This article is written on the premise that we can’t know exactly what the future of leadership will be, but I’m going to share some ideas based on personal observations of trends in pshycology, technology and my experience with leadership to date.

Until now, leadership in business could be thought of as contributing to an organization by creating a vision, developing strategies and directing employees to move the organization forward by inventing, discovering, developing, creating and selling products and/or services used by it’s customers, ensuring the company’s on-going viability through financial management, and by creating shareholder value. From an inward looking view, this is a reasonable description.

On a macro scale, however, life is a little more complex. In the global perspective, we have to begin looking at things like, entrepreneurial aspirations (i.e. the wish for employees to lead themselves) and the increasing number of entrepreneurial companies, environmental considerations (i.e. we can no longer operate in ignorance of the impact we have on the earth and the impact the earth has on us and future generations), the need for agility (i.e. the ability of a company to rapidly adopt new ideas, methodologies and technologies) and a search by many, especially the underprivileged in the world and others on their behalf, for justice and freedom in the light of new technologies which are exposing the most egregious discrepancies in the world’s distribution of wealth and infrastructure, even in the most technologically deprived countries.

People everywhere are searching for new meaning and happiness in their lives. They are beginning to recognize that we are all working together on a relatively small planet and their place of employment is more often becoming either the place where they find meaning or the place they eventually abandon. More and more people are willing to work for NGO’s at lower salaries simply because they feel they are serving a greater purpose and, if you doubt this trend, read Blessed Unrest by Paul Hawkens which gives an indication of the massive growth in the numbers of non-profits in recent years. There are even new classes of organizations arising which are somewhere between “for-profit” and “not-for-profit”, which are for-profit but specifically focused on serving the greater good.

What is the Future of Leadership? » Continue reading “The Future of Leadership”

Over the weekend, I had the great privilege of attending a conference on “Rethinking Human Nature”, an incredible array of scholars and activists who, rather than protesting in the streets, demonstrated, by their examples of dedicated service, through their studies and their occupations, their deep and abiding concern for humanity. The conference theme was about evolving and developing the capacities of the higher human nature.

Among the many brilliant presenters was a young lady who is working on her PhD thesis whose presentation was entitled “What Can Justify Duties of Global Economic Justice? Individual Responsibility, Human Consciousness, and the Oneness of Humankind”. Her name is Shahrzad Sabet. In asking the question, she began by sharing with us the globally accepted UN Universal Declaration on Human Rights. She the began to dissect the responsibilities for the implementation of these rights. To be fair to Shahrzad, I will state that the remaining text is my perhaps feeble understanding of the arguments she so simply and brilliantly presented and perhaps, at some point, I will have a chance to speak with her further to clarify or to refer on-line to her thesis work, but I can only say that after hearing what she had to say, I was completely overwhelmed by her convincing arguments recognizing that there really isn’t a minute to lose in beginning to bring this argument forward on a wide basis, and I am also quite convinced that someday this young lady will be amongst the Nobel Peace Prize winners because these same arguments will force all nations and all people of conscience to take action. Such action will come in the form of adopting laws and practices which will require all citizens of the world (or at least those who have the freedom to vote or make buying decisions), all business leaders and all government leaders to act forcefully in upholding these Human Rights by taking practical, direct and personal responsibility for implementing Global Economic Justice through their votes for responsible government representatives, those who will make the necessary revisions in government institutions, and in turn, through laws which will require all people to make these Human Rights a reality.

In nations such as Pakistan, Haiti, India, Indonesia and many others, billions suffer under the oppression of poverty, the lack of a suitable infrastructure, and through catastophic environmental impacts, while much of the world continues to enjoy their freedoms without paying much attention and governments pay immense amounts of money towards military spending and the expansion of environmentally destructive practices which only serve to further human suffering.

Her arguement goes something like this: » Continue reading “Individual (Legal?) Responsibility and Liability for Global Economic Justice”

What do businesses and other organizations about Human Impact on Environment?

Paul Ehrlich and John Holdren developed a formula for examining environmental impact stating that I = f(PAT) where I is impact, P is Population, A is Affluence, T is Technology. In other words, if we increase global population, which is inevitable, in order to maintain environmental impact, we must reduce either the Affluence, or create Technologies that reduce individual and collective impact. Brown and Garver changed the formula to I = f(PATE) and added the influence of Ethics. They also conclude that each of these variables have an influence on the others. Without going into a deeper description of the variables, we can generally agree that from a world population view, this view of human impact of the planet seems fatalistic because we know that the planet is already stressed beyond limits and on average, Population and Affluence are both increasing.

