Page 1
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 1
Responsible Excellence www.fussler.org
10 modules in 4 days
1 2 3 4 5 6 7 8 9 10
1. Sustainable Development – the political agenda2. Corporate Social Responsibility – a business agenda3. Sustainability and Innovation4. Case study – A mobility breakthrough5. A corporate case – Holcim6. Stakeholders and boundaries7. Case study – a mobility breakthrough8. Value creation – difficulties and evidence9. Responsible excellence – a performance model10. Responsible Excellence and the real world
Responsible Excellence www.fussler.org
What decoupling factor do we need long term?
According to WWF we alreadyexceed nature’s capacity by 30%
20% of the world’s popula-tion consume 80% of it’s
resources. But long term peace and
security for all will depend on equitable access
+ World population will grow by 50% before stabilizing in 25-30 years
Therefore we need to reach a resource efficiency of: ?
1.3
x
5
x
1.5≈
10
Responsible Excellence www.fussler.org
Some progress and promises in eco-efficiencyGross domestic product
☺
☺Europe achieves relative decoupling in several areas:Energy, material, water, air pollution…but fails in transport, packaging waste…
☺
Page 2
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 2
Responsible Excellence www.fussler.org
Eco-efficiency – a trigger for eco-innovation
Decoupling
factor Xfactor X
Discomfortis almost a prerequisite for a great ideaCraig Frazier, designer
product or service value
environmental impact
the creative power of dilemma
Responsible Excellence www.fussler.org
From idea to value
Novel idea+ Need= Creative solution
+ Implementation= Innovation+ Competitive advantage= Value potential
Responsible Excellence www.fussler.org
Innovate! = balancing 4 critical elements
Innovation process operational effic
iency
Stra
tegi
cvi
sion
personal creativitypersonal creativity
Page 3
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 3
Responsible Excellence www.fussler.org
Innovative capacity assessment
2A+B
E+2F
2G+H
L+2M
Strategicvision
Operational efficiency
Innovationprocess
Personalcreativity
Responsible Excellence www.fussler.org
The process of personal creativity – why?
Dr. Robert Epstein
Newbehaviour
MultipleBehaviourrepertoire
MultipleBehaviourrepertoire Competition of
infinite combinations
Responsible Excellence www.fussler.org
ChallengeGive upTry harderFrustrationResurgence
Capturing
factor Xfactor X
The process of personal creativity – how?
Newbehaviour
Dr. Robert Epstein
Competition ofinfinite combinations
Page 4
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 4
Responsible Excellence www.fussler.org
Innovate to meet sustainable needs
Com
petit
ive
spac
eof
kno
wn
offe
ring
Move before you have to!Move before you have to!
Obsolescence through buyers and users
preferences&
policy changes
Invest inDematerialisationNon carbon energyWater servicesNegawatts & negadropsDesign skillsCapital replacementDialogue and partnershipsCommunities
Include
Silent trends, weak signalsPossible water crisisCarbon constraintSustainable ConsumptionOpportunity in development
Innovationcreates new offering
adapted to new needs
Responsible Excellence www.fussler.org
from invention to real market impact
Ozone protection 40 years
transistor to Pentium 46
DNA code to man-made insulin 29
laser to CD 23
mobile fuel cell 153
your eco-efficient idea ??
Responsible Excellence www.fussler.org
A compass to jump-start eco-innovation source - Driving Eco innovation - Claude Fussler and Peter James - 1996 - Financial Times Management
mass intensity
energy intensity
H&E potential risk
resource conservation re-valorisation
service extension
factor ½44
22==
Page 5
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 5
Responsible Excellence www.fussler.org
Strategic depth through vision
Building a positive legacy
Precaution, risk avoidanceStrategic
depth
Foresight
Opportunity anticipation
VISIONa shared ambition to achievea highly desirable end-state
Jean Philippe Deschamps; IMD Lausanne
Responsible Excellence www.fussler.org
« The art of the long view »
? Key trends that will affect your business ?
15 to 20 years15 to 20 years
? Weak signals
? Discontinuities
Responsible Excellence www.fussler.org
Define strategic needs and priorities
SustainableDevelopmentYouroperationaldefinition
No toxNo tox
Social
cohesionSocial
cohesion
Climate
neutralClimate
neutral
durabilitydurability
jobsjobs
LowwasteLow
wasteWater
securityWater
securityBrainstorming, workshops,advisory panels, reading…
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In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 6
Responsible Excellence www.fussler.org
Look for solutions to needs
&&New ideas to
solve more thanone priority
No toxNo tox
Social
cohesionSocial
cohesion
Climate
neutralClimate
neutral
durabilitydurability
jobsjobs
LowwasteLow
wasteWater
securityWater
securityEco-innovation teams
Responsible Excellence www.fussler.org
Eco-innovation is not just about products….
?WHAT SERVICE
…but the fundamental marketing question:
Responsible Excellence www.fussler.org
Wants or basic needs?
emerging / developing mature
Economies
High
Low
Pers
onal
inco
me
Of 4.4 billion people
3/5 lack basic sanitation1/2 lack modern energy1/3 have no clean water1/4 lack adequate housing1/5 have no adequate health service1/5 are hungry
UN Millennium Development GoalsWants
Needs
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In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 7
Responsible Excellence www.fussler.org
Consider impacts of all resources used in life cycle
Radical system improvements
When do we stop worrying aboutbeing crappy and start shipping?Rules for revolutionaries; Guy Kawasaki
factor 10factor 10
Responsible Excellence www.fussler.org
Combustion or mobility machine?
fuel energy 100%
* refining and distribution efficiencynot accounted for
radiation 20% exhaust 35%
cooling water 20%
bearings 6%
movement19%
rolling resistance 4.2%air resistance 10.5%
accelerate & climb 4.3%
deadweight 17%
personal mobility 2%
Responsible Excellence www.fussler.org
21 .st century technologies?
WASTE
consume
1 00
0 kg
keep
100
kg
extract
10 0
00 k
g
UK solid materials per capitapersonal mobilityair cooling
lightingcooking and hot water
residence
personal mobilityair cooling
lightingcooking and hot water
residence
source:R Ayres IIASA 1989% energy efficiency10 200 10 200
The improvementopportunities are huge!
Page 8
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 8
Responsible Excellence www.fussler.org
From idea to business opportunity
• 1 of 100 ideas typically gets to market
• Efficient idea generation and screening are critical
Responsible Excellence www.fussler.org
Ideas score board for competitive advantage
value to business
HiHiMedMedLoLo
capability
we have it first mover
we do nothave it yet
explorer
HiHiMedMedLoLo
competitorshave it now
challenger
loser
first mover
explorer
Responsible Excellence www.fussler.org
Operational efficiency
cash
time0
1
2
3
4
Manage1.Resources allocation2.Development costs3.Time to market4.Total sales margin
But also think☺ Customers’
payback time
Page 9
In search of Responsible ExcellenceHow Corporate Social Responsibility stimulates innovation and creates value
© Claude [email protected] 9
Responsible Excellence www.fussler.org
Problemscannot be solved by
thinkingwithin the framework
in which they were
created
Responsible Excellence www.fussler.org
In summary
To innovate• Cultivate 4 success factors
– Personal and team creativity– Innovative environment and work processes– Operational efficiency– Strategic depth and curiosity
• Eco-innovation a source of sustainable competitiveness– Focus on needs– Understand function and service– Opportunities in the life cycle– Big hairy goals
• The good news: enormous technical potential!
