In this presentation, given to 30 Next Gen members of AFBN, I spoke about the need (and opportunity) for Next Generation leaders to retool themselves and their family businesses.

1. Retooling Leaders, and Family Businesses for Sustainability

2. Sustainability Currently Accepted Definitions - Wikipedia – Sustainability, in a broad sense, is the capacity to endure. In ecology, the word describes how biological systems remain diverse and productive over time. For humans it is the potential for long-term maintenance of wellbeing, which in turn depends on the wellbeing of the natural world and the responsible use of natural resources. - WashingtonStateUniversity - Sustainable means using methods, systems and materials that won't deplete resources or harm natural cycles" (Rosenbaum, 1993). Sustainability identifies a concept and attitude in development that looks at a site's natural land, water, and energy resources as integral aspects of the development" (Vieira,1993) “ Sustainability integrates natural systems with human patterns and celebrates continuity, uniqueness and placemaking" (Early, 1993) Definitions that are heavily focused on the environment, and all things “green”

3. The Global Context Conversations about sustainability have largely driven been focused on climate change, and as have the solutions. Conversations Solutions:

4. The Asian Context In Asia, sustainability is being framed by different constraints ……..constraints that were far more personal than “carbon” Resource Management Labor Safety Consumer Safety Urban Planning & Urbanization Food & Agriculture Landfills & eWaste Overpackaging Healthcare (Elderly & Family) Traffic and Transport Air, Food, and Water Quality Income Gap – Poverty Alleviation

6. Interest in corporate roles and responsibilities grow

8. Domestic / International press coverage

10. Public awareness of problems with industry, and calls for changes

11. Ongoing investigative reporting into other areas / other companies

12. 24/7 Full press coverage on TV, newspaper, blogs, &twitter

13. Public awareness of problems with industry, and calls for changes

14. Ongoing investigative reporting into other areas / other companies

15. Public acknowledgement of system failure and call for change by party

17. Citizens were become activists

18. Governments were respondingThe Business Case For Sustainability was made

19. Why Firms Are Not… Why Firms Are Going “Green” Strategic Interests Supplier Performance Customer Satisfaction Lack of Expertise. Lack of Incentives. Lack of Regulation???

20. New Systems and Solutions Active Engagement Real Solutions New Definitions

22. Bambu Home

24. Haworth

26. HP

28. Manufacturing of modular carpeting

29. 900 Million USD in revenue

30. 3000 employeesRay Anderson – “The typical company of the 20th century: extractive, wasteful, abusive, linear in all of its processes, taking from the earth, making, wasting, sending its products back to the biosphere, waste to a landfill. I, myself, was amazed to learn just how much stuff the earth has to produce through our extraction process to produce a dollar of revenue for our company. When I learned, I was flabbergasted.”

33. Established in 1979

34. 60 million shirts

35. 500 Million USD in revenue

36. 50,000 employees

37. Production 5 countries

40. Sponsoring organics R&D within universities“I am fortunate because the company I lead is a family-owned group – I can do anything I decide to do”

41. Retooling Leadership Going forward, leaders will need to possess: Clear Mission and Vision Understanding of “externalities” and impacts A business plan for change Ability to Manage Time Focus on systems and building Able to engage and activate stakeholders System of monitoring and reporting Commitment to execution

43. Ability to craft (remake) vision and mission

44. Vision over profit can be tolerated at higher levels

45. Spectrum of family interests can be accommodated

47. Not beholden to shareholder profit motive, or their interests first

48. Ability to explore and expand in secrecy

49. Focus on value over advertising

53. Commoditization of parts, components, and technologies reduces cost of investmentIf you don’t make the changes willingly, you will be force to through competition, regulation, or consumer action.

54. Q&A “In the end, environmental, social and economic sustainability cannot be separated. A sustainable planet must include a sustainable human civilization – resilient human systems that respect the complicated relationships among poverty, human rights, economic development, environmental health, and human success” - Institute for the Future, 2008 Richard Brubaker Founder and Managing Director, Collective Responsibility Founder and Executive Volunteer, HandsOn China Adjunct Professor, Sustainability and Responsible Leadership, CEIBS rich@collectiveresponsibility.org