbusiness.org
www.thenatureofbusiness.org
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Multi-layered Shift
Purpose
People
Processes
Products
Places
Measure, Monitor Control, Reduce
‘Incremental Reduction’
Unlocking the creative potential,
empowerment ‘Attaining Positive’
New ways of operating, new
products & mind-sets ‘Reaching Zero’
Emergence: Incremental Change & Radical Transformation Profit Value Shared Value Intrinsic Values
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Real Sustainability is Harmony with Nature
nature
people
economy
business
www.thenatureofbusiness.org
A Business Inspired By Nature – one where the
purpose, people, process, products and places
are inspired by and in harmony with nature.
Where business helps the re-connection of
ourselves to our authentic human nature and to
the world around us, to life itself.
Business as a force for good, business that
helps life rather than hurts life.
This is the new business paradigm and we are
on the cusp of it: Machine Nature
www.thenatureofbusiness.org
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Simply the best book in business and management in many years! Hazel Henderson, President of Ethical Markets
A bold, paradigm-shifting book, a must-read for those seeking to make positive change Hunter Lovins, President of Natural Capitalism Solutions
A must-read for everyone involved in the business of the future…and aren’t we all? Mick Bremans, Chairman of Ecover