M6 Slides 21
M6 Slides 21
BusinessGenetics® Inc.
All rights reserved.
Modifications and
extensions by
Prof FO Skae,
Rhodes University, 2020
Module 6
Embedding
Sustainability
Course Topics
Governance Sustainability
Integrated Data
Reporting The SBA The new
Introduction Approach
GRI gold, oil,
whatever??
BA & Sustainability
Basis of King 4 Triple bottom line
Challenges
2
Course Objectives
1. Explain why ethics and corporate governance are pre-requisites
in achieving business sustainability
2. Be able to make a business case for sustainability
3. Explain why sustainable consumption matters
4. Explain the role of the BA in designing ‘closed loop systems’
5. Identify ways in which a BA can create sustainable value
6. Demonstrate an approach for the presentation of a roadmap for
sustainable consumption
7. Present a framework for embedding sustainability in the business
model
3
Course Approach
• Reinforce and engage through interactive
discussion, questioning and team based
exercises
• Share business improvement diagnostic and
analysis techniques most applicable when
using BML to embed sustainability into BPM
and the resultant Business Model
• Utilize a representative Integrated Report
(SBG) as a basis for all course exercises and
analyze relevant case studies
4
REASONS FOR PROMINENCE OF CORPORATE GOVERNANCE
• Trust in companies;
• Investor demand;
• Stakeholder activism;
• Increased social power of modern companies;
• Risk Management;
• Sustainability (both global and enterprise)
GOVERNANCE REGIME
• Greed - Self-interest
• Fear - Self-concern
• Sloth - Imbalance
• Pride - egg on face
• Arrogance - we are right
Shareholder Value
+
Value Sustainable
Transfer Value
- Value + Stakeholder Value
Unsustainable Transfer
-
Laszlo: Sustainable value framework
9
The nine questions
14
Consumption: Why Change?
• Driving innovation
• Capturing opportunity
•
Current trends: Why more fundamental shift?
• Resource prices
•
Current trends: Why more fundamental shift?
•
Where do we want to go?
3. Collaboration is a key
• Significant growth
Consider:
• Barriers
• Enablers
• Business strategies
• Role of BA
How we can get there?
2. What it takes
• Change in business leader mind-set
• Organizational change
• Industry wide change
• Systemic change
3. What can individual businesses do?
• Make it tangible
• Engage all levels
• Change the business model
• Shift values and culture
• Engage all internal stakeholders
• Implement sustainable practices across and along VCs
Framework
Business Models of the Future
27
Business Model: Defining?
“A business model describes the structure under which an organization creates,
delivers, and captures economic, social, or other forms of value. The process of
business model design is part of business strategy”.
Paper #5-3 NPC North American Resource Development Study
• Why?
• What?
• Where?
• When? W5H
• Which?
• Who?
• How?
28
Business model canvas
• Download it from
http://www.businessmodelgeneration.com/downloads/business_model_
canvas_poster.pdf
1. Value Propositions
2. Customer Relationships
3. Customer Segments
4. Key Activities
5. Key Partners
6. Key Resources
7. Channels
8. Cost Structure
9. Revenue Streams
29
Business Model Canvas
30
Business Model & Value Creation
http://unglobalcompact.org/docs/news_events/9.1_news_archives/2011_09_12/Towards_Integrated_Reporting_12Sep11.pdf
http://www.theiirc.org/wp-content/uploads/2013/03/Business_Model.pdf
31
Session Objectives
33
What is “Sustainability”?
40% 40%
20% 20%
37
History of Sustainability
38
History of Sustainability
39
The Triple Bottom Line
40
Triple Bottom Line
Session Objectives
42
CERES
43
The CERES Principles
1. Protection of the Biosphere
2. Sustainable Use of Natural Resources
3. Reduction and Disposal of Wastes
4. Energy Conservation
5. Risk Reduction
6. Safe Products and Services
7. Environmental Restoration
8. Informing the Public
9. Management Commitment
10. Audits and Reports
44
GRI
https://www2.globalreporting.org/standards/g4/Pa
ges/default.aspx
– www.globalreporting.org
45
GRI Guidelines
• G4 guidelines can be found in the folder called GRI
46
Models for Sustainability
• The Natural Step
www.naturalstep.org
– 4 system conditions
• McDonough Principles www.mbdc.com
– Cradle-to-cradle design
– Waste = Food
• Natural Capitalism www.natcap.org/
– Radically increase resource productivity
– Redesign industry on biological models with closed
loops and zero waste
– Shift from products to services
– Reinvest in natural capital
47
The TBL Business Case
48
Sustainability Ladder
Click on sustainability
51
Interface Corporation
52
Chaparral Steel Company
53
Chaparral Recycling Facility
54
SBG?
