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promoTing discussions on corporaTe susTainabiliTy and responsibiliTy across The african conTinenT Vol2, issue 4,2012 N 750 . 00 ngn $5 . 00 usd ÂŁ3 .00 gbp
innovation
ISO 26000 Guidance on Social Responsibility Nigeria Adoption Process (ISO26000: NAP) Standards Organisation of Nigeria (SON) and her Knowledge Partner, ThistlePraxis Consulting announces the Adoption Ceremony of NIS: ISO26000
Date: July 11, 2013 | Venue: Southern Sun, Ikoyi, Lagos, Nigeria | Time: 10:00am
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Lead Sponsor:
Knowledge Partner:
iso26000@thistlepraxisconsulting.com http://www.iso26000nigeria.blogspot.com +23412131404, +23412131776, +2348136611906, +2348037148070
ISO 26000 is an International Standard (by the International Organisation for Standardisation (ISO) elaborated to guide organisations on Social Responsibility. It is a consensus guidance document that provides support or a reference for all kinds of organisations in both private and public sectors both in developed and developing countries, as well as those who may be referred to as ‘being in transition’. Instead of a law or index, this document provides a mere guide (not for certification) to complement the diverse efforts of organisations
all over the world in attaining social responsibility.
Contents
30 COVER STORY
10
FAQS What you should know about the AR-CSRTM
13
Feature Conditions For Innovation
20 column
Innovation is Overated
18
Verbatim Who is an innovator
22 OPINION
Sustainability is Largely about Innovation
26 GLOSSARY
Innovation Terminologies
35 CASE STUDY Innovation in Ordinary Things
46 9 QUESTIONS Mr. Ashish Thakkar, CEO/Founder, Mara Group of Companies
From the Convener
Let me begin by expressing my gratitude to our Chief Host, the Executive Governor of Cross River State, His Excellency, Senator Liyel Imoke, and the amiable people of Cross River State. Thank you for hosting the AR-CSR again, and your clear-cut demonstration of leadership and commitment. I also commend very deeply the Cross River State Government's Investment Promotion Bureau headed by the Special Adviser to the Governor, Mr. Gerald Ada and his team; our sponsors, Diamond Bank and Shell Nigeria and our media sponsors, Africa Magic and Ventures Africa for the media support. ThistlePraxis Consulting is truly grateful to the 2013 Keynote Speaker, Mr. Ashish Thakkar; and our Lead Discussant, Mr. Monaem Ben Lellahom, to all our discussants and speakers. One factor that an organization striving fo r i n n ov a t i ve s u p re m a c y a n d sustainability cannot afford to ignore is l e a d e r s h i p. A c h a r i s m a t i c a n d inspirational leader can completely transform the organization's reality. Transformational leaders inspire followers with a vision that addresses their higher needs and engage followers in the attainment of that vision. Transformational leaders become role models for their followers and make them go beyond their selfinterests for the benefit of a larger collective. In addition to being innovative iconoclasts, transformational leaders can also be trusted to do the right thing. Doing the right thing even when it is not popular requires courage and visionary leaders possess the required strength of character. This attracts followers who emulate them; thus, over a period of time, followers also become more innovative.
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There are two important segments of innovation, namely product innovation and process innovation. It should be noted that innovation could also be pursued radically (i.e. sudden change of modus operandi) and incrementally (i.e. i n c re m e n t a l w i t h s t e p - b y- s t e p improvement). However, driving innovation could involve developing strategies, and processes that facilitate the transformation of ideas to final product or service. It should be pointed out that I consider innovation as the new pre-requisite for competitive advantage. In linking that to transformational leadership, innovation requires an ongoing investment in leadership skills needed to support innovation. One of the significant trends shaping today's businesses in a global economy, is that organizations can no longer rely merely on access to natural resources, technology, or capital. As each of these bases of competitive advantage loses relevance, what differentiates an excellent firm from a merely efficient firm is the quality of its creativity and innovation and their ability to get things done in a superlative manner. This trend underscores the recognition that a superior strategy, which is consistently innovating and giving off its best to the organization, is a superior source of competitive advantage; and that will be sustainability.
