ashridge 2008
TRANSCRIPT
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Appreciative Inquiry and the Discovery and Design of Positive Institutions
David Cooperrider
Center for Business as an Agent of World Benefit
Case Western Reserve University
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Creating New Models of Possibility With All Creating New Models of Possibility With All Points of Departure
Idea of Positive Institutions
1. Strengths-Elevating—positive psychology’s shift
2. Strengths-Combining/Magnifying
3. Strengths-Extending Organizations
Egalitarian Design• Question of Change at the Scale of the Whole?• ““Everyone designs” Everyone designs” --Herb Simon--Herb Simon• New Horizons in New Horizons in Appreciative InquiryAppreciative Inquiry
The Sustainability Revolution• Why “design attitude” matters more• Blessed unrest and business & society innovation
Image PlaceholderImage Placeholder
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Three Ways to Understand Accelerating Strengths based “AI”
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My “Peter Drucker Moment”The source of my two threads today!
“Every social and global issue of our day is a business opportunity in disguise”
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“The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”
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A Story:The Most Exciting Project I Have Ever Worked On
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Business as an Agent of World Benefit--More Than 2,000 Interviews--100s of Published Profiles “Positive Institutions” --see www.worldinquiry.org
“Awe is What Moves Us Forward”
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Sustainable Value —From Obligation to Innovation Mindset (source: Chris Lazslo)
Stake-holder Value¹
Shareholder Value
Unsustainable(Value Transfer)
Unsustainable(Value Transfer)
Unsustainable(Lose/Lose)
Sustainable Value
¹ absolute standards orrelative to competitors
Clean energy vehicles
Fossil fuel ICE
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Positive Psychology Encyclopedia of Human StrengthsPeterson and Seligman (2006)
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• World-wide searchWorld-wide search new new ways for business to live ways for business to live in mutual benefit with the in mutual benefit with the earth’s ecosystems and earth’s ecosystems and the world’s societiesthe world’s societies
• Public trustPublic trust of best of best business innovations for business innovations for sustainable futuresustainable future
• Global dialogueGlobal dialogue about about the role and the future of the role and the future of business in societybusiness in society•The Club of Rome The Club of Rome ChallengeChallenge
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BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE
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Appreciative Inquiry Summit Method at the UN Global Compact With 500 CEOs
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AI at the UN World Summit With Business and Industry CEOs and Civil Society Leaders
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UN Global CompactAI Summit Results—and Surprises
Innovations: HP, Novartis, BP, Ericcson, Tata, etc
Vision of PRI Project: Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets
Who Cares Wins— eclipse of “the great tradeoff illusion”—ESG issues move to the strategic core—25% greater stock appreciation
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Results (cont.)
10 Stock Exchanges & Climate Change Initiative
43 Local Networks…China 100% Growth in Members by 2007 Summit Companies Calling for New Leaders
Counter-Summit Collaborative Innovation But Why? How?
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Why is this moving so quickly? Stakeholders are now a powerful force in business
Customers
Investor groups
Employees
Suppliers
Universities
Government
NGOs
Communities
Media
EconomicStakeholders
SocietalStakeholders
Unions
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Opening Inquiry
Three Questions for Reflection
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1. Images of 2020: Your Visions of a 1. Images of 2020: Your Visions of a Better World Better World
Wake Up 2020: Wake Up 2020:
A. What Does Our World Look Like? A. What Does Our World Look Like?
B. How About the Role of Business? B. How About the Role of Business? Images of Healthy (Ideal) Organizations? Images of Healthy (Ideal) Organizations? How are they Designed and Led to Bring How are they Designed and Led to Bring
OutOut Best in Human Beings & Superior Best in Human Beings & Superior
Profitability? Profitability? To Maximize Environmental and Social To Maximize Environmental and Social
Well-being?Well-being?What’s Happening New, Different, What’s Happening New, Different,
Better?Better?
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2.2. Today’s golden innovations: Today’s golden innovations: Where are the exemplars of business as an agent of Where are the exemplars of business as an agent of world benefit?world benefit?
