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Title: XCELLENCE


1
O
RGANIZATIONAL
E
XCELLENCE
BUSINESS PERFORMANCE EXCELLENCE
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
DEPARTMENT OF STATISTICS
REDGEMAN_at_UIDAHO.EDU
OFFICE 1-208-885-4410
DR. RICK EDGEMAN, PROFESSOR CHAIR SIX SIGMA
BLACK BELT
2
Business Performance Excellence
Malcolm Baldrige National Quality Award Consid
erations
3
Quote of the Day
Jim Eliot
4
Enter
Where is the
Priorities?
Knowledge?
???
Innovation?
Moral
Boxes
Ethical
Status Quo
Lack of Teamwork
Paradigms
Integration
Legal
Exit
5
Enter
How?
Moral
Deployment
Ethical
Competing Stakeholder Concerns
By When
Legal
Exit
6
Global Corporate Financial Influence
1997 Of the 100 Wealthiest Nations (in Gross Do
mestic Product) And Corporations (in Sales) Corp
orations outnumbered Nations 5149 General Mot
ors-24 Ford Motor 28 Royal Dutch Shell 34
General Electric 48 Nippon Telephone Tel
egraph 53 Philips Group 99 Deutsche Telecom -
100
7
Global Telecommunications Some Telecoms Use 1
of their nations electricity, consume
1 of national paper or 1 of national GDP.
HOWEVER The rate of change is exceptional in this
sector with these rates declining
so that their environmental impact is reduced as
a result of technical developments, and the globa
l market forces of liberalization,
privatization, and competition.
GLOBAL IMPACT OF TELECOMMUNICATIONS ON
Travel and lifestyles through changes is working
practices and both indoor outdoor leisure
activities are environmentally positive.
1.3 Trillion USD In 2000
8
Exercise Define Each of These
Socially Responsible Environmentally Sound E
conomically Viable
9
(No Transcript)
10
Kyo sei
Living and Working For the Common Good
11
The choice of service over self-interest
The notion of stewardship extends beyond caretak
ing of resources - which connotes to the meeting
of obligations - to the Biblical concept of
stewardship that chastises mere caretaking and
rewards fruitfulness (Luke 1912-27), whether it
comes through multiplication of resources or via
transformation thereof into a something of
greater value. Stewardship of Material Resourc
es (Joseph Genesis 4140-57)
Stewardship of the Environment (Genesis 126)
Stewardship of People (Cain slew Abel - Genesis
43) So What Do We Value?
12
Allied is not in the business of measuring
activity. We are in the business of measuring res
ults. If something doesnt have a positive impact
on customer satisfaction, our shareholders, and
employees, and in the process make us a lot of mo
ney, then we just flat out arent
going to do it! Dr. R.A. Johnson, Director of S
ix Sigma at AlliedSignal
Implication Generally we must not assume that
Sustainable development stands on its own merit.
We must make a valid business case.
One of the things I have trouble with is
non-financial objectives. Often theyre just
as obscure and vacuous as they sound.
L.A. Bossidy, CEO, AlliedSignal Corp.
13
Ancient Jewish Concept Profit as Residue t
hat which remains after the meeting of all obliga
tions.
14
Corporate Social Environmental Responsibility
This is supported by formal organisational excel
lence criteria, such as those of Americas Malcol
m Baldrige National Quality Award and those of th
e European Quality Award. HOWEVER Evidence
supporting the notion of the ETHICAL INVESTOR th
at is, that capital markets reward SER businesses
, is at best mixed.
15
Quality is a state in which value entitlement is
realized for the customer and provider in every
aspect of the business relationship.
Business quality is highest when the costs are at
the absolute lowest for both the producer
consumer and is most readily attained when the
entirety of the organizations human resource is
engaged..
16
Business Excellence an overall way of
working that balances stakeholder interests and
increases the likelihood of sustainable
competitive advantage and hence long-term organiz
ational success through operational,
customer-related, financial and marketplace
performance excellence.
Edgeman, Dahlgaard, Dahlgaard Scherer
Quality Progress (1999)
17
Business Excellence Principles
Leadership Constancy of Purpose
Customer Focus Results Orientation Managem
ent by Processes Facts People Development I
nvolvement Continuous Learning, Innovation Im
provement Partnership Development Public Res
ponsibility
18
Business Excellence Principles
Leadership Constancy of Purpose Organisational
leadership is responsible for creation and
communication of clear and unified organizational
purpose as well as cultivation of an environment
in which both the organization and its people can
excel. Customer Focus Often communicated simply
at "the customer is king" or as "the customer is
the reason for the existence of the
organisation", this principle recognizes that
customers are the final arbiters of product and
service quality -- they are the primary
stakeholders in any organisation. As such,
optimisation of critical indicators of
Organisational Excellence such as customer
loyalty, retention and market share gain is
accomplished through clear identification and
satisfaction of customer needs (Renault).
Results Orientation Excellence depends upon
balancing and satisfying the interests of all
relevant stakeholders.
19
Business Excellence Principles
Management by Processes Facts At the heart of
this principle is a value for data-driven
decision making wherein decisions and planned
improvements are driven by acquisition, access to
and use of reliable information. This implies
that organisations perform more effectively when
all interrelated systems and activities are
understood and systematically managed.
People Development Involvement The full
potential of an organisations human resource is
optimally released by communication, deployment
and application of shared values that create or
re-enforce a culture of trust and empowerment
wherein involvement spanning the human resource
is encouraged Continuous Learning, Innovation
Improvement Organisational performance is
optimised when it is based on the management and
timely sharing of knowledge within a culture of
continuous learning, innovation and improvement.
20
Business Excellence Principles
Partnership Development An organisation works
more effectively on behalf of its stakeholders
when its relationships with partners are built on
a foundation of trust, lead to sharing of
relevant knowledge and to appropriate
integration, thereby creating equitable benefit
to the organisation, its stakeholders and its
partners. Public Responsibility The long-term
interests of an organisation's stakeholders are
best served by engaging in an exclusively ethical
approach to business. Such an approach means that
the organisation will not merely comply with
regulations but, motivated by genuine concern for
the community in which it operates, will strive
to exceed community standards and expectations.