This would seemingly leave the entire hope of humanity resting upon the ability of Technology or a sudden swell of Ethics to decrease our net impact on the planet. Recent flooding in Pakistan disrupting the lives of 12 million people and leaving 4 million with food shortages, the worst in 80 years, mudslides in China, and a massive block of ice (260 square km and half the height of the empire state building) which recently fell off the ice shelf in Iceland into the water suggest that our climate is still shifting in uncontrolable and potentially dire directions. Ice falling off a land based shelf, by the way, does contribute to elevated ocean levels, cooling of oceans in the immediate vacinity of the ice, and vast amounts of fresh water (i.e. desalination) being dumped into the ocean and affecting ocean flows.

So here’s the question: Can we solve the issues facing us with only Technology and Ethics before our planet is irrepairably damaged and forces our hand on the factors of Affluence and Population?

The short answer is “probably not”! But there are ways in which Technology and Ethics can have an a positive impact on affluence and ethics and here’s how one idea of how a solution could unfold from an individual, business and global perspective. » Continue reading “The impacts of Technology and Ethics on Sustainability and Business”

My extended visit to British Columbia has enabled me to enjoy many of the blessings of the Vancouver Island. It is a place of tourism, boating and every sort of adventure, caving, sailing, kayaking, swimming, crabbing, whale watching, you name it. An island paradise to be sure. That having been said, there is a tremendous amount of traffic and obvious contributions to the CO2 levels which impact climate. After having taken part in some of these adventures, I have to ask myself, besides paying for carbon offsets, what would actually get me, never mind anyone else, to stop traveling up and down island between my parents home, my sisters homes and the many other points of interest the island has to offer. No question that, at least in my family, we are driving smaller 4 cylinder cars thus reducing fuel consumption over larger vehicles and we drive slightly older cars (my parents car is a 1992). Maintaining vehicles extends their life and reduces manufacturing and resource requirements. But even with many smaller cars on the road, their is a pollution problem in certain congested spots especially along Highways 1 and 17 and, even with the tremendous number of trees, the island traffic still contributes to the global CO2 problems.

It’s fairly clear that people are just not ready to give up their holidays, their retirement freedoms or their independent modes of transportation. Even those of us who are aware of the severe issues have difficulty giving up our carbon habit. A book called “Right Relationship” by Peter G. Brown and Geoffrey Garver discusses how we have, for the most part, failed to maintain a right relationship with the planet and suggests how we might re-establish such relationships. But if we are going to maintain “Right Relationship” with our planet while maintaining “Right Relationship” with our friends and our families (who often live some distance from us) and our own sense of well-being which requires exercising some level of freedom, we will need to take a different “tack” than just sitting at home. For those not familiar with this use of the word “tack” it is a method used by sailors when sailing against the wind, whereby they zigzag diagonally across the line of the opposing wind in order to reach their up-wind destination. Ironically, the other way of going up-wind is to motor. Even though sailboats for the most part are powered by the wind, most have on-board diesel motors for travelling in harbors where using wind power is unreliable. Yet another source of CO2.

If we imagine Sustainability as our up-wind destination (i.e. the wind of our personal freedoms seems to blow in the opposite direction), what are the “tacks” we might take in order to reach our desired destination? We want to arrive at a place where we are in “Right Relationship” with our planet and where we have the freedoms we desire. We want to get their without having to motor all the way and creating a problem for the planet and for future generations.

One thing that sailors learn is that if they have to tack, it will also take longer to arrive at the destination. What would it mean for a company, a city or any service or manufacturing industry to find a “tack” that takes them to their sustainable destination without motoring? Well for one, it might imply slowing down and it might also imply using more manpower and technology. Sailboats use a lot of technology in the design of their hull, their materials, their sails, and in their navigation systems. They also use solar powered fans and panels or wind generators for charging their batteries. But sailors who rely on the wind must still develop patience and find serenity in stillness. If the wind stops blowing, sometimes they just wait and enjoy the view. True, if they have no food on-board, they may not have a choice other than motoring, but they prepare for these contingencies by stocking up and many also learn to fish so they can live along the way.

