Advances in Appreciative Inquiry Theory & The Collaborative Design of Positive Institutions How to Magnify Human Strengths Through Appreciative Inquiry’s “Whole System” Approach to Sustainable Value Creation David Cooperrider, Fairmount Minerals Professor and Chair Center for Business as an Agent of World Benefit Case Western Reserve University Author Appreciative Inquiry: A Positive Revolution in Change
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Advances in Appreciative Inquiry Theory &
The Collaborative Design of Positive Institutions
How to Magnify Human Strengths Through Appreciative Inquiry’s “Whole System” Approach to Sustainable Value Creation
David Cooperrider, Fairmount Minerals Professor and Chair
Center for Business as an Agent of World Benefit
Case Western Reserve University
Author Appreciative Inquiry: A Positive Revolution in Change
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My “Peter Drucker Moment”The source of my two threads today!
“Every social and global issue of our day is a business opportunity in disguise”
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“The task of leadership is to create an alignment of strengths…making a system’s weaknesses irrelevant”
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Points of Departure
Idea of Positive Institutions2. Strengths-Elevating—positive psychology’s shift 3. Strengths-Combining/Magnifying 4. Strengths-Extending Organizations
Design Thinking—Learning With Designers• Question of Change at the Scale of the Whole?• Collaborative Configurations Matter• ““Everyone designs” Everyone designs” --Herb Simon--Herb Simon• New Horizons in New Horizons in Appreciative Inquiry Appreciative Inquiry
TheoryTheory
The Sustainability Revolution• Why new “design attitude” matters so much• Blessed unrest and business & society innovation
Image PlaceholderImage Placeholder
What a Time to Be a Student of Change LeadershipWhat a Time to Be a Student of Change Leadership
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A Story:The Most Exciting Project I Have Ever Worked On
Business as an Agent of World Benefit--More Than 2,000 Interviews--100s of Published Profiles “Positive Institutions” --see www.worldinquiry.org
Reducing energy, waste & process costs—future of totally renewable energy
Sustainable-value, green products
New stakeholder relationships, new markets
Brand story, promise, customer experiences
Designing industries, policy contexts, better world
Business and society value created
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Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years
Faimount Sales & EBITDA History (For Recurring Operations)
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Barely Scratching the Surface
Sustainable value is a huge creative opportunity
Interactive design in configurations of the whole
brings out the best in human beings
High Engagement + Purpose + Creative Designing =
Flawless Implementation at Scale of the Whole
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New High Engagement Turbocharger
A Question for You:
Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers?
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Collaborative Designing in Unexpected PlacesA Question for You About the S-Revolution:
Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers?
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It employs 1.9 million people Its serves 138 million people per week. It has approximately $350 billion in sales It’s attracting the most brilliant and radical
environmental minds e.g. Amory Lovins It’s raising many eyebrows
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Wal-Mart’s Early StepsMany are Watching.
1. Be supplied by 100% renewable energy
3. Create zero waste
5. Sell products that sustain the environment
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Sustainable Value… Design Networks
Global Greenhouse Gas Strategy
Buildings Design Construction & Maintenance
Global Logistics
Alternative Fuels
Operations & Internal Procurement
Packaging
Textiles
Electronics
Food & Agriculture
Forest Products (Wood & Paper)
Chemical Intensive Products
Jewelry
Seafood
China
EnergyEnergy
WasteWaste
ProductsProducts
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The Recent Magazine Summit on Sustainability
One of 12 Sustainable Value Creation Networks
64% of Magazines Put on Shelf Don’t’ Get Sold
2.6 Billion—are Shredded
Would Circle the Earth 13 Times
Amazing AI Summit
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PublisherPublisher
PrinterPrinter
National National DistributorDistributor
WholesalerWholesalerMerchandiserMerchandiser
Logistics Logistics ProviderProvider
FreightFreight
AdvertiserAdvertiser
RetailerRetailer ConsumerConsumer
RDA RDA ConsultantConsultant
Magazine Industry System MapMagazine Industry System Map
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3,63,6
1,2,3,4,61,2,3,4,61,2,4,5,61,2,4,5,6
1,2,3,51,2,3,5
1,21,2
1. Aligning Incentives
1. Metrics for Success
3. Print forecasting
4. POS Replenishment
5. Modular Planning
6. Stagger on-sale dates
7. Industry Network
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“Something that’s never happened in 50 years”
Results:
Consensus on 50% improvement in sustainability in 1st Year
12 major prototype initiatives from POS data to virtual magazine creating kiosks
An improvement of 50% is = Saving 443,572 trees
= 4,640,816 gal. diesel fuel
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Each Network Created A Sustainable Pathway
Today’s Today’s Business Business PracticesPractices
SustainableSustainableBusiness Business PracticesPractices
Sustainable Pathway
Sustainable Pathway
Using competitive forces to create a race to the top
Using competitive forces to create a race to the top
• A “bigger win” A “bigger win” for business and a for business and a “win” for society“win” for society Quick WinsQuick Wins
Can be implemented Can be implemented with existing with existing technology and technology and business modelsbusiness models
Innovation Innovation ProjectsProjects
Require technology Require technology and/or business model and/or business model
innovations innovations
System System ChangeChange
““Changing the Changing the rules of the game”rules of the game”
• Focused on a Focused on a “win” for “win” for businessbusiness
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Sustainability Index SummitTaking Sustainable Value Creation to 65,000 Suppliers & Millions of Products
Saving Saving people people moneymoney so they so they can live can live betterbetter
July 14-16, 2008July 14-16, 2008Appreciative Inquiry SummitAppreciative Inquiry Summit
SKU specific questions add SKU specific questions add greater level of detail and greater level of detail and insight into specific product insight into specific product performanceperformance
WeightRaw
Material Inputs
Manufacturing/ Processing
Transport/ Packaging/
Sales
Product Use End-of-Life/Recycling
SupplyChainGoals
Energy and Climate
40%Suppliers
track on-farm energy use?
