Defining business success and the relevance of

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“Defining business success and the relevance of the environment on business”

The path we will walk

So what do I want to get out of today’s presentation

• Share knowledge and learn from you

• Get some informed discussion

• Provide some reference resources and case studies

• Be a point of contact to you for

What do you want to get out of today’s presentation?

Just take 15 seconds –

Make sure you ask about what I don’t cover that is of interest to you

Traditional business life cycle

Sigmoid curve

So what is success?

Stories from my work history

Focus as an entrepreneur

• Focus on the problem you solve – what is your market offering

• Charge and collect on sales

• Keep customers happy and the business generation model working

• Prepare cash flow and budgets

• Monitor performance weekly and manage cash daily

Tech Co. – what worked as we grew

• Industry undergoing significant change

• Held our pricing model

• Missed a lot of tenders – stayed at 30 people and $2m for longer than we wanted

• Recovered when competitors failed – grew to 200+ people and

$8m quicker than we wanted

• Identified further opportunities to entrench market position

• Successful exit – taken over by public company – still operating

Supply chain solutions – what worked

• Market change created niche opportunity

• Large competitors targeted top 50 companies

– we targeted next level down

• Built a great team and had fun

• Managed cash carefully and had good relationship with bankers and suppliers

A growth trajectory – Supply chain solutions

12000

10000

8000

6000

4000

2000

0

2000 2002 2004 2006

Revenue

(ooo's)

Profit

(ooo's)

So how does this relate to

ENVIRONMENT?

Clean Technology Innovation Centre (CTIC)

Committed to assisting clean energy SMEs accelerate their business performance

Part of Enterprise Connect $50m per year Australian

Government program designed to

boost productivity, improve innovation and increase the competitiveness of Australia's SMEs

strengthen links between industry and sources of knowledge, including the research sector

How the CTIC helps… the Business Review

Self-assess

Eligibility

Application

Approved

Business Review

Report Presented

Company implemented recommendations

Tailored Advisory

Service

Researchers in

Business

Business Review

Our investment in you and your investment in yourself

Tailored Advisory Service

Contribution of matched funding up to $20,000

Researchers in Business

Contribution of matched funding up to $50,000 on eligible salaries

Firms can also enter the

Researchers in Business Program without a Business Review

Business Review Eligibility

Australian Company Number (ACN)

> $1.5 m expenditure or revenue in current/previous financial year

Annual turnover < $100 million in the previous financial year

Solvent and have filed BAS for 3 consecutive years

Firm operates in clean technology sector (see following slide)

Clean Technology Firms

Firms involved in -

• generation of energy from renewable and low carbon sources such as solar, wind, wave, tidal, low emission coal, biofuels and cogeneration

• commercial and industrial water, solar hot water, desalination and water efficiency

• the development and supply of methods, equipment and technology used to reduce energy demand or increase energy efficiency

• environmental technologies and services in waste management, recycling, environmental assessment, monitoring and remediation

Sustainability

• Financial meaning – the ability to continue in business

• Environmental meaning – doing no damage – leaving an opportunity for future generations

• Confusion in the narrative

• OH & S, staff development has also crept into

Sustainability reports

Sustainability - an environmental perspective

• Carbon emissions

• Water usage and management

• Waste management

• Health issues

• Biodiversity

• Population

Challenge - Governance model

• Business model dynamic/change

• Engagement at all levels of organisation

• Genuine commitment required from Chair, board and executive

• Process to measure and monitor

• Support strategic direction with systems throughout the organisation

• Report and monitor constantly

Sustainability Victoria Framework

Stage of life

cycle

Raw materials

Production/Manufacture

Sales and distribution

Use

End of life

Impacts

Land and ocean degradation/habitat

Potentially hazardous

Energy use destruction material

Water use Greenhouse gas emissions

(GHG)

Other emissions

Copied from Sustainability Victoria http://www.sustainability.vic.gov.au/www/html/1938-energy-and-greenhouse-management-toolkit.asp

Solid wastes

Challenge - Risk management

• Business risks – what are the implications of not being ahead of the curve?

• Supply chain risks – How will you affect your suppliers, and what will their impact be on you – e.g. Toyota model, Sony, Wal-Mart,

• Product life cycle issues – Service - Advisory

• Consumer activism

Challenge - Areas to consider

• Production process – inputs and outputs

• Resources usage – wastage

• Transport

• IT – technology systems – power usage

• Supply chain

• Recycling – garbage

• Lighting

Categories of performance

• Management & leadership practices

• Resource efficiency

- energy, material & waste, water

• Climate change & Greenhouse gases

• Sustainable supply chain

• Community & wellbeing

• Biodiversity

• Innovation & integration

5 Star for SMEs

Peter Senge The Necessary Revolution – Sustainability Value

Framework

Driver

Tomorrow

Strategy

Sustainability vision Drivers

Disruption

Cleantech

Footprint

Strategy

Clean technology

Develop the sustainable competencies of the future

Payoff

Innovation and repositioning

Create a shared roadmap for meeting unmet needs

Climate change

Resource depletion

Poverty

Payoff

Sustainable growth trajectory

External Internal Sustainable value

Driver

Pollution

Strategy

Pollution prevention

Minimise waste and emissions from operations Material consumption

Waste

Payoff

Cost and risk reduction

Today

Strategy

Product stewardship

Integrate stakeholder

Driver

Civil views into business process society

Transparency

Connectivity

Payoff

Reputation and legitimacy

Interesting business model stories

http://www.closetheloop.com.au/ http://www.interfaceflor.com.au/Home.aspx?element=1

&category=1 http://www.riversimple.com/

Success stories

Common themes?

• Strategic intent

• Environmental value proposition cf business case

• Commercial imperative

• Who will pay – where do you deliver value and who will pay for it

• Focus

• Overcoming barriers – market resistance – financial cost -

• What will you take back with you?

• What can you tell me to help improve sustainability in SME’s?

So what does success look like to you?

• What is different to you now?

• What is the same?

• What have you learned?

• What will you take back with you?

• What can you tell me to help improve sustainability in SME’s?

Resources

Sensis SME success stories at http://about.sensis.com.au/small-business/free-sustainablegrowth-book

Carbon Compass at: http://www.carboncompass.com.au/

ClimateWorks http://www.climateworksaustralia.com/low_carbon_growth_ plan.html

Interesting references

http://dicksmithpopulation.com/2010/08/03/pr osperity-without-growth-by-tim-jackson/

Tim Jackson Prosperity without Growth

Peter Senge The Necessary Revolution

The Deakin Lectures: http://wheelercentre.com/videos

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