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

Collaborating Designers are (part of) the Solution

The title of  Nathan Shedroff's excellent 2009 book  Design is the Problem: the future of design must be sustainable identifies a key challenge of our time: how can we best design so that what we create is sustainable?  What are the principles for designing things, policies, business models, organizations, services processes etc. which would lead all of these to be resilient and sustainable?

Shedroff provides an introduction to a very wide range of the current sustainable design approaches, tools, techniques, frameworks.

However, while Shedroff's introduction is excellent, it has a key weakness:  he doesn't explore in depth what sustainability might mean in general, in the context of the design process and outcomes, nor whether the material he presents is consistent with such an understanding.

John Ehrenfeld, considered by some to be one of the founders of the Industrial Ecology movement, attempts exactly such a deep dive in his excellent 2008 book Sustainability by Design: a subversive strategy for transforming our consumer culture.

One of the many useful ideas which emerges from this is a wonderfully inspiring definition of sustainability, which he defines in a style that is similar to how one might define fairness or justice:

The possibility that human and other life can
flourish on this planet forever.

The book proceeds with a deep, daring and worthy attempt at deriving design principles which, if followed, would reliably create flourishing.  This is in itself a must read: Dr. Ehrenfeld explores the parameters and considerations for such design principles.  He starts with a diagnostic of humanities current mode of "having" (as opposed to "being") and then builds from an exploration of fundamental human (and non-human) needs by Manfred Max-Neef.

Unfortunately, by his own reckoning, he doesn't succeed at identifying sustainability design principles.  This is rather frustrating, although given the complexity of the goal entirely understandable; indeed it appears that Dr. Ehrenfeld himself is disappointed.  Having clearly establishing the knowledge frontier he is unable to see through the fog beyond.

So where might one turn for such principles?  What was the barrier that prevented Dr. Ehrenfeld from penetrating the fog of the unknown?

Oddly perhaps, an idea struck me while reading the latest work by Donald A. Norman, who some consider the father of Human Interaction Design (HID, often called Human or User Interface Design).  As examples: in the 1980's he helped establish the Apple Human Interface Guidelines and then in the early 1990's wrote the seminal Design/Psychology of Everyday Things (to be revised fall 2013 with new chapters on Design Thinking and Design in World of Business).

What's odd?   As far as I am aware, at least professionally, Dr. Norman has never expressed views or an interest in environmental, social and economic sustainability; although of course a good user interface based on empathetic understanding of the user is a (small but vital) component of enabling human flourishing.  This latter idea is one Dr. Norman has consistently made.

So how did the connection between HID and Sustainable Design principles arise in my mind?  Let me tell you the story.

In Living with Complexity Dr. Norman does two important things.  

Firstly presents a mea culpa of sorts from his prior works.  He (finally) recognizes that simplicity should not be the goal of Human Interaction Design; rather the goal should be the presentation of the complexity necessary and inherent in all human activity in ways that facilitate learning, and efficient and effective use of a socio-technical system's functionality.  

It is clear that this re-framing of the problem that HID attempts to solve better aligns it with finding solutions to the problems arising from necessary complexity of the simultaneous integration of the environmental, social and economic.  As Dr. Ehrenfeld points out, this integration is required for human flourishing, and of course, is generally ignored by profit first businesses (at an every increasing risk to their shareholders)! 

Secondly, in light of this realization, Dr. Norman updates the design principles for effective and efficient Human Interaction Design.  These can be summarized as:

• A clear conceptual model of the interaction 

• Clear signifiers to indicate the place and nature of the possible actions (commonly, but inappropriately, called 'perceived affordances' 

• Discoverability, where a person could determine the potential actions at any time through inspection

• Feedback to disclose what action has just taken place.

Dr. Norman goes on to state

"These are fundamental principles of interaction derived from understanding the psychology of the users. As a result, these are independent of the platform and the form of interaction. Whether the interaction is controlled by buttons  and levers, steering wheel and foot pedals, mouse and keyboard, gestures in the air or touchpad, these fundamental psychological principles still apply. The principles will be implemented differently for different systems of control and interaction, but they must be followed if the resulting systems are to be understandable."