55
Clearly…
- Increased Profitability
- More Investors
58
Integrating & Aligning…
Strategy to Operations
Why Be Sustainable?
61
Integrated Reporting: is what?
“Integrated Reporting brings together material information about an
organization’s strategy, governance, performance and prospects in
a way that reflects the commercial, social and environmental
context within which it operates. It provides a clear and concise
representation of how an organization demonstrates stewardship
and how it creates and sustains value. An Integrated Report should
be an organization’s primary reporting vehicle”.
http://www.discussionpaper2011.theiirc.org/summary
62
IR: Key Content Elements
The presentation of the Elements should make the interconnections
between them apparent:
• Performance
• Future outlook
63
Session Objectives: Business Analyst and Sustainability
Business Plan/Strategy
Revision of Implement/Execute
Business Plan/Strategy Business Plan/Strategy
Change Detection
(Monitor/Analyze/
Evaluate)
BA Responsibilities +
1. Identify What Possible Challenges, Obstacles & Resistance may Face the BA
when promoting a Sustainability Program
2. Share with The Class
Sustainability Challenges
The Leadership Challenge:
1. Identify What Possible Challenges, Obstacles & Resistance may Face the BA
when promoting a Sustainability Program
2. Share with The Class
3. Identify Possible counter-measures for each Challenge/point of resistance
BML Training
Sustainability Maturity
Model (SMM) - Assessment
SMM
1. Quantifiable Measures / Rates Enterprise “Maturity” (1-5)
4. 4 – 6 week Duration
Sustainability
Enterprise TBL Roadmap
Key Questions
How much/many
resources will it
take?
Answer Key Questions
Procurement Manager Logistics Manager ventory Control Manager Lead Inspector cument Control Supervisor uality Assurance Manager Manufacturing Engineer Production Supervisor em Build / Test Supervisor
LOSCR
Sub Location 1 Sub Location 2 Sub Location 3 Sub Location 4
Freeze date Status (Proposed, Approved)
Status (Updated)
Outage Ch
Work Order
Change Request Sub Location 11 Sub Location 21 Sub Location 31 Sub Location 4
Purpose
Ch
Sub Location 13 Sub Location 33
Start End
Perform Inventory Planni Purchase Material Perform Material Inspect Material
Enterprise
Sustainability Planning
Sustainability Investment
Reward Portfolio Mix
High High
Investment/Low Investment/High
Reward Reward
Low Low
Investment/Low Investment/High
Reward Reward
Portfolio Ring Diagram
Project Dependencies
Peripheral
Initiatives
Secondary
Initiatives
Core Project
Accounts for: 1 2 3 4 5 6
1 3 4 Receive Email
Close Peregrine Notification of
1. Strategic Priorities Initiate Change Perform Triage
Resolve Problem
Complete Business
Case Form
Ticket Peregrine Ticket
Closure
2. Governance 1.1
1.1
2.1
2.1
3.1 4.1
4.1
Determine if
Instructions Exist Rework Business
Report Problem Assign Ticket Case Form
3. Stage Gate Process
1.2 2.2 3.2 4.2
4. Project Dependencies 1.2
Change
Receive Request for Reassign Ticket (S) Follow Appropriate
Instructions
Determine if
Is A CPG Internal
Process, Procedure
or Control
4.4
Review Business
Secondary Case
Initiatives
Governance Stage Gate
Process 4.5
Disposition / Approve
Business Case
4.6
Core Project Notify Business Case
Owner
Deliverables
9. Implementation Timeline
Low-Fidelity Deployment
Blueprint
TBL Project Support
4. Conduct Project(s)
6. Demonstrate Success/Applicability
Sustainability Awareness,
Education & Training
Education & Training
Target Audience
• Business Leaders/Execs
• Business Representatives / SMEs
• IT
• BAs
• Customers
• The Public
• Investors
Business Analysis
For Sustainability
Improve: Low- Fidelity Activity Flow
1. BI analysis types
a) Issue analysis
b) Root cause
c) Why analysis
d) Automation analysis
e) Biz Dimensions/Affinity
f) Cycle Time Analysis
g) Sigma/Lean
Recap and Summary