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“He who is fixed to a star does not change his mind.” ~Leonardo Da Vinci
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Today’s businesses face a constantly changing landscape that will force closer collaboration between businesses and their community through Sustainability initiatives. Solid partnership between business and community groups will not happen overnight. There are too many changes in strategy, culture, organization and processes. Yet it is a critical shift beyond just environmental considerations to become a key contributor to the value of the community. For those Sustainable Developed strategies, stakeholders must take an active part in strategic planning and day-to-day execution.

Companies will continue to be under pressure to generate value in the Sustainability portfolio that pays the way to operational efficiencies, growth and innovation to increase a competitive advantage. This is only be realized to strong integration that places business value at the center. Collaborative customer centric strategies, supported by Sustainable Develop strategies chosen for the return it will provide, will become the rule rather than the exception. Sustainability will be the model for business in the 21st-century.

The road to these new Business models and strategies is not an easily journey. But neither can it be avoided. Companies that began taking the first steps towards strengthening their business with Sustainability solutions, Business partnerships and move strategically towards tomorrow’s more flexible strategies will be favorably positioned for continued success and growth. Sustainability is an evolutionary process and builds on previous stages of development:

• First, Sustainability is a new mindset and focuses on awareness how resources are used, wastes created and compliance with regulations.

• Second, understanding leads to elimination of waste. This conviction will be a key driver, encouraging optimization of processes as an underpinning to successful Sustainability, reaping costs savings and increased productivity.

• Third, leverage your Sustainability effort to differentiate your products. Build a closer relationship with existing Customers to address their needs and differentiate new products for new customers.

• Fourth, interleave Sustainability throughout your corporate strategies (Operations, IT, Marketing etc) and create a comprehensive single “Sustainability strategy” for both external and internal communities.

• Fifth, promote and refine your aspirational strategies for philanthropy (e.g., breast cancer, military vet programs, diseases, etc), restoration (e.g., wetlands, reforestations, etc.), other social and environmental issues. For those efforts will reflect on your brand image, but remind yourself that continued optimization is ongoing for a Sustainable enterprise, not a one time goal.

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The 21st century will be Renaissance of Sustainability, it will be the convergence of science, engineering, art and understanding of nature.

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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
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Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“It isn’t just the low-hanging fruit we go after.” ~Ray C. Anderson
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I have read that the Chinese symbol for crisis is union of 2 characters. In Chinese, ”crisis” is an interesting word and is derived from DANGER and OPPORTUNITY.  Whether it is true may be debatable, but in any transformation, executives must be open to new ideas and wisely choose people who will be a catalysts for change. Sustainability is a new mindset.  This new mindset promotes ethics, promotes stewardship recognizing that our planet has limited resources, and ultimately promotes elimination of natural and man-made waste. Therefore, the danger is the reduction or eradication of our biosphere in the next 30 years or the opportunity to preserve our planet for this generations and future generations.

Ray C. Anderson was the CEO and Chairman of the Board of Interface, a global modular carpet company. He was also the first Sustainability pioneer who awakened to the fact that our business paradigms are based on a take-make-waste model. This model, created by Paul Hawkens, demonstrates how most businesses create revenue from poor business practices without considering any environmental impact and exploits society.  It rewards short-term performance without acknowledging long-term consequences.

As a pioneer and visionary, he recognized his short-sightedness and selected a team to help him transform his enterprise.  Anderson searched, not for one expert, but a team of experts to address his corporation’s needs (Dr. Michael Braungart, Bill McDonough, Paul Hawken, L. Hunter Lovins,  Amory Lovins, et al).  Each brought different experiences, different knowledge bases, different mindsets (e.g., architecture, law, environmentalists, chemistry, etc.), but each commonly promoted sustainable development. These team members are still thought as today’s thought leaders for transforming enterprises into new sustainability developed corporations.

In a recent LinkedIn discussion about “circular economy”, I made this comment: “The graphic is crisp, clean and tells an aspirational story, but I would have expected added thought / value from McKinsey. There are many models that have been developed over the last two decades and as you pointed out there are other references to a circular economy.”

The conversation did no reach a conclusion about the diagram, but my obvious problem with the diagram was twofold. First, it did not show how disruptive technology would be integrated tool formulating the solution for a  circular economy. Second, the ultimate goal for Sustainability is the elimination of wastes (e.g., emission: water, air, land). So why would landfills be noted?