(The above from 2012 Communication of the ACM article which amongst other things summarizes some of the books key points: reference below) 

So this in my mind led to a question: might these principles be the basis for the sustainable design principles which Ehrenfeld failed to find?

Might this profoundly empathetic approach to HID design be at the heart of the design of sustainable and resilient things, policies, business models, organizations, services processes?

 Collaborating Designers

So returning to the title of this post... perhaps Shedroff is only partially correct in his assertion that "design is the problem" and that "the future of design must be sustainable".  

I wonder if a collaboration of designers, and a synthesis from their respective works, for example Ehrenfeld and Norman might not also be required.

Imagine if Norman's socio-technical HID principles could be applied to the deep systems oriented understanding of the sustainability and resilience problem space which Ehrenfeld has developed?  How cool could that be? 

I will be attempting to get Ehrenfeld and Norman to comment on this idea...  if you know either of them, and think this idea has merit, please bring this post to their attention!

 

 Further Reading

• Ehrenfeld, J. (2008). Sustainability by design: a subversive strategy for transforming our consumer culture. New Haven, Connecticut, U.S.A.: Yale University Press. 
• Norman, D. A. (2011). Living with complexity. Cambridge, Massachusetts, U.S.A: MIT Press.
• Norman, D. A. (2012). Yet another technology cusp: confusion, vendor wars, and opportunities. Communications of the ACM, 55(2), 30-32. doi:10.1145/2076450.2076460
• Shedroff, N., & Lovins, H. L. (2009). Design is the problem: the future of design must be sustainable. Brooklyn, New York, U.S.A.: Rosenfeld Media.

In Plain English...What is it You're Doing?

Inspired by Steve Easterbrook and the the wonderful XKCD's recent attempt to explain the parts of a Saturn V rocket (the "Up Goer Five”) using only the most common one thousand words of English...

Now there is  a web-based editor that let’s everyone try their hand at this, and a tumblr of scientists trying to explain their work this way.  So I thought I'd also try to explain my work... and here it is... a little awkward in places...but hey... it's not so easy when you can only use the most common 1000 words!

I've just added a few links in case you want to know more specifics... and used the word science once (its unfortunately not one of the top 1000 commonly used words)

Our one amazing world is full: of people, the stuff we've made and of the things we've done!  Some of all this is good but much of it is bad: for us and our children.  So now in the well-off places people are not happier than they were 5, 10 or 30 years ago. People may have more money but they are not happier. 

Business is a very big part of both the good and the bad.  So what can business change so that they only do good for people, our towns, and all other life in our world while still doing well?  This is the question my work starts to answer.

But most businesses go out of business very quickly!  This is bad for the people in the business and the people with the money that started the business.  So nearly 10 years ago a student and his teacher figured out the 9 big questions that needed to be answered to make it more possible for a business to stay in business and make money. Then 4 years ago they worked with 470 very bright people to make a book that a lot of people like a lot.

Now I am taking these questions and adding 5 more questions, using what we know from science about people, our world and how it all works. If a business figures out good answers to all the questions, new and old, it makes it more possible for them to make money, do good for everyone and everything on our world, and to keep doing this for a long time.

In my studies, that are almost finished, I have built and checked an easy-to-use way for all kinds of people to make plans for businesses that can do good and do well for a long time.

The next step is to get another group of very bright people to make a book so everyone can use these ideas to make more of these businesses so the world can be a better happier place for everyone.

 Will you join us?  Contact us here

P.S. Part of the reason for doing this is that I'm entering the International "Three Minute Thesis" competition (flyer) and needed to write a 300 character summary of my research that previously looked like this!  

Here is the 300 character version that uses scientific, future, tool and an ampersand!

Our world is full. Some of this is good but much is bad. Business is a big part of both. How can we use scientific knowledge to help business make things better?

I have designed & tested an easy to use tool to reliably plan businesses that do good and do well for a long time into the future.

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.