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Antony Upward, CMC [email protected] @aupward #SSBMG

Strongly Sustainable Business Models

An Introduction for CMC-Canada’s Energy & Climate Change SIG

April 23, 2013

Lots of speaker notes,

Lots of speaker notes, including references

including references

Builds on many slides Builds on many slides

download and view download and view

in slide show mode in slide show mode

for improved for improved

comprehensioncomprehension

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2

TopicsThe Big Problem: What do you mean by sustainability– Generally and in Business

Designing businesses– Profit-First and Strongly Sustainable

Introducing the Strongly Sustainable Business Model Canvas– Comparison to (Profit-First) Business Model Canvas

Next Steps to Bring the Canvas to the World– How can you help?

Contact details, references, copyright

A

B

C

D

3

Assume hope all you who enter here Vaclav Havel

4

Experiment to Gain Experience

5

Why are we here? What’s the

meaning of all this?

No idea… but I want us to keep going for a long time… just like

we are now… what’s a word for that?

The BIG Problem

“Sustainability”

… and how will you measure your

“sustainability”?

… and who will benefit, for how long and at what

cost?

So tell me… what is it exactlyexactly you want to sustain?

Don’t forget nature is alwaysalways changing… it isn’t

static

…and what we value is alwaysalways changing… that

isn’t static either!

Oh heck. I thought this sustainability stuff was going to be simple. I think

I’ll take a nap…zzzzz

6

Maximization of wealth creation so we can afford the public good

What’s What’s Your Your

ResponseResponse

What do you want to sustain?

• For whom? • For how long? • How much will it cost? (p.26)

?“The possibility that human and other life will flourish on this planet forever.” (p.6)

Our Current Our Current Collective Collective ResponseResponse

So we’re on the same page...

NotNot trying to convince you!

My Personal My Personal ResponseResponse

7

Goals Need Strategies…

…so Strategies are designed!

Design is the process of “changing existing conditions into preferred ones” – Herbert A. Simon, 1969

“Business people don’t just need to understand designers better.

They need to bebe designers” – Roger Martin, 2006

8

Design brief for business…

…its been a huge success!(although clearly not perfect and there are alternatives)

“There is one and only one social responsibility of business – to increase

its profits within the rules of the game” – Milton

Friedman, 1962

generate the wealth to do good …

9

…The unintended consequences #1• Put Billions of Kg of toxic materials into the

air, water and soil every year• Produce materials so dangerous as to

require constant vigilance by future generations

• Place gigantic amounts of waste, irretrievably in holes all over the planet

• Slowly poison people and ecosystems, limited only by thousands of complex regulations

• Create economic prosperity by reducing the number of people with valued work

• Create prosperity by digging up or cutting down natural resources then burying or burning them

• Erode the diversity of species and cultural practices with unknown consequences

McDonough & Braungart, 2002 p.18

10

“The earth is full”….and there is no planet BPaul Guilding

http://www.ted.com/talks/paul_gilding_the_earth_is_full.html

…Evidence of the consequences Download to see the

Download to see the details of the works

details of the works shown on the next 7

shown on the next 7 slides; References are

slides; References are in notes in notes THISTHIS slide slide

11


…Evidence of the consequences

12



Human Development vs. Ecological

Footprint

13




Footprint

14




Footprint

15




Footprint

16




Footprint

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…The unintended consequences #2

60% of firms in the manufacturing and service sectors in 6 of the larger OECD countries ceasecease to exist within 7 years of founding (p.14, Figure VIII.5)

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Alternative Design Briefs for Business

Confidence not uncertainty and distrust

Reduce speed of diversity lossErodes the diversity of species and cultural practices with unknown consequences

Happiness not fearDigs up and cut down lessCreates prosperity by digging up or cutting down natural resources then burying or burning them

Enduring and resilience, not failing unexpectedly

Focused on creating greater economic prosperity not human flourishing

Creates wealth by reducing the number of people with valued work

Positively contributes, not does less damage

Increases number, complexity and stringency of regulation

Slowly poisons people and ecosystems, limited only by thousands of complex regulations

Flourishing by being not languishing by having

Produces smaller amounts of useless / irretrievable waste

Places gigantic amounts of waste, irretrievably in holes all over the planet

Everyone and everything forever not just me now

Produces less while living in fearProduces materials so dangerous as to require vigilance for generations

Abundance not limitsReleases less toxic materials while ignoring long term impacts

Put’s Billions of Kg of toxic materials into the air, water and soil every year

… creates possibilities for:Design a business that is financially profitable and…

NewNew: “Flourishing” “Strong Sustainable” “Eco-effectiveness”

EmergingEmerging: “CSR” “Weak Sustainability”“Eco-efficiency”

Current:Current:“Profit-first”

19

So…How do you design a business?

