Category Archives: Uncategorized

FROM DESIGN THINKING TO SYSTEMS CHANGE

A fascinating take on expanding design thinking towards systems change from the brilliant Rowan Conway of the RSA. First published on RSA site on 26 July.

———————————————————————————————————————————

After a prolonged adolescence where style perhaps outweighed substance, design thinking has grown up. Now is the time to combine design methods with systems thinking to enable the adaptive and innovative institutions we need for the future.

We live in disorienting and challenging times. As society becomes more networked, the traditional centralised power of governments is under pressure. It’s a tough time to be a political leader attempting to deploy tried and tested tools when society no longer behaves in tried and tested ways. Those formal, linear, definitive strategies that once cascaded down from a central point are now under continuous challenge by a youthful networked power that is digital by default and quick to adapt to change.

Design thinking was born of this youthful zeal and the last 10 years has seen a profound shift in what we understand as design. Driven by the exponential growth of the social web and digital services, designers have gone beyond the classic understanding of design as producer of artefacts, into design as creator of services, policies, processes, business models and governance structures. Human-centred design thinking methods — and service design in particular — have infiltrated business, government and third sector institutions and reinvented the way they approach innovation. And this in turn is disrupting traditional notions of how policy-making, business development, R&D, organisational design and strategy are done. As this diagram from Lean Ventures shows, rather than providing a clear route to a single solution, design thinking methods lead to many solutions, stimulating creativity and idea generation that arrive at a variety of innovation types.

Design thinking and social challenges

In a report on social innovation, the Rockerfeller Foundation suggested that this type of creative thinking is critical if society is going to respond deftly enough to the major societal challenges of our time. It says: “Due to the complex, systemic, and interrelated nature of the serious social, economic, and environmental problems confronting us, we need entirely new forms of solutions. Clearly, we humans must learn to think differently about our complex world and to work together in unusual and very strategic new ways.”

Designers are beginning to answer this call. With design thinking methods at their disposal, they are now setting their sights on the grand social challenges of our time. In a 2017 RSA lecture, Jeremy Myerson, founder of the Helen Hamlyn Centre at the Royal College of Art, described how designers are responding to the modern challenges of public health, climate change and inequality. He pointed in particular to our ageing population, and how it is both opening up new consumer markets for products like the ‘grankini’, while also providing opportunities for designers to tackle major public service challenges by reinventing services for the care of the elderly — in particular the rising demand for person-centred dementia care.

Recognising this asset, government agencies are now routinely seeking to commission design solutions to problems as broad as childhood obesity and mental health services. Challenge prizes and competitions are the obvious way to stimulate this creativity and tools like the Small Business Research Initiative and the European Social Innovation Competition are enabling government agencies to stimulate enterprise innovation for pressing societal problems.

Impact beyond the challenge prize

Challenge prizes and competitions do lead to genuinely creative solutions to social problems, but there are many stories of innovations either struggling to grow beyond their test boundaries (ie: failing to replicate a nurse-led solution in one hospital across multiple sites) or make long term traction in wider systems (ie: the challenge of scaling an innovative solution when there is no consumer market demand). For challenge prizes or procurement tools to stimulate sustainable innovation, they need to be designed with wider systems impact in mind.

In this new RSA report, From Design Thinking to Systems Change produced in partnership with Innovate UK, we look at how to go beyond the creative process to have real impacts on the wider social systems in which social challenges sit. Our report looks at the UK government’s SBRI procurement process in more detail and suggests ways to support the innovations that it stimulates to have lasting impact.

A key finding is that problems aren’t the same as markets. Competition commissioners are rarely the same as the end buyers of the solution and the social challenges or the public service problems that stimulated the brief in the first place do not necessarily equate to clear market opportunities. Challenge prizes or SBRI competitions may create ‘competition demand’, but providing the elusive first customer does not provide a guarantee that there will be a second or third customer. In one case studied, the market demand was so low that it was largely met through the competition, even though the public value of the innovation was very significant.

Design for systems change

The innovation challenge is not just the generation of good ideas — it is the application of those ideas in the world. It is impact. Design alone won’t always generate large scale impact. This report looks at how we might apply a systems thinking dimension to design thinking methods, and defines the new RSA model of ‘think like a system, act like an entrepreneur’ as a way to marry design and systems thinking (the below diagram tracks the two modes onto the Design Council’s famous double diamond model of design thinking).

Systems thinking augments the design thinking approach by appreciating the complexity of a social problem and seeking to understand factors like power dynamics, competing incentives and cultural norms. Thinking systemically about how problems are defined is an advance on traditional design thinking as it extends beyond the creative process into broader social change theories. There are pioneers in this field like the system innovation lab at Forum for the Future and the Lankelly Chase systems changers programme, but adding a systems perspective to design thinking processes now needs to move from the vanguards to the mainstream.

Making change in systems as complex as public health or education may seem insurmountable. Applying a systems lens to the question of how procurement programmes like SBRI might be optimised for innovation, we can glimpse the greater impacts that could be achieved. This is where, at its best, SBRI has the potential to serve the dual goal of both making commercial markets for innovations and delivering social impact at scale.

By applying the think like a system, act like an entrepreneur mindset, we do not attempt to take on grand societal challenges in their entirety, instead we look to identify nimble opportunities for change within the system — seeding innovations, testing prototypes and supporting successful efforts to grow and influence other parts of the system. By seeking to understand the wider system that an innovation will be born into, designers can seek to find ways to successfully affect systems change.

