A Story about Strongly Sustainable Business Models and You

A wonderful new visual story from Patricia Kambitsch at PlayThink, one of the 12 members of the Core Development Team for the Strongly Sustainable Business Model Canvas, giving the background to what we're helping businesses to do... understand and adopt strongly sustainable business models. 

I need a strongly sustainable business model... from patkambitsch

Food Eco-Industrial Park and Incubator - The Plant Chicago

How to describe "The Plant" in Back of the Yards on Chicago's South Side which I visited in late December 2012?

It is a net-zero energy and waste food business incubator and has at various stages of development:

• Two breweries (one for tea, the other beer)
• Two bakeries
• A mushroom farm
• Two fish farms
• Two leafy greens farms
• A jam producer
• Demonstration and development kitchens
• Training facilities
• Rooftop, ground-level, and greenhouse Kitchen gardens
• Shared office space and support services
• Retail shop and visitors centre
• Farmers market

The plant as it will be in 3 years

But as befits a project which John Edel, Executive Director describes as being planned using systems thinking, it's not just a list of businesses in a single building.  It far more integrated and multifaceted, though definitely not complicated.  Indeed there is a beauty to this business model...

 Outside In...

Looking from the 'outside' the project:

• Is a start-up eco-industrial project creating high quality local sustainable food and jobs with zero net-waste and zero net-energy use
• Is a business incubator for food producers, processors and retailers, including something like the Finnish "Open Kitchen" project
• Has a collaborative, integrated and mutually supportive business model involving not-for-profit, for-profit and charitable organizations, the community, food entrepreneurs and consumers 
• Aims to educate the local population about healthful food choices (in what many would describe as a food desert)
• Is a proof of concept for an urban vertical farm
• Is a green building project which is re-purposing a former meat processing facility through creative on-site reuse of all existing materials 

 Inside Out...

From the inside, the business model is described by John Edel using a system dynamics like causal loop diagram - showing the cycles and flows of energy and materials through and in and out of each of  the various organizations and businesses involved:

The System Dyanmics Flow of Materials and Energy in the Plant

In this short talk by John Edel he explains much of the above and more with many more pictures! (Although John doesn't dwell on it there is some serious science and engineering behind this project).

For a video which includes a good walk through of the first of the acquaponics (fish + leafy greens) farming operations (walk-through starts at 3m49):

 A Work in Progress...

When I visited the foundations for the German Anaerobic Digester, similar to the ones installed as part of the Toronto Green Bin program back in 2004, were being actively excavated with installation and commissioning due for mid-2013.

Eissenman Anaerobic Digester similar to the one being installed at The Plant

The combined heat and power unit was installed, and the space for the chillers being actively prepared.  The tea brewery was in operation.  One of the bakery tenant's ovens was finished and awaiting final inspection and the 2nd aquaponic operation, a commercial tenant, was also just ramping up.  Mushroom production was underway and much evidence of other works in process! During the tour, which was led by John, he estimated that the space would be fully occupied by tenants within 3 years.

 So What...

This is a wonderful example of the new art and science of strongly sustainable business model design!  It recognizes equally the need to simultaneously generate and integrate economic, social and environmental benefits while minimizing "costs" in all three dimensions.  At the same time it recognizes the context for all this activity and understands the necessary relationships between and with contexts for this business model.  Yes, it is more complex than traditional profit-first business models; but it is also far less risky in the short, medium and long term.  It recognizes the fundamental limits and needs of the environmental and a broad range of stakeholders - not just stockholders.  It will be effective at generating desirable outcomes for all.  Further by re-purposing waste as raw materials its operating costs for energy and raw materials will be lower, offering efficiencies higher than existing businesses in the same industries. BTW this is John Edel's second venture into strongly sustainable business: the first the highly successful Chicago Sustainable Manufacturing Center (CSMC).   The CSMC project, over 5 years, took a former manufacturing plant which had become a biker den and returned it to a profitable collaborative centre for small scale manufacturing! (John talks about it at the start of the video above). The continuing success of the CSMC bodes well for The Plant. From what I can tell this is a ground-breaking and unique project in North America - one that paves the way for many more.  Kudos to John and everyone else involved... may the Plant become a huge success and prove out its commercial, social and environmental viability...

