connected success - the future of the socially valued organisation - 21 03 14
TRANSCRIPT
Connected Success:
The Future of the Socially Valued Organisa7on 21st March 2014
Context
This document summarises the findings from a foresight programme that iden7fied the nature of future social needs and considered how organisa7ons could address these. Undertaken via a combina7on of desk research, one-‐on-‐one interviews, discussion forums and major workshops held on three con7nents, this programme explored mul7ple perspec7ves with experts and informed people from over 100 different organisa7ons. The insights were gained as part of a wider project for Barclays Bank plc. Which has been building on its current Ci7zenship plaOorm and looking ahead to shiPs and op7ons for change to prepare for the world in 2020. This summary is being shared directly with those who par7cipated in the discussions as a record of the dialogue. In addi7on, it is also being made available to interested par7es for con7nued discussion and feedback.
Context
The approach taken for this project was based on that adopted for the larger global Future Agenda programme – the world’s largest open foresight project to date. • Star7ng with informed perspec7ves gleaned from research and ini7al interviews
a series of assump7ons and hypotheses were developed and discussed within the core team.
• A series of groups discussions were then used to test thinking and gain new perspec7ves from experts across a number of areas – from academics, philosophers and ethnographers and leaders of social enterprises to economists and businesses.
• Revised perspec7ves were then taken into three major workshops in Johannesburg, London and New York were a wider group of informed people from mul7ple organisa7ons challenged and built upon each others views to provide a richer, deeper view on the future of the socially valued organisa7on.
This document is a synthesis of what we heard and learned from these discussions.
Execu/ve Summary
Society today faces challenges that will become more intense over the coming years. The need for change is broadly acknowledged and we are now entering a period of transi7on that will involve hard choices requiring strong leadership and collabora7on. To achieve las7ng inclusive growth, many now believe that business and society should align around a wider agenda, adop7ng a broader defini7on of success in order to achieve a be[er balance between short and long term gain. There are uncertain7es concerning this, such as who will lead and how, but there is also a general consensus that commercial organisa7ons have the poten7al to take a lead in establishing a future that benefits wider society. To achieve this, tough decisions need to be made, a number of which may well lead to significant change in the systems within which many currently operate.
Contents This synthesis is comprised of six topics with a suppor7ng appendix
1. The Global Context Uncertain7es and Scenarios
2. The World Today Progress, Transi7ons and Transforma7on 3. The World Tomorrow Key Challenges and New Approaches 4. Socially Valued Organisa/ons Context and Emerging Characteris7cs 5. The Socially Valued Organisa/on in 2020 Being Part of the Change 6. Implica/ons for Organisa/ons Ten Ques7ons Appendix 32 Characteris7cs of Socially Valued Organisa7ons Sources and Resources
1. The Global Context Uncertain7es and Scenarios
Dealing with an uncertain future In making sense of future uncertain7es, scenarios are a well-‐regarded
way to help us to explore the poten7al implica7ons of different futures and so enable us to make be[er decisions
Looking ahead many see two key uncertain/es As organisa7ons explore emerging drivers of global change and consider how they can be addressed, fundamental ques7ons are being raised about the
nature of future growth and how macro goals will be set and agreed
Defini/on of growth
How goals are set
Narrow Broad
Global Collabora-on Fragmented and Local
Alterna/ve views of the future An associated scenarios framework explores the key uncertain7es about the future of the global economy – how goals are set and how growth
is defined. It provides four alterna7ve views of the future
Global Collabora7on
Fragmented and Local
Narrow Broad Defini/on of Growth
How Goa
ls Are Set
2020 global scenarios These scenarios provide four equally plausible but different contexts within which organisa7ons may have to operate in order to help to successfully address the challenges that society faces and deliver value to society
Global Elites A world dominated by
powerful elites who seek to protect the status quo
and to con7nue to achieve economic
growth for themselves
New Mul/lateralism
A world of global alignment and
collabora7on focused on long-‐term, global goal and the need to achieve sustainable inclusive
growth
Na/onal Self Interest
A world of diffused power with localized self-‐interest the priority. A focus on economic growth and
na7onal resource security delays the addressing of global societal stresses
Networked Scale
An interconnected world where change is pursued through collec7ve ac7on
and is focused on addressing the local impact of societal and environmental stresses
Global Collabora7on
Fragmented and Local
Narrow Broad Defini/on of Growth
How Goa
ls Are Set
2. The World Today Progress, Transi7ons and Transforma7on
We have already made significant progress on some big challenges In response to the UN Millennium Development Goals, millions
have been raised out of poverty, child death rates have fallen steadily and the devasta7ng impact of diseases such as malaria have been reduced
However there is s/ll much to be done Many agree that with rising popula7ons and increasing resource constraints,
we face growing societal and environmental challenges that are pucng increasing pressure on the world as a whole
Today the global economy is also changing and under stress The centres of economic power are shiPing to ci7es, global corpora7ons and Asia. Add in the fallout from the financial crisis in the West and we see rising
