Sustainability

Feature

Food for Thought: Discovering Common Ground
By Bart Hilhorst and Peter Schütte

The Nile’s waters are vital for the livelihood of over 200 million people in its basin. Rapidly rising populations and consequent environmental stresses have lead to water scarcity and complex protracted negotiations. Peter Schütte and Bart Hilhorst describe an interactive process called Food for Thought (F4T), in which a group of 25 representatives from all Nile countries participated in a joint scenario building exercise to consider future water demands, particularly for agricultural needs. The authors share details of this process, demonstrating that scenario thinking can increase the appreciative understanding of a complex problem in a relatively short period of time, surface hidden assumptions, clarify desired futures, and foster trusting relationships among a diverse set of stakeholders and experts by encouraging a wider perspective. Read Full Article

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Capitalism as a Human System: The Value of Relational Equity
By Joseph H. Bragdon

In this article, Jay Bragdon, author of Profit for Life (SoL 2006), explains why companies that mimic living systems consistently outperform those that exist as mechanical entities. The term he uses to describe this emerging living systems model is relational equity. Over the past ten calendar years he has tracked equity returns on the 60 companies in his learning lab against widely used benchmark indices – ones that broadly represent traditional bottom-line-first management methods. His data revealed that companies driven by a traditional bottom-line approach, on average, either lost value or barely broke even. However, those that followed a relational equity model were able to catalyze a powerful reinforcing cycle of profit. In reading this article, we learn that a business managed as if it were a living organism creates a radically different and more beneficial set of relationships than one managed as a static entity. Companies that operate as living systems inherently place a significantly higher value on people and Nature (living assets) than they do on non-living capital assets. They understand, as we as practitioners need to understand, that at a fundamental level living assets are a prolific source of capital assets. Read Full Article

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Not Just for Profit
By Marjorie Kelly

Conventional wisdom tells us that the purpose of economic activity is to make money for shareholders. While this is true, it is only one truth. As new definitions of capitalism emerge (see "Capitalism as a Human System: The Value of Relational Equity," pages 1-8), a small but rapidly expanding group of corporate leaders believe that economic activity should and can be socially beneficial. In this article, Marjorie Kelly, author of The Divine Right of Capital, explains the rise of the beneficial corporation. The core purpose of beneficial corporations, or B corporations, is to ensure that their goods and services benefit society as they continue to return profits to their shareholders. They regard their businesses as living systems and believe that delivering social benefits is a core purpose, not an incidental by-product. New corporate structures are emerging to actively include the voice of multiple stakeholders and relieve the pressure to focus solely on short-term results - structures essential for the success of this new corporate form. With a commentary by Jason Schulist "In Search of the New Normal". Read Full Article

Of Interest

Organizational Learning and the IFC’S Mission Impossible - A Commentary
By Peter Senge

Leadership offers a powerful thread for understanding the rich tapestry of forces that shape all journeys of deep organizational change, and yet it is far too often misunderstood. I really liked "Organizational Learning and the IFC's Mission Impossible"[Reflections 9.1], both because it tells an important story of change in a very complex public-sector organization, and because it helps people see the diversity of leadership involved, and especially because it entirely omits the one character who, by more traditional accounts, would be hailed as "the leader."

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Book Excerpt: The Tao of Sustainability
By John Ehrenfeld

From: Sustainability by Design: A Subversive Strategy for Transforming Our Consumer Culture New Haven: Yale University Press, 2008

Ehrenfeld's work itself is inspired by his experience in the SoL community. He has shared his developing ideas in prior issues of Reflections, and he writes an introduction to the book excerpt which tells that story.

See:
"Searching for Sustainability: No Quick Fix"
"Colorless Green Ideas Sleep Furiously: Is the Emergence of "Sustainable" Practices Meaningful?"

Second, the "tao of sustainability" speaks to the theoretical and practical importance of "recovering our senses" dimmed by the forces of modernity. In his discourse, Ehrenfeld illustrates how we can truly move from viewing sustainability as a problem in need of a solution, to a possibility calling for creation.