At ThistlePraxis, we are driven by the constant need to innovate, and I am excited to present to you our modest attempt at innovation: the ThistlePraxis' Mobile Apps, Carbon Calculator, Sustainable Conversations Online and Test CafĂŠ, which are projects of our Advocacy & Thought Leadership division. This bouquet of mobile apps and new media-driven initiatives are in line with emerging trends, digital media appreciation and online penetration across African economies. In addition, we intend to start off the calendar in 2014 with the Pre-Summit Meetings across the regions of the continent. We hope you will again join us from June 19 - 20, 2014 as delegates, partners and sponsors hopefully, again here in Calabar. The questions we have to answer here today are many? How do we drive game-changing strategies within the public and private sectors? What is the role and place of transformational leadership in ensuring the innovations are sustainable? Are we truly harnessing the innovations that have come out of African recently? Can we, and are we ready, to export African innovations? Can we trust our leadership both in the public and private sectors? Is the business of business still business? How can Africa reverse the tide and uphold transformational leadership at all levels, one that constantly drives sustainable innovation?
Sustainability is a key stratum of organizational and technological innovation that yields both bottom-line and top-line returns, and invariable results in lower costs, less inputs, new products and services. In the final analysis, the quest for sustainability becomes transformative because s u s t a i n a b i l i t y i s a m e g a t re n d . Sustainability is the new key driver of innovation. Even for the public sector – governments, government agencies—it is no longer a peripheral issue. Public service needs dynamic changes to deliver national good to its citizens.
Thank You.
This is the challenge before us; not just as we deliberate today and tomorrow, but as a generation at a turning point. Africa is at a turning point. We are no longer the dark continent, but the question is: can we drive urgent innovations? The seeming concsiousness we have observed across the continent, the emerging voices for change, the pockets of initiatives and game-changing models, the clusters of individuals reaching deep to challenge the status quo with superior arguments; indeed these consciousness which we herald as a step in the right direction must not fizzle out.
Ini Onuk
Your Excellency, Distinguished Ladies and Gentlemen, these are the questions I earnestly hope we will all answer these two days. I warmly welcome you all to the 2013 edition of the Africa CEO R o u n d - t a b l e & C o n fe re n c e o n Corporate Sustainability & Responsibility and wish you a memorable stay in Calabar, Cross River State - Africa's Warmest Welcome.
Bart Bossink is a professor of technology and innovation at the faculty of economic sciences and business administration and the faculty of sciences of VU University Amsterdam. His research primarily concentrates on the management of sustainable technology and innovation and his work intends to serve both science and practice. He is the author of the article, “Leadership for Sustainable Development”. First published in the International Journal of Technology Management and Sustainable Development.
Curtis M. Alexander is a Business Growth Strategist, who helps industrial and manufacturing companies uncover hidden assets, increase revenues, and lower marketing costs. His website is www.curtismalexander.com. He is the contributor of “Innovation is Overrated”.
Justice Derefaka is the Head of Waste Management Discipline at Shell Petroleum Development Company. He writes on “Achieving Environmental Sustainability in SPDC”.
Su Maddock is a Visiting Professor at the University of the West of England, and an Honorable Fellow at the Manchester Institute of Innovation. She is the contributor of the article, “Conditions for Innovation Women's Transformational Leadership and Gender Cultures”.
Oluwadamilola Famakinwa is currently a Strategy and Business Development Intern at ThistlePraxis Consulting. He earned his first degree in English Education from the University of Lagos and an MBA in General Management from the University of Hull, UK. He has an interest in CSR with a focus on Community Relations. He is the contributor of “CSR Consulting: A Rookie's Diary”.
SME Toolkit Nigeria The Case Study, Innovation in Ordinary Things was put together by the SME Toolkit Nigeria http://nigeria.smetoolkit.org, which offers free online business software through business forms, articles, tools and other resources to support established business owners, start-up and related sectors for productivity and sustainability.