Download the report – From design thinking to systems change (PDF, 3.3MB)

Toolkit for building the future: Notes from a start-up coach

We are starting to see glimpses of a future of robots, autonomous vehicles, machine learning, mapped genomes and drones. Yet, this future doesn’t appear ready-made – it is often seeded in labs and …

Source: Toolkit for building the future: Notes from a start-up coach

5 ESSENTIAL MINDSETS FOR THE MODERN CHANGE-MAKER

I came across this excellent article from our much admired heroes at Acumen – with links to upcoming courses. I particularly like the idea of focusing on possibilities rather than fears through a mind-set shift – have a look…

Posted February 6, 2017 by +Acumen in Leadership

“THE 21ST CENTURY REQUIRES LEADERS WHO CAN NAVIGATE THE UNKNOWN IN AN EVER-CHANGING WORLD AND BRIDGE DIVIDES.” – JACQUELINE NOVOGRATZ

Society moves forward when change-makers embrace mindsets that focus on possibilities rather than fears.

Here are 5 essential mindsets for the modern change-maker

Don’t lose sight of the ecosystem – Sometimes you need to get out of the bubble to evaluate the issue you’re tackling and the progress you’re making. A systems approach can help you embrace complexity and uncertainty while leveraging them to create sustainable ways to create change. Learn more about systems practice

Let empathy help you see what you’re missing – A social change addendum: always keep the customer in mind. If empathy isn’t at the heart of your process, you may be missing key insights that will help you move your project forward. The Human-centered design course will teach you how. Learn more about Human-centred Design

Done is better than perfect – the only way to keep up with the speed of innovation is to be lean. Pioneered and perfected in Silicon Valley, this idea is more than just a methodology. It’s a way of thinking. The next time you have a new idea, think first how you can testvalidate, and adapt your vision. Learn more about Lean start-up principles for social impact

Fight to reduce friction everywhere – No friction is too small in the eyes of behavioural economist Dan Ariely. According to Dan’s research, people don’t make good decisions, not because they don’t have the right information, but because the barrier to making that behaviour change is simply too high. If you want to change a behaviour, then remove the additional steps that are creating tension. Learn more about behavioral economics

Allow yourself to be persuaded – As a leader, changing your mind has always been perceived as a weakness. But, in a world that’s changing faster than ever, successful leaders realize that a genuine willingness to change their own minds is the ultimate competitive advantage. Today’s leaders must be open-minded and possess the persuasive skills on pulling on the right heartstrings. Learn more about Persuadability

Jack Ma’s wisdom for the future: The three 30’s

Ray De Villiers from Tommorrow Today reflects on a speech by Jack Ma, the CEO of Alibaba the worlds largest online retailer. Jack Ma spoke of three 30’s at the World Economic Forum in Davos in January 2017.

  • Focus on the next 30 years of technology integration
  • Pay attention to people who are 30 years old
  • Pay attention to companies who have fewer that 30 employees

jackma_alibaba_alibabaChallenge #1: Focus on the next 30 years of technology integration

Your business has to integrate into the digital world, it is not an option – it is a survival imperative. Jack Ma gives a useful tip on where you focus should be.

It is not on trying to be the next big online champion like Google, Alibaba, or Facebook. As we navigate the transition into the digital age it is critical that every business, yours included, is able to contribute to making sense of this new era.

Focus on how your business will function in the digital age, and integrate with the broader digital ecosystem. Understand the benefits that will be realized to you and your market as you embrace the digital reality of your industry

Challenge #2: Pay attention to people who are 30 years old

Focus on people under-30 as both employees and customers. Rather than looking for a way to wring more money out of your existing customers it is time to focus on the new wallet.

What is your unique value proposition to people under-30? If you can’t clearly and succinctly articulate the value your business and product offer to a young person then you need to commit resources to doing so. Missing out on the under-30 market and talent pool is a clear indication of your inevitable extinction.

Challenge #3: Small, Medium, and Micro enterprises are the engine of the global economy.

Too many organisations try to get on the procurement list of large multi-nationals. This is good if you are sufficiently robust as a business, but it concentrates your risk and exposure in one or two places.Understanding how you can develop a customer group of SMME’s allows you to spread your risk and exposure across many fronts.In order to achieve this it is important that you examine your product lists and your sales processes.

Develop cost effective sales channels to markets that enable wide reach. Tweak your product suite so that you have significant economies of scale that will enable you to sell high volumes at lower margins.

These three 30’s will position your business for growth and success in 2017, as the global landscape continues to evolve and digitise.

Crafting a beautiful business

Alan Moore is a business innovator. He changes the way people understand and think about the world, and how their businesses can succeed in a world of constant change. Alan helps companies craft innovative, high performance businesses that are ethical, sustainable and restorative that will yield high commercial returns. Building beautiful businesses is his life’s mission.

He has worked with many leading businesses across six continents, in the form of advising, board positions, teaching, workshops and invitational speaking. These include, Google, Microsoft, KPN, H&M, The Coca Cola Company, MacLaren Automotive, Accel, and Institutional Pension Funds…and of course, me…!

This article was originally published by Hack&Craft and can be found here.

————————————————————————

I have always been fascinated by beautiful things: architecture, furniture, tools, books, even businesses. Beautiful things are prepared with love. The act of creating something of beauty is a way of bringing good into the world. Infused with optimism, it says simply: Life is worthwhile.

The effort to craft enduring beauty is not dependent on style but truth. Beauty is what lends things their immortality. Beauty therefore gets out of surfaces and into the foundations of things.