This approach can be thought of as "integrity
management."
21
European Quality Award Excellence Criteria
People Processes Leadership Policy Strategy
Key Performance Results Partnerships Resource
s Customer Results Society Results People Resul
ts
22
European Quality Award Excellence Model Criteria
Leadership How leaders develop and facilitate
the achievement of the mission and vision,
develop values required for long term success and
implement these via appropriate actions and
behaviors, and are personally involved in
ensuring that the organisations management
system is developed and implemented.
Policy Strategy How the organisation
implements its mission and vision via a clear
stakeholder focused strategy, supported by
relevant policies, plans, objectives, targets and
processes. People How the organisation manages,
develops and releases the knowledge and full
potential of its people at individual, team-based
and organisation-wide levels, and plans these
activities in order to support its policy and
strategy and the effective operation of its
processes Partnerships Resources How the organ
isation plans and manages its external
partnerships and internal resources in order to
support its policy and strategy and the effective
operation of its processes.
23
European Quality Award Excellence Model Criteria
Processes How the organisation designs, manages
and improves its processes in order to support
its policy and strategy and fully satisfy, and
generate increasing value for, its customers and
other stockholders. Customer Results What the or
ganisation is achieving in relation to its
external customers. People Results What the orga
nisation is achieving in relation to its people.
Society Results What the organisation is
achieving in relation to local, national and
international society as appropriate.
Key Performance Results What the organisation is
achieving in relation to its planned performance.
24
European Quality Award (EFQM) Model
25
SELF-ASSESSMENT
The comprehensive, systematic, and
regular review of an entitys activities and
results against a specified model.
Purpose Identification of strengths, weaknesse
s, improvement opportunities and threats. So T
hat A strategy for dramatically improved perfor
mance may be developed and deployed
26
The EQA Excellence Model as an Input-Transform-Out
put-Inform Model
Input Transform
Output
Inform
27
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28
Leadership in theAustralian Quality Award
Criteria
Leadership Customer Focus are seen as both
drivers of the management system and enablers of
performance. The leadership management system
is designed to be holistic by involving all peop
le in continual improvement and delivery of incre
asing value to all stakeholders.
The leadership category deals with how the organ
ization is led and how it is structured and opera
tes to achieve its goals and how this relates to
the principles of Quality. It is concerned with h
ow the management system encourages continual imp
rovement collective involvement
in the achievement of goals.
29
Leadership in theAustralian Quality Award
Criteria
Leadership incorporates organizational values,
that is, all the things that are considered funda
mentally important to it. This
includes what is strategically important as
expressed in its purpose (MISSION), direction (VI
SION), and in the key goals established to
achieve the Mission Vision. It also includes
its basic beliefs (CORE VALUES), how they are
translated into the way it manages its
relationships (DEPLOYMENT), into the behaviors
expressed in those relationships and into the
decisions taken to achieve strategic goals.
This concept of values is a broader view than
is commonly taken, but reflects the holistic appr
oach of leading Quality- oriented organizations.
30
Leadership in theAustralian Quality Award
Criteria
Senior Executive Leadership
Strategy, key goals and basic beliefs of the
organization are explored by the item. Especially
considered are
1. The roles of senior executives in the
Leadership process, those that cannot be dele
gated to others 2. How senior executives ensure
that the interests of all stake-
holders are considered in this process
3. How senior executives exhibit their collective
personal commitment, involvement and visibi
lity in developing an organizational culture
commensurate with Quality concepts.
Organizational values are reviewed with particul
ar emphasis on the role of senior executives in c
reating supporting those values. The
management system is also reviewed here with
particular emphasis on the role of senior execut
ives.
31
Leadership in theAustralian Quality Award
Criteria
Senior Executive Leadership
Selected relationships between Leadership and
other
Australian Quality Award areas.
Only the basic management system is considered in
SLE with detailed considered in other areas. For
example, other areas deal with with integration
of values established by leaders with
involving all employees not only in routine work,
but in improvement work. Another area addresses
organizational performance with evidence sought
that the values established the management
systems developed and outlined in SLE and
progressively described in succeeding items are
actually delivering the planned outcomes.
32
Leadership in theAustralian Quality Award
Criteria
Leadership Throughout the Organization
This addresses how the concepts of leadership as
expressed at the senior executive level are trans
lated into an effective overall
management system, clearly focused on improvement
and achievement of key goals. Here the emph
asis is on how other levels of management, and
all employees, are integrated into this system fo
r maximum effectiveness. Of importance is how
the overall system supports the
organizations customer and performance
objectives and eliminates unnecessary barriers to
rapid and effective decision making.
33
Leadership in theAustralian Quality Award
Criteria
Leadership Throughout the Organization
Relationship with the Australian Quality Award P
eople Category
People is concerned with the way in which people
at all levels are encouraged and enabled to impro
ve themselves and the organization. Specific a
spects of human resource policy and practice are
dealt with in this category, but items in this
category should address how the basic management
system develops all employees to take a leadersh
ip role in appropriate areas.
34
Leadership in theAustralian Quality Award
Criteria
Leadership Throughout the Organization
Relationship with the Australian Quality Award Cu
stomer Focus Category
The Customer Focus category addresses the way in
which the organization reflects the needs of its
current and future customers in all of its activi
ties. A particular concern to many organizatio
ns is how barriers detracting from customer focus
, created by the management system, are eliminate
d. The management system described in the first
two areas of leadership will reflect customer
focus, but the detail of practice should be cons
idered in the appropriate Customer Focus items.
35
Leadership in theAustralian Quality Award
Criteria
Leadership in the Community
Community responsibility good corporate
citizenship are dealt with in the Leadership Cate
gory to emphasize the need for them to be
incorporated to be incorporated into the basic
values management system, avoiding the risk of
being regarded as non-core values.