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Contributors
Armond E. Sinclair and Sandeep B. Jagani are both at the University of Toledo in Toledo, Ohio. Their research interests include Corporate Social Responsibility (CSR), Environmental and Social Risk Management (ESRM), Sustainability, Innovation, and Technology Management. Arnold and Sandeep contributed the article, “Sustainability is Mostly about Innovation”.
PUBLISHER Ini Onuk
…an open, unending conversation
EDITOR-IN-CHIEF Anwuli Ojogwu CONTRIBUTING EDITOR Emilia Asim–Ita RESEARCH Damilola Famakinwa Ngozi Joy Ugorji DESIGN
‘Dare Onadeinde ADMINISTRATION Ifeoluwa Aderoju Emmanuel Udoh EDITORIAL CONSULTANCY A’Lime Media Limited
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EDITORIAL
F
or this editorial, I looked up the meaning of Transformation and Innovation. And according to the Oxford Dictionary, the meaning of Transformation means a marked change in form, nature, or appearance, and the meaning of innovation is not far off the mark; it means to make changes in something established, especially by introducing new methods, ideas, or products. These two key words are the crust of our conference, which will drive the discussions at the 2013 African Round table and Conference on CSR and Sustainability. It is more imperative now than ever that the African continent evolves and becomes a sustainable and strong continent, capable of harnessing and managing its rich resources, both natural and human, to protect its future. That can only be achieved through transformational leadership (incremental marked changes through insightful actions) by capitalizing on innovation (new methods on how we operate) if we ever will see the radical change that the continent strongly needs. There has been steady change since 2008 during the other great depression—the financial meltdown—as I like to call it, which affected the world, especially Africa, and showed us how vulnerable and interconnected we are. Africa has been pointed as one of the emerging nations and home to several of the world's fastest-growing economies, and according to a World Bank Report on global economic prospects in “2012 the GDP growth in Sub-Saharan African remained robust at 4.6%, notwithstanding the slowdown in the global economy, while in South Africa, GDP growth in the region was at strong 5.8% in 2012, with a third of countries in the region growing by at least 6%.” The Rwanda economy lead by President Paul Kagame's thoughtful leadership since the tragic genocidal war has succeeded in uniting his country and speeding development through agriculture and other initiatives. His leadership has defined and demonstrated the meaning of what Transformational Leadership stands for. On many fronts, African leaders, policy makers, and key stakeholders have begun to drive conversations on key aspects such as renewable energy, agriculture, sustainable finance, infrastructure, capacity development, women empowerment and the millennium development goals through initiatives such as New Partnership for Africa's Development (NEPAD), Program Infrastructure Development for Africa (PIDA), among others. There has also been talks by the BRICS Group of developing nations, composed of the leaders of Brazil, Russia, India, China and South Africa to set up a development bank to tackle infrastructure and development in emerging markets. With a clear, dedicated, incisive and methodical approach to leadership and innovation, African leaders can succeed in placing the continent as a leader in development by 2020. We have tried to present to you in this journal edition, articles, interviews and even a case study that treats the topic in-depth. They are in line with the conference's theme, “Driving Innovation through Transformational Leadership and Sustainability”. In this edition, we feature venerable experts who have contributed insightful articles. Our lead story is a research piece by Bart A.G Bossink, a professor of technology and innovation, of VU University, Amsterdam, who explores how leadership can inspire innovation in his article “Leadership for Sustainable Innovation”; Also, Curtis Alexander, a business growth strategist discusses in his article why “Innovation is Overrated”; Armond E. Sinclair and Sandeep B. Jagani, of University of Toledo contribute a counter argument to Curtis Alexander's in their co-written article ,“Sustainability is Largely about Innovation”; and finally the interview series, 9 Questions, which features our Key Note Speaker, Mr. Ashish Thakkar, CEO and Founder of Mara Group, where he discusses matters from the African economy, and creating an environment that encourages and enhances Innovation in the African Continent. We hope you enjoy the journal. The next CSR Files will have a new look as we are going to rebrand the journal. By the time the conference is over, we believe that you would understand the weight of the responsibilities that lie ahead of all of us, and the role that you play to achieving a sustainable continent through Transforming, Innovating and Leading.