(Y/N)
Energy use per unit of finished
product? (ranges will be provided)
Hang tag on energy use
during garment care? (Y/N)
To reduce the use of non-renewable energy and greenhouse gas emissions.
Material Efficiency
20%
Uses fibers or irrigation
practices that reduce field water use?
(Y/N)
Water consumption per unit of finished
product? (ranges will be provided)
Use of recycled materials in fabric production? (Y/N)
To maximize efficient use of all materials, minimizing waste and costs.
Natural Resources
20%Is the product
organic or transition?
(Y/N)
Use of a restricted substances list for factory practices?
(Y/N)
Hang tag on use of laundry
detergents? (Y/N)
To ensure the integrity of ecosystems and a safe, reliable supply of raw materials.
People and Community
20%Is product Fair Trade certified?
(Y/N)
To protect quality of life and safeguard human health.
Hypothetical andHypothetical andillustrative
illustrative
Emphasis moves to product-specific Emphasis moves to product-specific scoring. Product scores roll up to scoring. Product scores roll up to
influence supplier score.influence supplier score.(Up to 1 score per SKU; products of (Up to 1 score per SKU; products of the same profile could be grouped in the same profile could be grouped in
one score)one score)
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Stories Have Wings
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Implications of Packaging Eco- Innovation & People Turned On
Prevented millions of pounds of trash from reaching landfills
Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere
Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned.
“The packaging is renewable in 90 days instead of 9 million years”
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Implications of Packaging Sustainable Value Innovation
Broadening this initiative to 255 items in Toys:
This employee driven initiative saved 3,425 tons of corrugated materials
1,358 barrels of oil annually 5,190 trees
Millions of dollars in transportation costs
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Is Sustainability a Passing Fad?
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Sustainability is the business opportunity of the 21st century. It is an innovation engine unlike anything we have ever seen in management-- and it’s a lens which will dominate the management agenda for the next generation of thirty or more years. Even more important, the outcomes will define the next episode in creative capitalism and, ultimately, will determine the well-being of our imperiled planet.
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Images of Positive Institutions
Strengths-elevating
Strengths-combining/amplifying
Strengths-extending organizations
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Roadway Express : 65 Ai Summits: Energized, Unified
Featured in Fast Company and Forbes. Stock Prices rise--$14 to $41 per share From 300 to Zero Grievances, e.g. Akron Terminal Product Innovations, e.g. Manhattan Project New Culture of Leadership Powerful Learning Partnerships: Alcoa, Boeing, Cisco,
Harley-Davidson, US Navy.
Roadway Has Done 65 Appreciative Inquiry Summits 10,000 People Engaged
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Why High Engagement?Why High Engagement?
The Business CaseThe Business Case
Approaches to competitive advantage:Approaches to competitive advantage:
–Low price – less than 60 daysLow price – less than 60 days
–Operational/technical expertise Operational/technical expertise – less than 3 years– less than 3 years
–Fully engaged employeesFully engaged employees(people think and act like (people think and act like owners) – owners) – more than 7 yearsmore than 7 years
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Corporate Merger of Strength with Appreciative InquiryCorporate Merger of Strength with Appreciative InquiryScenes From a $8 Billion Dollar Merger Integration Summit Scenes From a $8 Billion Dollar Merger Integration Summit
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Merger of Strengths—AI and Huge Follow-Through
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Results“A Merger of Strengths”
$ 300 million in synergy: done rapidly
Mobilization of 300 merger “entrepreneurs”
Tremendous acceleration of trust
Identification of game changing opportunity
Speed, scale, strength
Flawless implementation and execution 1st 100 days strategy!
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WHY is AI Whole SYSTEM APPROACH POWERFUL? Positive Organizational Scholarship
Barbara Fredrickson’s Broaden-and-Build Theory
Jonathan Haight’s Research into “Elevation”
Wayne Baker’s work on the activation of positive energy networks
Boyatzis on Resonant Leadership
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Activation of Inquiry into “What Gives Life?”“Appreciable World”
Advancing
Exte
nsio
n of
Rel
ated
ness
& U
nive
rsal
Cap
acity
H
igh
Initiating
Lo w
Theory AI—Stages in Positive Change• Elevate-and-Extend• Broaden-And-Build• Establish-and-Eclipse
Elevation and Extension of
Inquiry
Pro-Fusion of Strengths“Broaden and
Build”
Activation ofEnergy
Establish andEclipse
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A question about the future of management education and design:If anything imaginable were possible…?