Important considerations include
Recognizing community risk in the organizations
activities and planning to reduce and eliminate
it Making legal requirements a visible and in
tegral part of performance improvement Exhibi
ting sensitivity on matters of community concern
whether embodied in current legislation or not
Making ethical conduct the way we do business
and visible in the organizations values Ful
filling all regulatory requirements as
opportunities for improvement and
going beyond mere compliance.
36
Leadership in theAustralian Quality Award
Criteria
Leadership in the Community
Environmental Responsibility
Of increasing importance, this may be expressed
in many ways depending on the nature of the of th
e organization. For example, the level and ty
pe of activity in a mining or chemical
company would be quite different to that in a
service organization such as a hotel. It would
be reasonable though, to expect both types of
operations to have a policy on environmental prot
ection and active programs to
to support it. For some organizations it may be
appropriate to address how they meet
industry standards for environmental protection,
how they are actively involved in setting the sta
ndards, or the extent to which their
environmental management practices meet the
International Standard on Environmental Managemen
t (ISO 14000).
37
Leadership in theAustralian Quality Award
Criteria
Leadership in the Community
Adding Value to Society
Another important component of Leadership in the
Community is that of getting better together by
sharing experiences in improving the way the
organization is organized and managed. The idea i
s one of the greater community good.
Examples are Encouraging and assisting cus
tomers and suppliers to adopt Total Quality
systems Participation in networks of rela
ted or unrelated organizations for a similar
purpose Local or national community invo
lvement and leadership in ways appropriate t
o the organizations purpose and
Encouragement and assistance to employees t
o contribute their skills and knowledge to b
enefit the community.
38
W. Edwards Deming
Japans Deming Prize
39
Leadership Assessment for Japans Deming Prize
Professor Yoshio Kondo Deming Application Prize S
ubcommittee Member Personal Communication, 2 Nove
mber 1997
There has never been a Leadership criterion in
the Deming Application Prize criteria, and how
do we assess Leadership, our on-site examinatio
n is composed of three schedules A, B
and Executive Session. The examiners liste
n to senior executives talk through their
thoughts on and enthusiasm for CWQC.
The evaluation of the result of this Executive
Session is made independently, and the passing
point of this Session is 70 points or more.
In this way, we emphasize the importance of
leadership of senior executives in the Deming A
pplication Prize examination.
40
Literacies of the Global Leader
41
Personal Literacy
FOUNDATIONS Self-awareness understanding your
self Self-development renewing yourself Self-e
steem valuing yourself KEY BEHAVIORS Aggressi
ve insight Confident humility Authentic flexibil
ity Reflective decisiveness Realistic optimism
42
AGGRESSIVE INSIGHT
This is insatiable curiosity that is proactive.
Relationship Style People in individualistic
societies such as the UK and Australia approach
self-knowledge as a personal act of courage and
discovery. People in collectivist societies such
as Korea and Taiwan see the development of
oneself as inextricably intertwined with the
community.
43
Confident Humility
Healthy self-esteem stems from being comfortable
with who you are, knowing clearly what you can
and cannot do, and being at ease with your own
power.
44
Authentic Flexibility
THREE KEY ELEMENTS A personal purpose A set of
ethics standards A teachable point of view.
The challenge is to be authentic in a world with
confusing or conflicting values and with ethics
that seem to contradict our own this is where
flexibility is crucial. We must learn to adjust
our perceptions and moral lens, but not our
principles. Our character interacts evolves
with changing circumstances. Culture influences
ethics and there are different ways of conducting
business around the world.
45
Reflective Decisiveness
To lead is to act and we measure leaders by
results. Reflective decisiveness is knowing whe
n to think and when to act effectively
balancing thought action.
46
Realistic Optimism
We are drawn to inspiring leaders who demonstrate
their passion for possibility and tell us we can
achieve impossible things. BUT we also need lead
ers who bridge home and reality, who have one
foot in the future and one in the present
personally literate leaders do both.
47
The Top Five Personal Literacy Skills
When asked to identify the two most important
personal qualities for leadership, business
executives said Leading by example 56 Facing
change uncertainty with confidence 45
Being motivated by strongly held principles
beliefs 38 Knowing ones own strengths short
comings 31 Being committed to continuous learn
ing 30
48
EXAMPLES of PERSONALLY LITERATE LEADERS
Aad Jacobs Ing Groep N.V. (the Netherlands)
example of living an open, honest life.
Shelly Lazarus Ogilvy Mather Worldwide (USA)
-example of practice what you preach
(integrity). Kumar Manalan Birla the Birla Gr
oup (India) example of model emotional
maturity. Rolf-Ernst Breuer Deutsche Bank AG
(Germany) example of acknowledge reality.
Lee Kun-Hee Samsung Electronics (South Korea)-
example of change begins with me.
49
Social Literacy
Engaging Challenging Others Behaviors
Pragmatic trust Urgent listening Constructive im
patience Connective teaching Collaborative indiv
idualism (Claire CrawfordMason Theory of
Profound Consciousness)
50
Pragmatic Trust
The mark of globally literate leaders is their
ability to build trust in the way different
societies value it.
51
Urgent Listening
Effective communication has two basic goals
First, to clarify priorities and expectations
that is to tell people what need to be done.
Second, to create the right tone to help people
feel good about doing it. Achieving both require
s us to listen as well as talk.
COVEY Seek First to Understand Then to be
Understood. JAMES 119 Be quick to listen, slow t
o speak, and slow to get angry.
Productivity listening learning caring
52
Constructive Impatience
This is healthy anxiety with a destination.
The challenge of any leader is to inspire greatn
ess in both self and others through
Understanding whats personally meaningful to ot
hers Articulating a higher purpose for work Crea
ting healthy organizations that are fun and
focused Providing good benefits and a safe enviro
nment Respecting the diversity of all people.
53
Connective Teaching
Leaders are great students AND great teachers.
Learning emerges from the creative juxtaposition
of people, ideas and technology, not from the
isolated endeavors of individuals it is
connective teaching that enables this.
