27
A Fit-For-Purpose 21st Century Business Model … And Its Companion Knowledge-For-Action Dashboard [email protected]
A Fit-For-Purpose
21st Century Business Model … And Its Companion Knowledge-For-Action Dashboard
Agenda
• 20th century business models
• 21st century business models
• Impact points mapped to business model
• Knowledge-for-action dashboard
http://www.greenspec.co.uk/life-cycle-assessment-lca/
Life Cycle Business Model
GovernancePurpose / Vision / Mission / Values / Strategies
THE BUSINESS
Customers
Human Resources
Financial Assets, Facilities,
Equipment, Intellectual Property
Suppliers
20th Century Business Model
Products &
Services
Activities &
Processes
Lenders &
Investors
Agenda
• 20th century business models
• 21st century business models
• Impact points mapped to business model
• Knowledge-for-action dashboard
New Corporate Purpose
“Statement on the Purpose of a Corporation,” Business Roundtable (BRT), August 2019.
The new purpose of a corporation is to:
• Deliver value to its customers
• Invest in its employees
• Deal fairly and ethically with its suppliers
• Support communities where it operates and protect the
environment by embracing sustainable practices across its
businesses
• Generate long-term value for its shareholders
From: Maximize shareholder value
To: Maximize stakeholder wellbeing
• Shows the nested interdependencies: It makes visible that the company is
nested in society, which is nested in the environment on a finite planet.
21st Century Business Model Design Criteria
https://drive.google.com/drive/folders/0B30i3w7ZW4ZMcnk0UEtncG5HaW8?usp=sharing
THE BUSINESS
21st Century Business Model Template
SOCIETY-
AT-LARGE
ENVIRONMENT
• Shows the nested interdependencies: It makes visible that the company is
nested in society, which is nested in the environment on a finite planet.
• Shows traditional flows: It shows the overall input‒process‒output flow
between the environment, suppliers, the business, customers and society.
• Shows stakeholder impact points: It makes visible where the business
impacts stakeholders, including the environment and society.
• Shows how the company creates value: It provides context for how the
company delivers value to stakeholders.
21st Century Business Model Design Criteria
THE BUSINESS
Suppliers
Community
Channels
Customers
Employees
SOCIETY-
AT-LARGE
ENVIRONMENT
Lenders &
Investors
Products &
Services
Activities &
Processes
GovernancePurpose / Vision / Mission / Values / Strategies
Community
Other
Stakeholders
Financial Assets, Facilities,
Equipment, Intellectual Property
21st Century Business Model Template
• Shows the nested interdependencies: It makes visible that the company is
nested in society, which is nested in the environment on a finite planet.
• Shows traditional flows: It shows the overall input‒process‒output flow
between the environment, suppliers, the business, customers and society.
• Shows stakeholder impact points: It makes visible where the business
impacts stakeholders, including the environment and society.
• Shows how the company creates value: It provides context for how the
company delivers value to stakeholders.
• Can accommodate new risks: If desired, it can show new 21st century
environmental and social risks that the company may need to mitigate.
• Can accommodate reputation, savings and income flows: If desired, it can
show sources of value that flow back into the business.
21st Century Business Model Design Criteria
GovernancePurpose / Vision / Mission / Values / Strategies
THE BUSINESS
Lenders &
Investors
21st century
environmental
risks
Reputation
$ Savings
Reputation
$ Savings
Reputation
$ Savings
SuppliersProducts &
Services
Activities &
Processes
$ Returns
Reputation
Community
Other
Stakeholders
Channels
Customers
Social licence
$ income
Reputation
$ Revenue
Employees
Financial Assets, Facilities,
Equipment, Intellectual Property
SOCIETY-
AT-LARGE
ENVIRONMENT
21st Century Business Model Template
Future-Fit Business Model
Future-Fit Business Benchmark Methodology Guide
Agenda
• 20th century business models
• 21st century business models
• Impact points mapped to business model
• Knowledge-for-action dashboard
Stakeholder Impact Points
Core ESG Issues at Impact Points
Wages
Water
Concerns process
Energy
GHG emissions
Encroachment
Health & wellbeing
Community impacts
Discrimination
Employment terms
Lobbying
Taxes paid
Business ethics
Waste
Non-GHG emissions
Materials, goods
and services
Investments
Governance
EnvironmentEmployees
Community / SocietyEnvironment
SDGs Mapped to Impact Points
Wages
Water
Concerns process
Energy
GHG emissions
Encroachment
Health & wellbeing
Community
impacts
Discrimination
Employment terms
Lobbying
Taxes paid
Business ethics
Waste
Non-GHG emissions
Materials, goods
and services
Investments
EnvironmentEmployees
Community /SocietyEnvironment
Governance
Wages
Water
Concerns process
Energy
GHG emissions
Encroachment
Health & wellbeing
Community
impacts
Discrimination
Employment terms
Lobbying
Taxes paid
Business ethics
Waste
Non-GHG emissions
Materials, goods
and services
Investments
EnvironmentEmployees
Community /SocietyEnvironment
Governance
Capitals Mapped to Impact PointsN
atu
ral
ca
pit
al
Hu
ma
n
ca
pit
al
So
cia
l
ca
pit
al
Na
tura
l
ca
pit
al
• Financial capital
• Manufactured capital
• Intellectual capital
Agenda
• 20th century business models
• 21st century business models
• Impact points mapped to business model
• Knowledge-for-action dashboard
Business Model Centerpiece Graphic
for Dashboard
Customers
OR
Society
Environment
Community
Employees
Company
$
Dashboard - ESG Scores
Concerns
Discrimin…
Terms
Wages
Health
Impacts on Employees
78% 67%
$5.6M $0.6M
Revenue Profit
$xxxx
(Other)
Financials
0% 50% 100%
Materials, goods and…
Energy
Water
Impacts of Inputs
0% 20% 40% 60% 80% 100%
GHG emissions
Non-GHG emissions
Waste
Encroachment
Impacts of Operations and Products
0% 20% 40% 60% 80% 100%
Community impacts
Taxes paid
Business ethics
Lobbying
Investments
Progress on impacts on Communities
75%
70%
3-in-1 Sustainability Assessment Toolkit https://sustainabilityadvantage.com/frameworks/science-based-reporting-tools/
53%
Dashboard - SDG Scores
Impacts on Environment
by Inputs
Impacts on Employees
Impacts on Society, Communities
and Customers
Impacts on Environment
by Operations and Products
60% 36%74% 68%68% 68%
68% 68%
70% 72% 61%
72%82%
61% 70%85%
82%
$5.6M $0.6M
Revenue Profit
$xxxx
(Other)
Financials
3-in-1 Sustainability Assessment Toolkit https://sustainabilityadvantage.com/frameworks/science-based-reporting-tools/
Dashboard - <IR> Capitals Scores
Natural Capital
Progress on adding more value
than subtracting value through
inputs53%
Human CapitalProgress on adding more value than
subtracting value
78%
Social and Relationship CapitalProgress on adding more value than
subtracting value
70%
Natural CapitalProgress on adding more value than
subtracting value through operations
and products 75%
+15%
+5%
+12%
FINANCIAL CAPITAL
Value change
MANUFACTURED CAPITAL
Value change
INTELLECTUAL CAPITAL
Value change
3-in-1 Sustainability Assessment Toolkit https://sustainabilityadvantage.com/frameworks/science-based-reporting-tools/
Agenda
✓ 20th century business models
✓ 21st century business models
✓ Impact points mapped to business model
✓ Business model centrepiece for dashboards
A Fit-For-Purpose
21st Century Business Model … And Its Companion Knowledge-For-Action Dashboard