inequality in most regions – the rich / poor gap in increasing
We face a paradox of interconnec/on and fragmenta/on We live in a world that is more interconnected than ever before but is also becoming increasingly fragmented leading to a need for greater
collabora7on and leadership across different parts of society
3. The World Tomorrow Key Challenges and New Approaches
Future Challenges Looking forward to 2020, many agree that society will be facing a number of issues that can be summarised by three areas of probable systemic stress:
– for the environment, for society and for business
A Changing Business Environment Increased Societal Stresses Increased Environmental Stresses
Addressing these challenges will require significant change As acceptance of the scale of the challenges we face builds, there is growing
global recogni7on of the need for a collec7ve, transforma7onal shiP to achieve any real progress: for many, business as usual is not an op7on
Proposed UN Post 2015 Development Goals
More people are ques/oning the role of global organisa/ons As a result people are openly asking about the balance between ‘value’ and ‘values’ alongside the role and purpose of some of
the larger organisa7ons in crea7ng value for society
Transforma/on requires new forms of collabora/on Transforming the global economy will require more effec7ve collabora7on between government, business and civil society in ways appropriate for the
21st century – sharing resources, capital and intellectual property
Future growth will demand a new frame of reference To support inclusive growth and taking a longer term view, new
business repor7ng standards may well accelerate the adop7on of a wider set of measures of impact and value across all business sectors
4. Socially Valued Organisa/ons Context and Emerging Issues
Organisa/ons helping to tackle societal issues is nothing new In the past large organisa7ons have successfully addressed societal
challenges by understanding how they can best influence the wider community while s7ll maintaining commercial success
Some organisa/ons have become disconnected from the success of society In recent years the success of several companies and sectors has become
disconnected from the success of society. These companies have made gains which are financially independent from the progress of society
Business systems need to adapt and change Today, the business world largely op7mizes economic growth, transfers some of the costs of doing business to society and allows for inequitable
sharing of benefit: there is a ‘priva7sa7on of profit and socialisa7on of risk’
Being successful and being socially valued However, there are several organisa7ons taking a lead back to a moral ‘true north’ that are seen globally as not only doing the right thing but also doing it at scale – and are perceived to be both socially valued and socially valuable
Three founda/ons of the socially valued organisa/on From the research and mul7ple discussions with different groups
around the world, three core founda7ons have emerged as key for organisa7ons wishing to become socially valued
Socially Valued
Doing the right thing
Doing the right thing
well
Being judged by society
Doing the right thing From these discussions, we can see a number of
important characteris7cs of socially valued organisa7ons. These can be grouped into two areas -‐ beliefs and behaviours
Beliefs in doing the right thing Behaviours in doing the right thing well
Doing the right thing well In terms of execu7on, there are four main a[ributes that
help organisa7ons have clarity of purpose, a long term focus, the ability to make consistent decisions and build capacity
Meet both short term and long term needs
Achieve inclusive societal progress that benefits all
Build capacity and resilience to risks and shocks
Ensure progress is not at the
expense of future genera7ons
Being judged by society Ul7mately, no ma[er how much an organisa7on can plan and act
to deliver benefit, the arbiter of what is valued is down to society itself – the external world judges who is valued most
The emerging view from around the world In discussions, different emphasis was placed on varied characteris7cs as different socie7es expect different things for the future. Of these, eight appear to have global relevance -‐ being seen as key in mul7ple regions
Enlightened Leaders Viable Business Models
Know Their Purpose Mul/-‐capitals
Total Transparency Authen/c Organisa/ons
Connected Success
Delivering on Dreams
5. The Socially Valued Organisa/on in 2020 Being Part of The Change
Be part of the solu/on Experts at our workshops felt that socially valued organisa7ons will be seen to be ac7vely contribu7ng to societal success by addressing elements of the three big challenges and helping society navigate through the uncertain7es
What they believe
How they behave
How they operate
How they measure success
Business has to be a part of society -‐ and not apart from it Many agree that, as some already do today, in the future successful
organisa7ons will not only know how they should operate, what they should believe and how to behave but will also be clear on measuring impact
Socially valued organisa/ons in each scenario Given future uncertainty, socially valued organisa7ons have to be able to apply themselves in the most relevant way in the different scenarios and so ensure that their beliefs and behaviours align with the zeitgeist
Global Elites A world dominated by
powerful elites who seek to protect the status quo and to con7nue to achieve economic growth
A New Mul/lateralism A world of global alignment and collabora7on focused on long-‐term, global goal and the need to achieve sustainable inclusive
growth
Na/onal Self Interest A world of diffused power where na7onal self interest take priority. The focus on economic growth and
na7onal resource security leads to delays in
addressing global societal and environmental stresses.
