Business Sustainability in the age of exponential change PART 4 …where Business Sustainability makes good business sense Business Sustainability in the age of exponential change PART 4 SYMBIOSA Business Sustainability approach Tony Czarnecki Managing Partner, Sustensis www.sustensis.co.uk London, 8th November 2018

SYMBIOSA Business Sustainability approach An example for consultants to engage in long-term growth business transformation programmes

What is Symbiosa Business Sustainability? A balanced approach in all three areas of business operations: Economic, Social, Environmental Much higher longer-term profits due to long-term investment Significantly reduces strategic & operational risk - transparency Increases business stability and higher customer retention Lowers marketing costs through a better and more direct PR Complies with all government’s corporate governance rules

10 Principles of Business Sustainability Mission & Vision: intention to grow long-term in a sustainable way Strategy plan: Minimum 5-year on going, updated continuously Business operations: reflect intended Mission and Vision Leaders: “Walk the talk” and facilitate rather than direct CEO: Promoted from within the company for min. 5 years. CEO and Chairman’s functions are separate Employees remuneration: can vary with the company’s growth Long service: At least 50% of staff has worked for >5 years Participation: All employees have share options Stakeholder relationships: Based on similar core values Transparency: Disclosure far beyond current regulatory requirements

How well does a company balance its growth? Economic Growth Human Capital Management Growth Management Stakeholder Mgmt. Internal Growth Strategy Social Dimension Company Competitors Stakeholder Mgmt. External Environmental Protection Environmental Reporting Environmental Product Design Environmental Standards Progress Mgmt. Social

SBS - providing business rationale for sustainable and balanced growth Partnerships based on core values Alignment of some strategic objectives and contributions Lower risk & better bus. Planning Continuous adaptation to change Fully integrated and more effective business Faster and more effective response to customer needs Sustainable and balanced growth Stakeholder Alignment Processes Continuous Business Alignment The bonding element of sustainable growth

Who runs a company and who supports it? Customers Community Company Management Employees Investors Suppliers The interlocking relationships

SYMBIOSA Business Sustainability Framework Stakeholder Alignment Processes Sustainable and balanced growth Continuous Business Environment Sustainable Company Stakeholder Alignment Business Capacity Alignment Business Performance Alignment Process Alignment CONTINUOUS BUSINESS ALIGNMENT Business Direction Alignment Employee Objectives Alignment Vision Mission Strategic Objectives Markets, etc.. Employees Skills Roles Perf. Targets Investors Suppliers Customers Community - PR etc... Processes effected by change Measures Targets Costs Benefits Resources Technology Budgets

Stakeholder Alignment creates a Natural Supply Chain™ Let’s see how a company could operate better by using the principles of Stakeholder Alignment Sustainable and balanced growth Processes Stakeholder Alignment Continuous Business The need for goods and services starts in the Community Community Employees Customers PROCESSES Suppliers A Company is as effective as the coherence of interests supporting the Natural Supply Chain Company Management Investors

Stakeholder Alignment Stakeholder Alignment: Keeping the partners of Natural Supply Chain together To support continuous adaptation to change, objectives must be continuously re-aligned with the interests of all partners Stakeholder Alignment

The original Balanced Scorecard – simple is beautiful! Financial (Investors) Customers Vision Operational Processes Internal Innovation & Growth

What binds the Balanced Scorecard? Stakeholders Investors Customers Innovation & Growth Operational Processes PROCESSES The binding element of a company’s business But what about other stakeholders?

SYMBIOSA Balanced Scorecard Stakeholders Suppliers Employees Customers Community Company Management Investors MISSION VISION PROCESSES Operational Processes Innovation & Growth SYMBIOSA Balanced Scorecard has 2 main perspectives: Stakeholders (6 groups) and Processes (4 groups)

Balancing stakeholders’ interests PROCESSES Operational Processes Innovation & Growth Internal Stakeholders Rights to make decisions External Stakeholders Deciding on organization’s success Management Company Employees Investors Customers Community Suppliers Balance of Interests

An Example of SYMBIOSA Scorecard Cause & Effect Map COMPANY MANAGEMENT COMMUNITY CUSTOMERS SUPPLIERS INVESTORS EMPLOYEES Notation for financial cycle: Contributions flow Objectives flow 70% revenue from improved costs Re-orientate product range 40% INNOVATION & GROWTH MISSION VISION OPERATIONAL PROCESSES Improve cost position 20% from improved costs 65% from lower costs 35% from increased turnover Grow Petroche- mical business Improve operation. efficiency 30% from increased plant utilisation Keep prices competitive 10% Provide capital to finance growth 80% from investment Develop strategic skills 20% Increase salaries in real terms 30% Improve return on Investment MISSION VISION PROCESSES Operational Processes Innovation & Growth Suppliers Employees Customers Community Company Management Investors Focusing on Stakeholders’ objectives and contributions – e.g. Investors

End of Part 4