BU6019 Sustainable Entrepreneurship “Sustainability and the Transformation Process” (Session 13) “A Workshop”

Last Week Financial considerations were explained last week and in our quest to be “an enterprise that seriously considers the TBL,” we must understand the financial costs and benefits associated with sustainability activity! Now…. consider how these costs and benefits link to the “Transformation Process” within any organisation aiming to be a sustainable enterprise!

It’s good to think! Why should we even care about trying to link sustainability to the Transformation Process? Do consider that customers look for quality, best price, a good level of service…. and environmental concerns, at least in most cases!

The Transformation Process

Think about: Materials entering the process to be transformed! Information entering the process to be transformed! Customers entering the process to be transformed! (i.e. MICs “needs and wants” are “processed”, resulting in what should be error-free goods or services satisfying customers, or reaching the market place!) The above is referred to as “Input Transformed Resources” “Input Transforming Resources” are the staff involved and equipment etc.

Remember! Sometimes entrepreneurs need to deviate away from original plans This might be due to a crisis, additional demand or disruption to supplies (e.g. strike action, weather, loss of contracts, other emergencies, etc.) Q: How might this affect the Transformation Process? Self-study: Please read up on “Taguchi methods”

The Five Performance Objectives Consider: Quality Cost Speed Flexibility Dependability It is important to understand how these link to the Transformation Process and therefore sustainability activity! (e.g. suppliers relationships) (In 2006, GAP stopped working with 23 factories who did not meet its expectations!)

Sustainability and the Transformation Process! “Waste can be defined as any activity which does not add value” – (Slack, et al 1996) Remember: “Processes” involve the use of a great amount of energy! To what degree can lean methodologies such as “Six Sigma” be used to reduce waste?

Workshop Activity Using Flip Chart paper and pens, in small groups, draw a Transformation Process diagram and debate and discuss where sustainability activity can be applied, to; Inputs The Process itself Outputs Stakeholder feedback (remember, stakeholders are always watching you!) Apply your thinking to an enterprise you are familiar with/wish to consider! Be prepared to show and discuss your findings with everyone else!

Consider: Input, processes and output costs Socially responsible behaviour Monitoring of suppliers and customers Ethical behaviour Reducing waste, time and risk Promoting good practice Promoting staff well-being Linking economic benefits to diversity, equality and reducing energy consumption

Recycling, Re-using, Reducing, Re-thinking! Remember, Remember: Recycling, Re-using, Reducing, Re-thinking!

And finally… Environmental sustainability = the extent to which an enterprise’s activity has a negative impact upon the natural environment! (However, read upon “Green Washing”)