Please identify one example — a Please identify one example — a business and society innovation which business and society innovation which begins to illustrate your vision of what begins to illustrate your vision of what is possible— is possible— when business is an agent when business is an agent of world benefit?of world benefit?
Where? When? Insights? Where? When? Insights?
What do you value most in this What do you value most in this example? Implications?example? Implications?
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3. Future of OD and Management Education
A. On a scale from 1-10 where do you think our management schools and OD training programs are as it relates to preparing managers and change agents for creating industry leading stars in sustainable value creation (eco-innovation, social entrepreneurship, sustainability)?
B. Looking to the future please finish the following: I will be most proud of the field of OD and management education in the future when____________________________?
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Opening InterviewOpening Interview (Ai conversation in pairs)(Ai conversation in pairs)
A-->B (15 min)A-->B (15 min) B-->A (15 min) plus a coffee break.B-->A (15 min) plus a coffee break.
Spirit of discovery— strengths, Spirit of discovery— strengths, aspirations, opportunities, resultsaspirations, opportunities, results
Take brief notes Take brief notes At the end.. At the end.. summary & thanks summary & thanks Return @Return @
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Appreciative Inquiry Involves a Shift
“No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.”
“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”
– Albert Einstein
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Theory AI: Co-elevation
Elevate-and-Extend Spirit of Inquiry & Ethos of Appreciation Resonating Patterns of Positive Emotions High Quality Connections
Broaden-And-Build Pro-fusion of Strengths Magnification (analysis, synthesis) Savoring (ritual, story, meaning)
Establish-and-Eclipse Generative Imagination and Energy Doing & Undergoing (“undoing”) Upward spiral
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Fairmount Minerals StoryBirth of the “Sustainable Design Factory”
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Whole System Sustainable Value Design
External Stakeholders: Customers Suppliers NGO’s Neighbors/Communities Board of Directors
Imagine 300 Stakeholders—designing new products, services.
Internal Stakeholders Operations Administration & Corporate
Services Customer Service Engineering Logistics Quality Sales Technical Support / R&D
Egalitarian Designing & Magnificence of Multiple Realities
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Sources of Business ValueLevels of Design Focus
BusinessContext
Brand/Culture
Market
Product
Process
RiskAnticipating regulations, going beyond legal requirements
Reducing energy, waste & process costs—future of totally renewable energy
Sustainable-value, green products
New stakeholder relationships, new markets
Brand story, promise, customer experiences
Designing industries, policy contexts
business value created
Source: Chris Lazslo The Sustainable Company
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Next Generation Ai Summit:The Sustainable Design Factory
CollaborativeDiscovery
•Appreciative Inquiry•Analogous storytelling•Poeticizing Capacities
CollaborativeDiscovery
•Appreciative Inquiry•Analogous storytelling•Poeticizing Capacities
CollaborativeDream
•Anticipatory Images•Visualization &
•Enactment of Future
CollaborativeDream
•Anticipatory Images•Visualization &
•Enactment of Future
CollaborativeDesign
•Deep Dive• Rapid Prototyping
CollaborativeDesign
•Deep Dive• Rapid Prototyping
CollaborativeDestiny
Co-emergent arisingImprovisational learning
Distributed reflexivity
CollaborativeDestiny
Co-emergent arisingImprovisational learning
Distributed reflexivity
Affirmative TopicFraming
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Images of the Sustainable Design AI Summit
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Initiative Samples: From One Sustainable Design Summit
Spent Sand: Recover, Recycle & Re-Use: $mutlti-million new business unit
Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves labor: $300,000 annual savings
Truck to rail conversion: Conserves fuel, satisfied neighbors, – $125,000 annual savings…MUCH MORE
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Initiative Samples: From One Sustainable Design Summit
Fast Track site development: Transparency, environment, community impact:– $6 million (one year of early operations)
BoP Initiatives—example: water filter prototype: whole new market partnerships—44 new countries
38% Increase Sales Growth. ALL empowerment measures up “valuing and recognizing my strengths”
2007 #1 Corporate Citizen Award, US Chamber of Commerce
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Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years
Faimount Sales & EBITDA History (For Recurring Operations)
0
50
100
150
200
250
300
350
198
31
984
198
51
986
198
71
988
198
91
990
199
11
992
199
31
994
199
51
996
199
71
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199
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000
200
12
002
200
32
004
200
52
006
Sa
les
($'s
in M
illio
ns)
0
10
20
30
40
50
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EB
ITD
A (
$'s
in M
illio
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EBITDA Sales
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Barely Scratching the Surface
Sustainable value is a huge creative opportunity
Interactive design in configurations of the whole
brings out the best in human beings
Moving into “the ever expanding domain of relatedness”
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Collaborative Designing in Unexpected Places
A Question for You:
Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers?
