Conscious-Business.org.uk

A home for the Conscious Business community in the UK


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Vive la difference?

Someone sent me this paper the other day written by Jane Lorand who runs a Green MBA at a university in the USA. The arrival of many more Green and Sustainable MBAs will no doubt mean we get a lot more of this kind of thing. I am not sure I am looking forward to it.

Lorand argues that “For today’s businesses, there exist two distinct paradigms about what is real and important.” She separates these paradigms and describes the characteristics of each, including the beliefs on which she believes they are based.

For “Business-As-Usual” companies “1) Everything is Separate and 2) Materialism is the Only Reality”.

And for sustainable companies “1) Everything is Connected and 2) Spirit and Matter Co-exist to Form Reality.”

There are things I like about the paper. I enjoy breaking things down into categories. But I think we need to be careful not to be too hard on Business-As-Usual companies.

For one thing, Lorand says that “individuals who work in Business-As-Usual corporations find it very difficult to assert belief structures, identities or methods inconsistent with their corporation.”

She also suggests that Business-As-Usual has a singular goal: “maximizing financial profit for shareholders.”

I worked for a large US corporation during the 1980s and while profit was important as far as I could tell it was never the single goal of the company. The goals were much more diverse.

Wouldn’t it be great if life was that simple and it was possible to set a single goal and then attain it? In real life, we all do our best and and a number of different things result. Often results emerge that we weren’t expecting and didn’t intend.

Reading the paper I started to wonder if every big corporation has its own Stasi – controlling the workers. By contrast, the company I worked for contained such a very large number of “mavericks”, both people and groups, that it would seem absurd to suggest that people were unable to express their own beliefs.

In fact, that company, like all others I’d suggest, was a much more diverse and heterogenous mix of people and ways of doing things than management consultants who focus on ideas like “culture” would have us believe. (In some unkinder moods I’d suggest that if organisational culture didn’t exist, management consultants would have to invent it.) I am of the school of thought that believes that culture emerges fluidly and dynamically from the beliefs and activities of the people who work in a business. It’s not some intractable glue magically imposed top-down or somehow encoded in the papers of incorporation.

Why is this important? Because as we navigate the waters of sustainable business I think we need to be very careful to be inclusive. I think we need to welcome people of all backgrounds and cultures, including those that have worked in “big business”. We need to work with these people, not against them. In my experience, most people who work in large corporations have hearts just as big as those who work in sustainable business.

And we also mustn’t start to think that big business is somehow not open to change. That sounds much too much to me like the kind of thing I might say to my wife!

This approach itself creates barriers to change – it puts people’s backs up (just ask my wife), and it disempowers us – we stop believing in the possibility of change.

Big businesses, like any business, change fast once change starts. There are armies of “catalysts for change” at every level in every decent company – not just a few undercover agents.

The evidence for this is that few big companies would have survived in the turbulent years since I have been working without an incredible ability to develop and grow in response to change. Only the real dinosaurs suppress change – and these typically go the way of the dinosaurs.

I haven’t met Jane Lorand but I feel sure she’d concur.


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Business as war?

I just read this wonderful statement by Sam Keen about questions – “Your question is the quest you’re on. No questions — no journey. Timid questions — timid trips. Radical questions — an expedition to the root of your being. Bon voyage.”

That touches me deeply. Asking really good questions is very dear to me.

I looked Sam Keen up because I came across another quote from him “Business is just warfare in slow motion.” What an abomination. I was shocked to read this. But an abomination that I guess that many people, including myself, sign up to. Not always, and perhaps not consciously. But sometimes I do think in terms of “the competition”. How can we beat them? How can we outwit them?

Even if I am not the most outwardly agressive person, I admit I do sometimes think of business as war. Or at the very least, as a zero-sum game – where there must be a winner and a loser. I start to believe there isn’t enough to go around. I belittle and blame others for their own suffering – it must be their own fault they’re unable to find their way out of whatever problems they face. And, if I look inwardly, I am shocked to discover a core belief that others are somehow separate from me, disconnected, that we are not all part of a whole.