What is the lesson for business leaders? Imagine that as a business leader, you have to plan to survive for 1 day without oil (metaphorically: fully under sail). What preparations might you make? What are the things you would need to store up if you were to take a small leg of the trip under sail? What new navigational skills would you need to learn?  What heading would you take? What kinds of attitudes might you need to adopt in your organization and leadership styles that would help you to relax with the potentially slower pace of progress and yet still find ways to compete? What might you do with the stillness when the winds of sales disappear? Who would you be competing against? Would your market change? How might you elicit support and “wind power” from your market, your customers and competitors? How might you learn to ”enjoy the journey”, and not be entirely focused on the destination? If we where all metaphorical sailors in our businesses (i.e. powered by wind or solar) how might we share the ride with others who know less about sailing but would like to learn? After all, once under sail, there is very little cost to keep going.

Don’t get me wrong, sailing is expensive. Similarly, moving towards sustainable solutions costs money in the beginning and it may potentially represent a tremendousshift in pace. But if we do it correctly, that shift in pace will be a welcome one. One of the most amazing parts of the island culture is that it takes the time to enjoy life and the bounties of nature, music, arts and creativity. From that perspective alone, it has something to teach company leaders.

What is one “tack” any company or organization can take as a starting point to becoming more sustainable? Hire a CSO (Chief Sustainability Officer)! Alternatively, and here’s a little shameless self-promotion for a good cause, you can outsource the CSO function by hiring a company like HBI Leadership (and btw, I’m now supporting and speaking to mainland BC and Vancouver Island businesses and organizations) where experience with leadership development and an understanding of sustainability already exists.

Enjoy your summer,

Garth Schmalenberg

Please share any thoughts or ideas from this article with friends, colleagues or other business/organizational leaders that might benefit from insights on Sustainability.

For the past 10 or so years, I’ve come annually to British Columbia to visit members of my family. I’m writing from Victoria, which for those who don’t know is on Vancouver Island.

My current home is in Bolton, Ontario which, for those who have not visited,  is a great place to live. Ontario has been a wonderful home to me and my family most of my life after starting off in Saskatchewan. In fact, if you have lived in any part of Canada, you know that you’ve been blessed.

But British Columbia, for many reasons, is where my heart is. This is where my parents are, as well as my sisters and their families, and it is difficult to express with the limited words of the English language the intense love I feel for them all.  B.C. is also where my entire family, including my brothers (one from China and the other also from Ontario) gather when we have family get-togethers. One of my brothers is also here right now. And I have some very dear friends here as well.

But there’s much more to British Columbia than family, as the many hundreds of thousands if not millions of annual visitors will attest. British Columbia is rich in resources; forests, mountains, clear glacial waters, fisheries, minerals, and the most spectacular scenary you will find anywhere on earth with it’s blend of rich green forests, majestic grey snowpeaked mountains and jagged coast lines reaching into the green-blue oceans all filled with life. The Okanogan region is a fertile ground for growing fruits of many varieties and the climate is temperate and ideally suited for vegetation and farming. It’s incredibly rich with green growth everywhere along the coastlines and in the valleys. They have old growth forests that boast some of the tallest trees in the world and rainforests in the northern regions of Vancouver Island that are rich in wildlife and biodiversity.   » Continue reading “Beautiful British Columbia”

Creating World Leading Business

Initially, my goal in putting this blog together was to help business leaders in developing sustainable workplaces, providing tips on how to encourage a change in the culture of the organization that would support such efforts, and sharing concepts of communication and psychology of the work place that would help workers adopt sustainable goals, become more productive and be more passionate about their work. It’s still about that, but in the process of studying the many issues related to creating sustainable businesses in a sustainable world economy, I’ve come to believe that there are other considerations that are perhaps even more important.

All the traditional business arguments still exist that sustainability is really about eliminating waste and reducing expenses and that this is ultimately good for the business and the environment. So keep up the good work if you are deploying LEAN processes, adopting LEED standards for your buildings, using renewable energy sources, developing green teams, encouraging recycling and doing what you can towards water and energy conservation. You’re on the right path.

But let’s look at the bigger picture!

The goal of our economy » Continue reading “The Argument for Global Governance (and why businesses should ecourage it)”

I was recently invited to Vietnam to participate as an Investment Consultant on behalf of potential large scale North American investors to review a development project in Yen Tu, Vietnam, a place of pilgrimage for Vietnamese Buddhists. My consultancy work in the area of investment and development is based on a simple philosophy: If it isn’t good for the world, it isn’t good for the courtry either. Coupled with a recent course on sustainability the whole effort had me pondering the best ways to encourage and increase sustainable international development which aids a country in reducing poverty without taxing the planet’s resources.