McKinsey Global Institute discusses for “trend breakers” from the end of the 20th century to the beginning of the 21st century. In the 20th century, the great moderations (1980-2000) was based on demographics drove economic growth, capital was cheaper, resources were cheaper, government privatized and cut taxes, and each generation was better off than the previous. Trend breakers included: debt crisis, urbanization, aging and disruptive technologies (The term “disruptive technologies” was coined by Harvard professor Clayton M. Christensen as the critical influence to innovation.)

As the Romans said; “Caveat emptor, Latin for ‘Let the buyer beware!’’ Be prepared and objective. Don’t accept web site “solutions” as the ultimate answer for your situation. In most cases, your environment is unique. Understand the basics and integrate your organizations strengths (e.g., commitment, change management, project management, LEED certified architects, IT specialists, etc.) to take advantage of opportunities and avoid the dangers. Be careful and understand what a diagram portrays, for it may not be the “silver bullet” you are looking for.

I would recommend reading Ray C. Anderson’s book, Mid-Course Correction, as I believe it laid out the foundation of Sustainability that is not too different today. When I taught a graduate class in Sustainability. I strongly recommended this reading to my students. Not only does Anderson identify areas of opportunity, but he visually represented an enterprise maturity model that could be overlaid in almost any enterprise. His vision and experience would be of interest to anyone who wants a better understanding of today’s consultants and their differing approaches.

My recommendation is to be educated about what Sustainability is. It is a shared value that considers business, environment and society. It is a long term mindset. It is best implemented by business, as government is often too slow and expensive to implement change. Include your stakeholders, for sharing sustainability objectives with your Customer, Supplier, etc., and it will ensure your corporate direction and provide them transparency as a tool for communication and negotiation.  (This approach was used as a mantra at Interface and leveraged by Walmart in its corporate transformation. All stakeholders need to be aware of the reasons for the transformation, its benefits and commitment by the company’s leadership.)

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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“There’s an awful lot of talented people in this country and a lot of them put their own money into trying to break through. But because they haven’t got the knowledge or the business expertise to do it, they fail.” ~Steve Betts
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Originating from NSA and US military needs of analyzing a changing environment in today’s world, VUCA is a methodology that helps assess the environment. It is based on these four phases:

  • Volatility. The nature and dynamics of change, and the nature and speed of change forces and change catalysts.
  • Uncertainty. The lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events.
  • Complexity. The multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization.
  • Ambiguity. The haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion.

Understanding the VUCA World
September 16, 2013
Bob Johansen, of the Institute for the Future, with David Small, VP of Global Talent at McDonald’s Corporation, introduce the concept of the VUCA (volatile, uncertain, complex, ambiguous) World, and the four strategies to counteract it.

Follow this link: http://www.cvdl.org/blog/understanding-vuca-world/
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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC
Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“The energy of the mind is the essence of life.” ~Aristotle
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Photovoltaic (PV) panels are commonly considered inefficient with future hopes for improved construction, design and efficiencies to accumulate available solar energy and convert to into electricity. It is considered a panacea for energy needs and provide electricity to remote areas around the world. But one state, Hawaii, is becoming a testbed and example of the needs of customers and the role of the public energy utility.

Please read this article in Scientific American for more details: http://www.scientificamerican.com/article.cfm?id=a-solar-boom-so-successfull-its-been-halted

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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590

______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC
Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“To be thrown upon one’s own resources, is to be cast into the very lap of fortune; for our faculties then undergo a development and display an energy of which they were previously unsusceptible” ~ Benjamin Franklin


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A study from the US Department of Energy answered many questions discussed in the article cited below and highlight future needs for more investigation to help power generation owners insight on deciding to retrofit or rebuild power plants. Even though system-wide impacts of cycling are modest, an individual unit could suffer higher than average cycling. Plant owners in this situation will want to know whether they should retrofit their unit or change their operations to better manage cycling at a lower overall cost. Ongoing work includes research on potential retrofits or operational strategies to increase the flexibility of fossil-fueled generators. This includes analysis of the costs and benefits of retrofitting existing plants for options such as lower minimum generation levels or faster ramp rates.