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BOOK EXCERPT from Limits to Growth: The 30 Year Update - "Tools for the Transition to Sustainability"
By Donella Meadows, Jorgen Randers and Dennis Meadows

In 1972, three scientists from MIT created a computer model that analyzed global resource consumption and production. Their results – published in the bestseller Limits to Growth – shocked the world and created stirring conversation about global “overshoot,” or resource use beyond the carrying capacity of the planet. In this update, published 30 years later, they offer an analysis of present and future trends in resource use, and assess a variety of possible outcomes. The authors believe that humanity can still reverse some of its damage to Earth if it takes appropriate measures now to reduce inefficiency and waste. In this excerpt, they lay out five tools that will be necessary for our survival over the long term. Read Full Article

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The Role of the Corporation in Supporting Local Development
By Muhammad Yunus

At SoL’s Global Forum held in Oman last year, Nobel Prize winner Muhammad Yunus, the founder of Grameen Bank, joined Roberto Bocca, director of emerging consumer markets at BP Alternative Energy; Lynne Dovey, director of strategic planning at the Ministry of Economic Development in New Zealand; Shaikh Saleh Al-Turki, the chairman of the Jeddah Chamber of Commerce and Industry, and Omar Shaban, director of operations at Cisco NetVersity to look at the ways in which business can be modeled in order to help the poor. Muhammad Yunus related the story behind Grameen Bank and shared his concept of “social business.” Moderated by social researcher Laurent Marbacher, the panel also explored the idea of what human beings are capable of doing for local development, as well as how systems can enhance these capacities so that they can flourish. Read Full Article

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Serving the Underserved: Progressive Energy Solutions Through a Sustainable Business Model
By Roberto Bocca and Prema Gopalan

One of the most highly rated sessions at SoL’s 2008 Global Forum in Oman was a presentation by Roberto Bocca, the director of Emerging Consumer Markets for BP Alternative Energy, and Prema Gopalan, the founder and executive director of Swayam Shikshan Prayog (Self Education for Empowerment, or SSP), a non-governmental organization (NGO) in India. The two organizations partnered to look at solving the problem of bringing clean energy to some of India’s poorest people. This took the form of creating a market together for an innovative, affordable cooking stove that uses pellets made of agricultural waste as fuel. The following is adapted from that session, which addressed the unique nature of corporate-NGO partnerships. Read Full Article

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BOOK EXCERPT from The Necessary Revolution: How Individuals and Organizations are Working Together to Create a Sustainable World - "How We Got into this Predicament"
By Peter Senge, Bryan Smith, nina kruschwitz, Joe Laur and Sara Schley

Something important has happened in the last stage of the industrial era that sets it apart from the past: Globalization has brought a level of interdependence between nations and regions that never existed before, along with truly global problems that also have no precedent. The Industrial Age isn’t ending because of a decline in opportunities for further expansion. It is ending because individuals, organizations, and governments are realizing that its side effects are unsustainable. But endings are also beginnings. In The Necessary Revolution, Peter Senge and his coauthors share the guiding ideas that are essential for creating a more sustainable future: seeing systems, collaborating across boundaries, and moving from problem solving to creating. The book is full of stories and examples of individuals and organizations who are putting these ideas into action, many of whom are associated with SoL. This excerpt explains “how we got here” and lays out the case for urgency in radically shifting the kind of thinking that has made the industrial era so successful, and so disastrous. Read Full Article

Feature

In the Shadow of Windmills: Reflections of a Climate Project Volunteer
By Peter Winsor Pruyn

Not long after SoL research member Peter Pruyn saw An Inconvenient Truth, Al Gore’s award-winning call to arms on climate change, he applied to the Climate Project to become a volunteer trainer. He finished the training in December, 2006 and began sharing Gore’s presentation soon after, including one with SoL members at the SoL Boston offices. In this article he reflects on a journey that found him continually reflecting on and challenging his own mental models, assumptions, and beliefs. What he learned during the past year – from a new vocabulary, to how to avoid being overwhelmed by the implications of climate change – applies to anyone working in this arena. The capacity to learn is critical for generating “progress amidst complexity,” especially in urgent situations that demand action. Pruyn continues to speak to diverse groups about climate change, and to further his own learning. Read Full Article

