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

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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

“Awe is What Moves Us Forward”

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Sustainable Value —From Obligation to Design Mindset

Stake-holder Value¹

Shareholder Value

Unsustainable(Value Transfer)

Unsustainable(Value Transfer)

Unsustainable(Lose/Lose)

Sustainable Value

¹ absolute standards orrelative to competitors

Clean energy vehicles

Fossil fuel ICE

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Positive Psychology Encyclopedia of Human StrengthsPeterson and Seligman (2006)

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Positive Institutions Defined Organizations That Elevate, Connect & Magnify, and Refract Our Highest Human Strengths into the World.

1. Wisdom and Knowledge curiosity/interest love of learning judgment/critical thinking originality/ingenuity/creativity perspective

2. Courage valor industry/perseverance integrity/honesty zest/enthusiasm

3. Love intimacy kindness/generosity/nurturance social intelligence

*VIA Encyclopedia of Human Strengths

4. Justice citizenship/duty/loyalty/ teamwork equity/fairness leadership

5. Temperance forgiveness/mercy modesty/humility self-control/self-regulation prudence/caution

6. Transcendence appreciation of beauty/awe gratitude hope/optimism humor/playfulness religiousness/sense of purpose

Peterson and Seligman (2005)

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BUSINESS ASAN AGENT OFWORLD BENEFITMANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

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AI at the UN World Summit With Business and Industry CEOs and Civil Society Leaders

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UN Global CompactAI Summit Results—and Surprises Innovations: Dow, Novartis, BP, Ericcson, Tata,

Royal Dutch Shell, Cemex, Telephonica, etc.

Many Prototypes—eg. PRI Project: Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets

Who Cares Wins— data-based eclipse of “the great tradeoff illusion”

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Results (cont.)

10 Stock Exchanges & Climate Change Initiative

43 Local Networks…China 100% Growth in Members by 2007 Summit Companies Calling for Management

Schools to Get in the Game Vision of the BAWB Global Forum (PRME)

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Appreciative Inquiry Summit Method at the UN Global Compact With 500 CEOs

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Appreciative Inquiry Involves a Shift

“No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.”

“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”

– Albert Einstein

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Theory AI: Positive Change as Co-elevation of Strengths

Elevate-and-Extend Spirit of Inquiry & Ethos of Appreciation Resonating Patterns of Positive Emotions High Quality Connections

Broaden-And-Build Pro-fusion of Strengths Magnification (analysis, synthesis) Savoring (ritual, story, meaning)

Establish-and-Eclipse Generative Imagination and Energy Doing & Undergoing (“undoing”) Upward spiral

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Fairmount Minerals StoryBirth of the “Sustainable Design Factory”

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Multi-stakeholder Large Group Designing

External Stakeholders: Customers Suppliers NGO’s Neighbors/Communities Board of Directors

Imagine 300—Three days Stakeholders—designing new products, services.

Internal Stakeholders Operations Administration & Corporate

Services Customer Service Engineering Logistics Quality Sales Technical Support / R&D

Sustainable Designing & Innovation of Multiple Realities

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Images of the Sustainable Design AI Summit

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Next Generation Ai Summit:The Sustainable Design Factory

Discovery•Appreciative Inquiry

•Analogous storytelling•Poeticizing Capacities

Dream•Anticipatory Images

•Visualization & •Enactment of Future

Design•Deep Dive

• Rapid Prototyping

DestinyCo-emergent arising

Improvisational learningDistributed reflexivity

Affirmative TopicFraming

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Highlights

40% Annual Growth in Earnings Past Two Years

2007 US Chamber of Commerce’s #1 Corporate Citizenship Award

A Culture of Community Partnership and Innovation

New Employee Owned Businesses, New Markets

Emerging as Top Rated Star in the Industry

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Sources of Business ValueLevels of Design Focus

Business& WorldContext

Brand/Culture

Market

Product

Process

RiskAnticipating regulations, going beyond legal requirements

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

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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

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Imagine the Impact of Sustainability Scorecard

Mature Phase: (Textiles example)Mature Phase: (Textiles example)

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

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Rel

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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…?