Additional analysis work that would illuminate the impacts of cycling and further compare wind and solar includes the following:

  • Market impacts on fossil-fueled plants: How do increased O&M (operations and maintenance) costs and reduced capacity factors affect cost recovery for fossil-fueled plants? What market structures might need revision in a high wind and solar paradigm? How do the economics look for those plants that were most affected?
  • Fuel-price sensitivities: How are operations and results affected by different fuel prices for coal and gas?
  • Different retirement scenarios: How are operations and results affected if significant coal capacity is retired or if the balance of plants is flexible versus inflexible?
  • Storage: Does storage mitigate cycling and is it cost effective?
  • Impacts of dispersed versus centralized PV (photovoltaic): How does rooftop versus utility-scale PV affect the grid?
  • Reserves requirement testing to fine tune flexibility reserves: What confidence levels of flexibility reserves are most cost effective and still retain reliable grid operation?
  • Scenarios with constrained transmission build-outs: If transmission is constrained, what is grid performance and how is cycling affected?
  • Reserve-sharing options: How do different reserve-sharing options affect grid operations?
  • Increased hydro flexibility and modeling assumptions: How does flexibility in the hydro fleet affect grid operations and what is the impact on cycling?
  • Hurdle rates to represent market friction: With higher hurdle rates to mimic less BA (balancing authority) cooperation, how are grid operations and cycling affected?
  • Comparison of the detailed 5-minute production simulation modeling with cycling costs to hourly production simulation modeling without cycling costs: How much more accurate is the detailed modeling?
  • Gas supply: Is additional gas storage needed? How does increased wind/solar affect gas scheduling and supply issues?

Dr. Greg Unruh tells me that in years past the financial benefits of energy management might have “looked minor compared to investing in new product development or a new marketing campaign.” But now, he says, with the price of energy going up, the economics of energy management become “much more interesting.” As a unit of energy goes up in price, “it cuts the payback period” for an energy-management project[1].

For more information, read this article for more information: How to save $7 billion by greening up the grid

Footnote:
[1] Al Bredenberg; Energy and Carbon Management Are Increasingly on Manufacturers’ Radar; ThomasNet http://news.thomasnet.com/green_clean/2012/08/27/energy-and-carbon-management-are-increasingly-on-manufacturers-radar/; August 27th, 2012

When Science and Business Create Cleaner Energy:  How to save $7 billion by greening up the grid

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 “Usually, if you’re greening an industrial process, it means you’re turning waste into profit.”
~ Amory Lovins
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William McDonough, one the co-authors of Cradle-to-Cradle that is widely acknowledged a one of the most important environmental manifestos of our time, once said; “You don’t filter smokestacks or water. Instead, you put the filter in your head and design the problem out of existence.” Whether you are designing a new LEED building, designing an end-of-life process or simply integrating CSR into your Strategic Planning framework, the idea is the same; “you put the filter in your head and design the problem out of existence.”

The percentage of companies reporting a profit from their Sustainability efforts rose 23 percent last year, to 37 percent, according to the most recent global study by the MIT Sloan Management Review (MIT SMR) and the Boston Consulting Group (BCG[1]).

The extent to which a company incorporates Sustainability concerns into its business model often correlates with its increase in profit, the survey found. For example, 50 percent of respondents said they profited by changing three or four business model elements to reflect more sustainable practices, while 60 percent said they profited by including Sustainability as a permanent fixture in their management agenda[2].

This is an excerpt of my new book “Building a Bridge to Benefits”. Publication date is scheduled for November 2013 and is planned to be available on Amazon. More to come …
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Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Footnotes
[1] Kiron, David; Kruschwitz, Nina; Haanaes, Knut; Reeves, Martin and Goh, Eugene; Companies Profit From Embracing Sustainability; MIT Sloan Management Review; March 12, 2013
[2] Kiron, David; Kruschwitz, Nina; Haanaes, Knut; Reeves, Martin and Goh, Eugene; Ibid.

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“People only see what they are prepared to see.” ~ Ralph Waldo Emerson
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Business needs a model to integrate strategies with objectives, both business and sustainability, to collaborate internally, listen to external publics, effectively apply effort and resources that produce products and services fulfilling expectations of the customer. It promotes continuous improvement while recognizing stewardship for the environment, while benefiting the corporation.

“In a typical large change program, it is not a matter of sending out the new organization chart or the new budget or the new strategy with a few projects. It is about changing people’s behavior, often a lot of people, and this is not trivial.”           ~ Professor John P Kotter, Harvard Business School

Interesting enough, research shows there are at least two paths to Sustainability. Sustainability can be a voluntary, directed and focused initiative designed to transform the mindset and culture within your organization. Often times this is a culmination of a series of transformations that has brought your organization to realize that the next step should be long-term and more stable over time. Sustainability can also be an obligation from the central government to ensure environmental control of emissions that encourages best practices or driven by market or internal forces to survive the changing market landscape.