54
Collaborative Individualism
It is becoming more difficult to separate leaders
from their groups. We can no longer easily differ
entiate the specific contribution that each
person makes. Todays leaders are catalysts and
facilitators of collective intelligence NOT
lords of information. They are evolving into teac
h coaches because they know that two minds are
better than one and many minds are better yet.
The coming together of INDIVIDUALIST and
COLLECTIVIST mindsets creates this collaborative
individualism or shared vision with both
individual and group accountability.
This is best done in EGALITARIAN Cultures such as
Denmark, New Zealand and Sweden whereas
hierarchical societies such as India and
Singapore have difficulty.
55
Top Five Social Literacy Skills
When asked to identify the two most important
aspects of working with and influencing others,
business executives said Inspiring others to a
ction excellence 70 Listening communicatin
g effectively 63 Encouraging others to adopt c
ommon goals values 29 Teaching coaching ot
hers 23 Transforming conflict into creative ac
tion 16
56
Is Beating the Competition a Cultural Value?
Percentage of Executives Reporting This as Their
Highest Value Asia 30 Europe 23 Austra
lia / New Zealand 19 Latin America 19 Nort
h America 14
57
Are Executives Promoted from Within?
Percentage of Executives Responding Positively
Latin America 73 Asia 61 Australia / New
Zealand 60
North America 57 Europe 56
58
Regional Differences in Social Literacy
ASIANS encourage others to adopt common goals.
LATIN AMERICANS transform conflict into
creative action. EUROPEANS inspire others to ex
cellence. NORTH AMERICANS listen and communicat
e effectively. AUSTRALIANS / NEW ZEALANDERS tea
ch and coach others.
59
EXAMPLES of SOCIALLY LITERATE LEADERS
Hiroshi Okuda Toyota Motor Corporation (Japan)
example of listen deeply below the surface.
M. Douglas Ivester Coca-Cola Company (USA)
example of using soft skills to your
advantage. Peter Ma Ping An Insurance Company
(China) example of craft social ground
rules. Juergen Bartels Westin Hotels Resorts
(USA) example of stretch people beyond their
dreams. Daniel Vasella Novartis AG (Switzerlan
d) example of communicate deeply about
change. Guillermo Luksic the Luksic Group (Chi
le) example of build socially literate
relationships.
60
Business LiteracyFocusing Mobilizing Your
Organization
Relentless change forces companies to be fast and
flexible as they navigate through chaos to create
value for customers. By creating environments th
at bring out the best in people, and teaching
them how the business works, business-literate
leaders build cultures of learning and
innovation. Liberating leaders at all levels of
the business is the secret to success.
61
Roles of the Business Literate Leader
Chaos Navigator Business Geographer Historical F
uturist
Leadership Liberator Economic Integrator
62
Chaos Navigator
Business-literate leaders are comfortable with
ambiguity because they understand that linear
mindsets of cause-and-effect are inadequate in
the new world. They seek patterns in through ex
perience. Develop a capacity for systems thinking
.
63
Business Geographer
Business geographers continuously survey the
countries where they buy and sell products to
understand the context of their business.
They are knowledgeable about the national
realities of geography, politics, and history and
how management philosophy and practice emerge
from them. They must (a) operate in the past an
d future simultaneously (b) hold several balls i
n the air simultaneously (c) have a can-do spiri
t (d) holistic and circular thinking and (e) p
assion for the change.
64
Historical Futurist
Know themselves and their companies inside and
out Explore and celebrate the past, understand a
nd own the present imagine and create the
future. Rarely view the world as either completel
y clear or unpredictable. Have a passion for self
-assessment. Build on existing organizational cor
e values, thus providing continuity through time.
65
Leadership Liberator
The survey shows that leaders everywhere believe
that their most important job is to create other
leaders. (MAXWELL) Leadership is often a TEAM rat
her than strictly an INDIVIDUAL because
business literate leaders are comfortable with
sharing power and control. Human capital is an EX
PANDABLE resource and leadership CAN be learned.
66
Economic Integrator
Obsessed with success. Focus on what excellence l
ooks like, building a fast, flexible organization
to achieve success. Know that successful companie
s are values-based, performance-driven
enterprises. Success depends on delighting stakeh
olders shareholders, customers, employees,
suppliers and the community. By serving and balan
cing these needs, business literate leaders
create companies that last. They connect the enti
re value chain by creating alignment within the
enterprise.
67
Top Five Business Literacy Skills
When asked to identify the two most important
ways of mobilizing people, global business
executives said Building a culture of learning
innovation 65 Helping people adapt to conti
nuous change 41 Focusing on leadership develop
ment 40 Giving all employees decision making a
uthority 34 Educating people about how the bus
iness works 17 Promoting the importance of emp
loyee job security 3
68
Business Literate Leaders
Manuel V. Pangilinan First Pacific Company
(China) example of preparing people for change
and chaos Ted Kunkel Fosters Brewing Company
(Australia) example of leverage knowledge for
competitive advantage Alfred M. Zeien Gillette
Company (USA) example of foster
interchangeable management Nobuyuki Masuda Mit
subishi Heavy Industries (Japan) example of
linking past present and future
Sir Peter Bonfield British Telecommunications
(UK) example of integrate and align your
company
69
Cultural Literacy
Valuing Leveraging Cultural Differences
Does Multicultural Experience Matter?
New Zealand 52 Sweden 40
United Kingdom 47 China 40
Singapore 45 Germany 39 Philippines 44 Me
xico 36 Netherlands 44 South Korea 33 Fra
nce 44 United States 28 Brazil 41 Canada
26 Hong Kong 40 Australia 25
70
Cultural Data Bank
If the world were a village of 100 people ..
56 Asians, 21 Europeans, 9 Africans, 8 South
Americans, 6 North Americans.
