inspired capital a blueprint for sustainable business success in a brave new world inspired capital...
TRANSCRIPT
INSPIRED CAPITAL
A Blueprint for
Sustainable Business Successin a
Brave New WorldDeveloped & Presented by:
Jonathan QuailFounder, iEntrepreneur
THE BIG QUESTION
How do we make more profit and do it SUSTAINABLY in the
long term?
“The significant problems we face can’t be solved at the same level of thinking we were at when we created them.” – Albert Einstein
‘GOOD TO GREAT’ VS. ‘FIRMS OF ENDEARMENT’
THE BOTTOM LINE:
310% more shareholder value created in the average FOE over 10 years than in the average ‘Good to Great’ company => MORE SUSTAINABLE GROWTH
Period
ROI in Average ‘Good to Great’ /
Visionary Company*
ROI in Average 'Firm of
Endearment’*
10 Years 331% 1,026%
5 Years 77% 128%
3 Years 73% 75%
* According to research done by Sisodia, Sheth and Wolfe for the book Firms of Endearment
Employees who Love their organisations and jobs
Inner and outer purpose of Higher Service aligned
Committed to creating Shared Value with all stakeholders
Driven by Compassion
Caring Relationships Greater Innovation and
Productivity in Service Increased Cost Savings More Shared Value Created MORE SUSTAINABLE
COMPETITIVE ADVANTAGE
‘FIRMS OF ENDEARMENT’*
AmazonGoogleBMWCaterpillareBayHarley DavidsonHondaStarbucksIKEA
Johnson & JohnsonNew BalanceToyotaTimberlandCommerce BankZappos.com (U.S.)Semco (Brazil)Grameen Bank (Bdesh)Amul (India)
* All companies shown in grey are companies that qualified as ‘Firms of Endearment’ in a study done for the book of the same name; the others in gold are my selections
BLUE OCEAN STRATEGY
Companies are successful when they create new market space (blue oceans) through ‘value innovation’ rather than fighting for greater market share in overcrowded ‘red oceans’
“The significant problems we face can’t be solved at the same level of thinking we were at when we created them.” – Albert Einstein
BLUE OCEAN STRATEGY
Only 16% of strategic moves into ‘blue oceans’ by over 100 companies over the last 100 years resulted in 64% of the profits of these companies*
vs. 86% of strategic moves into red oceans delivered only 36% of corporate profits
* According to a survey done for the book ‘Blue Ocean Strategy’ by W. Chan Kim and Renee Mauborgee
RIDING THE WAVES OF CHANGE
‘Quantum Shift’
‘INDUSTRIAL AGE’ WAVE
‘WISDOM AGE’ WAVE
INFORMATION AGE
Disintegration Phase
Growth Phase
Maturation Phase
Decline Phase
‘Window of Opportunity’ to Move into Blue
Oceans
‘Death Spiral’
1700 1945 2001 2011 2020
‘Lag Time’`
THE MECHANISM OF FAILURE• Entrenched Negative Values (e.g. Fear, Greed, Arrogance)
• Low Morale, Apathy and Resistance to Change
• Poor Productivity and No Innovation
• Add Little or No Value to Others and the World
•Uncompetitive in a Rapidly Changing World
•Reduced Profits or Losses
•Increased Risk of Failure & Poverty
THE SHAREHOLDER VALUE MODEL*
* Taken from the book ‘Firms of Endearment – How World-class Companies Profit from Passion and Purpose’ by Raj Sisodia, JagSheth and David Wolfe
Ordinary Co
Investors
Partners
Society Employees
Customers
Energy In
Energy Out
UNSUSTAINABLE
KEY BENEFITS OF THE ICI SYSTEM
Inspire
d Values
• Happier, More Inspired Employees• Inspired Corporate Culture of Service to all Stakeholders
Inspire
d Action
•Greater Productivity and More Innovation
•Significant Cost Savings
Inspire
d Results
•More Profit & Value Created for all Stakeholders
•Sustainable Competitive Advantage
Inspire
d Capita
l
•Inspired Capital (Human, Social, Environmental & Financial Capital) harmoniously created for BME Packaging and all its Stakeholders, including Society
INSPIRED VALUES drive POSITIVE BEHAVIOUR which leads to EXCEPTIONAL SUSTAINED PROFITS that strengthen the VALUES
PARADIGM SHIFT
“Doing well and doing good are not opposites, they’re companions.” – Director of Corporate Social Responsibility, Starbucks
“The significant problems we face can’t be solved at the same level of thinking we were at when we created them.” – Albert Einstein
PARADIGM SHIFT
“The only thing that ever worked in my experience with the inclusive banking programme was compassion. Compassion is the essence of all truly successful innovation.” – Coenraad Jonker, Head of Inclusive Banking, Standard Bank SA
THE ‘SPICE’ STAKEHOLDER MODEL*
* Taken from the book ‘Firms of Endearment – How World-class Companies Profit from Passion and Purpose’ by Raj Sisodia, JagSheth and David Wolfe
FOE
Investors
Partners
Society Employees
Customers
Energy In
Energy Out
SUSTAINABLE
4 PILLARS OF INSPIRED CAPITAL
HUMAN CAPITAL
ENVIRONMENTAL CAPITAL
SOCIAL CAPITAL
FINANCIAL CAPITAL
INSPIRED CAPITAL ONE MEASURE?