Networked Scale An interconnected world where change is pursued through collec7ve societal
ac7on focused on addressing the local impact
of societal and environmental stresses
Global Collabora7on
Fragmented and Local
Narrow Broad Defini7on of Growth
How Goals Are Set
Global Elites – Respected Leader Enlightened leaders that can cooperate to drive
systemic change by taking a stance based on a clear point of view, supported by viable business models that demonstrate the benefits of change. By earning the right to par7cipate in discussions through consistent delivery of societal value they are able to influence others to contribute to societal success and so drive
change they believe in.
Na/onal Self Interest – Valued Partner Leaders who recognise the impact of decisions on the future success of the socie7es of which they are a part and their responsibility to fill the societal gaps leP by government and to speak out on issues that ma[er. Whilst global companies are able to use their scale to help achieve na7onal objec7ves whilst keeping in mind the bigger picture, all recognise the need to create more than economic value and to protect and enhance the local environment and to contribute to global goals.
New Mul/culturalism – Trusted Partner Organisa7ons that are open, transparent and ac7vely
seek to collaborate and partner with different stakeholders in order to contribute to agreed global objec7ves through prac7cal local ac7ons. They are
consistent and balanced in their decision making, are clear on how they connect their success to social
progress and redeploy and reconfigure their assets to where they can best add value.
Networked Scale – Trusted Advisor Organisa7ons that act consistently to create shared
value through long term collabora7ons and partnership. By having a track record of delivering tangible societal benefit they earn the trust and the right to align and connect others and so achieve systemic change. Working at the local level to help individuals and
communi7es achieve their aspira7ons and realise their poten7al they oPen create most societal value by
helping others to do the right thing.
Many conclude that change is needed at a systemic level Individual organisa7ons can only do so much -‐ achieving global success will require resecng of several business environments including the purpose of a business, how success is measured and how the financial economy operates
Four key shi\s need to happen at scale across all sectors for real systemic change:
Organisa7ons to be accountable to stakeholders, not just shareholders
Success to be measured across a broader set of measures
Success to be measured over a longer 7me horizon
Business to bear full cost of externali7es and risks
6. Implica/ons for Organisa/ons Ten Ques7ons
Q1. Iden/fying and Responding to Challenges Do we ac7vely seek to understand the big challenges that are facing society?
Q2. Mee/ng Societal Expecta/ons How well do we understand the implica7ons of what future society will expect of us?
Q3. Culture and Engagement How is our strategy led by the needs of society and the communi7es we serve?
Q4. Society-‐focused Capabili/es How do we best use our exis7ng capabili7es to create new sources of societal value?
Q5. Influence and Obliga/on Are we sufficiently influen7al in shaping our regulatory and opera7ng environment?
Q6. Collabora/on and Leadership Does our organisa7on know where it will lead or collaborate and where it will not?
Q7. Decision-‐making How well do our decision-‐making processes embrace societal needs?
Q8. Delivery Does our focus on societal needs sufficiently guide our ac7ons?
Q10. Reputa/on Management How will we safeguard our reputa7on in the future?
Appendix The 32 Characteris7cs of Socially Valued Organisa7ons
To download a PDF of the details of the 32 characteris7cs of socially valued organisa7ons detailed in workshops and discussions please follow this link:: www.slideshare.net/7mjones72/socially-‐valued-‐organisa7ons-‐an-‐ini7al-‐view-‐10-‐01-‐14
Sources and Resources
B Corps h[p://www.bcorpora7on.net BBC -‐ Davos: 22 facts people should know h[p://www.bbc.co.uk/news/world-‐europe-‐25836087 Chris7ne Lagarde: A New Mul7lateralism for the 21st Century h[ps://www.imf.org/external/np/speeches/2014/020314.htm Brundtland Commission ‘Our Common Future’ h[p://conspect.nl/pdf/Our_Common_Future-‐Brundtland_Report_1987.pdf Future Agenda – The World in 2020 h[p://www.futureagenda.org IIRC Integrated Repor7ng h[p://www.theiirc.org IMF warns on threat of income inequality h[p://www.P.com/cms/s/0/b3462520-‐805b-‐11e3-‐853f-‐00144feab7de.html Jospeh S7glitz -‐ Freefall: America, Free Markets, and the Sinking of the World Economy h[p://www.amazon.com/Freefall-‐America-‐Markets-‐Sinking-‐Economy/dp/0393338959 Mark Carney Interview -‐ August 2013 BBC Radio 4 h[p://www.bbc.co.uk/programmes/p01dvgk8 Michael Porter – Crea7ng Shared Value h[p://hbr.org/2011/01/the-‐big-‐idea-‐crea7ng-‐shared-‐value/ar/1
Sources and Resources
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