The time has come I believe to rethink the role of business in our world and its overall contribution to our society. We need to re-frame business in the context of beauty.

What does it mean to be a beautiful business? Beautiful businesses are transformational in the universal and valuable utility they bring to the world, joyful in experiences they create. All sourced from an embracing of clear purpose of how to serve their customers well. Beautiful businesses are restorative to people and planet. Businesses with beautiful cultures are attractive – to employees, and customers. Consequently, people want to belong, to enthuse, and support them.

This raises important questions: what is the process for making retail beautiful? What does beauty mean in software? Can beauty as a lens help guide us to arrive at better answers? Can beauty scale? Can beauty provide durability, and opportunity? Can a beautiful business be adaptive?  Can a beautiful business yield high financial returns and still be ethical? Should beauty be a commercial duty? Does beauty require us to think more holistically? What would be the language of beautiful business? Do we think differently about our environment if we see it as beautiful?

So, how do we get to beauty? It is through design in its broadest terms. We always have a choice of what it is that we create, since everything man-made is designed.  What constrains us are  our imagination and the will to apply it. Designers ask two simple questions — is it useful and is it beautiful? We can use these two principles to reshape the world we live in. Good design has always been good business. As William Morris might say, ‘have nothing in your house that is neither useful nor beautiful’.

So what might companies do to craft a beautiful business? Here are a few thoughts:

Retail

Aesop is a retail business that sells products for the hair and body. Created in a minimalist style it has 42 stores worldwide and is renowned for its commitment and attention to design and detail, “why make something ugly when it can be interesting” says its owner Dennis Paphitis.

Creating the business in 1987, Paphitis already understood  that a commitment to the ultimate customer experience is what would make his company sustainable and profitable. In the same spirit, Apple rewrote the rules of retail through its iconic store design and customer experience.

The million dollar question, is this: Is it architecture, marketing or some spiritual experience that these products and stores embody?

I guess who you are will determine your answer. Maybe it’s all three?

There is something else though that joins Aesop and Apple – they are both masters of their materials. They push engineering, manufacturing, even accepted levels of service, beyond what was considered possible.

This is the foundational work, the hard work of making beautiful products, delivered in exceptional retail environments. Apple may no longer be too cool for school for some, nonetheless, their commitment to design, exceptional design and exceptional retail experiences means they have more cash in the bank than the US Government.

The beautiful experience matters today – get out of the car at a Four Season hotel and the staff know your name; order something from Amazon and you get an almost instant email to say your package is on its way. These are all designed experiences. And we are seeking experiences.

What we call experience reflects meaning, authenticity, and an opportunity to recapture a lost essence in modern life. These are values that are difficult to represent in accounting terms. Yet they all have an important and increasing role to play. Look at the rise of artisan everything; beer, gin, cheese, clothes etc., Street food fresh and fast food cooked to high levels of quality without the retail overhead. Street food vendors, without shopfronts or or retail accouterments, nonetheless have a fanatical following.

The reason is that people don’t just want experience, they profoundly need experience to be meaningful and to make life joyful.

My local butchers, who won ‘Butcher of the Year’ award, run ‘sell out’ butchery workshops. Whoever heard of butchery workshops? Do people go to learn how to cut meat?  Yes they do. They are not the only ones passing on experience to customers. From spoon carving in a forest to making gin in a London distillery. Workshops are a form of ‘getting closer’. It is becoming additive to the retail experience but it does so in a way that renews our capacity to enjoy life.

Other recent developments have also had a profound effect on the quest for a high quality experience. We use our smart phones at a minimum 150 to 200 times a day. Touch screen technology and intuitive and simple to use apps mean our expectations of experience have increased as our ability to access new information, relationships and interests increases. Designing meaningful customer experiences becomes a key business activity.

Design as ‘experience’, for example, understands that designing and creating for our tactile selves — things that are intuitive, easy and joyful to use — will sell more products and services at a higher value. In a Temkin survey 6x more people were likely to buy with a positive emotional experience, 12x more likely to recommend the company, and 5x more likely to forgive a mistake.

Software

Our world runs on software, programmed lines of human formed code. We design it. Increasingly the design of software is mirroring the need to redesign life more generally. That is why the Blockchain is a beautiful thing. The blockchain is a universal utility to facilitate low-cost, near immediate transfers of value anywhere in the world – digitally. It comes without the need of a third party, such as a bank with all its own selfish needs and flaws. Specifically the blockchain is beautiful because it is a trust-generating engine, which is highly scaleable.

The Blockchain is like DNA / the hidden infrastructure that is life giving. The blockchain is designed to be distributed over many networks, it has no central power and is therefore social in its design.

It has a universal ledger, a database that contains every transaction ever made and that can never be tampered with. An inviolable time stamped record of transaction. It is this transacting of value that is the forbearer of what happens next: money, land registry, cultural artefacts, etc., any situation in fact where there is a transfer of value and where deeds of ownership are vital to document and record, it is in these circumstances that  blockchain technology will play a defining role.

The growth will become exponential because its protocol is open, allowing others to build new commercial, financial and transactional products and services. For example, the Linux Foundation is running the Hyperledger project an open source collaborative effort created to advance cross-industry blockchain technologies. It is a global collaboration including leaders in finance, banking, IoT, supply chain, manufacturing and technology. Currently 95 organisations are involved including; Accenture, Deutsche Börse, IBM, and Fujitsu.

Importantly, Hyperledger is an open collaborative effort. Openness is the new global operating model especially in software where it now powers hundreds of thousands of projects and the most significant infrastructure.