Anwuli LETTERS TO THE EDITOR I have followed your organisation's activities both online, journals and forum. It is refreshing to finally see an active promotion and discussions on sustainability and CSR. It is important that organisations are taught that their responsibility is to be RESPONSIBLE and adopting practices that are sustainable to both people and businesses.
Nonso Manuel
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FAQS
AR-CSR WHAT YOU SHOULD KNOW What is the AR-CSR?
What is the theme of the conference this year?
Driving Innovation: through Transformational Leadership The Africa CEO Round-table & Conference on Corporate Sustainability & Responsibility (ARCSR™) is an initiative to promote the growth and effectiveness of sustainability, social responsibility & development within Africa. The allinclusive Corporate Sustainability & Responsibility management event of the year and first of its kind in Africa, the AR-CSR™ brings together and attracts the crème of Africa's leading figures, decision makers, business leaders and experts from Africa and beyond for experience sharing and insightful discussions on initiating and attaining widespread sustainable development in Africa. An industry flagship event that boasts the finest pool of resource persons and participants who set the agenda for Corporate Sustainability & Responsibility and whose opinions and discussions make the experience invaluable for corporate strategy and policy resource, the AR-CSR™ has in a short time become an important event in the African Business Calendar.
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Driving Innovation through Transformational Leadership & Sustainability'. This year, The AR-CSR™ will address how a dearth in transformational leadership threatens innovation, discourages youth empowerment and participation; and weakens the needed framework for upholding social responsibility of the private sector. Also, the effects of climate change and increasingly inadequate natural resources demand innovative ways of administering good governance and purging corruption from all sectors of African economies, especially the public sector Who is the AR-CSR 2013 keynote speaker?
Mr. Ashish J. Thakkar, Founder & CEO, Mara Group of Companies, and Forbes Africa's Youngest Billionaire What are the features of the conference? Regional Pre-summit Meeting: The pre-summit meetings designed as traditional town-hall meetings, where experts and business leaders chart solutions for developing innovations that promote sustainable transfor mations, and social responsibility practises in their respective organisations and societies. CEO Round-Table: An exclusive, peerto-peer, policy dialogue forum where b u s i n e s s l e a d e r s l e a r n , s h a re experiences and best practices on emerging issues in Africa, and build
FAQS business relationships. The Roundtable is an invaluable annual resource for CEOs and top-level decision-makers who deal with either business operational issues or opportunities relating to corporate social responsibility, sustainability, business ethics and corporate governance.
Conference: The conference is the rallying point for all professional and leading executives in the sector. This year, it will address how a dearth in transformational leadership can threaten the growth of innovation, youth empowerment and participation and weaken the needed framework for upholding social responsibility in the private sector; effects of climate change and increasing demand for inadequate natural resources, and finally, innovative ways of administering good governance and purging corruption from all sectors of African economies, especially the public sector. Sustainable Solutions Showcase (SSS): Sustainable Solutions Showcase is an initiative of the conveners to
platform promotes goods and services that are ecologically friendly, capable of meeting specific socio-economic needs and show potential for enterprise growth with Return on Investment. The showcase runs concurrently all through the event. Eco-Tour: In partnership with the Host City, the AR-CSR™ treats delegates to the rich cultural heritage of one of Africa's greatest cities. In addition, delegates will explore vast beautiful forest reserves and biodiversity profiles of these locations
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Who Should Attend? l Board Chairmen, CEOs, GEDs,
D i re c t o r s a n d o t h e r C -S u i t e Professionals l H e a d s o f C o r p o ra t e S o c i a l Responsibility/Investments l Cororate Affairs/External Affairs/Public Affairs Professionals l CSR & Sustainable Development Professionals l Brand Marketing Professionals l Business & Social Research Experts l Ancillary Service professionals such as Auditors, Tax Consultants l Social Entrepreneurs l Non-Profit Organisations
and discover the unique blend of sustainable development initiatives and environmental sustainability strategies. S peakers Cocktails: S peakers, Partners and Hosts are treated to a preevent session of high level networking ahead of the memorable experience.
expose and connect innovations cum inventions of social entrepreneurs with potential sponsors, partners, clients, customers and collaborators. The
Gala Dinner: The AR-CSR™ Gala treats all delegates to the best of African cuisine and culture from the most talented crop of chefs and performers in the continent. It's a networking opportunity and commemorative crystal plaques are presented to speakers and partner organizations in an evening of great music, culinary delight and entertaining performances.