Feature

Gross National Happiness: Measuring What Matters
By Frank Dixon

Of course we all know that we tend to focus on and value what we measure. Inspired by the nation of Bhutan's measure of "Gross National Happiness," investment analyst Frank Dixon explores how we can measure real social wellbeing. In this article, based on an address to senior leaders in Bhutan, he summarizes the implications for an economy where social wellbeing is a critical indicator of success. Recognizing that significant social wellbeing requires collaborative effort between corporations, government and civil society, he offers "total corporate responsibility" as the way companies can and should work toward system level change in their role as system citizens. Read Full Article

Commentary by John Ehrenfeld

Of Interest

Recommended Reading and Resources
By Sherry Immediato

Recommended Reading and Resources on sustainability themes from Sherry Immediato, Peter Senge, and our friends at Pegasus Communications. Read Full Article

Of Interest

Profit for Life
By Joseph H. Bragdon

Finally, we're delighted that there is good evidence to support what we've all believed to be true - that a commitment to life-sustaining business practices is actually good business. This issue's book excerpt features the introduction to Jay Bragdon's new book, Profit for Life: How Capitalism Excels. While we all recognize that there are many aspects of our economic system that do not encourage us to be good systems citizens, he reports a group of firms - some of which will surprise you - have been able to adhere to their values and produce the kind of financial results revered by conventional investors. Read Full Article

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Cloudy Skies: Assessing Public Understanding of Global Warming
By John D. Sternman and linda booth sweeney

However we accomplish it, new forms of education remain an important leverage point for systems citizenship. John Sterman and Linda Booth Sweeney began research many years ago to investigate how well-educated people make sense of data that requires an underlying appreciation of basic systems principles. In "Cloudy Skies: Assessing Public Understanding of Global Warming," they document the results of their research, showing the reasoning and faulty logic that cause many to support "wait and see" attitudes toward climate change at the personal, corporate, and national levels. Read Full Article

Commentary by Tom Fiddaman

Emerging Knowledge

Building a Sustainability Institute
By Jeffrey Scott Lindstrom

While a clear corporate purpose can inspire innovations in management, we also need to consider how management education should change. In a contribution to Reflections' Emerging Knowledge Forum, Jeff Lindstrom, a SoL Connections member, shares the story of the birth of the Institute for Sustainable Development in eastern Russia. This new graduate program is a great example of thinking globally and acting locally, with a goal of establishing an international perspective while focusing on regional and national development. Read Full Article

Of Interest

Building a Sustainability Institute
By Jeffrey Scott Lindstrom

While a clear corporate purpose can inspire innovations in management, we also need to consider how management education should change. In a contribution to Reflections' Emerging Knowledge Forum, Jeff Lindstrom, a SoL Connections member, shares the story of the birth of the Institute for Sustainable Development in eastern Russia. This new graduate program is a great example of thinking globally and acting locally, with a goal of establishing an international perspective while focusing on regional and national development. Read Full Article

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Seventh Generation: Education for the Consumer Products Business
By Jeffrey Hollender

In a recent conversation hosted by the Sustainability Consortium, CEO Jeffrey Hollender discussed his company's founding and evolving purpose. The article developed from that conversation, "Seventh Generation: Education for the Consumer Products Business," provides a good example of a practical approach to total corporate responsibility. He discusses the company's quest to continue to improve product design, product delivery and customer education. This ongoing process of reflection, conversation, experimentation, and correction is one they see as strengthening relationships within the company, and with customers and other stakeholders. Readers can download the audio from the original conversation on the Reflections website, and view the full list of conversations at the Sustainability Consortium website. Read Full Article

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The Natural Step: A Vision for Sustainable Societies
By Manfred Mack and Karl-Henrik Robèrt