Software is beautiful for several reasons that we can learn from. First, it is incredibly successful at changing the world. Second, it arises from open human interactions and collaboration where greed is suppressed for the greater good. Third, it has begun to simplify the commercial world and mediate trust in profound ways. It excludes wasteful third parties who role has been simply to create friction in order to make money. Increasingly software takes the friction out of life and helps us realise new experiences at lower cost.

Culture

The culture of the workplace is the humus for how an organisation works well. Happy staff, like rich soil, produce, yield and deliver better quality stuff.

The more a culture is focused on what it wants to do the more it can be restorative in helping its employees grow as people and as professionals.

If a business can find the point where its people are happy to produce, it will make more money. Its staff will be more productive, whilst saving the cost of sickness, stress related illnesses, and retaining talented staff.

Telus is a telecoms, TV and mobile company with a very rich workplace culture characterised by a generalised learning programme. They have a toastmasters’ chapter, a book club, guest lectures and so on. The idea is people need to approach work through the prism of learning. By encouraging learning in a broad cultural way, the company believes it is more adept at switching on specific learning needs when business changes. So they do more than most firms to bring that idea to life.

Gransfors Bruk make axes. They say they make the best axes in the world – their culture is one of craftsmanship. This is about how one have designed and built a successful company predicated on quality. A quality of product achieved through a holistic approach to design and manufacturing that incorporates a process to bring out of the workforce a commitment to craft and ethics.

The individual axe maker is given the time he or she needs to forge an axe head to the point where  they are satisfied this is their best work. Then, and only then, will they stamp the axe head with their monogram. The process means men and women are personally dedicated to give their creative best. An engaged craftsman is a committed craftsman, ergo an engaged workforce is a committed workforce. Meaning is created through a craft approach to life. You have to love the work you do. Both Telus and Gransfors Bruk are ‘crafting organisations’.

Businesses who make beautiful cultures become very attractive, because they are, ‘authentic’. People — employees or your customers— want to belong, to go the extra mile, enthuse, endure, support, and invest. No amount of incentives or motivational talks can match the power of people feeling they’re involved in something a little bit special. Indeed, that they actually have a part in making it happen. We embrace what we create.

Leadership

Pixar make much loved animated movies. Pixar are extremely successful at making great films, not only because what they create  are masterpieces of animation, but also because they tell compelling, universal stories that are often groundbreaking in the themes they explore: love, life, death, relationships as well as fantasy.

But this is not easy. After the phenomenal success of Toy Story, Ed Catmull and his team agreed there had to be a way of openly and tenderly holding a creative idea so that it could evolve to its true potential of excellence every time.

Achieving  this required the creative idea to be open to  scrutiny in every aspect of its script, design and production. So, Pixar created the Brainstrust,

This is how it works for every movie Pixar makes. Members of Pixar regularly come together to openly test the development of a film. The rules are: only constructive criticism, and to speak with candour. It requires great trust to do this, to speak plainly and honestly and for the director to listen to all feedback. Without trust there can be no creative collaboration.

The focus of Braintrust meetings is on solving a problem. Individual knowledge morphs into collective intelligence, highly valuable in examining how one gets from mediocre to world class.

Catmull believes every movie they start with sucks in the beginning. In his words, meetings are filled with ‘frank talk, spirited debate, laughter and love’; they are there to excavate the truth in a movie.

The other rule is that the director is never instructed to do something. The director listens and develops his or her own interpretation and understanding of feedback.

It is unusual for a creative company, or any company, to work so rigorously in an open, collaborative environment.

It takes patience and time – virtues that Pixar is willing to give. To create enduring beauty requires intense collaboration between people who share the purpose of creating  truly unique experiences.

What lies behind this concept of Braintrust is that, actually, leadership decisions, those that we might previously have left in the hands of the director or the CEO of a company, are better when they are informed by the group and are better again when that decision is left open to the last possible minute. A similar development can be seen in software  architectures where microservices allow CTOs to hold programming commitments to within minutes of a go-live, where previously they were committing months ahead of a release.

Anyone no matter in which industry they work, can create their own Braintrust. In fact you might need to. It might just get you from mediocre to beautiful.

Businesses practising beautiful leadership know how to bring great potency to their organisation by empowering their people. Equally leadership that engages people in thought and deed can energise all that are invested spiritually, emotionally and financially in that business. Muhammad Ali was once asked what his shortest poem was? His response, “Me, We”.

Utility

Multi story car parks are not the nicest places to be. They create their own unique social and economic problems; frustrating queues to get in and out, they are particularly unwelcoming to women, and an insurance nightmare. It is a design challenge.

How to design something more elegant, more beautiful? The city of Aarhus as the Europe’s largest AI multi-story car park. Drive your car into one of 20 booths. Step out. Shut and lock the door then press a button. The car is transported below ground. The automated, pallet-free system offers some 1,000 parking spaces spread across three floors. From the moment the driver presses the button everything is automated. Nothing is touched on the vehicle except the wheels, and the AI system calculates through the day the likelihood of your return and ensures a fast recovery of the vehicle when you want it back.

Recently, I watched people drive in, deposit their cars and then pick them up. Young and old alike were intrigued and delighted by this incredible piece of design and engineering. It is in itself a beautiful thing to see. The utility is beautiful having solved the problems of personal safety, time efficiency, insurance etc., in such an elegant manner.

Businesses that create beautiful utility will reap the rewards of that commitment to take a common object and turn it into a work of uncommon grace. It could be a car park, a spoon, a film or a phone. People that design for beautiful utility, create wonderful, optimistic life enhancing experiences in big and small ways, and always sell out.