Who Are The Organisers? T h i s t l e P ra x i s C o n s u l t i n g i s a Management Consulting firm that assists organizations of all sizes and in all sectors through the delivery of innovative solutions from effective strategies. In a summarized focus through a six-point portfolio, our committed teams and seasoned faulty of experts advocate standards, responsibility and sustainability as key elements for ensuring profitability and tangible impact. Our track record of value is hinged on an increasing list of satisfied clients and investments in pragmatic products and thought leadership initiatives that resonate with targets, every time. We are Assessment and Strategy Business firm with a Faculty of Experts with a cumulative experience of over 120 years.
The all-inclusive Corporate Sustainability & Responsibility management event of the year and first of its kind in Africa
FEATURE
Conditions for Innovation: Women's Transformational Leadership and Gender Cultures
There are no blueprints for innovation [Mulgan 2007] but there are guiding principles and common stages and factors involved in most innovation journeys. Innovation demands flexibility and openness, not standard, one-size-fits-all solutions. Innovators take the course of action most likely to lead them to the next stage - their journey is not predictable [Maddock 2008]. For instance, the nationwide campaign to reduce the number of plastic bags, went viral because a young woman saw the impact of discarded plastic on marine life, and persuaded others in her home town to follow her lead. Innovation rarely flows down well-known routes, pulled by those attracted to it, between individuals rather between institutions. Public service innovation is driven by enthusiastic champions with a zeal for tackling social problems and placing
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the public service users at the heart of service redesign. Champions are critical in the early stages of innovation while later stages depend on a wider group of people and organisations believing in its worth. Experienced innovators motivate others, broker relationships and reframe thinking in the initial stages of exemplar projects. Such people are not afraid to take risks and have the confidence to explore possibilities, rather than following rules or a set plan [Maddock 2010]. In the initial stages of innovation it is unclear what is happening, definitions are as yet unclear and a range of people with different skills and experiences make an input. It is at this stage that collaboration is important. Women are often involved in the early stages of innovation building bridges and questioning common assumptions, and yet, women's voices
By Su Maddock
are rarely acknowledged in innovation report, they are hidden from view [Halkett 2008]. Literature review Innovation Policies in the West continue to be underpinned by classical economic models (of growth, supply and demand) and a structural pipeline model of transfer for scientific ideas into business. Innovation uptake is conceived as a practical matter of getting 'products to market'. This perspective completely ignores the unpredictability of the innovation journey and that innovation meanders between people. People's agency, m o t i v a t i o n a n d p e r s e v e ra n c e underpin innovation and can take years to gain acceptance even in these times of 24/7 news and social media [Flanagan & Uyarra 2011]. Social media and new technologies have speeded up the transfer of new ideas and
FEATURE practices. Yet, the dominant model of innovation transfer remains a managed pipeline from 'science to the business. Most innovation occurs when creative people search for improvements to problems or practices that no longer works, hence the phase “Necessity is the mother of Invention.” There are different types of innovation, some are easy and fly to market (mobile phones, I-phones, etc) while others are complex and involve behaviour and system change. Some may be financially driven while most tends to have some social value. Constraints such as over-specified paths and short tight time frames tend to drain the dynamism and energy out of innovative projects, which is why local innovation strategies, closer to local practice, can be more effective than 'top-down' centrally driven policies. In spite of the evidence above policymakers tend to assume that they can manage or direct innovation flow through existing systems, funding, institutional routes and processes. Elinor Olstrom, the Nobel Prize [2009] winner observed that it was people's capacity to connect made 'wholesystems' work that matter to innovation, and if economists only focus on isolated components they fail to notice either the whole system or its d y n a m i c s . C o n s e q u e n t l y, s h e questioned whether the neo-classical economic model was an appropriate model for innovation, given its narrow fo c u s o n ' f i n a n c i a l g a i n' a n d undervaluing of people's capabilities. She also challenged the widely held assumption, that 'competition' is the key to business growth and innovation and instead put forward the idea that