THE INSPIRED CAPITAL MODEL*
Individual
Collective
Interior ExteriorVALUE/S
Intentions
Systems & Processes
Behaviours
Culture
* Based on the All-Quadrant, All-Level Integral Model of Ken Wilber
LEVERAGEX
INSPIRED
CAPITAL
MEANINGFUL
RATIONAL Ordinary Co.
FOE
Visionary
FORMULA FOR TRANSFORMATION
WEALTH = VALUE X LEVERAGE
INSPIRED CAPITAL INDEX (ICI)=
VALUES INDEX (VI)X
SYSTEMS INDEX (SI)
THE REAL SOURCE OF VALUE
“Many CFO’s now realize that business success is no longer driven by physical assets and financial capital, but by intellectual assets and human capital. The primary constraints on growth are talented people and information systems.”
- Jeremy Hope, ‘Reinventing the CFO’
WHAT ARE THE BENEFITS? Inspired Capital Index (ICI) System
Values-based accounting system to measure performance based on the way values are lived out
Ongoing organisational transformation process to quantum shift it to new wave
Early warning system for ‘icebergs’
Ensure organisations are creating value sustainably for all stakeholders
PHASES OF ICI IMPLEMENTATION
1. Formulation of Values Index and Vision Values Index
2. Formulation of the Systems Index
3. Creation of Pinpoint Process forecast
4. Individual discovery of actual and desired values and behaviours
5. Repeating phases 1 to 4 (every 3 years)
An organisation’s only source of sustainable competitive advantage is its ability to continuously learn, grow and improve
FORMULATING THE VALUES INDEX
1. OPINIONS ON VALUES
2.THEMATIC GROUPING
3. ELECTIONS
8. MEASURE FREQUENCY OF OCCURRENCE
9. CALIBRATE ONTONE SCALE
10. CALCULATE FORMULA VALUE
SURVEYING MEASUREMENT FORMULATION
4. TOP 10 VALUES
5. MATHEMATICAL FORMULA
6. VISUAL EXPRESSION
7. VISION FORMULA
FORMULA FOR TRANSFORMATION
WEALTH = VALUE X LEVERAGE
INSPIRED CAPITAL INDEX (ICI)=
VALUES INDEX (VI)X
SYSTEMS INDEX (SI)
FORMULA FOR TRANSFORMATION
WEALTH = VALUE X LEVERAGE
INSPIRED CAPITAL INDEX (ICI)=
VALUES INDEX (VI)X
SYSTEMS INDEX (SI)
FORMULA FOR TRANSFORMATION
WEALTH = VALUE X LEVERAGE
INSPIRED CAPITAL INDEX (ICI)=
VALUES INDEX (VI)X
SYSTEMS INDEX (SI)
THE ULTIMATE PURPOSE
“The future is not some place we are going to, but one we are creating. The paths are not to be found, but made, and the activity of making them changes both the maker and the destination.”
– John Schaar
CONTACT ME
Contact Jonathan Quail on:
Mobile: +44(0)772-0265-352 Skype Name: jonoquail Email: [email protected] Web Sites: www.lifebuild.com www.successcoach.co.za www.facebook.com/jonoquail
www.twitter.com/jonoquail