Restorative manufacturing

Flute Office is a pioneering company that is producing an entire suite of workplace products along with a groundbreaking business model to change the way we think about what we sit on, and what we work on. The product is designed and engineered to high standards, from upcycled cellulose and is 100% recyclable. Rather than buying a desk, you buy a service, personal to each customer, with a no-quibble guarantee, rapid delivery, and end-of-use buy-back.

But it’s not just the design or manufacturing model that is of interest. It how this upcycling can displace cost inefficiency. Taking fixed costs that are redundant. allowing capital to be placed somewhere else to be more productive.

For example, it costs the NHS £84m to deal with waste. Upcycling just half of this material the NHS would save £135m per year. Moving from a capital purchase to a subscription model, a further £100m could be saved. That is almost half of the entire annual NHS budget for new equipment.

20% of all landfill comes from office furniture, it takes 540 kgs of raw material to make one desk, so why not make something that addresses those issues of waste head one? Large corporations have warehouses full of desks, it takes 20 minutes to fully install a desk, Flute office desks take 2 minutes.

Businesses that are beautifully restorative, always give back more than they take. They provide benefits, which are economic, environmental and social. Nature has been around for a long time, why not borrow from her playbook?

What makes a beautiful business?

So what makes a beautiful business? It’s purpose, it’s process, culture, utility,  leadership,  enterprise design,  manufacturing and system design. Is it possible have all in one company? Yes. Is it hard? Yes. Creating beautiful things is the hardest thing we will ever do. Ugly is easy. But there are clear benefits to creating beautiful businesses. Here are some key points that we can apply.

  • The joyful and meaningful experiences it creates for employees and customers.
  • Culturally attractive to its customers, employees and investors.
  • Optimistically works to a higher order purpose.
  • The transformational value it delivers as beautiful utility.
  • Engenders trust for all those who work for, or buy from, the business.
  • Is restorative. Giving back more than it takes. Restorative to employees, restorative to the world from which it takes, buys people’s time or harvests raw materials.
  • Understands its vision lives daily in everything it is and does.
  • Is a crafting organisation, always curious, always trying stuff out to make sure it stays relevant as the world evolves around it.
  • Is design led, constantly asking, ‘is it useful and is it beautiful?’
  • Values intuition. Hand, heart and mind.
  • Is lovingly disruptive.
  • Understands great work can take time – the time it takes to make it inevitable.

Everything we make in this world follows the same process. We must think it, imagine it, dream it, then we make it. Everything is designed. And if everything is designed then we have the opportunity to make it beautiful, restorative, engaging, valuable and meaningful. We all need something to believe in so why not make it with beauty and grace.

What would your business look like if it were more beautiful? You can find out more in my book Do Design!

GOVERNANCE TOWARDS RESPONSIBLE CAPITALISM

A guest blog from Patrick Andrews, friend and colleague.

Patrick is an ex-corporate lawyer and co-founder of the Human Organising Project, which is exploring more human ways of organising. He is running a workshop in London on Friday 20th January entitled The Future of the Corporation. To find out more and book your place, go here

It is a rare thing, to hear a Conservative Prime Minister call for more responsible capitalism. Theresa May’s remarks at the Conservative party conference last month are a sign that large corporations are breaking the unwritten contract they have with society.

The regular corporate scandals (most recently Sports Direct and BHS, but there’s a long list stretching back centuries) are just the tip of the iceberg. It’s the routine, day–to-day greedy and destructive behaviour that is most alarming; the tax dodging; the excessive executive salaries; the steadfast resistance to regulations designed to improve societal or environmental well-being. Most of all, it’s the remorseless urge for growth that drives a never-ending cycle of consume and throw away, leading to widespread societal and environmental dis-ease.

We can’t eliminate greed and selfishness from human behaviour. What we can do is design human systems to encourage people to behave more in line with the dictates of their conscience and less likely to strive to please their corporate masters or satisfy their own egoic desires.  And company law, which governs every company in the UK, has a big role to play.

Company law has changed very little in its essentials since the 1850s, when the Limited Liability Act was passed. That was a very different age. English society was stratified by class and only a minority of men (and no women) could vote.  The slave trade had only recently been abolished. Elsewhere in Europe, there were still serfdom, which was abolished in Russia as late as 1861.  There have been many transformational changes in human society since the 1850s, such as the invention of cars, telephones and the Internet, splitting the atom and gay marriage.  Yet the fundamental structure for a business hasn’t changed.

A company still comprises members with “limited liability” meaning no liability for the actions of the company.  Every company also has a board with responsibility for the day-to-day activities of the company. Such a structure would have been familiar to the powerful men of that age, many of whom owned vast tracts of land. Often living far from their estates, they relied on local managers who were incentivised to pursue profit for their masters. In essence, it was a feudal system.

I learned in the very first tutorial of my law degree that British law is rooted in feudal thinking. This applies to property law (every bit of land in the UK ultimately belongs to the Crown) and even to human beings (we are subjects of the Queen, protected only by human “rights” that can be removed by Parliament).  Likewise company law is based on feudal thinking, dividing the world into:

  • an absolute authority (shareholders);
  • subjects (staff) to be used (employed) in service to the ultimate authority; and
  • overseers (the board) who watch over the subjects.