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It employs 1.9 million people Its serves 138 million people per week.
It has approximately $350 billion in sales It’s attracting the most brilliant and radical
environmental minds e.g. Amory Lovins It’s raising many eyebrows
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Wal-Mart’s Early StepsMany are Watching.
1. Be supplied by 100% renewable energy
2. Create zero waste
3. Sell products that sustain the environment
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Sustainable Value… Design Networks
Global Greenhouse Gas Strategy
Buildings Design Construction & Maintenance
Global Logistics
Alternative Fuels
Operations & Internal Procurement
Packaging
Textiles
Electronics
Food & Agriculture
Forest Products (Wood & Paper)
Chemical Intensive Products
Jewelry
Seafood
China
EnergyEnergy
WasteWaste
ProductsProducts
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Each Network Created A Sustainable Pathway
Today’s Today’s Business Business PracticesPractices
SustainableSustainableBusiness Business PracticesPractices
Sustainable Pathway
Sustainable Pathway
Using competitive forces to create a race to the top
Using competitive forces to create a race to the top
•A “bigger A “bigger win” for win” for business and business and a “win” for a “win” for societysociety
Quick Quick WinsWins
Can be Can be implemented implemented with existing with existing technology technology
and business and business modelsmodels
Innovation Innovation ProjectsProjectsRequire Require
technology technology and/or business and/or business
model model innovations innovations
System System ChangeChange““Changing Changing the rules of the rules of the game”the game”
•Focused on Focused on a “win” for a “win” for businessbusiness
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The Recent Magazine Summit on Sustainability
One of 12 Sustainable Value Creation Networks
64% of Magazines Put on Shelf Don’t’ Get Sold
2.6 Billion—are Shredded
Would Circle the Earth 13 Times
Amazing AI Summit
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PublisherPublisher
PrinterPrinter
National National DistributorDistributor
WholesalerWholesalerMerchandiserMerchandiser
Logistics Logistics ProviderProvider
FreightFreight
AdvertiserAdvertiser
RetailerRetailer ConsumerConsumer
RDA RDA ConsultantConsultant
Magazine Industry System MapMagazine Industry System Map
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3,63,6
1,2,3,4,61,2,3,4,61,2,4,5,61,2,4,5,6
1,2,3,51,2,3,5
1,21,2
1. Aligning Incentives
2. Metrics for Success
3. Print forecasting
4. POS Replenishment
5. Modular Planning
6. Stagger on-sale dates
7. Industry Network
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Results: “Something that’s never happened in 50 years”
Consensus on 50% Improvement in Sustainability in First Year
12 major prototype initiatives
An improvement of 50% = Saving 443,572 trees
= 4,640,816 gal. diesel fuel
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Call to high purpose, sustainable value creation turns on an entire workforce--strengths come alive
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Implications of Packaging Eco- Innovation & People Turned On
Prevented millions of pounds of trash from reaching landfills
Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere
Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned.
“The packaging is renewable in 90 days instead of 9 million years”
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Implications of Packaging Sustainable Value Innovation
Broadening this initiative to 255 items in Toys:
This employee driven initiative saved 3,425 tons of corrugated materials
1,358 barrels of oil annually 5,190 trees
Millions of dollars in transportation costs
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Is Sustainability a Passing Fad?
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OUR DEFINITION:OUR DEFINITION:Providing consumers with the nutritious Providing consumers with the nutritious dairy products they want in a way that dairy products they want in a way that
makes the industry, people and the earth makes the industry, people and the earth economically, environmentally and economically, environmentally and socially better – now and for future socially better – now and for future
generations.generations.