Karl-Henrik Robèrt was recently interviewed by Manfred Mack for Les Cahiers de SoL - SoL France's version of Reflections. "The Natural Step: A Vision for Sustainable Societies" offers an overview of a systemic effort to affect the systems intelligence to which Senge refers. Many readers will already be familiar with the start of The Natural Step, a grassroots initiative in Sweden which resulted in widespread awareness of four principles of sustainable societies. Robèrt describes their work with companies to adopt and integrate these principles into practice. Read Full Article

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Systems Citizenship: The Leadership Mandate for This Millennium
By Peter Senge

In the opening feature of this issue, Peter Senge offers his view on "Systems Citizenship: The Leadership Mandate for This Millennium." When asked if the basic fundamentals for sound leadership remain the same in a changing world, Senge responds "yes." He offers a range of examples which highlight the fundamentals as he sees them: a deep capacity for systems intelligence, and building partnerships with the "other" in a context of openness of mind, heart, and will. These ancient and currently underdeveloped capacities are essential for helping us see the world we now inhabit, and to guide us in acting as good systems citizens. Read Full Article

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From Brainwashing to Organizational Therapy: A Conceptual and Empirical Journey in Search of "Systemic" Health and a General Model of Change Dynamics
By Ed Schein

At SoL’s Research Greenhouse in 2004, Ed Schein, professor emeritus at MIT’s Sloan School of Management, a founding father of the field of organizational development, and one of SoL’s first trustees shared his own cross-cultural journey, and how it has shaped his own practice. His story is told as a drama in five acts: “From Brainwashing to Organizational Therapy: A Conceptual and Empirical Journey in Search of Systemic Health and a General Model of Change Dynamics.” We are delighted to share an article based on his talk, as well as the original talk itself as an audio download.
Download Full PDF Issue
Listen to audio downloads of Ed Schein
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Feature

Bringing "Mission" to Life: Corporate Inspiration from Indian Communities
By Karen Ayas and Philip Mirvis

What would you do to build a deep sense of purpose within your organization, enhance performance, and make a difference in the larger world? What kinds of developmental experiences would you design to accomplish all this if you had sufficient resources? In this issue's feature article we see how one company, Unilever Bestfoods Asia, tackled those questions with the help of a team led by coauthors Karen Ayas and Philip Mirvis. Recognizing the connection between shared personal experience and deep organizational change, they sought to build a community of leaders through a profound learning journey in India. While the specifics of this effort are beyond the reach of most organizations, Unilever's continuing experiment has changed the lives of its participants, and yielded important principles for building a purposeful and committed organization. Read Full Article

Commentary by Peter Senge

Commentary by Tex Gunning

Feature

Searching for Sustainability: No Quick Fix
By John Ehrenfeld

In the face of alarming environmental and social imbalances, the growing push for sustainability has given hope to many thoughtful practitioners. But John Ehrenfeld, a leader in the emerging field of industrial ecology, questions the conventional approach to "sustainable development." Creating true sustainability, he argues, requires radical solutions, not quick fixes. The process begins by examining our own behaviors and assumptions regarding consumption, personal satisfaction, and technology. Ehrenfeld suggests ways to achieve a deeper vision of sustainability. Read Full Article

Commentary by Greg Roscoe

Commentary by Bob Tierney

Feature

Awakening Faith in an Alternative Future: A Consideration of Presence: Human Purpose and the Field of the Future
By Peter Senge, Otto Scharmer, Joseph Jaworski and Betty Sue Flowers

With so many social systems – families, companies, governments, communities and societies – in disarray, it often seems that the future does not look promising. The scenarios we imagine most easily reveal our worst fears rather than the legacy to which we aspire. What can we do? Based on extensive research, first-hand experience, and a multi-year dialogue, Peter Senge, Otto Scharmer, Joseph Jaworski, and Betty Sue Flowers – authors of the new book Presence: Human Purpose and the Field of the Future – have concluded that in order to “create the world anew” we will be called to participate in changes that are both “deeply personal and inherently systemic.” Given SoL’s mission to support the interdependent development of individuals and their institutions, we are delighted to share highlights of the authors’ exploration into the essence of generative learning. The article that follows is based on the introductory chapters of their book. Read Full Article