Of these, 30 would be Christians, 18 Moslems, 13
Hindus, 6 Buddhists, 5 animists, and 21 atheists
or agnostics. 6 would control half of the total i
ncome. 50 would be hungry 60 would live in shant
ytowns 70 would be illiterate. The combined we
alth of the worlds richest 225 people is 1
TRILLION. The combined annual income of the
worlds 2.5 billion poorest people is 1 TRILLION.
71
Do You Have Multicultural Experience?
Percentage of Executives Responding Positively
44 Europe 41 Latin America 39 Asia 33 Austr
alia / New Zealand
28 North America
72
Countries with the Most International Customers
Percentage of companies with customers in 10
countries 86 Netherlands 60 South Korea 84
France 56 Brazil 73 Australia 47 Japan
70 Sweden 47 United States 70 New
Zealand 45 Canada 70 United Kingdom 39 Phil
ippines 63 Germany 36 Mexico 63 Singapore
33 Hong Kong
73
(No Transcript)
74
Quote of the Day
Humankind has not Woven the web of life. We ar
e but one thread within it. Whatever we do to t
he web, we do to ourselves. All things are bou
nd together. All things connect. Chief Seattle
1855
75
Sustainable Development is development that mee
ts the needs of the present generation, without c
ompromising the ability of future generations to
meet their own needs. Brundtland Co
mmission (1987)
76
Paradigms Challenges
Biophysical / Environmental
Economic / Business
Technology/Technological
Societal
If I have seen a little farther than others,
perhaps it is because I have stood on the shoulde
rs of giants.
Sir Isaac Newton
77
Leadership
Balanced Stakeholder- Driven Master Plan
Partnerships
Resources
People
Policy Strategy
Processes
Economic
BEST Sustainability
Biophysical
Results Orientation
Societal
Technological
BEST Sustainability
78
Cornerstones in the House
Of BEST Sustainability
79
BIOPHYSICAL / ENVIRONMENTAL SUSTAINABILITY
80
Extract Fossil Fuels Minerals, and P
roduce Persistent Substances Foreign
to Nature, at Rates that are not Faster than
Their Slow Redeposit into the Earths Crust Redu
ce the Use of the Four Generic Resources Used in
Construction Energy, Water, Materials and Land.
Maximize Resource Reuse and / or Recycling Use
Renewable Resources in Preference to
Non-Renewable Resources Minimize Air, Land and Wa
ter Pollution at Global and Local Levels
Create a Healthy, Non-Toxic Environment
Maintain and Restore the Earths Vitality and
Ecological Diversity Minimize Damage to Sensitive
Landscapes, Including Scenic,
Cultural, Historical and Architectural
81
ECONOMIC SUSTAINABILITY
82
Ensure Financial Affordability for Intended
Beneficiaries Promote Employment Creation Enhanc
e Competitiveness in the Marketplace by Adopting
Policies and Practices that Advance Sustainabili
ty Use Full-Cost Accounting and Real-Cost Pricing
to Set Prices Tariffs Choose Socially Enviro
nmentally Responsible Suppliers and Contractors
Invest Some of the Proceeds from the Use of
Non-Renewable Resources In Social and Human-Made
Capital to Maintain the Capacity to Meet the
Needs of Future Generations
83
SOCIAL SUSTAINABILITY
84
Improve the Quality of Human Life, Includi
ng Poverty Alleviation Make Provision for Social
Self-Determination and Cultural Diversity in
Development Planning Protect and Promote Human He
alth Through a Healthy Safe Working
Environment Implement Skills Training and Capacit
y Enhancement of Disadvantaged People
Seek Fair or Equitable Distribution of the Social
Costs of Development Seek Equitable Distribution
of the Social Benefits of Development
Seek Intergenerational Equity
85
TECHNOLOGICAL SUSTAINABILITY -The Built Environm
ent -
86
Construct Durable, Reliable and Functional
Structures Pursue Quality in Creating the Built E
nvironment Use Serviceability to Promote Sustaina
ble Construction Humanize Larger Buildings Fill
in and Revitalize Existing Urban Infrastructure
with a Focus on Rebuilding Mixed-Use Pedestrian N
eighborhoods
87
BEST Business Excellence
88
Big Bird
89
Societal Excellence The excellence of a society c
an be judged not so much by the
survival of its fittest, but by the care provided
for its weakest. Corollary Socie
tal Excellence demands responsible citizenry.
1984
2001
90
Alices Adventures in Wonderland
That depends a good deal on where you want to get
to.
Would you tell me, please, which way I ought to
go from here?
by Charles Lutwidge Dodgson (Lewis Carroll)
91
SUSTAINABILITY Corporations that Make a Differen
ce
and Make a Profit
92
Very Weak Sustainability
This requires the generalized production capacity
of an economy to be maintained intact so as to
enable constant per capita consumption over
time. This is the economic twin to the environm
ental principle of strong sustainability.
This is an ethical principle in that it requires
the welfare potential of the overall capital
base to remain intact across generations so that
it strongly considers intergenerational equity
and intertemporal capital accumulation with
non-renewable resources and extends beyond the
idea of sustained living standards or consumption
levels to non-consumptive uses.
93
Weak Sustainability
Weak sustainability is regarded as an integrative
value-based principle that requires the total
value of aggregate economic activity and
environmental quality be maintained over time.
This is integrative in that the ecosystem princi
ple of strong sustainability and economic
development principles are jointly considered.
It is not necessary for either or both of econom
ic activity or environmental quality to be
maintained over time, but rather that the
aggregate be maintained. This presumes that ove
r time various trade-offs between aggregate
income and environmental quality can be made and
evaluated.
94
Strong Sustainability
Views the economy as an open subsystem of the
finite and non-growing global ecosystem and can
be referred to as either a physical criterion
of maintaining the economy's resource base intact
for production through time or as an ecosystem
principle of protecting the natural environment
as our life-support system, or both.
Strong sustainability requires the constraint th
at development or regeneration of renewable
natural resources match or exceed depletion of
non-renewable natural resources.
This would generally seem to imply the need to i
mprove generalized productive capacity while not
degrading overall environmental quality.