Because it’s lasted so long and has become so pervasive, it is tempting to think that the limited company represents a universal pattern that can’t be improved upon. Yet it a man-made, and relatively modern, contrivance and it’s ripe for change. It is time to start treating large companies not as the property of shareholders (a fiction that is used to justify a lot of the worst corporate excesses) but as institutions that exist to serve the common good.

To implement this, the following could be considered:

  1. Professionalise the role of a director of all public limited companies (plcs). There would be compulsory training and exams to be taken before anyone could be a director of a plc. This is not so radical – to become the company secretary of a plc (a far less powerful or responsible position), you need a formal qualification.
  1. Change the law to clarify that the ultimate duty of a director is to serve the common good. Directors of a plc should be treated as public servants, not as servants of shareholders. This idea of a higher duty is familiar in professional practice – for example, a barrister’s highest duty is to the court, not her client.
  1. Appointment of directors should be more transparent and participatory. This could be achieved by setting up a panel to approve appointments, with representation from different constituencies such as staff, customers, government etc.
  1. Task the company secretary to act as the “conscience” of the company, with the right to attend board meetings and to speak at the annual general meeting. The difficulty with this is that the secretary, who is appointed by the board, risks losing their job if they speak out – a significant dis-incentive.  To safeguard the secretary’s integrity, we would require a government minister’s approval for their removal, mirroring the sort of constitutional arrangements commonly used to protect the integrity of the judiciary.

We would see lots of benefits from such innovations. I even believe, surprisingly perhaps, that they would have a positive impact on corporate profits. This may sound like wishful thinking. Yet the fixation on shareholder value that is characteristic of British companies, and embedded in section 172 of the Companies Act, has hardly turned British companies into world beaters. There is some evidence (for example from Scandinavian companies) that adopting a wider purpose that includes social and environmental well-being can lead to enhanced financial returns.

Ultimately, what is needed is a change of mindset. We need government to stop trying to control or lecture from above (itself a symptom of out-dated thinking) and instead to focus on enabling corporations to be truly self-regulating, for the common good. This would indeed be a revolution!

Footnote: the above is an edited version of a submission by the author, Patrick Andrews, to the UK Parliament’s Business, Innovation, and Skills Committee which is running a consultation on corporate governance.

 

 

A call for boldness

If Einstein is right and we can’t solve problems with the same level of thinking that created them, then our tentative shuffle forward as a society to answer the clarion call of climate change will never provide us with the chasm leap required to address an overheating world.

We shouldn’tbold be surprised at the tentative shuffle – we have designed our social mechanisms to maintain the successful status quo.  Businesses and governments are set-up to create stability – not to provide the breakthrough thinking required to solve the biggest challenges of our time. But, we can’t wait around for the odd start-up or crazy pioneer to radically reinvent our systems. Technology and Elon Musk will not save us.

We need to break through institutionalised mind-sets and deliver change within the frameworks of our existing social mechanisms. We need to harness the power of the biggest social constructs we have – businesses – to be able to unleash resources, at scale against our societal challenges.

And of course it is in the interest of business. How can these large transactional mechanisms survive in a world of shrinking resource base, dying customers and migrating employees? Climate change is in the words of Stern “the world’s greatest market failure”.  Of course, there is also the other side – the carrot if you like – for those who act sooner to create the capabilities, source the technologies and thereby realise the opportunities inherent in the future we are moving towards.

Yet anyone that has ever been on a diet or started a new fitness programme knows that change is really, really hard. And even harder when it’s herding many organisations and individuals towards a new outcome. Here are some thoughts to support business boldness:

  1. Join forces: More and more coalitions and collaborations exist to support businesses and the systems they operate manage a transition to a low carbon world. Whether it is as specific as refrigerants or materials or generic as a Sustainable Cosmetics Forum, opportunities exist to operate beyond traditional organisational boundaries and work together to make far-reaching changes.
  1. Set external targets: Nestle (in a rare case of providing exemplary role modelling) links its corporate goals to the SDG’s. Other companies, including Natura and Unilever are looking at the BCorp structure to provide an external framework to guide their business actions. It is of little use to have internal targets in a connected world. The ability of business to thrive is dependent on the health of everything around it.
  1. Set 100% targets: Ikea shifted the target of 50% FSC certified wood to 100% across all products. This provided such clarity for suppliers that the original goal of 50% was met 2 years early. Each purchase decision made by a large business (or government) sends a long ripple of influence through the world. Use it.
  1. Leverage innovators within: Within every company there are people already with answers to tomorrow’s problems. These ‘intrapreneurs’ are motivated to align social purpose and organisational goals. By identifying, mobilising and connecting these individuals,  pockets of possibility are created that ultimately shift corporate culture towards the new.
  1. Change the game: In a world of boring, ‘me too’ %-based reduction targets, Interfaces resolution to ‘Reverse Climate Change’ is exactly the bold move required to reframe the game and demonstrate leadership. It ignites employees and customers and sets out new ways of innovating, competing and doing business.

If we started with Einstein – let’s end with Goethe… “Whatever you can do, or dream you can do, begin it. Boldness has genius, power, and magic in it. Begin it now”.


Nicola’s first role working against climate change required her to come up with ideas for new businesses across all sectors in the Uk that could demonstrate the commercial case for a shift to low-carbon. She is still using commercial innovation to  change the world.

Natural Business for a World That’s Waking up

Thoughts from the wonderful Giles Hutchins –

Albert Einstein threw down the gauntlet for our human evolution when he said,

“A human being is a part of the whole, called by us ‘universe’, a part limited in time and spaceHe experiences himself, his thoughts and feelings, as something separated from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest us. Our task must be to free ourselves from this prison by widening our circle of compassion to embrace all living creatures and the whole of nature in its beauty.”

