REALeadership Igniting Sustainable Growth, Innovation, and Value Will Marre The world has Changed Stockholder Capitalism vs. Stakeholder Capitalism Alan Greenspan, Oct. 2008 “Those of us who have looked to the self-interest of lending institutions to protect shareholder equity…are in a state of shocked disbelief.” “The whole intellectual edifice collapsed. This modern risk-management paradigm that held sway for decades, the whole intellectual edifice collapsed.” ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME MEME ME MEME ME ME ME ME ME MEMEME ME ME ME ME MEME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME MEME ME ME ME ME ME ME MEME ME ME ME ME MEME ME ME ME ME ME ME ME ME ME MEME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME ME What if there was another way? Human Capitalism: The greatest good for the greatest number of people producing the greatest good for each individual. - John Nash Revolutions 1 Reality Changes Old models don’t work. Old assumptions don’t produce results. Collapse of business as usual. Source: Tim Sanders, Saving the World at Work We Have a Problem Say companies have a responsibility to solve social and environmental problems. 83% Say they would switch to brands that are socially and environmentally responsible. problems. 87% Want to work for companies that directly contribute to solving social and environ. problems. 80% Say they want to personally create social/environ. benefits but aren’t sure what to do. 81% CONSUMERS EMPLOYEES 88% Distrust Big Companies 86% View Business as Negatively Impacting the Public Good 76% Have observed illegal or unethical conduct by their employer in past 12 months. Believe business has a direct responsibility to help solve social and environ. problems. 84% LEADERS 80% Don’t believe their company honors their values and commitments. 75% Say they need to do better to fulfill their social and environ. Responsibility but aren’t sure what to do. Sources: McKinsey & Co., Cone Marketing, Harris Revolutions 2 Values Innovation 1776 - Bill of Rights - Personal Freedom Counterforce: Monarchists - 1860’s - End of Slavery - Human Rights Counterforce: People are Property Counterforce: Tough luck is 1933 - Social Safety Net - Civic Social Responsibility just tough. 2008 - Sustainable Future - Corporate Social Opportunity Counterforce: Green Washing Source: Tim Sanders, Saving the World at Work New Business MODEL We will no longer tolerate the destruction of our environment exploitation or the of our lives as necessary for progress. Corporate Social Responsibility A business commitment to environmental, social, and economic sustainability. Corporate Social Responsibility is incomplete thinking. Create a New Success Story OFFICIAL STORY Mission Statements Values Statement TRUE STORY Drama Drama Drama Drama Drama Drama Drama Drama Drama Drama What Gets Measured/Rewarded What People Really Do Drama Business Objectives DramaDrama Drama Drama DramaDrama Reality of Current Marketplace The new goal of humanity is Sustainable Abundance People + Planet Abundance Sustainable Profit Full Engagement Commitment | Pride | Performance 1.Commitment to Organization’s mission and goals. 2. Employee pride of belonging. 3. Willingness to give ones full and best efforts. Source: Towers Perrin 2007-2008 Global Workforce Study The power of a brand comes from Your Motives Levels of Organizational Motivation 4. CHANGE THE WORLD - My work expresses my core values. 3. ACHIEVE GOALS - Grow and excel. 2. BEAT THE COMPEITION - Win 1. SURVIVAL - Save my job. The New Movement: CSR - CSO Improve Lives of People Health of our Planet This is the To Make a Sustainable Profit TRIPLE BOTTOM LINE CLUELESS (What cause?) REPUTATION (Cause Marketing) Exxon Patagonia Chevron GM DOW A Million Dinosaurs STRATEGY (THE CAUSE) Unsure Toyota Virgin Air Starbucks Apple Grameen Bank GE Nestle Fast Followers Laggards Clifbar Newman’s Own Whole Foods Early Adopters Leadership of the Past GAIN GROW GIVE Vision is a Metric Acquire, Fire, Divest Image Ebita Leverage Assets Public Relations Moral justification of unrestrained self-interest. Revolutions 3 Business Innovation Disruptive innovation creates new products, new methods, new solutions and… Steals dinosaurs’ customers. What’s Your Paradigm? 