However, there is another perspective that acknowledges that Sustainability is the evolutionary “next step” of investigating internal and external opportunities. Not every company understands Sustainability, nor embraces CSR to implement it correctly.  Understanding starts with recognizing threats and accepting why change is necessary. Here are seven possible explanations of why a company would choose to be socially responsible:

Reason #1: Urgently Needed Fixes.  Often times, Owners and Executives will want to transform their organization, with a since of urgency, for immediate reasons. Many times this is triggered by a crisis or event that forces the need for change.  It may be a vacuum in the succession of the business leadership, market valuations, illegal business practices or environmental catastrophes. Owners and Executives, who are forward thinking, will recognize potential impact of their crisis and foresee the consequences and recognize the potential exposure from past practices.

Reason #2: It’s just the way it has always been[1]. Succession of leadership is an opportunity for change. This is especially true when the original founders of the Corporation past leadership roles to trusted personnel and family. Taking this transition creates an opportunity for change that could outline a number of reasons why executives would consider Sustainability as the next logical organizational change. The organizational mantra “it’s always been this way” should be a signal for leadership to look at areas of waste and applying Sustainability and Quality principles.

Reason #3: CEO interest[2]. A CEO may have a number of interests around Sustainability, but the two most important are based on tangible benefits in mitigation of external risks. Today, more often than not CEOs will rely upon their CFOs expertise and understanding of tangible benefits from Sustainability. From a risk point of view, CEOs must play the leadership role when confronted by NGOs. As Steve Fludder, VP of Ecomagination, GE said; “Let’s figure out how to take the world in a different direction and let’s all go there together.”

Reason #4: Reducing Costs To Stay Competitive. Good leadership will have costs as targets for business success. Would these cost savings have happened anyway without Sustainability?  Perhaps. Looking through Sustainability lens, identification and elimination of costs will be seen differently. Here are some examples of how costs could increase performance and profitability in an organization:

  •    Cut mileage out of transportation routes
  •    Reduce energy consumption
  •    Reduce water consumption
  •    Telecommuting to reduce employee carbon footprint and increase productivity
  •    Eliminate a variety of waste, internally and externally

Reason #5: Legislation Uncertainty. CSR is a form of corporate self-regulation integrated into a business model. Astute executives are CEOs are wary of looming “anti-business” rhetoric and possible legislation that will increase government involvement in environmental processes and procedures. In this context, CSR is a mitigation tool against government over regulation of an industry. Further, CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international regulations.

Whether through court decisions, regulations, or legislation, companies and industries can be forced into social and environmentally responsible practices. They are also worried about possible legislation that would penalize previous behavior and increase future litigation and risk to business. Current EPA regulations monitor impact from air, water and land emissions.

Reason #6: Overzealous Marketers[3]. “Greenwashing” is recognized as the “yellow journalism” of marketing. It makes claims about a product or company that cannot be substantiated by actual business or environmental actions or records involving the protection of community, habitat or the entire planet. Overzealous marketers are essentially disingenuous storytellers who are not practicing social responsibility and not transparent. However, prudent leadership caught in “liar, liar, pants on fire” scenario may be compelled to rectify that behavior and improve their brand image through active Sustainability practices.

Reason #7: Third Party Intervention. A financial institution that has supported the business may seek improvements in the business performance to reduce a potential risk to their investment. This may prompt the business leaders to take improvement actions that were previously alien to satisfy the institution and reduce the risk to their own assets that may be held as a guarantee against the investment[4].

Reason #8:  Sales Decline. There may be a serious decline in sales. Competition, new technologies, a failure to meet the customer needs and expectations, a history of poor product development and introduction or poor marketing may all be contributory factors in reduced sales and be the catalyst for the business owner to change the approach to the business development[5].

Reason #9: Takeover. The business is acquired and the policies and practices of the acquiring business are adopted and introduce a proactive approach to the business. This may follow the appointment of new executive directors[6].

Reason #10: Lack of Internal Skills. The dearth of management skills within the business may trigger the appointment of an external senior executive who brings new methodologies, planning and enterprise to the business[7].

