INSPIRED CAPITAL

A Blueprint for

Sustainable Business Successin a

Brave New WorldDeveloped & Presented by:

Jonathan QuailFounder, iEntrepreneur

THE BIG QUESTION

How do we make more profit and do it SUSTAINABLY in the

long term?

“The significant problems we face can’t be solved at the same level of thinking we were at when we created them.” – Albert Einstein

‘GOOD TO GREAT’ VS. ‘FIRMS OF ENDEARMENT’

THE BOTTOM LINE:

310% more shareholder value created in the average FOE over 10 years than in the average ‘Good to Great’ company => MORE SUSTAINABLE GROWTH

Period

ROI in Average ‘Good to Great’ /

Visionary Company*

ROI in Average 'Firm of

Endearment’*

10 Years 331% 1,026%

5 Years 77% 128%

3 Years 73% 75%

* According to research done by Sisodia, Sheth and Wolfe for the book Firms of Endearment

Employees who Love their organisations and jobs

Inner and outer purpose of Higher Service aligned

Committed to creating Shared Value with all stakeholders

Driven by Compassion

Caring Relationships Greater Innovation and

Productivity in Service Increased Cost Savings More Shared Value Created MORE SUSTAINABLE

COMPETITIVE ADVANTAGE

‘FIRMS OF ENDEARMENT’*

AmazonGoogleBMWCaterpillareBayHarley DavidsonHondaStarbucksIKEA

Johnson & JohnsonNew BalanceToyotaTimberlandCommerce BankZappos.com (U.S.)Semco (Brazil)Grameen Bank (Bdesh)Amul (India)

* All companies shown in grey are companies that qualified as ‘Firms of Endearment’ in a study done for the book of the same name; the others in gold are my selections

BLUE OCEAN STRATEGY

Companies are successful when they create new market space (blue oceans) through ‘value innovation’ rather than fighting for greater market share in overcrowded ‘red oceans’

“The significant problems we face can’t be solved at the same level of thinking we were at when we created them.” – Albert Einstein

BLUE OCEAN STRATEGY

Only 16% of strategic moves into ‘blue oceans’ by over 100 companies over the last 100 years resulted in 64% of the profits of these companies*

vs. 86% of strategic moves into red oceans delivered only 36% of corporate profits

* According to a survey done for the book ‘Blue Ocean Strategy’ by W. Chan Kim and Renee Mauborgee

RIDING THE WAVES OF CHANGE

‘Quantum Shift’

‘INDUSTRIAL AGE’ WAVE

‘WISDOM AGE’ WAVE

INFORMATION AGE

Disintegration Phase

Growth Phase

Maturation Phase

Decline Phase

‘Window of Opportunity’ to Move into Blue

Oceans

‘Death Spiral’

1700 1945 2001 2011 2020

‘Lag Time’`

THE MECHANISM OF FAILURE• Entrenched Negative Values (e.g. Fear, Greed, Arrogance)

• Low Morale, Apathy and Resistance to Change

• Poor Productivity and No Innovation

• Add Little or No Value to Others and the World

•Uncompetitive in a Rapidly Changing World

•Reduced Profits or Losses

•Increased Risk of Failure & Poverty

THE SHAREHOLDER VALUE MODEL*

* Taken from the book ‘Firms of Endearment – How World-class Companies Profit from Passion and Purpose’ by Raj Sisodia, JagSheth and David Wolfe

Ordinary Co

Investors

Partners

Society Employees

Customers

Energy In

Energy Out

UNSUSTAINABLE

Negative Motivational States Positive Motivational States

ORGANISATIONAL SHIFT

No. of Employees

KEY BENEFITS OF THE ICI SYSTEM

Inspire

d Values

• Happier, More Inspired Employees• Inspired Corporate Culture of Service to all Stakeholders

Inspire

d Action

•Greater Productivity and More Innovation

•Significant Cost Savings

Inspire

d Results

•More Profit & Value Created for all Stakeholders

•Sustainable Competitive Advantage

Inspire

d Capita

l

•Inspired Capital (Human, Social, Environmental & Financial Capital) harmoniously created for BME Packaging and all its Stakeholders, including Society

INSPIRED VALUES drive POSITIVE BEHAVIOUR which leads to EXCEPTIONAL SUSTAINED PROFITS that strengthen the VALUES