Commentary by Darcy Winslow

Commentary by Elena Diez Pinto

Commentary by Robert Fritz

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Confronting the Tyranny of Management by Numbers: How Business Can Deliver the Results We Care About Most
By H. Thomas Johnson

Is focusing on results the best way to achieve results? In this article, award-winning author and accounting expert Tom Johnson presents his notion of performance management -- "management by means" -- and examines our misguided cultural enchantment with "management by objectives" and its consequences. His premise will be easily recognized by anyone with production experience: physical systems have physical limits on the quality and quantity of what they produce. Setting production objectives that exceed the system's means may produce short-term results but inevitably degrade the system itself. Johnson challenges us to see the full range of consequences when we treat our organizations as disconnected abstractions. Roger Saillant, a CEO who has successfully implemented a similar approach, and Jay Bragdon, an investment analyst, offer their perspectives on the practical value of managing by means. Together, these pieces offer a compelling vision for the work of managers. Read Full Article

Commentary by Joseph Bragdon

Commentary by Roger Saillant

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Rethinking Corporate Responsibility
By John Browne

Sir John Browne calls for a reexamination of fundamental ideas about sustainability and the responsibility of corporations in this 1997 speech. Browne: “…We need to go beyond analysis to seek solutions and to take action.” Read Full Article

Commentary by Stephen Schneider

Commentary by Bernard Bulkin

Feature

Becoming a Sustainable Species
By Pille Bunnell and Nicholas Sonntag

The authors suggest that fundamental human characteristics at this point in time are incompatible with global sustainability, and that a deep transformation of those characteristics is necessary. Bunnell & Sonntag: "The social system is embedded in the ecological system." Read Full Article

Commentary by Humberto Maturana

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How Many Experts Do We Need Before We Heed Earth's Warnings?
By Donella H. Meadows

Donella Meadows offers a troubling update on the health of the planet. Meadows: “…Scientists and others, even economists, have been transmitting similar messages lately, with clarity and urgency.” Read Full Article

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From the Chair
By Peter Senge

Peter Senge discusses the conditions that allowed for the formation of the SoL Sustainability Consortium and heightened awareness of the issue of sustainability, in general. Senge: “…Currents converged to create the Sustainability Consortium…” Read Full Article

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On the Plural Attentions Necessary for Catalyzing and Implementing Sustainable Development
By Hilary Bradbury

Hilary Bradbury outlines the material conditions and organizational behaviors that foster sustainable environments in this technical treatment. Bradbury: “Since 1994, a group has met at SoL to connect the learning orientation of our work to efforts aimed at fostering organizational change in support of sustainability.” Read Full Article

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Climbing Mount Sustainability
By Ray Anderson

Ray Anderson traces the path of his personal interest in environmental sustainability, the organizational transformation at Interface, and the changes we must make to achieve sustainable businesses in the future. Anderson: “I challenged them to make our company the first name in industrial ecology worldwide.” Read Full Article

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The SoL Sustainability Consortium
By Sara Schley and Joe Laur

Sara Schley and Joseph Laur discuss the “triple bottom line” and the role that a SoL forum has in achieving it. Schley & Laur: “…While our well-meaning work in organizational learning was contributing to a company’s productivity, we also were contributing to the overall decline of the planet.” Read Full Article

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Colorless Green Ideas Sleep Furiously: Is the Emergence of "Sustainable" Practices Meaningful?
By John Ehrenfeld

John Ehrenfeld explains how many widely-held beliefs and policies for sustainability are deeply misguided, and he suggests ways to address those errors at a basic level. Ehrenfeld: “…Few, if any, of the many new practices being touted as green or eco-efficient or some other manifestation of sustainability are, in fact, sustainbable.” Read Full Article

Commentary by Sara Schley

Commentary by Joe Laur

Commentary by D. Pratt

Commentary by John Ehrenfeld