As Keen says elsewhere “we have to stop pretending that we can make a living at something that is trivial or destructive and still have sense of legitimate self-worth”. Destructive livings are bad for self-worth; they’re also bad for the world.

So what’s the alternative? There is a new world out there. It’s coming soon. A world where a different type of business exists. A world where co-operation and the win-win game are the only game in town. Where we all recognise that we are all connected, that we all share this one world.

How does business operate in that new world? For me, it’s beyond democracy. It’s even beyond caring. It’s about giving. And business is just a framework, a way of working, that gives real results to the people it serves. All of us.


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New ways to consume

Another solution to over-consumption is simply that we stop consuming so fast! Slowing down makes a lot of sense to me, especially when it leads to a better experience as in the Slow Food movement. Yum.

And another is to create a rental business.

One example that has been around a really long time is video rental. Why does everyone have to buy a video, causing one to be manufactured, when a perfectly good business model exists for renting them? As we have seen the model does work well – it’s stood the test of time and evolved from shops into postal rental services like DvdsOnTap which became Lovefilm and so on. Maybe it will be replaced by electronic downloads, but so far I am surprised by how resilient the model seems. Maybe there’s more to these services than just selling the same physical item over and over again?

Another more recent example are the car clubs popping up everywhere (Streetcar, WhizzGo, CityCarClub to name just a few). It’s the same business model – buy one car and let many people use it.

I wonder what other goods could be provided in this way?

If you do go down this route, of course, differentiating yourself becomes more interesting. It has little to do with the product itself – differentiation comes from the way the service is offered. It’s good therefore to see more and more consultancies emerging specialising in this area – I came across the Engine Group just today.


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Close the loop

On Saturday I saw again the great little animated film The Story of Stuff – “a 20-minute, fast-paced, fact-filled look at the underside of our production and consumption patterns” according to the blurb.

One of the solutions proposed in the film is closed-loop manufacturing, an idea pioneered by William McDonough and Michael Braungart in the early 1990s. Essentially closed-loop manufacturing does what it says on the tin, and you can find out more about their version of it, “cradle-to-cradle” or C2C Design on their website.

Well worth a look.


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Realising opportunities

Let’s get practical. If you’re convinced there’s a opportunity around sustainability, what do you do? One way forward is to come up with ideas. Here’s a great little book by James Young – A Technique for Producing Ideas. In brief, it suggests there are five important stages to developing ideas:

  • gather raw material;
  • digest that material;
  • let your subconscious go to work;
  • let ideas appear;
  • refine and filter.

Then what? Personally I believe in collaboration as the key to making anything worthwhile happen. Another great book is Organising Genius by Warren Bennis (the leadership guru). The book tells the story of some amazing collaborative projects, including those at Disney, PARC and the Manhattan Project, and draws out lessons on what made them successful (its subtitle is “the secrets of creative collaboration”).

I won’t list them all – but these are some I really agree with, partly based on my own experience in “great groups”. Great groups:

  • Know that talent is key – great groups quite simply contain great people.
  • Value and nurture leadership – great leaders grow great groups, but great groups grow great leaders too.
  • Have passion, and mission. They believe they are “on a mission from God”.
  • Are isolated, yet connected too. This is why, for me, the “skunk works” idea works so well.
  • Believe they are underdogs, and usually have an “enemy”. When I worked with BBC News Online the group demonised and respected CNN.
  • Are optimistic. I prefer to say realistic – along the lines of the Stockdale Paradox. But basically I agree with the great man Bennis.
  • Put people in the right role.
  • Enable people – people are given what they need and freed from what they don’t.
  • Are focussed on concrete results – practical outputs.
  • Value work as its own reward.

Easy really.


