business strategy and global sustainability issues mim 511/ba 548 winter 2010 scott marshall
Post on 21-Dec-2015
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Sustainability-based Strategic Theories and Frameworks “Coevolutionary theory argues that the
concurrent operating of adaptation and selection explains the processes of [organizational] change and renewal.”
Flier, Van Den Bosch and Volberda (2003, 2164)
Competitive success depends on External situation analysis Strategic planning Core competency focus Innovation and Organizational Change Resource efficiency And, Luck!
Know what to adapt to…
Figure how to adapt…
Adapt based on strengths…
Change products, processes, systems, structures, etc.…
Do it well.…
So, hope for some luck along the way.…
Sustainability-based Strategic Theories and Frameworks Stakeholder Theory
Successful adaptation depends on being aware of and responding effectively to varied, often conflicting needs of multiple stakeholders.
Stakeholders include customers, shareholders, employees, regulators, suppliers, competitors, activists and advocacy groups, etc.
Employees
Banks
Shareholders
Social Activists
Customers
Local Government
IMPACT
LEGITIMACY PHILOSOPHY
Transformational Leadership Adopting MINDSET Creating VISION Implementing STRUCTURES, GOALS, POLICIES,
PROCEDURES Establishing INFORMATION & COMMUNICATION
SYSTEMS Setting up EMPLOYEE MOTIVATION &
LEARNING SYSTEMS
Sustainability-based Strategic Theories and Frameworks
Sustainability-based Strategic Theories and Frameworks
Transformational Leadership Accomplished through…
Charisma and Inspiration Intellectual Stimulation Individual Consideration
Sustainability-based Strategic Theories and Frameworks
Transformational Leadership Four Core Strengths
Self-Mastery. Often the greatest barrier to success in not others, not the environment, it is ourself.
The Transformational Mind-set. Action is supported by a set of beliefs or one has mindless impulses.
Influence. Mangers rely on authority, leaders rely on influence. Enough said.
Skills Development. Few know how to build a skill, so they waste countless hours in futile effort. One cannot build a skill by reading about it.
Strategic Frameworks
Environmental
Economic
Social
Strategic IssuesOperational Issues
Strategic IssuesOperational Issues
Strategic IssuesOperational Issues
BuildingStrengths andAmelioratingWeaknesses
Sustainability-based Strategic Theories and Frameworks
Sustainability-based Strategic Theories and Frameworks
Drivers:Disruption
Clean TechnologyFootprint
Drivers:Population
PovertyInequity
Drivers:Pollution
ConsumptionWaste
Sources of Creative Tension on Each
Axis
Strategic Frameworks
Drivers:Civil Society
TransparencyConnectivity
Shareholder ValueInternal External
Today
Tomorrow
Innovation & Repositioning
Growth Path & Trajectory
Cost & Risk Reduction
Reputation & Legitimacy
Minimize waste and
emissions from operations
Integrate stakeholders into business
processes
Develop new sustainable
competencies
Create shared roadmap for
meeting unmet needs
In a sustainable society, nature is not subject to systematically increasing:
1. concentrations of substances extracted from the earth's crust;
2. concentrations of substances produced by society; 3. degradation by physical means
and, in that society. . . 4. human needs are met worldwide.
Sustainability-based Strategic Theories and Frameworks
Strategic Frameworks
Sustainability-based Strategic Theories and Frameworks
Focus on company’s competencies Resources, Assets, Capabilities
Seek ways to enhance competitive advantage Long term investments
Reputation built on legitimate and actual practices Reputation to Brand to Revenue Linkage
Transparency and Innovation
Transparency
Product/Service Design
Mat
eria
l/Com
pone
nt
Sup
ply
& S
ourc
ing
Manufacturing &
Assem
bly
Distribution & Retail
Purch
ase
and
Consu
mpt
ion
Disposal, R
ecover
& R
eintegration
Leadership and Values
Employee Engagement
External Stakeholder Engagement
TransparencyMaterials Used in Products
TransparencyWhere and how materials
and components are made
TransparencyWhere and how products
are made
TransparencyHow products impact
consumers, in-use and when disposed
TransparencyCompany’s strategy,
practices, performance and impacts
Ecological and Social Label Systems Reduce ‘information asymmetry’ throughout
the value chain by revealing ‘credence attributes’
‘Credence Attributes’ – characteristics of processes and products that a buyer is not able to determine before purchase and during use.
Transparency and Innovation
Transparency
Transparency and Innovation
Innovation
Product/Service Design
Mat
eria
l/Com
pone
nt
Sup
ply
& S
ourc
ing
Manufacturing &
Assem
blyDistribution & Retail
Purch
ase
and
Consu
mpt
ion
Disposal, R
ecover
& R
eintegration
Leadership and Values
Employee Engagement
External Stakeholder Engagement
Innovation in Design(What it’s made of, how it’s
manufactured and sold, how it’s used and possibly
reused)
Innovation in Process(Where materials are
sourced, how their assembled, and
methods of disbribution)
Innovation in Use(The value desired/achieved,
who is seeking the value, and how they will realize this
value through use)
Transparency and Innovation
What is Innovation? Change that creates a new dimension of
performance. (Hesselbein, 2002)
A creative idea that is realized. (Frans Johansson, Harvard Business School Press,
2004)
Innovation
The more disruptive, the more
Stakeholders involved to make
viable
Transparency and Innovation
Disruptive
Incremental
Higher ViabilityLower Viability
Electric/PetroleumHybrid Vehicles
High OccupancyVehicle Lanes
Telecommuting
Disruptive – changing industry and business
models
Incremental – changing products and product
features
Low Viability – Limited mass
appeal and impact
High Viability – Significant mass appeal and impact
Fuel Cell Vehicles
Innovation