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Strategy Design for Flourishing: A Robust Method

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Rethinking Strategic Management

Part of the book series: CSR, Sustainability, Ethics & Governance ((CSEG))

Abstract

The Flourishing Enterprise Strategy Design Method is a robust procedure that helps leaders craft effective enterprise strategies in our increasingly volatile, uncertain, complex and ambiguous world. Informed by the latest science and practice, it enables leaders to create strategic paths for enterprises and their stakeholders to improve their performance financially, socially and environmentally. The method integrates business design and strategy techniques with vital science-based principles for flourishing. From an overall process perspective, the method employs the backcasting approach. From a strategic planning standpoint, the method hosts a strategic conversation about the stakeholder’s definition of success for the enterprise considering science-based principles. This occurs during an iterative co-creative systemic-design process focused on business modelling. Business modelling is enabled by the Flourishing Business Canvas: an innovative visual design tool aligned with the science-based principles. A case study of a medium-sized manufacturing business illustrates how the method is applied. Finally, the case is made for swift adoption of these innovative strategy methods by enterprises in all sectors and sizes to enable their powerful response to current climate challenges, to the UN Sustainable Development Goals, and to go beyond to ensure the conditions for all life to flourish are re-enabled for future generations.

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Notes

  1. 1.

    The method as described here is intended for use by established organizations. For the application of the method to ideation, early and later stage start-up, applying lean start-up and customer development techniques to iteratively search for a viable business model for flourishing, see the Lean for Flourishing Startups Method www.Lean4Flourishing.biz (Hogeboom, 2015, 2019).

  2. 2.

    The original quote is “forever,” updated based on personal conversation with Dr. John Ehrenfeld in October 2017: North American indigenous peoples believe that all decisions should be taken with a view to how our seventh generation descendants would view the outcomes in their time of each decision we make today.

  3. 3.

    For a comprehensive exploration of the benefits and advantages of business modelling using business modelling tools, and iterative design approaches to strategy development compared to earlier analytical approaches see Hanshaw and Osterwalder (2015), Kiron, Kruschwitz, Reeves, and Goh (2013), Lindgardt, Reeves, Stalk, and Deimler (2009), Martin (2009) and Teece (2010).

  4. 4.

    See Upward and Jones (2016) and the work of the 1475+ global members of the Strongly Sustainable Business Model (SSBM) Group global community of innovation practice. The SSBMGroup is a knowledge mobilization initiative of the Ontario College of Art and Design University’s Strategic Innovation Lab. Background at slab.ocadu.ca/group/strongly-sustainable-business-model-group-ssbmg; learn more at wiki.SSBMG.com/home/streams, join at forum.SSBMG.com

  5. 5.

    This is known as “service dominant logic” (Echeverri & Skålén, 2011; Vargo, Maglio, & Akaka, 2008). Compare this to the earlier “product dominant logic” used as the theory behind Value Propositions in earlier business modelling tools (Osterwalder & Pigneur, 2009).

  6. 6.

    We use the inclusive terminology of improving situations and conditions, inspired by Appreciative Inquiry, rather than the more typical deficit-based thinking terminology of problem finding and problem solving. This increases the likelihood for stakeholders to co-create designs with fewer unintended consequences (Cooperrider & Srivastva, 1987).

  7. 7.

    See slides and video of this talk “What is a Successful Sustainable Business?” (Upward, 2017).

  8. 8.

    See growing list of published case studies www.flourishingbusiness.org/case-studies

  9. 9.

    We recommend using tools like Sinek’s “Golden Circle” to explore the “why (vision), how (mission), and what (strategy).”

  10. 10.

    REFOCUS on Sustainability—a program management and capability building method for sustainability inspired enterprise transformation towards realizing the Flourishing Imperative. It is another of the projects of members of the Strongly Sustainable Business Model Group: www.refocussustainability.com

  11. 11.

    Given the long history of business leveraging science for practical benefit and to mitigate risk, today it appears very uncommon for business people (or business scholars) to be interested in this question. Indeed, to the authors’ knowledge, the question “how we would know a truly sustainable business if we saw one (based on the best available science, ethical and human rights)?” was first asked at the launch of the pre-cursor project to the Future-Fit Business Benchmark in Toronto in 2012 (First author was present when Dr. Bob Willard posed this question at this event).

  12. 12.

    See also Chap. 17.

  13. 13.

    For more information see www.FutureFitBusiness.org. Includes details of leading enterprises adopting this benchmark, the 23 indicators and associated science-based future fitness benchmarks for “break-even” enterprise performance, an additional 20 “positive-pursuit” benchmarks that “remove obstacles to people’s wellbeing, reverse the effects of environmental degradation, or to help other organizations or individuals to improve their own future-fitness.”

  14. 14.

    There are currently no future fit, no truly sustainable companies in existence, based on the Principles of the Flourishing Imperative.

  15. 15.

    See also Chap. 17.

  16. 16.

    In the authors’ experience, as stakeholders’ learning journeys unfold they come to apply “the five transformational commitments” and similar ideas of stewardship to their life goals (Doppelt, 2012).

  17. 17.

    Stakeholders may wish to refer to several other perspectives on the principles developed and tested over the past decades:

    • Benefit Corporation “B-Impact Assessment” used by over 50,000 organizations world-wide (B Lab, 2008, 2016)

    • “Co-operative Principles” proposed at the very beginning of the co-operative movement in 1844 and recently updated for the 250 million people world-wide who are employed by co-operatives (International Co-operative Alliance, 1995)

    • The Local Economy Framework, aka “Localist Principles,” adopted by more than 30,000 members of the North American based BALLE (Business Alliance for Local Living Economies, 2016)

    • The UK based Transition Town’s ideas (Hopkins, 2008, 2011)

    • The PROmoting Business Excellence benchmark for Sustainability Excellence (PROBE Network, 2005)

    • Various standards and certification systems of the International Living Future Institute (2015).

  18. 18.

    To aid the reader in understanding the Flourishing Business Canvas, this manuscript is available via www.academia.edu/23769906/

  19. 19.

    The license is free, and includes an extended version of the Flourishing Enterprise Strategy Design Method introduced here. In return, the First Explorer provides meaningful feedback on their experience using the Toolkit. See www.flourishingbusiness.org/the-toolkit-flourishing-business-canvas/first-explorers-program/. Ultimately the Flourishing Business Canvas will be made widely available under a creative commons license (CC-BY-SA).

  20. 20.

    For an introduction to the financial business case for following the Principles of the Flourishing Imperative see Willard (2012). This book along with the companion website www.sustainabilityadvantage.com gives worked examples and a free to download Sustainability ROI Workbook to quantify the increased profit potential of following the Principles.

  21. 21.

    See also Chap. 1.

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Upward, A., Davies, S.N. (2019). Strategy Design for Flourishing: A Robust Method. In: Wunder, T. (eds) Rethinking Strategic Management. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-06014-5_8

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