20

and…What is a business design?

• Business Plan• Strategy• Vision• Mission• Business Model• Value Statement• Simulation• Prototype

21

www.businessmodelgeneration.com

Business Model Canvas Explained

Watch this ~2 minute video at https://www.youtube.com/watch?v=QoAOzMTLP5s

23

3. Channels

But…does this help to design a sustainable business?

1. Customer Segments

2. Value Propositions

4. Customer Relationships

5. Revenue Streams

7. Key Resources

6. Key Activities

9. Cost Structure

8. Key Partners

What’s Missing?Why?

24

Lots about money, and the people you financially

transact with…

…(almost) nothing about everyone and everything else

25 But what if…

26

Passing Benefit Corporation Legislation

How do you efficiently How do you efficiently design a business to design a business to

reliably consistently and reliably consistently and effectively enable effectively enable

sustainability?sustainability?

27

Understand the Natural and Social Science of Sustainability

Asked what are the gaps in Osterwalder’s PhD Ontology of Profit-First Businesses, based on the science

Designed an Ontology of Strongly Sustainable Business Models

Created the Strongly Sustainable Business Model Canvas, a visual design tool, powered by my Ontology, and tested it

1. Against standards of sustainable business2. Formally with 7 experts and 2 case study companies3. Informally with dozens of others:

Business people, professors, students

28

Understand the Natural and Social Science of Sustainability

Asked what are the gaps in Osterwalder’s PhD Ontology of Profit-First Businesses, based on the science

Designed an Ontology of Strongly Sustainable Business Models

Upward, A. (2013, Forthcoming). Towards an Ontology and Canvas for Strongly Sustainable

Business Models: A Systemic Design Science Exploration. (Masters of Environmental Studies / Graduate Diploma in Business + Environment, York University, Faculty of Environmental

Studies and Schulich School of Business), 1-889 (i-xx). doi:http://hdl.handle.net/10315/20777

Created the Strongly Sustainable Business Model Canvas, a visual design tool, powered by my Ontology, and tested it

1. Against standards of sustainable business2. Formally with 7 experts and 2 case study companies3. Informally with dozens of others:

Business people, professors, students

29

Real Context of Business

Context: Environment (Physical / Chemical / Biological)

(Monetary)

All Organizations

Context:Financial Economy

(Social/Technology) Context:

Society

© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions


30

Revising Definitions…

A description of how an organization defines and achieves success over time.

A Business ModelA Business Model: the logic for an organization’s existence: who it does it for, to and with; what it does now and the future; how, where and with what does it do it; and how it defines and measures its success.

“A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]”

Value isValue is the perception by a human or non-human actor of a need being met; measured inaesthetic, psychological, physiological, utilitarian and / or monetary terms.

From

To

Value is created when needs are met via satisfiers that align with the recipients world-view, and destroyed when they don’t

Necessary, but not Sufficient

31

Useful Perspectives

Who does a firm do it to, for and with?

What does a firm do now and in the future?

How, where and with what does the firm do it?

How does a firm define and measure success (in Environmental, Social & Monetary units)?



32

Context: Environment (Physical / Chemical / Biological)

(Social/Technology)

(Monetary)

All Organizations

Context:Society

Real Context & Perspectives on Business

Financial EconomyContext:



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Reaction So Far?(From Confidential Expert Respondents)

“I really liked is that it really makes you makes you

thinkthink about things that you would never

consider before”Management Consultant “You've ratcheted it upYou've ratcheted it up to the

next degree of specificity and made sure that it is truly about

sustainable businesses. Whereas the current [tools] that I’ve seen,honestly could be applied to any

kind of business”Sustainable Business NGO

“The power of this thing is it’s really the first to take the first to take the social aspect and the the social aspect and the

biophysical into biophysical into considerationconsideration. And I

haven’t seen that that any other business model

That would take that into consideration”

Business Architect / Professor / Consultant

“This is an impressive body of work”

Management Consultant

“I like the tool and think it provides a great way to analyze a company”

Leader Eco-Industrial Park

“It’s about timeIt’s about time somebody did something like

this”Author / Consultant

“I recognize this firm.” “This gets the zeitgeist of This gets the zeitgeist of

who we arewho we are, which is great” (Reacting to his business

described using the Canvas)CTO Small Manufacturer

“If I was starting abrand new business, a

significant business today, I would use thisI would use this business model to help me define

and develop a pure detailed business plan”

Management Consultant

39

Make it “better, better, faster, faster,

strongerstronger” ?

Learning by Using / Testing Testing

it out some it out some moremore?