Reason #11:  Family Business ‘Turmoil’. The autocratic control of an owner may at times only be changed through the realization that permanent family divisions are undesirable. It may well be the opportunity for perhaps the ‘university educated next generation of family’ to demonstrate their abilities in setting and achieving sustainable growth strategies and managing the culture change[8].

Reason #12: Where’s The Beef? This a true “loss of face” predicament when your executives have promoted that the company meets or exceeds compliance to Sustainability principles and standards, but either have not fully implemented checks and balance, not completely institutionalized all employees, have not tethered executive incentives to behavior or do not hold Suppliers to the same standards. The most obvious example is British Petroleum [BP]. BP had engage its entire enterprise and committed to Sustainability for years. It was often highlighted as an example of making a carbon based industry leader into a paragon of Sustainability virtue. However, in 2010, that lofty status was dethroned when BP created the worst environmental disaster in the Gulf of Mexico.

Sustainability is the holistic business model for the 21st century. From a business perspective, it is a long-term strategy that eliminates waste, both externally and internally, while supporting the survivability and transformation of the enterprise. The future is our’s to create now.

Footnotes:
[1] Epstein-Reeves, James; The Six Reasons Why Companies Actually Wind Up Embracing CSR,  Forbes,  The CSR Blog – Corporate Social Responsibility  10/17/2012
[2] Epstein-Reeves, James; Ibid.
[3] Epstein-Reeves, James; Op. cit.
[4] Willetts, David; DAW Consulting, UK; Retrieved; 12 Aug 2012
[5] Willetts, David; Ibid.
[6] Willetts, David; Op. cit.
[7] Willetts, David; Op. cit.
[8] Willetts, David; Op. cit.

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What do we need? The wisdom to recognize our changing world, the understanding of the actions we need to make, and knowledge that hesitation will only prolong the consequences of a poorly appreciated and abused resource, Our Earth.

We have reached a point where the value we do add to our economy is now being outweighed by the value we are removing, not only from future generations in terms of diminished resources, but from ourselves in terms of unlivable cities, deadening jobs, deteriorating health, and rising crime. In biological terms, we have become a parasite and are devouring our host.
~Paul Hawken, The Ecology of Commerce, 1994

The future is our’s to create. Sustainability is the 21st century’s holistic business model. From a business perspective, it is a long-term strategy that eliminates waste, both externally and internally, while supporting the survivability and transformation of the enterpris

 

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This was a published press release by KPMG, and outlines the ten megaforces which will shape the commercial landscape for the next 20 years. Articles, reposts and videos, in this category, will relate to current and possible future impact of these ten megaforces.

The KPMG study, Expect the Unexpected: Building Business Value in a Changing World, explores issues such as climate change, energy and fuel volatility, water availability and cost and resource availability, as well as population growth spawning new urban centers. The analysis examines how these global forces may impact business and industry, calculates the environmental costs to business, and calls for business and policymakers to work more closely to mitigate future business risk and act on opportunities.
Michael Andrew, Chairman of KPMG International, said: “We are living in a resource-constrained world. The rapid growth of developing markets, climate change, and issues of energy and water security are among the forces that will exert tremendous pressure on both business and society.”
“We know that governments alone cannot address these challenges. Business must take a leadership role in the development of solutions that will help to create a more sustainable future. By leveraging its ability to enhance processes, create efficiencies, manage risk, and drive innovation, business will contribute to society and long-term economic growth.”
The KPMG research finds that the external environmental costs, which today are often not shown on financial statements**, of 11 key industry sectors jumped 50 percent from US$566 to US$846 billion in 8 years (2002 to 2010), averaging a doubling of these costs every 14 years.

The 10 global sustainability megaforces that may impact business over the next two decades are:

  1. Climate Change: This may be the one global megaforce that directly impacts all others. Predictions of annual output losses from climate change range between 1 percent per year, if strong and early action is taken, to as much as 5 percent a year–if policymakers fail to act.
  2. Energy & Fuel: fossil fuel markets are likely to become more volatile and unpredictable because of higher global energy demand; changes in the geographical pattern of consumption; supply and production uncertainties and increasing regulatory interventions related to climate change.
  3. Material Resource Scarcity: as developing countries industrialize rapidly, global demand for material resources is predicted to increase dramatically. Business is likely to face increasing trade restrictions and intense global competition for a wide range of material resources that become less easily available. Scarcity also creates opportunities to develop substitute materials or to recover materials from waste.
  4. Water Scarcity: it is predicted that by 2030, the global demand for freshwater will exceed supply by 40 percent. Businesses may be vulnerable to water shortages, declines in water quality, water price volatility, and to reputational challenges.
  5. Population Growth: The world population is expected to grow to 8.4 billion by 2032. This will place intense pressures on ecosystems and the supply of natural resources such as food, water, energy and materials. While this is a threat for business, there are also opportunities to grow commerce and create jobs, and to innovate to address the needs of growing populations for agriculture, sanitation, education, technology, finance, and healthcare.
  6. Wealth: the global middle class (defined by the OECD as individuals with disposable income of between US$10 and US$100 per capita per day) is predicted to grow 172 percent between 2010 and 2030. The challenge for businesses is to serve this new middle class market at a time when resources are likely to be scarcer and more price volatile. The advantages many companies experienced in the last two decades from “cheap labor” in developing nations are likely to be eroded by the growth and power of the global middle class.
  7. Urbanization: in 2009, for the first time ever, more people lived in cities than in the countryside. By 2030 all developing regions including Asia and Africa are expected to have the majority of their inhabitants living in urban areas; virtually all Population Growth over the next 30 years will be in cities. These cities will require extensive improvements in infrastructure including construction, water and sanitation, electricity, waste, transport, health, public safety and internet and cell phone connectivity.
  8. Food Security: in the next two decades the global food production system will come under increasing pressure from megaforces including Population Growth, Water Scarcity and Deforestation. Global food prices are predicted to rise 70 to 90 percent by 2030. In water-scarce regions, agricultural producers are likely to have to compete for supplies with other water-intensive industries such as electric utilities and mining, and with consumers. Intervention will be required to reverse growing localized food shortages (the number of chronically under-nourished people rose from 842 million during the late 1990s to over one billion in 2009).
  9. Ecosystem Decline: historically, the main business risk of declining biodiversity and ecosystem services has been to corporate reputations. However, as global ecosystems show increasing signs of breakdown and stress, more companies are realizing how dependent their operations are on the critical services these ecosystems provide. The decline in ecosystems is making natural resources scarcer, more expensive and less diverse; increasing the costs of water and escalating the damage caused by invasive species to sectors including agriculture, fishing, food and beverages, pharmaceuticals and tourism.
  10. Deforestation: Forests are big business – wood products contributed $100 billion per year to the global economy from 2003 to 2007 and the value of non-wood forest products, mostly food, was estimated at about US$18.5 billion in 2005. Yet the OECD projects that forest areas will decline globally by 13 percent from 2005 to 2030, mostly in South Asia and Africa. The timber industry and downstream industries such as pulp and paper are vulnerable to potential regulation to slow or reverse deforestation. Companies may also find themselves under increasing pressure from customers to prove that their products are sustainable through the use of certification standards. Business opportunities may arise through the development of market mechanisms and economic incentives to reduce the rate of deforestation.

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Press Release, KPMG, Sustainability “Megaforces” Impact on Business Will Accelerate, Finds KPMG, 14 Feb 2012; Retrieved: 14 Feb 2012

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The following article was published by ReliablePlant and written by Herb Lichtenberg. This is a well written article that provides good information regarding the value of “lean”, “lean thinking”, “lean manufacturing” and “lean enterprise” concepts.  Several themes reverberate throughout: over-production, inventory, transportation, waiting, movement, defects and over-processing. I hope this article proves helpful, and please feel free to share your feedback in the comments section below.

Lean” has assailed our vocabulary the same way that it has attacked waste within a plant or process. From “lean thinking” to “lean enterprise” and “lean manufacturing,” the word has created many catchphrases. But what does it mean to be “lean”? It entails shedding waste in order to reduce costs and increase competitiveness.

The two most popular process improvement methodologies in use today, lean manufacturing and Six Sigma, originated at Toyota and Motorola, respectively. These pioneering companies are discrete manufacturers. Not surprisingly, the subsequent evolution and development of these two methodologies has focused mostly on improvements in discrete manufacturing. Each methodology has a central focus that has been the basis for its structure and tools. For lean, it’s the delivery of value to the customer through the elimination of waste – anything that is non-value added from the customer’s perspective. For Six Sigma, the central focus is the elimination of defects – products or services that do not conform to the customer’s specifications. Read more …

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