Sustainability in the Dairy Industry
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Sustainability Index SummitTaking Action to Address a Global
Imperative…Universities in Parntnership With Business and Society
SavinSaving g people people moneymoney so so they they can can live live betterbetter
July 14-16, 2008July 14-16, 2008
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Imagine the Impact of Sustainability Scorecard
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Mature Phase: (Textiles example)Mature Phase: (Textiles example)
SKU specific questions add SKU specific questions add greater level of detail and greater level of detail and insight into specific product insight into specific product performanceperformance
WeightRaw
Material Inputs
Manufacturing/ Processing
Transport/ Packaging/
Sales
Product Use End-of-Life/Recycling
SupplyChainGoals
Energy and Climate
40%Suppliers
track on-farm energy use?
(Y/N)
Energy use per unit of finished
product? (ranges will be provided)
Hang tag on energy use
during garment care? (Y/N)
To reduce the use of non-renewable energy and greenhouse gas emissions.
Material Efficiency
20%
Uses fibers or irrigation
practices that reduce field water use?
(Y/N)
Water consumption per unit of finished
product? (ranges will be provided)
Use of recycled materials in fabric production? (Y/N)
To maximize efficient use of all materials, minimizing waste and costs.
Natural Resources
20%Is the product
organic or transition?
(Y/N)
Use of a restricted substances list for factory practices?
(Y/N)
Hang tag on use of laundry
detergents? (Y/N)
To ensure the integrity of ecosystems and a safe, reliable supply of raw materials.
People and Community
20%Is product Fair Trade certified?
(Y/N)
To protect quality of life and safeguard human health.
Hypothetical and
Hypothetical andillustrativeillustrative
Emphasis moves to product-specific Emphasis moves to product-specific scoring. Product scores roll up to scoring. Product scores roll up to
influence supplier score.influence supplier score.(Up to 1 score per SKU; products of (Up to 1 score per SKU; products of the same profile could be grouped in the same profile could be grouped in
one score)one score)
Emphasis moves to product-specific Emphasis moves to product-specific scoring. Product scores roll up to scoring. Product scores roll up to
influence supplier score.influence supplier score.(Up to 1 score per SKU; products of (Up to 1 score per SKU; products of the same profile could be grouped in the same profile could be grouped in
one score)one score)
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Leveraging the Power of Associations for a New Magnitude of
Socially Responsible Leadership
Leveraging the Power of Associations for a New Magnitude of
Socially Responsible Leadership
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What OvationNet’s Technology Made Possible
What OvationNet’s Technology Made Possible
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The Summit Design Team WebsiteDesigning the SummitDesigning the Summit
The Summit Design Team WebsiteDesigning the SummitDesigning the Summit
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Virtual Roundtables
Virtual Roundtables
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Full participants in Day One
Full participants in Day One
Connected LocationsConnected Locations
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The Egalitarian Design of Positive InstitutionsThrough Appreciative Inquiry
Strengths-elevating
Strengths-combining/amplifying
Strengths-extending organizations
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WHY is AI Whole SYSTEM APPROACH
POWERFUL? Positive Organizational
ScholarshipBarbara Fredrickson’s Broaden-and-Build TheoryBarbara Fredrickson’s Broaden-and-Build Theory
Jonathan Haight’s Research into “Elevation”Jonathan Haight’s Research into “Elevation”
Wayne Baker’s work on the activation Wayne Baker’s work on the activation
of positive energy networksof positive energy networks
Boyatzis on Resonant Leadership Boyatzis on Resonant Leadership
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1. Elevate-and-Extend2. Broaden-And-Build3. Establish-and-Eclipse
1. Elevate-and-Extend2. Broaden-And-Build3. Establish-and-Eclipse
Theory AI- Positive Change as “Co-Elevation”
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A question about the future of management education and design:If anything imaginable were possible…?
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THE POWER OF APPRECIATION
(3 facts about all human beings)
Exceptionality
Essentiality
Equality of Voice
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Figure 1: Three Circles for Understanding the Strengths Revolution and the Design of Strengths-based Organizations
The Spirit ofThe Spirit ofAppreciativeAppreciative
InquiryInquiry