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The Emerging Corporate Renaissance

In companies that mimic life

Focus of this Presentation

Understanding the renaissance in terms of: How transformative change occurs How to identify leadership companies What we can do to accelerate its development

How Transformative Change Occurs

Testing Beliefs & Mindsets

Systemic Transformation
Results

Increasing Leverage

Behaviors

Structures

Vision & Values

Beliefs

Traditional Model of the Firm


Results Measurable Effects on GDP, Profit, Society, Biosphere Maximize Profit Ignore External Costs Hierarchical, Linear Reductive, Mechanistic

Behaviors

Structures

Vision & Values

Machine-Like Efficiency, Capital begets Capital The Quickest Way to Higher Living Standards

Beliefs

Traditional Model of the Firm


Results Measurable Effects on GDP, Profit, Society, Biosphere Maximize Profit Ignore External Costs Hierarchical, Linear Reductive, Mechanistic -> Systemic Failure

Behaviors

-> Systemic Stress

Structures

-> Dehumanizing -> Disconnected

Vision & Values

Machine-Like Efficiency, Capital begets Capital The Quickest Way to Higher Living Standards

-> Devalues Life -> Shortsighted

Beliefs

-> Diminishes Life

Organic Model of the Firm


Results Measurable Effects on GDP, Profit, Society, Biosphere Steward Living Assets Harmonize with Web-of-Life Profit Devoted to Higher Ends -> Prosperity

Behaviors

-> Systemic Health

Structures

Servant Leadership Life-mimicking Companies Holistic Systems Thinking


Bio-centric, Ethical, Imaginative

-> Creative -> Synergistic

Vision & Values

-> Inspiring

Beliefs

-> Life-Affirming

Reinforcing cycle of LAS, innovation and profit


Inspiration

Living Asset Stewardship

Organizational Learning

Profit

Innovation

How life-mimicking companies excel

Global LAMP Index Returns vs. Peer Indices


CY 1996 2010 (Compound Growth in %)

Years Last 15 Last 10 Last 5 Last 3 Last 1

Global LAMP 646.43 114.43 33.73 0.75 12.44

MSCI World 120.40 24.45 10.62 -16.32 9.55

FTSE World 157.00 43.10 21.86 -14.55 10.80

S&P Global 100 157.18 9.06 9.15 -16.38 5.97

How to Identify Leadership Companies

Their common attributes Three brief case studies Importance of systems thinking

LAMP companies have six lifemimicking attributes


They are deeply networked formally and informally They are autopoietic self-renewing, self-organizing They are frugal with all resources, including money They are synergistic open to new learning, adaptive They are symbiotic serving life systems that sustain them They are highly conscious intellectually & intuitively They know profit can only arise from life In which case profit must serve life.

To see how these processes work well look at three LAMP Index companies

Novo Nordisk (Denmark) a growth company


Canon (Japan) a cyclical growth company Nucor (USA) a deep cyclical company

Like diverse ecosystems, they may look different But they operate on similar principles.

Nucor a model of networking with an open, synergistic culture


A system of informal networks nested within the larger corporate IT network of nearly 200 operating facilities Each mini-mill and recycling center runs as a separate business 2,400 employees with open access to critical information and authority to make front-line decisions Networking is so effective there are fewer than 100 people at corporate headquarters With no R&D department, Nucor is technology leader in steel due to prolific idea sharing among front-line mill workers

Canon a model of self-directed symbiotic behavior


Three selves (San-Ji) spirit of self-awareness, self-motivation, selfmanagement underpins culture of respect and harmony. Corporate philosophy of Kyosei creates a shared vision of Living and working together for the common good. Team learning/idea sharing culture encourages eco-innovation. Corporate vision looks out 200 years towards a balance between social prosperity and environmental sustainability. Environmental accounting system started in 1983 encompasses Canon and its entire supply chain. Canon offers greater value using fewer resources throughout its product lifecycles.

Novo a model of frugality and ecological consciousness


Danish operations fully converted to renewable energy at no net cost due to employee energy saving ideas. To optimize idea sharing and feedback, 4 of 11 board members are employee representatives. Novo has had the highest DJSI score for bio-ethics (2003 2010). Blueprint for Change program looks to transform markets and societies for generations. Culture is premised on virtuous cycle of ecological consciousness, human health and financial wellbeing. Novo has had no net debt plus uninterrupted free cash flow for the past decade serving its goal to transform markets and societies.

Nucor Total Investment Return


20 Years - Ending 31 Aug 2011

Canon Total Investment Return


20 Years - Ending 31 Aug 2011

Novo Nordisk Total Investment Return


20 Years Ending 31 Aug 2011

These companies are leading a renaissance in systems thinking


Rather than trying to dominate and control the living systems in which they exist, they are learning to nurture and affiliate with them.

This is an important existential awakening a rebirth of human enterprise.


The successes of these companies cannot be ignored.

Companies that mimic life reverse the errors of industrial capitalism


by placing a higher value on life than capital. They know they are part of the larger systemic web of life. They seek to affirm life not dominate or control it. They see the diverse interconnects/feedbacks in systems. They understand systemic limits, the need to adapt. They seek value in quality improvements not growth for its own sake.

They are our best hope of achieving renewable prosperity.

What we can do to support the corporate renaissance

We must continuously press the case for companies that mimic life
Adopt their practices where we work Support them as customers, investors, partners Share their stories via media and social networks Inform business school case studies Let poorly managed companies know why we shun them This is a full-time education process. There is no time to waste.

Powerful leverage resides in those most committed to learning


Companies can be extraordinarily quick learners Multinationals have deep resources, organization skills Local enterprise has intimate local knowledge

Companies are moving out of the age of capital and into the age of knowledge.

Systems thinking can lead us to the edge of what analysis


can do and then point beyond - to what can and must be done by the human spirit.
Donella Meadows, lead author Limits to Growth (1972), Beyond the Limits (1992)