95
Strong sustainability is a macro concept.
At the micro level, strong sustainability impl
ies that a set of ecological or "natural capital"
constraints - that is, minimum sustainability s
tandards be applied on a project-by-project or
asset-by-asset basis so-called very strong
sustainability Given that people are seen as
the culprits, it should come as no surprise tha
t some very strong sustainability proponents
would impose strong limitations on the human
scale, such as zero population growth zero econ
omic growth
Very Strong Sustainability
96
They only are if we think they are, and there is
very little to be gained by thinking in this
way. By contrast, there is much to be gained by
regarding environmentalism as a great
opportunity, a new wrinkle in our culture holdin
g many potential gifts for business.
(Maynard and Mehrtens, HP-Scotland)
97
Canon Corporation Kyosei Living Working for
the Common Good Canon Laser Printers have a 70
world market share and is the worlds largest
photocopier maker. Canon has approximately 80,000
employees globally. Canons entry into the glob
al marketplace provided the driver for Kyosei.
Canon is the name for the Japanese Goddess of
Mercy and in some sense It was the need for mer
cy that Canon noticed in the form of three
imbalances Between importers exporters Betwee
n the rich and the poor Between generations with
the current one consuming so many resources that
there may not be many left for coming
generations. FIVE STAGES TO PUTTING KYOSEI INTO
CORPORATE ACTION Commit yourself to economic sur
vival Create partnerships with people Create par
tnerships with outside stakeholders
Assume global social responsibility
Be active globally.
98
Monsanto Corporation
Current agricultural practice is not sustainable.
Globally, we have lost approximately 15 of our
topsoil over the past 20 years.
Irrigation is increasing the salinity of the
soil and petrochemicals used are not renewable.
Global population is expected to double to 12
billion by 2030. OUTLOOK same amount of land t
o support twice the population.
Todays technology is able to increase
productivity only by one-third!
99
Monsanto Corporation Biotechnology
The NewLeaf Potato bio-engineered to defend it
self against the Colorado potato beetle and to be
resistant to leaf virus. Widespread adoption
could eliminate the manufacture, transportation,
distribution, And aerial application of
millions of kilograms of chemicals residues
annually. B.t. Cotton in ordinary soil, micro
bes known as B.t. microbes occur naturally and
Produce a special protein that, although toxic to
certain pests, are harmless to other
Insects, wildlife, and people. If the cotton
budworm, for example, eats B.t. bacteria, it
will die. MONSANTO scientists identified the
gene that tells the B.t. bacteria to make
the special protein. They then inserted the gene
in the cotton plant to enable it to produce the
protein on its own, while remaining otherwise
unchanged. Now, when budworms attack they are
either repelled or killed by the B.t. Products
LIKE B.t. Cotton enables farmers to avoid buying
and applying insecticides so that the
environment is spared chemicals that are persiste
nt in the soil and run off Into groundwater.
100
Monsanto Corporation Roundup Herbicide and No-T
ill Farming builds the right information into
molecules and renders them either more durable or
enhances their recyclability. ROUNDUP HERBICIDE
addresses the issue of topsoil erosion. TOPSOIL
is necessary for root systems because of its orga
nic matter, friability in structure, and
water-holding capabilities. The subsoil beneath
is incapable of supporting root systems.
ROUNDUP replaces plowing (which exposes soil to
erosion) a practice called conservation tillage
that delivers soil of better quality that is
less easily eroded. When sprayed onto a field b
efore crop planting, Roundup kills the weeds and
eliminates the need for plowing. AND because the
ROUNDUP molecule is designed to kill only
what is growing at the time of its initial
application, the farmer can begin planting only
a few days after application and the herbicide wi
ll have no effects on the emerging seeds.
Other smart features of the molecule include deg
radation by soil microbes into natural
products such as nitrogen, carbon dioxide, and
water. It is also non-toxic to animals.
Once sprayed, it sticks to soil particles and
doesnt move into groundwater.
101
Monsanto Corporation Ideas Teams
Substitute services for products often we buy
things not because we want them, but because of
what they can do for us. Replace stuff with inf
ormation e.g. in telecommunications, we can
move information cheaply and with low consumption
levels, compared to moving people and things
around. Miniaturization MONSANTOs SEVEN SUS
TAINABILITY TEAMS The full-cost accounting team
The Index team The New Business / New Products
Team The Water Team The Global Hunger Team The
Communication Education Team
102
PATAGONIA We believe quality is not something
you can do piecemeal. Either you believe in quali
ty, or you dont. Either it surfaces everywhere a
nd you commit to it everywhere, or you dont. The
re is no gray area here. I dont think its possi
ble to make a great quality product without havin
g a great quality work environment. Its all l
inked Quality product, quality customer service,
quality workplace, quality of life for your empl
oyees, even quality of life for all living things
on this planet. If you miss any one piece, there
is a good chance youll miss it all. Yvon Cho
uinard, Patagonia Founder.
103
Patagonia We want to use what we know about ma
naging a successful business to lead others in
finding solutions to the environmental crisis.
We have a couple of million customers we can tel
l our stories to, whether it is about organic cot
ton, or renewable energy. We have a built in au
dience. We do feel great urgency that as a soci
ety we cant continue on the high consumptive pat
h were on. We need leadership to find a differ
ent way of being. CEO Dave Olsen
104
We were interested not only in reducing our
impacts pollution prevention was a given - but
also in keeping a focus on creating an economy t
hat might someday allow us to restore the ecologi
cal health of the world.
Yvon Chouinard Mike Brown, Patagonia
105
Purpose Patagonia Exists as a Business to Insp
ire and Implement Solutions to the Environmental
Crisis. Core Values Quality pursuit of ever-
greater quality in everything we do.
Integrity relationships built on integrity re
spect. Environmentalism serve as a catalyst fo
r personal
and corporate action. Not Bound By Convention
our success and much of the fun lies in devel
oping innovative ways of doing things.