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Oldest companies in the world

I found this piece on the oldest companies in the world at the Long Now site. And according to Business Week even well established companies can be vulnerable. Japanese temple builder Kongo Gumi, founded in 578 (yes, five hundred and seventy eight), succumbed to “excess debt and an unfavorable business climate” in 2006. The writer, James Hutcheson, draws some interesting conclusions:

“To sum up the lessons of Kongo Gumi’s long tenure and ultimate failure: Pick a stable industry and create flexible succession policies. To avoid a similar demise, evolve as business conditions require, but don’t get carried away with temporary enthusiasms and sacrifice financial stability for what looks like an opportunity. ”

The oldest in the UK is a relative youngster – only 467 years old. Surprisingly it isn’t in the City of London – it’s near Huddersfield and is called Brookes Mill. Textile manufacturing ended only in 1987, and the same family have transformed the business into a “heritage office park”. Sounds like a sensible evolution.

The youngest I recognised was Cordoniu who make rather good cava. Founded 1551. Our own local brew here in Lewes, Harveys, has a venerable 200 year history.

I wonder if there’s something especially sustainable about the drinks business?


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Sitting in the long grass

It’s that long grass time of year. That is, when the grass isn’t cut to 3 inches it can grow up to 3 feet or more. Great for sitting in and contemplating.

Somebody once said to me “enjoy nature”. And I think I know what he meant – relish it, absorb it, study it, let it overcome you. Nature has great lessons to teach. One is that anything important works on a long cycle.

Sitting in the long grass just now I was also reminded that business is a long game. I went to a course at the Sloan School of Management at MIT once and remember hearing someone say they surveyed a vast number of business startups and were surprised to discover that the average time from startup to being what they called a “mature business” was something like 18 years. Ok it might have been 16. But a very long time.

Much longer than I think many people appreciate when they start something up. Or when they try to change a business. I also heard today that while 2007 was the year of people learning about climate change, 2008 seems to be a year of people forgetting it again. Maybe this sustainability thing is just a passing fad?

But, as the people behind the Clock of the Long Now, and other interesting projects (I particularly like the Long Bets idea), are trying to point out, sustainability is a long game. The planet and nature work on long cycles.

It also takes time to develop a business strategy that will take you where you want to go. It takes time to implement it successfully. Sometimes a very long time.

So why not start now?


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Keeping going

What do you do to keep going when the going gets tough?

I guess we all have times when we feel like giving up. Maybe it’s the heat of the summer. Or the cold of the winter. Maybe it’s because things seem to be going badly. Or maybe they are going so well that all impetus is lost.

When I get like that, inspirational talks don’t help. In a different mood listening to an inspirational speaker might lift me up. For me, at that time, the obvious refrain “it’s different for them” becomes very attractive.

One thing I know helps is the support of friends. A talk with like-minded people can, at least for the duration of the session, get me fired up again. Of course, the last thing I want to do in this mood is get out there and meet friends.

At times like this having made a commitment to myself is probably the best source of forward motion. If I have previously promised myself that despite hitting the doldrums I will continue to move forward, then when I hit this state, that’s what I’ll do.

It works for me. What do you do?


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Social capitalists of the world unite

Looking around the web the other day I came across the FastCompany 2008 Social Capitalist Awards.

Along with a bunch of 45 not-for-profits, there is also an interesting list of 10 “companies not only striving to make a profit, but to also make a difference.” This seems to me to be the most interesting subset of social venturing firms – companies that somehow work with both aims in mind.

FastCompany’s list includes, purely for your inspiration:

These may be small companies, but many are having a big impact. DWM, for example, has $250 million under management.
SustainAbility seems to be the only UK entrant. Does anyone know of an equivalent list for the UK?


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Solar power – no thanks

I’ve asked the question before. Just what are these business opportunities? And do we need an innovation strategy to define them?

Not always – sometimes you can just look. And sometimes a little idle speculation helps. I like the idle bit especially.

It’s been raining a lot in the last few days. I have been looking out of my office window at the rain. I looked and looked. And looked again. The view from my office Window

Where does all that rain go I wondered?

The answer is a whole slew of new rainwater harvesting businesses – such as www.clearwell-rainpiper.co.uk. Offering rainwater collection services for businesses and consumers alike. As their blurb says, not only does collecting rainwater save a lot of money for a bigger business that is greening itself. But it also saves energy and can prevent flooding.

What could be more appropriate. In a rainy country like ours.