Development has the potential to do harm but can also be used to do good if it addresses the local needs in a sustainable way. But even high standards such as LEEDs doesn’t guarantee that the results will be positive. On the other hand, using investment opportunities such as Yen Tu to encourage Sustainable Development and the use of LEEDs standards will certainly help to create skills for the future. It increases local expertise related to sustainable building practices, especially when the work is performed primarily by local developers. And it ensures that newly acquired expertise stays local and gets used on future building projects.

From an investment perspective, one way is to encourage sustainable development is to share methods and approaches through active program participation, collaboration and educational programs which allow for project participates to learn new sustainable techniques, always bearing in mind that we can also learn something from the local participants. Some investors are interested only in getting a good return on investment and less interested in how the development work actually gets done. Savvy investors recognize that sustainable building practices bring higher returns, especially when looking a long term value of the project. (If you happen to have access to a few hundred million you’d like to invest, feel free to call me and I’d be happy to direct you on how to invest in this or other projects in Vietnam. After all, there is a very satisfying feeling when you invest in a project that makes a difference in the world while earning you a reasonable rate of return.) Given a secure revenue stream, which the Yen Tu project certainly promises (see details below), long term profits will always be higher when operating expenses are reduced, a natural outcome of lower energy and resource costs. It’s simple math.

» Continue reading “Sustainable International Development”

I’ve recently had the pleasure of connecting with David Berman, a professional designer, author and speaker regarding the possibility of working with him on future projects, if not directly, at least in spirit, as we are both interested in designing and developing a world which is sustainable. David’s recent book Do Good Design (with the word Design crossed out leaving us with just “Do Good”) is an inspired and well informed work that shares not only the principles of why sustainable and ethical design is important but shares excellent examples of design work that doesn’t promote a sustainable or healthy future. Listed as “Do Good’ at your local library or Amazon book store, it’s definitely a worth while read. » Continue reading “David Berman’s Do Good Design”

Have you ever noticed how world of business increasingly depends on concepts such as Business Clustering (geographically grouped businesses that work together to provide functions that one business alone can’t) as well as the growth of Global Innovation Networks (GIN – businesses that connect together globally to provide innovative products more efficiently by utilizing the local strengths and unique competative qualities of each country and market). Both trends continue in spite of the fact that, particularly from a GIN perspective and especially in weak economies, there is a continuous outcry to stop outsourcing and create jobs locally.

Have you ever noticed how much the structure of Business Clustering and Global Innovation Networks resemble the formation of neural nets in the brain? Just as there is a certain randomness in the brain’s learning process where dendrites create random spikes to other neural paths, some of which survive and other of which don’t, businesses create collaborative ventures and, likewise, some of these serve the needs of the market and others don’t. Just as the brain has compartmentalized functions and specific neurons that play different roles in the functioning of the brain, businesses have specific roles which they play and each cluster serves a different market segment.

So what does this similarity teach business leaders about the creation of Sustainable Businesses?

» Continue reading “Sustainable Business and Global Innovation Networks”

Upon reviewing an article from the WBCSD (World Business Council for Sustainable Development) and based on studies from the (IEA) International Energy Agency on the needs for energy in global development, one issue became crystal clear; that without investors feeling the need to move their funds toward Sustainable Technologies and Sustainable companies, there would be insufficient capital to keep up with growing global energy demand. While this causes a major problem for “developing” countries, it also causes a major challenge to move towards sustainable energy in “developed” countries. Note that I have added the quotes because, in a world that is being injured by much of the development we have experienced, one may question the long term efficacy of the whole notion of “development” as we currently know it. The term “Developed” in the fullness of time will more likely be something like “mature” and mature has a very different implication. What mature country would continue to destroy it’s own environment? Well, that’s a different topic so let’s move on.

In a quote from the report the author states that “Today private sector investments constitute the largest share (86%) of global investment flows and are expected to be essential to addressing climate change. A large additional flow of tens of billions of dollars will also be needed for adaptation.”

One of the most effective means of a government to weild it’s financial power is to influence the direction of Private Investment Capital. Rather than trying to “be” the investor as in many of the current government incentive scheme’s which directly invest, wouldn’t it be possible to take a different approach? » Continue reading “How to move Investment Capital to Sustainable Technologies”