Patagonia Purpose Core Values
106
Patagonia Equipment for High-Intensity
Sports Greater of 1 of sales revenue or 10 of
pre-tax profits as a self-imposed
Earth-Tax 10million USD since 1973.
Q?E ?quality environmental protection should
be one and the same. Customer education campaign
, internal dialogue, and a design challenge.
California company committed to using 100 wind
energy for in-state facilities.
Internship programme that pays employees to work
up to two months for the non-profit environment
al group of their choice. Conversion of recycle
d soda bottles into plush fleece fabric, with a
commitment to using only organic cotton in all pr
oduct lines by spring 1996. Childrens clothing
line made from scraps from adult clothing
fabrics so-called PRE-CYCLING. Environmental
ism across entire supply chain..
This despite the fact that Patagonias own market
research indicates that only 20 of its customers
care about the environmental impact of what
they buy.
107
The Right Thing to Do! Organic cotton was a big
risk we were prepared to take substantial loss
es for several years. In full sight of the risks,
we decided to go ahead.
We knew it was possible that we had adequate
supply, that organic cotton could be ginned, spu
n, etc. but not that it would be commercially
successful. It turned out not to be a commerc
ial penalty. Dave Olsen, CEO
108
Cotton accounts for 25 of insecticide use
globally 8-10 of world pesticides are applied o
n cotton fields 18 million kg
Pesticides used on cotton are among the most
hazardous Children are particularly vulnerable to
pesticide-related health problems
These issues are especially important in
Patagonias California homeland
Farm workers are at increased risk
Other problems include Aerial over-spray and soi
l erosion Run-off into irrigation water and Grou
ndwater contamination. Loss of biodiversity and
Ecosystem damage.
Another Example Conversion to Renewable Energy W
ith Strategies to Make it Cost-Neutral
109
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110
Remember that all worlds draw to an end
and a noble death is a treasure that
no one is too poor to buy. Roonwit the Centaur
in The Last Battle C.S. Lewis (1957) The Chro
nicles of Narnia
Quote for the Day NOBILITY
111
Remind me again why were doing this.
112
Principle Centered Leadership
Leadership is vision that stimulates hope and
mission that transforms hope into reality radica
l servanthood that saturates the organization st
ewardship that shepherds its resources integrat
ion driving its economy courage to
sacrifice personal or team goals for the greater
community good communication coordinating its ef
forts consensus driving unity of purpose empowe
rment that grants permission to make mistakes, e
ncourages the honesty to admit them and the oppor
tunity to learn from them and
conviction providing the stamina to continually
reach for the prize of business excellence.
113
TrustThe Leaders Emotional Bank Account
DEPOSITS WITHDRAWALS
Seek First to Understand Seek First to be Und
erstood Keeping Promises Breaking Promises
Honesty Openness Smooth
Manipulation Kindnesses Courtesies Unkindn
esses Discourtesies Win-Win or No Deal Think
ing Win-Lose or Lose-Win Thinking
Clarifying Expectations Violating Expectation
s Loyalty to the Absent Disloyalty Duplic
ity Humility / Apologies Pride, Conceit, Ar
rogance Receiving Feedback Giving Not Rece
iving Feedback and I Messages Giving You
Messages.
114
The Seven Habits of Highly Effective People
Premise Leaders are People too.
Knowledge (what to, why to)
Habits
Skills (how to)
Desire (want to)
115
Habit 1 Be Proactive - The Habit of Personal Vis
ion -
This means that as human beings we are
responsible for our own lives.
There is a difference between response-ability
and reactivity, which is to transfer responsibili
ty. Four endowments that distinguish us
from animals are Self-Awareness our capacity
to take a look at ourselves and examine our own
thinking, motives, habits and paradigms.
Conscience which serves as our internal guidanc
e system, which allows us to sense
when we act or even contemplate acting in a way
that is contrary to principle.
Creative Imagination is our ability to create i
n our minds beyond our present
reality. Independent Will is our capacity to a
ct, free of all other influences.
Proactive people focus their time and energy on
things they can control (Circle of Influence) in
lieu of reacting or worrying about conditions
over which they have little or no control (Circle
of Concern). In so doing, they use positive
energy to influence conditions and increase their
Circle of Influence.
116
Coveys Pyramid of InfluenceReproductive
Leadership
Circle of Influence
Teaching Hear, Feel
See Mentoring Feel
See Modeling
See
Reproductive Leadership Common to the top 1 of
leaders is that they produce other leaders.
John C. Maxwell in Developing the Leaders Around
You
Circle of Concern
117
Habit 2 Begin With the End in Mind
- The Habit of Personal Leadership -
This means beginning each day or task with a
clear understanding of your desired
direction destination. By keeping the end in
mind you can make certain that
whatever you do on any particular day does not
violate the criteria that you have
defined as supremely important, and that each day
of your life contributes in a meaningful way to t
he vision you have of your life as a whole.
It is possible to be very busy without being ver
y effective. This habit is based on
the principle that all things are created twice.
There is a mental model (first
creation) and a second physical creation. In our
personal lives, if we do not develop
self-awareness and become responsible for first
creations, we empower other people and circumsta
nces to shape our lives. This habit is based on
imagination - the ability to envision, to see
the potential, to create with our minds what we c
annot yet see with our eyes and conscience -
the ability to detect our uniqueness and the pers
onal, moral, and ethical guidelines
within which we can most happily fulfill it.
Leadership is the first creation. Management is
the second creation. Management is
a bottom-line focus - How can I best accomplish
certain things? while Leadership
deals with the top line - What are the things I
want to accomplish? Management
is doing things right, leadership is doing right
things. Develop a p
ersonal mission statement.
118
Habit 2 Begin With the End in Mind
- Developing a Mission Statement -
One of the most powerful methods to cultivate the
passion of vision is to create
live by a mission statement, philosophy, or
creed. These capture what you want to be
and do - what qualities you want to develop, what
you want to accomplish, what contributions you w
ant to make. Clarity is critical because it
affects everything else - the goals you set, the
decisions you make, the paradigms you hold, and
the way you spend your time. This becomes a perso
nal constitution. It should be empowering.