I will be following along with great interest! Now...how can we get one of these started in Toronto?

 More Detail

For a great write up of the Plant see this recent article in the University of Washington's Conservation Magazine: The Inside Job by Canadian Jennifer Cockrall-King. The following are two panels which provide some more details which I photographed during my December 2012 visit to The Plant (right click to open in a separate window to view larger)

The EcoSystem Creating the Future of Strongly Sustainable Business

It's been an inspiring week... talking to smart folks* about their dedicated work to design and bring into being strongly sustainable businesses.  But it left me with some questions...

First what do we call the collective systems that all these folks and all their organizations are helping to create?  I'm going to suggest we call them the "ecosystem creating the future of strongly sustainable business".  Perhaps this is an example of a value-constellation? (Thanks to Peter Jones for this idea).

Second.  This got me thinking about ways to explain and describe all this work...and perhaps this might help all these folks and their organizations collaborate with each other towards what I think they would all see as a common ideal goal.

One Ideal Goal

There is a growing consensus that we need to act quickly and at scale to help business move to adopt strongly sustainable business models, i.e an ideal goal of:

All business proactively enabling strongly sustainable outcomes

To, as John Ehrenfeld puts it:

Create possibility that humans and other life will flourish on Earth forever

(You can read more about this in my post Strongly Sustainable Business Models - Defining the Field)

 One Approach

Acting on Einstein's observation that you don't solve problems using the approaches that created them: there also seems to be a growing consensus that we need to move forward by using what we know works, but at the same time approaches we didn't use to create the current "mess".  In practice this would appear to  mean:

Collaborative Design + Systems Thinking

Together perhaps the ideal goal and the approach could be illustrated as follows:

Six Foci

Many people and organizations are working towards this ideal goal using this approach: but each has a number of foci - depending on their skills, knowledge and where they believe they can best contribute.

I'm suggesting it might be helpful to think about these foci in the following six groups (if you have suggestions for more or different please respond in the comments)

1. “Gold Standard”  
• What is organizational strong sustainability and how is it measured? (Based on the science of strong sustainability) 
2. Skills, Competencies & Knowledge  
• What do people need to know to be effective at creating and improving strongly sustainable organizations (and a certification to demonstrate competence)? 
3. Education 
• How to ensure people know what they need to know (facts and methods)? 
4.  Method & Tools 
• How do you efficiently design and implement businesses with high probability’s of achieving the “gold-standard” What tools can help? (Strongly Sustainable Business Model Canvas) 
5. Community 
• How can businesses making the journey to strong sustainability work together and support each other? 
6. Services 
• Provide services to businesses to accelerate the journey to strong sustainability 

Toronto Centric Example

So what does this look like in and around Toronto and the people I work with... rather an alphabet soup... but see the list below for the acronyms* ...

Is this perspective helpful?  Confusing?  What's missing?

Leave me a comment and let me know.

Book Review - The Nature of Business

Just had my first book review published... written with Janice McDougall  and Norbert Hoeller... not sure why my name is first... unless its by order of first name...and that *NEVER* happens! 
 

The review was written for an amazing magazine about Bioinspired Design - Zygote Quarterly... photos are stunning... words aren't bad either*.
 

The review is of the visionary / call to arms "The Nature of Business: Redesigning for Resilience" by Giles Hutchins.  The review can be found here.   

Giles also wrote some nice summaries of the ideas in the book for the Network for Business Sustainability earlier this year...

• Hutchins, G. (2012). Transforming Towards the Firm of the Future - Thought Leaders - Network for Business Sustainability Retrieved 6/20/2012, 2012, from http://nbs.net/transforming-towards-the-firm-of-the-future/
• Hutchins, G. (2012). Lessons From the Environment Help Firms Evolve - Thought Leaders - Network for Business Sustainability Retrieved 6/20/2012, 2012, from http://nbs.net/lessons-from-the-environment-help-firms-evolve/

Aside:The book publisher is involved in the first UK Transition Town Totnes... where many of the ideas from the book are being put into practice.  There is even a local Totnes Pound - to keep economic transactions local...
 

* For those interested in fast trains check out issue #2 of Zygote Quarterly about the redesign of the front of the Japanese bullet trains based on the shape of a King Fisher bill (not to mention the changes to the pantograph!)