A task not for the faint-hearted, as it requires great courage to widen our circle of compassion amid increasing tension, fear and uncertainty. Not least it requires a fundamental shift in worldview, in how we perceive our sense of self, our relationship with others, and our sense of place and purpose within this world.

Whether it’s the disciplines of quantum physics, psychology, ecology, organisational development or evolutionary theory, it is now dawning on our contemporary consciousness that life is not simply a mechanistic construct of push-pull factors and selfish genes, where separate organisms compete with each other in the struggle for survival. Rather, we are now recognising that life is an inter-relational network of inter-being, where everything is in dynamic relation with its environment, continuously communicating and collaborating within an ocean of being. The ‘self’ is not the ‘separate self’ of individualism but the ‘differentiating self’ immersed within a rich milieu of relations. It is the diversity and reciprocity of these relations which provides for the organism’s resilience and in-turn the resilience of the wider ecosystem. As the world-renowned biologist Lynn Margulis succinctly puts it,

“Life did not take over the globe by combat but by networking.”

This living-systems view of life is beginning to permeate our corridors of power. There is an increasing recognition that business-as-usual thinking is not going to get us very far. To becomefuture-fit we need to embrace a new way of operating and organising. That new way just so happens to be the way life really works – not the control-based dominate-or-be-dominated mechanistic logic of yesterday, but the real logic of life perceived beyond the illusion of separation: emergence, receptivity, reciprocity, local-attunement, power-with, eco-systemic thinking.

In practice, this means emancipating ourselves from many of the structures inhibiting our natural aliveness today by embracing collaborative soulful practices, such as Way of Council, deep listening, mindfulness-in-motion, foresight planning, prototyping, multi-stakeholder dialogue sessions, scenario planning, white space technologies and the art of hosting tools, as well as direct inspiration from living systems such as eco-literacy, biomimicry, industrial ecology, circular economics, regenerative and adaptive cycle approaches.

There are a multitude of simple yet courageous undertakings each of us can take to help nurture a more soulful, living-systems approach to work. For instance, how about starting each and every mmasteryeeting with a minute’s silence, to help centre ourselves and tune-in to more of our natural ways of knowing (intuitive, somatic, emotional and rational) allowing for more than a glimpse of what lies beyond the busyness of our masturbating monkey-minds. How about checking in with our teams at the end of the day to share in a heartfelt way, where we practice meditation-in-motion by listening and speaking from the heart. How about having a quick round-robin at the beginning of each day for people to share what they feel grateful for at the present time, perhaps sharing who we might like to thank for helping us out in small yet loving ways, and so celebrating the good qualities of ourselves and our community. How about creating a two hour space in our schedules every Friday morning for our team to sit together in a circle, having the permission to explore and envision new ways of operating that embrace and serve life. How about creating space for a half-day workshop every four weeks with other stakeholders – such as pressure groups, think tanks, customers, suppliers, investors – giving permission for us all to explore together and share perspectives of how to do things better. How about creating a ‘children’s fire’ in our boardroom, so that all key strategic and operational decisions consider the potential impact they have on the next generation, our children. All of these are very real business practices being applied by a range of organisations today. This is not some futurist utopian vision, it’s becoming mainstream.

The number one most important thing facing our leaders, managers and change agents today is this shift in logic from an essentially mechanistic, reductive, competitive, control-based, power-over logic rooted in the story-of-separation, towards the logic-of-life, and with it the realisation that our organisations are living systems immersed within the living systems of society which are immersed within the living systems of our more-than-human world. This is why my latest book Future Fit explores – indeed activates – the qualities required for future-fit business by exploring the practical tools and techniques for this necessary shift in logic from machine to living. In this way, we deal not just with downstream effects (climate change, biodiversity degradation, endemic social inequality, racism, and so forth) we also deal with the root cause – our very relationship with life, and our sense of place and purpose as human beings in our more-than-human world.

Invitation: Capturing Sustainable Value

Join me this July at the Centre for Industrial Sustainability  5th annual conference, in Cambridge. Share your passion for sustainability, learn from progressive business and explore cutting edge techniques. There are two events – a symposium on high-value business models on 6th July and a conference on 7th and 8th of July.  More information for both events can be found here – conference, symposium.

The symposium on the 6 July will explore how to develop high value business models for start-ups and early stage ventures. There will be input from Prof Steve Evans and Dr Doroteya Vladimirova and a platform for current start-ups to talk about their approaches and discuss this with the audience. Half of the time will be spent working through challenges in small groups using some of the Centre’s sustainable business model tools.  More symposium information here and other fascinating related information here: New Business Models for a Sustainable Future  and The Cambridge Value Mapping Tool.

The conference on 7/8th July is an opportunity to meet future collaborators, thought leaders, inventive researchers and industry forerunners. Connect, discuss and debate at exhibitions, workshops, and pop-ups.  This year the theme is Capturing Sustainable Value with Keynotes:

  • Gunter Pauli – Entrepreneur and author of The Blue Economy
  • Mike Barry – Director and initiator of M&S Plan A
  • Brian Holliday – MD of Siemens Digital Factory
  • Andy Wood – CEO of Adnams Plc

Other speakers from

Tata Steel, Altro, Extremis, iema, KTN, Business.Cubed, University of Cambridge, Cranfield University, Loughborough University, Imperial College, and De Montfort University

And of course Nicola will be part of the workshop crew! 

What will you take away?