What would I really like to be and do in my li
fe? What do I feel are my greatest strengths?
How do I want to be remembered?
Who is the one person who has made the greatest
positive impact on my life? What have been the
happiest moments in life? If I had unlimited ti
me resources, what would I do?
What are the three or four most important
things to me? How can I best contribute to the
world? An Empowering Mission Statement ..
Represents the deepest best within you. It
comes out of a solid connection with your deep
inner life. Is the fulfillment of your own uniq
ue gifts. It is the expression of your unique
capacity to contribute. Addresses and integrate
s the four fundamental human needs and capacities
in the physical, social / emotional, mental, a
nd spiritual dimensions. Deals with all the sig
nificant roles in your life. It represents a
lifetime balance of personal, family, work,
community - whatever roles you feel are yours
to fill. Is written to inspire you - not to imp
ress anyone else. It communicates to you and
inspires you on the most essential level.
119
Habit 2 Begin With the End in Mind
- Sample Mission Statements -
For myself, I want to develop self-knowledge,
self-love, self-allowing. I want to use
my healing talents to keep hope alive express
my vision courageously in word action.
In my family, I want to build healthy, loving
relationships in which we let each other
become our best selves. At work, I want to
establish a fault-free, self-perpetuating,
learning environment. In the world, I want to
nurture the development of all life forms,
in harmony with the laws of nature.
To act in a manner that brings out the best in
me and those important to me --
especially when it might be most justifiable to
act otherwise. I will live each day with cour
age and a belief in myself and others. I will
live by the values of integrity, freedom of choic
e, and a love of all people. I will strive to
keep commitments not only to others but to myself
as well. I will remember that to truly live, I
must climb the mountain today, for tomorrow may b
e too late. I know that my mountain may seem no
more than a hill to others and I will accept
that. I will be renewed by my own personal
victories and triumphs no matter how small. I
will continue to make my own choices to
live with them as I have always done. I will not
make excuses or blame others. I will, for
as long as possible, keep my mind and body
healthy and strong so that I am able to make
the choice to climb the mountain. I will help
others as best I can and I will thank those
who help me along the way.
120
Habit 2 Begin With the End in Mind
- The Habit of Personal Leadership -
WHAT ARE YOUR FIRST THINGS? List those things
that are most important in your life.
How effective are you at keeping these thing
s first in your life? Why? IMPACT THINGS?
If you were to do one thing in your profession
al life that would have the most
positive impact, what would that one thing be?
If you were to do one thing in your personal
life that would have the most positive
impact, what would that one thing be?
121
Habit 3 Put First Things First
- The Habit of Personal Management -
First things are those things that you,
personally, find most worth doing. They move you
in the right direction and help you achieve the
purpose expressed in your mission statement.
Put first things first involves organizing m
anaging time and events according to personal pr
iorities established in Habit 2. Habit 2 is the
first or mental creation while Habit 3 is
the second creation. People tend to spend mos
t of their lives in one of the four quadrants of
the time management matrix on the following page
. This matrix divides things as either urgent
or not urgent and important or
not important. Most people spend far too muc
h time responding to the urgent crises of
of Quadrants I or III, escaping for survival
purposes occasionally to the not urgent, unimport
ant time wasters of Quadrant IV.
Research indicates that truly effective people f
ocus on Quadrant II.
122
Leadership Time ManagementTime Management
Matrix
I II Crises Preparation Preve
ntion Pressing Problems Planning Empowe
rment Deadline-driven Projects Values Cla
rification meetings, preparations Relati
onship Building Needed Relaxation II
I IV Needless interruptions Trivia
, Busywork Unnecessary Reports Time Waste
rs Excessive TV Unimportant meetings Ir
relevant Mail Some Phone Calls
phone calls, mail Excessive Relaxation
Other peoples minor issues Escape
Activities
Not Important Important
Urgent Not Urgent
123
Tyranny of the Urgent
The important task rarely must be done today, or
even this week the urgent task calls for instan
t action The momentary appeal of these tasks see
ms irresistible and important, and they devour ou
r energy. But in the light of times perspective,
their deceptive prominence fades with
a sense of loss we recall the vital task we
pushed aside. We realize weve become slaves to t
he tyranny of the urgent. Charles Hummel
The things which matter most must never be at
the mercy of the things which matter least.
Goethe
124
The Urgency IndexAre You at the Mercy of a
Tyrant?
When urgency is the dominant factor in our lives,
importance is not. The following questions will
help you determine the level of urgency in your
life. Circle the number (0 never, 2
sometimes, 4 Always) that most closely
represents your normal behavior or attitude regar
ding the statements at the right.
N S A 0 1 2 3 4 1. I seem to
do my best work when I am under pressure.
0 1 2 3 4 2. I blame the rush and pres
sure of external things on my failure to spend
deep, introspective time with myself.
0 1 2 3 4 3. I am frustrated by the slo
wness of people and things around me I hate to
wait or stand in line. 0 1 2 3 4 4. I
feel guilty when I take time off work.
0 1 2 3 4 5. I seem to be rushing betwe
en places and events. 0 1 2 3 4 6. I f
ind myself pushing people away so I can finish a
project. 0 1 2 3 4 7. I feel anxious w
hen I am out of touch with the office for more
than a few minutes. 0 1 2 3 4 8. I am
preoccupied with one thing when I am doing
something else. 0 1 2 3 4 9. I am at m
y best when I am handling a crisis situation.
125
The Urgency Index Continued
When urgency is the dominant factor in our lives,
importance is not. The following questions will
help you determine the level of urgency in your
life. Circle the number (0 never, 2
sometimes, 4 Always) that most closely
represents your normal behavior or attitude regar
ding the statements at the right.
N S A 0 1 2 3 4 10. The adrena
line rush from a new crisis seems more satisfying
to me than the steady accomplishment of
long-term results. 0 1 2 3 4 11.
I give up quality time with importa
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