But What About…?(Ideas from All Respondents)

A better way to introduce and summarize the

canvas

A methodologymethodology for designing great

sustainable business models?

An “app” so I can do this on my tablet with my

clients?

A communitycommunity of people using and

improving it?

Ensuring the design principles align with the emerging “Gold

Standard” for Sustainable Business?

Training / Workshops for

Social / Environmental

Entrepreneurs ?

A Consulting Service that uses the Canvas

to Diagnose and Improve the

Sustainability of Business?

The design principlesdesign principles to help me come up with

great answers to the 14 questions?

How about some more examples and

case studiescase studies?

40

What’s Next?

Can I Use It Now?

How Can I Help?

41

Design Principles for the Next Steps• Be the Change

– Focus on Small / Medium Business (they can change more easily)

• Existing and Start-ups– Think Local, Reach Global– Transparency– Creative Commons Licensing

• Crowd Funded– Committed Individuals– Organizations

• Build a Community– Collaborative

• writing / testing / governance– Spread the word– Learn by Doing & from Each Other

• Continuous Improvement• Have fun!

42

Not your typical business “book” • Due Summer 2014

“Book” is Focus for Crowd-Funding• Sufficient Funding Gate

~Sept 2013

• “app”• Community Revenue Opportunities via

– Training Service “Toolkit”– Consulting Service “Toolkit”

• Full alignment with emerging “Gold Standard” for Sustainable Business

• Best Practices• More Case Studies

Now

Later

43

Table of Contents

44

Current Activities• Develop Business Model using canvas• Identify Core Writing Team (3-5)

• Collaborative platform (for Fund Raising & Writing)

• Develop Learning Map• “Soft Launch” activities• Applied for SSHRC Funding

– Methodology development• Start 3 trials / case studies

– More in the pipeline

Want to use the Canvas Now? Ask me!

Based on Mutual Sharing / NDA

Agreement

45

Collaborator / FunderCollaborator / FunderValue PropositionValue Proposition

read content first &

exclusively

use the canvas in your own business

now!

try it out – be a case

study

interact with Strongly

Sustainable Business Thought Leaders

influence writing team

& the community

share your experience, gain from

others

demonstrate your thought leadership to your peers

exclusive webinarsearly access to improvements

preferred access to subsequent training &

consulting revenue opportunities

your name / organization logo in book

credits

discount on final book price

be a part of

the change

we need to

flourishbe a part of something BIGBIG: a global strongly sustainable business

community

have Fun!

46

Survey: How Much…(The complete survey will be available on-line in May 2013 – see www.SSBMG.com)

• would you pay? – You participate in the community– Your name appears in credits of

‘book’ to be published in 2014

$100 $200 $250 $300 $400 Other _______ Double price

every time 100 people join

• would your organization pay? – 3 colleagues can participate– Names and organization logo,

website URL appear in credits of ‘book’ to be published in 2014

$2,000$4,000$6,000$10,000Other _______

Donate services in kind to the project

47

www.SSBMG.com• About the Strongly Sustainable Business

Model Canvas ~3 minute Audio Visual Overview

• About the research project– 300 words– 1 page– 4 page deeper dive

• Blogs– blog.SSBMG.com– slab.ocad.ca/blogs/antony-upward

– http://www.facebook.com/StronglySustainableBusinessModels

– @aupward #SSBMG

– [email protected]

http://blog.SSBMG.com

http://www.ssbmg.com/

http://prezi.com/k5x2civcaw7y/the-strongly-sustainable-business-model-canvas-3-minute-introduction/?auth_key=3ade9534b62587e50187cc1d9d03a2d04128adf6&kw=view-k5x2civcaw7y&rc=ref-4216528

http://prezi.com/k5x2civcaw7y/the-strongly-sustainable-business-model-canvas-3-minute-introduction/?auth_key=3ade9534b62587e50187cc1d9d03a2d04128adf6&kw=view-k5x2civcaw7y&rc=ref-4216528

http://blog.edwardjames.biz/2013/01/SSBMG-in-plain-english.html

http://www.edwardjames.biz/Research

http://slab.ocad.ca/SSBMs_Defining_the_Field

http://blog.ssbmg.com/

http://slab.ocad.ca/blogs/antony-upward

http://slab.ocad.ca/blogs/antony-upward

http://www.facebook.com/%0BStronglySustainableBusinessModels

http://www.facebook.com/%0BStronglySustainableBusinessModels



48

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Copyright

• All images used under applicable creative commons licences – see notes on each page

© Antony Upward / Edward James Consulting Ltd., 2013. Some rights reserved. – Permissions available at www.EdwardJames.biz

/Permissions – This work is licensed under a

Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.