  • Business views on implementing circularity
  • Tools to capture new value in your business network
  • Demystified view of disruptive business models
  • Insights on innovative sustainability in MNCs to Start-ups
  • Opportunities to learn from and participate in the latest doctoral research
  • New Collaborators (ask us about partnerships that have formed as a result of our conference)
  • Renewed energy and enthusiasm!

Please contact Dee Dee Frawley at cis-enquiries@eng.cam.ac.uk if you are interested in attending – and MENTION Nicola! There is a discount for non-profits, students, etc.   

Looking forward to capturing sustainable value with you…

Conference

 

Getting what you want: Pitching

Pitching – how you frame and communicate your need – is essential to getting what you want.  

I’ve been thinking about pitching for many years to support the entrepreneurs I work with win competitions, create partnerships and raise funding. Pitching skills help us get what we want beyond starting a new business or initiative. We pitch when we present ourselves for a job interview, market our product, tell our colleagues our new idea or try to get kids to clean their rooms!

There are many resources available that explain what to include for the content of the pitch. This may differ slightly depending on situation, but generally we need to be able to explain the value proposition, revenue model/incentive, team and relevant capabilities and high-level plan of action.

However, when listening to pitches, I’m often reminded of Maya Angelous’ quote “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Below are some of the less tangible things I’ve learnt about successful pitching:

Pitching starts from first contact – any interaction you have whether on phone, email or written document should all be seen as part of your pitch and create a coherent and compelling narrative. Everything you do builds (or takes away from) credibility and connection. A rude or badly thought-through email before the pitch can create a poor impression. Ask yourself what story you are telling through each interaction and adjust if necessary.

Prepare for the moment you walk into the room – be sure to present your best self before you start. How are you holding yourself? What are you wearing?  What is your non-verbal communication? How are you standing? You can only create one first impression… someone who slopes into the room looking hung-over and wearing only one shoe, may not get the desired response! What first impression do you want to create?

Check in with yourself – know why you want this and be clear which part of your psyche is motivating you. Projects and ideas motivated by ego and anger may lose momentum. Those by a deep connection to the outcome or a curiosity about self are generally easier to sustain.  People support people and likeability is a huge, sometimes unconscious, part of any assessment. Be authentic. Why am I doing this and what do I need to do to bring my best self to it?

Be prepared – to explain your project or idea succinctly against any criteria set out. Make sure your ‘ask’ is clearly articulated. I find the business model canvas or other similar tools useful to ensure I have thought through all aspects of a proposition. Trying different pitch types e.g. pitching using the Pixar style or for a TED talk are useful preparation. Practice both words and gestures. Create a prototype to test/prove the concept. Am I ready for anything?

Know your protagonist – who is this idea benefitting? Do they care? What do they have to say about it? An idea needs to centre on an ‘end-user’, ‘beneficiary’ or ‘customer’. There are lots of great design thinking tools that allow you to think through any idea from the protagonists’ viewpoint. This is critical to the success of any idea. Who is this idea for and why do they care?

Check in with your audience – are they ‘getting it’? Should you pause to connect with them? Are you speaking ‘their language’ (this may be by competence e.g. finance or marketing, their orientation e.g. expressive, quiet or literally cockney, northern, etc.). Have you identified and clearly communicated what’s in it for them? Can you get them to interact with and thereby connect with the idea? A good way to do this is to ask a question e.g. “How many of you travelled here by bus this morning?” Am I connecting with my audience?

Be self-aware – check if you need to flex your style i.e. to minimise or maximise personal attributes e.g. hand gestures, enthusiasm, aggression, quiet confidence, etc. Check your confidence level – there is something different about saying ‘we are trying to’ vs ‘we will’. Are you over-using ‘filler’ words such as “some”, “like”?  These are indicators of a lack of confidence, conviction or preparation. How am I being in this moment?

Bring the idea to life – use graphs, stories, prototypes, story boards, lego and movies to help explain your idea. I’ve seen people bring cooking to a pitch for a new restaurant, create a future magazine cover for a social project and design a prototype of a new wind turbine with toilet rolls to explain their concepts.  Creating an experience is very powerful. Make sure it adds to your idea not distracts from the pitch. Can I explain my idea in a creative way?

Keep it simple – know what your ‘big idea’ is and be able to explain it in a single sentence. It might be helpful to list our context, complication, solution beforehand in order to be clear on the problem it solves and the value it adds. Don’t have more than 3 points in your pitch. Be clear on your 3-5 key messages and ensure these are communicated. Test your pitch on unusual suspects – your kids or the pizza delivery man. This will force you to simplify your message and check your language. What is the one key takeaway for my audience?

Don’t be afraid of questions – you ‘own’ the conversation. Any answer is a good one if delivered with authenticity, humility and openness. The delivery is often more important than the content. If you don’t know the answer – be honest – but come up with a plan to get the answer. Typical questions pick up on risks, stakeholders, customer needs, capabilities and funding. Can I stay calm and connected to my belief in this idea no matter what?

Creating a successful pitch is as much about your personal preparedness and mindset as it is about your revenue model (we rarely believe your ‘hockey stick revenue curve’, anyway!). Preparation is all about you – stay true to yourself and authentic in your communication.

And best of luck!

——————————————————————–

If you have a world-changing idea that needs some help – please contact me on nicola.millson@6-heads.com. Through the Upstart programme and League of Intrapreneurs we work with intrapreneurs and entrepreneurs to shape and scale social innovation. More information about the kinds of businesses we work with and things we do can be found here: Scaling disruption