PARADIGM SHIFT

“Doing well and doing good are not opposites, they’re companions.” – Director of Corporate Social Responsibility, Starbucks

“The significant problems we face can’t be solved at the same level of thinking we were at when we created them.” – Albert Einstein

PARADIGM SHIFT

“The only thing that ever worked in my experience with the inclusive banking programme was compassion. Compassion is the essence of all truly successful innovation.” – Coenraad Jonker, Head of Inclusive Banking, Standard Bank SA

THE ‘SPICE’ STAKEHOLDER MODEL*

* Taken from the book ‘Firms of Endearment – How World-class Companies Profit from Passion and Purpose’ by Raj Sisodia, JagSheth and David Wolfe

FOE

Investors

Partners

Society Employees

Customers

Energy In

Energy Out

SUSTAINABLE

4 PILLARS OF INSPIRED CAPITAL

HUMAN CAPITAL

ENVIRONMENTAL CAPITAL

SOCIAL CAPITAL

FINANCIAL CAPITAL

INSPIRED CAPITAL ONE MEASURE?

THE INSPIRED CAPITAL MODEL*

Individual

Collective

Interior ExteriorVALUE/S

Intentions

Systems & Processes

Behaviours

Culture

* Based on the All-Quadrant, All-Level Integral Model of Ken Wilber

LEVERAGEX

INSPIRED

CAPITAL

MEANINGFUL

RATIONAL Ordinary Co.

FOE

Visionary

FORMULA FOR TRANSFORMATION

WEALTH = VALUE X LEVERAGE

INSPIRED CAPITAL INDEX (ICI)=

VALUES INDEX (VI)X

SYSTEMS INDEX (SI)

THE REAL SOURCE OF VALUE

“Many CFO’s now realize that business success is no longer driven by physical assets and financial capital, but by intellectual assets and human capital. The primary constraints on growth are talented people and information systems.”

- Jeremy Hope, ‘Reinventing the CFO’

THE VALUE OF INSPIRED CAPITAL

WHAT ARE THE BENEFITS? Inspired Capital Index (ICI) System

Values-based accounting system to measure performance based on the way values are lived out

Ongoing organisational transformation process to quantum shift it to new wave

Early warning system for ‘icebergs’

Ensure organisations are creating value sustainably for all stakeholders

PHASES OF ICI IMPLEMENTATION

1. Formulation of Values Index and Vision Values Index

2. Formulation of the Systems Index

3. Creation of Pinpoint Process forecast

4. Individual discovery of actual and desired values and behaviours

5. Repeating phases 1 to 4 (every 3 years)

An organisation’s only source of sustainable competitive advantage is its ability to continuously learn, grow and improve

A SIMPLE TRUTH

What is measured in an organisation is…

WHAT GETS MANAGED!

FORMULATING THE VALUES INDEX

1. OPINIONS ON VALUES

2.THEMATIC GROUPING

3. ELECTIONS

8. MEASURE FREQUENCY OF OCCURRENCE

9. CALIBRATE ONTONE SCALE

10. CALCULATE FORMULA VALUE

SURVEYING MEASUREMENT FORMULATION

4. TOP 10 VALUES

5. MATHEMATICAL FORMULA

6. VISUAL EXPRESSION

7. VISION FORMULA

FORMULA FOR TRANSFORMATION

WEALTH = VALUE X LEVERAGE

INSPIRED CAPITAL INDEX (ICI)=

VALUES INDEX (VI)X

SYSTEMS INDEX (SI)

FORMULA FOR TRANSFORMATION

WEALTH = VALUE X LEVERAGE

INSPIRED CAPITAL INDEX (ICI)=

VALUES INDEX (VI)X

SYSTEMS INDEX (SI)

FORMULA FOR TRANSFORMATION

WEALTH = VALUE X LEVERAGE

INSPIRED CAPITAL INDEX (ICI)=

VALUES INDEX (VI)X

SYSTEMS INDEX (SI)

THE ULTIMATE PURPOSE

“The future is not some place we are going to, but one we are creating. The paths are not to be found, but made, and the activity of making them changes both the maker and the destination.”

– John Schaar

QUESTIONS OR

COMMENTS?

CONTACT ME

Contact Jonathan Quail on:

Mobile: +44(0)772-0265-352 Skype Name: jonoquail Email: jono@lifebuild.com Web Sites: www.lifebuild.com www.successcoach.co.za www.facebook.com/jonoquail

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