Intelligent Management’s Series on Sustainable Enterprise

SYSTEMIC MANAGEMENT FOR SUSTAINABLE ENTERPRISE

No. 1. The Intelligent & Sustainable Social Enterprise

In this series of  articles, we will be looking at the meaning of sustainable enterprise, what it takes to create it, and how it can be achieved and maintained.

In an ideal world, every business would be sustainable, and therefore inherently a social enterprise. People would just realize it makes more sense for everyone in the long run.  That’s clearly not the way things are, although we are witnessing increasing interest in that direction.

What do we actually mean by sustainable enterprise? To sustain means at its most basic level to keep alive or in existence; this is the basic goal of any business. ‘Sustainable business’ goes further by aiming at:

• financial benefits for the company
• natural world betterment
• social advantages for employees and members of the local community

A truly sustainable enterprise calls for a different understanding of organizations based on cooperation and win-win. Ecological thinking in its most profound sense understands the implications, both negative and positive, of every strategy, decision and action.  There is a way to foster this thinking and embed it within every aspect of our business, and that is by adopting a systemic approach to management.

An Enterprise is a System

Any enterprise is itself a system. We define a system as a network of interdependent components that work together to achieve the goal of the system.

The goal is by definition a measurable entity so, along with the goal, there has to be a way to measure its achievement. A goal, in order not to be an arbitrary one, must be the offspring of a vision and, in turn, this vision should reflect a basic set of values. The most fundamental prerequisite for a successful enterprise is that all of its members share its vision and the basic values that inspire this vision. Goal, vision and values must portray an idea of future and how their fulfillment will result in the betterment of the lives of everyone in the organization and society at large.

Once goal, vision and values are clear and shared by everyone in the enterprise, then we need to decide how we want to coordinate these efforts. We have to understand, just like in nature, the basic forces that keep the enterprise together and explain how it can function.

Any organization develops very naturally as a network of interdependent components; what makes this network a system is the definition (and the adherence to) a common goal. In other words, when people start collaborating for a common goal the interdependencies necessary to achieve it can be very easily defined. These interdependencies and interrelations provide a clear understanding of how the system should operate. The design of this system must include customers and suppliers and the way in which all the components of the system are going to benefit from the achievement of the goal. Let’s be as clear as possible on this issue.

Our suppliers (and their suppliers), our customers (and their customers) and we (including our competitors) are part of chains of value. This value is realized when an end user benefits from the product/service these chains deliver. Unless the end user pays for and enjoys the product the chains have delivered, in time nobody truly gains. On the other hand, if chains get better and better at delivering better and better products end-users enjoy, the market grows and with it everybody’s wealth. “The Market” is far bigger than what we think and its development is artificially limited by companies’ inadequacies to innovate and take to fruition the potential of innovation.

What can we realistically achieve with this systemic approach? Wealth, not just money, well being, not just profit; an ethical, transparent, environmentally conscious, safe and sustainable chain of efforts aimed at improving everybody’s quality of life through ever improving products and services.

Organizations are vessels; the intrinsic collaborative nature of their work clearly shows that the only meaningful way for any organization to prosper is to become an active vessel, a channel, for the development and distribution of products and services that help people to live better. The only sustainable role for any organization in today’s world is to facilitate for products the fulfillment of their role in the world. Any form of “hedging”, whether of money or goods that hinders this flow only creates artificial scarcity for the temporary and illusory advantage of few. This is the essence of a new, system-based economics. Sustainable enterprise is its engine.

Intelligent Management

ClearlySo Canada Celebrates its 1st Anniversary!

A year ago today we launched ClearlySo.ca with a party for our 30 founding members and today, on our first anniversary we have lots more to celebrate!

With ten times the number of businesses registered on our site, 311 companies that incorporate social or environmental values and principles into the day-to-day operations of their social enterprises and businesses, ClearlySo Canada’s members are collectively changing the world in a meaningful way.  We know a lot about a few of them but are hoping to learn a whole lot more about each and every company in the coming year.

Like any new business we’ve had our share of challenges.  We are limited by time and resources, are working hard to clearly define and implement our vision and plan, and create value through products and services that are needed by the organizations on our site.  I know we’ve made a significant difference to some, but there is still so much more to do in order to truly unleash the collective power of this network.  If you’re a member on our site and have ideas on how we can collaborate in a way that would benefit others in the ClearlySo Canada on-line community, please feel free to e-mail me at julie.mcdowell@clearlyso.ca.

Today, though, on our 1^st Anniversary, the future looks bright and I am filled with gratitude for having had the opportunity to work with and learn from the many incredible entrepreneurs, advisors, collaborators, clients, sponsors and investors that make up ClearlySo Canada.

I’m especially grateful to Angela Loknath, for her dedication to ClearlySo Canada this past year.  Sadly, Angie is leaving us to accept a terrific position as Environmental Programs Analyst with Lowe’s – a perfect match for her skills and interests and we wish her great success.  Angela was instrumental in getting our website launched a year ago today and has supported all aspects of our start up phase with professionalism and humour.  We’ll miss her smiling face, tireless work ethic, high professional standards and delicious home baked treats, but are thrilled to welcome her as our Environmental Specialist on the ClearlySo Canada Advisory Committee.   Check back in April for announcements on new additions to the ClearlySo Canada team!

Lastly, without the vision of Rod Schwartz, this global network of incredible businesses would never have been created.  Rod is truly a pioneer in the field of social enterprise and investment.  He works tirelessly to advance the interests of social entrepreneurs, a club to which he is a paying member.  His time, talent, drive and courage is creating far reaching returns (both social and financial) to businesses and investors all over the planet.  I’m so grateful to have had the opportunity to form ClearlySo’s first international network and to be celebrating its first successful year.

We’re looking forward to announcing some exciting initiatives later in 2011 and hope you will check in from time to time at www.clearlyso.ca and share our newsletters with colleagues. Thanks to those of you who have supported us financially through your membership, sponsorship and collaboration.  If you like what we’re doing you can upgrade your membership here or become a ClearlySo Canada sponsor.