95% of our thoughts are automatic. To think new thoughts… We need a new perspective. REALeadership Responsible • Take Responsibility • Promise to Make Your Difference Legacy • Design, Desire, Drive • Extreme Expertise Abundance • Unique Value • Eliminate Waste Sustainable Abundance Ethics • Greatest Total Value • Good, Grow, Gain Be Responsible. Be Relevant. Stakeholder Concern Engage Unique Engagement Human Rights Education/Arts Environment Oppression Ignorance Collapse Peace Health Wealth Violence Disease Poverty Strategic Excellence Brand Soul Unique Value Stakeholder Concern Engage Environment Conservation Green Business Renewable Energy Global Warming Pollution Abatement Water & Resource Depletion Strategic Alignment Execute The Personal Revolution of Both+And Values is a Profound Leadership Moment “ When our thinking is no longer limited by what you think you can afford we are free to create unlimited value that becomes the source of growth and prosperity… ” Leadership of the Future GOOD Improve the Quality of Everyone’s Life GTV GROW Innovation to Benefit Humanity Create New Value GAIN Unique Value Advantage Sustainable Abundance Strategic justification of morality. Socially-Strategic Branding Noble Intent Hardest to duplicate and to do well, source of greatest brand loyalty. Easy to duplicate, highly competitive. Easiest to do - Many others do the same thing. IDENTITY (EMOTIONAL) VALUES Good for all. BENEFITS FEATURES FUNCTIONALITY (RATIONAL) Good for me. YOUR CAUSE IS the “Secret Sauce”! Turning Your Cause into Your Business Model High Purpose Branding PHYSICAL EMOTIONAL Design Story + MENTAL SOCIAL Growth Connecting + SPIRITUAL IDENTITY Values Fulfillment 6 SOURCES OF HUMAN ENGAGEMENT Brand Voice The Hero and the Outlaw Archetypes are “Blueprints of Meaning” Stability & Certainty Belonging & Enjoyment 9. Caregiver Mayo Clinic 10. Regular Guy/Gal Ben & Jerry’s 11. Lover - Godiva 12. Jester - Las Vegas 1. Creator - Martha Stewart 2. Ruler - AmEx 3. Sage - Oprah 4. Innocent - ClifBar 5. 6. 7. 8. Fulfillment & Independence Hero - FedEx Outlaw - MTV Magician - Google Explorer - Jeep Risk & Mastery Source: Margaret Mark: Strategic Insight ICE AGE Improve human quality of life. Solve environmental problems & shortages. HOT ZONE COOL ZONE CSR - Corporate Giving, Volunteering, Compliance How Great Do You Want to Be? BEST IN WORLD BEST IN CLASS VERY GOOD GOOD GONE PEOPLE Abundance: What’s Your “Z” Factor? CVS Bandages Walgreens Baby Powder Features Better Band Aids Band-Aids Costs Tylenol Tylenol P.M. Rx Advil PM NyQuil Generics Realize Process Excedrin Benefits PLANET Johnson & Johnson New Business Model GOOD GROW GAIN INVITE MARKETPLACE New Innovation Framework New Leadership Paradigm PEOPLE + PLANET + INVENT + PROFIT WORKPLACE + IDEALIZE COMMUNITY Getting to the Whole Enterprise Transformation STRATEGY Marketplace WE 2.0 Engaging customers, employees and the community in your unique value (Z Factor), online and in-person. BRAND Community CULTURE Workplace INVITE MySpace LIVE STRONG NIKE FOUNDATION + LANCE ARMSTRONG FOUNDATION $70M - WRIST BANDS LANCE ARMSTRONG COLLECTION - 100% OF PROFITS INVENT INVENT Social Wiki for Big Brain Neuro Scientists. Online Education Platform for High School Teachers and Students. Micro-Finance More Entrepreneurs Money Village Entrepreneurs Education Consumption Profits Investment IDEALIZE Harmful Toxins Eliminated Highly Recyclable More energy efficient. Longer lasting battery. Reduced packaging. IDEALIZE IDEALIZE What’s the best thing you can imagine? DOING, SUPPORTING, INVENTING Just Start DESIRE DESIGN DRIVE Legacy Our whole world is… G.R.O .W. NEW VISION: Way Forward What are you trying to accomplish? How might you go about it? Goal What might get in the way? What do you want? How might you overcome that? What and when is the next step? What is the first big step toward your new vision? What is the first action? How do you measure progress/success? Option s Describe your dream. Reality What has been accomplished so far? What actions produce progress? What actions seem unproductive? What’s your sense of the barriers? If you could do anything, what would you do? If you were the person you had to influence, what would you need to understand and feel? If you had to achieve this goal or die, what would you do? What else? Do any of these options interest you enough to explore further? © 2009 REALeadership Alliance. All Rights Reserved. Our whole world is…