Mostly innovation occurs when creative people search for improvements to problems or practices that no longer works, hence the phase “Necessity is the mother of Invention.” b o t h re l y a s m u c h o n t r u s t , connectivity and collaboration. The critical issue for innovation policy is surely how to harness the innovation drive and balance social and business benefits [Georghiou & Weber 2011].Not all innovation leads to social good. Financial innovation was a major cause of the 'Crash' and demonstrated the need for 'innovative governance' as well as financial innovation [Mulgan and Leadbetter 2013].Politicians and researchers have begun to recognize that if Markets are not constrained by good governance, then an unhealthy emphasis on profit and competition follows usually at the expense of those collaborative relationships that u n d e r p i n t h e e a rl y s t a g e s o f innovation [Hutton & Schneider 2008]. It is widely recognised that most public institutions and many corporates are not conducive environments for innovation and that here is a need to reappraise and redefine innovation policy assumptions within a context of increasing complexity [Flanagan and Uyarra 2011. Organizational Models and Management Even though the social, network form of organisation has become accepted within the post-production age as an alternative to the closed, highly structured organizations [Von Hippel 2002] most governments demonstrate closed, institutional thinking and p ra c t i c e s a n d w e a k s t ra t e g i c leadership. The fact that public administrations continue to rely on inappropriate, management models, while unsurprising giventhe legacy of
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the military model, is totally unsuited to a rapidly changing world [Walsh 2006, Von Hippel 2002]. Over the past ten years many governments have become aware that their administrations need to become less bureaucratic and more responsive to the public. The government's emphasis to date has been too heavily slanted towards the Scientific or quantitative aspect of change, with less attention being paid to help leaders of institutions deliver change. The emphasis is on requiring institutions to produce plans and to get prepared for being inspected. This model of change uses the fear of failure as an incentive. It does not appear to encourage an internal desire for success. This has two consequences. First, it tends to act against its intention by suppressing innovation and social entrepreneurship. And, second, it skews public resources (and skills) towards inspection and not capacity building. [Barry Quirk – Forces of Conservatism IPPR 1999] The British government has been preoccupied with transforming government and the Civil Service for many years. Brennan and Ceeney were asked to produce a paper for the Cabinet Secretary in 2008 on how to change the insular and elitist culture of Whitehall and concluded that any change strategy would have to improve internal leadership that was weak and unstrategic [Brennan and Ceeney 2008]. Canada and Australia have introduced National Innovation Systems (NIS) to shake-up their administrations and give coherence and strategic direction to their innovation policies. Australia's innovation policy development is well documented. In 2000, the Australian F e d e ra l G o v e r n m e n t h e l d a n Innovation Summit to explore how innovation could better support the Australian economy. The Business Council of Australia took a leading role in developing this strategy which was resulted in building knowledge exchange or transfer capabilities as well as investment in R & D, demonstrating an understanding of the need to develop innovation leadership and capabilities as well as stimulate the market and invest in science. A radical report Powering Ideas, published in 2009 called for a paradigm shift inside government
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FEATURE
stating that government had a responsibility to develop an innovation strategy that would identify and plug gaps, transform government, become more responsive to innovative solutions and build the capacities and connectivity to support innovation[Hughes et al 2009]. ‘’The innovation process is complex and risky. Everything is interconnected. Innovation outcomes are hard to measure and many experiments only tell us what doesn't work. Innovation programs and policy must be designed with these conditions in mind. ….Making innovation work requires a workforce with sophisticated skills…. including leadership and co-operative workplaces.’’ Powering Ideas demonstrated a radical step change in innovation policy; although the implementation process was flawed largely because as Hughes et al [2009] have argued, that the application of National Innovation Systems in most countries has been dominated by structural systems and so formulaic that they rarely capture innovation. Public Leadership Public leadership has changed dramatically over the past twenty years (particularly in the UK) as have leadership approaches to change and transition. However, research [The Work Foundation, 2008] shows most managers in the UK continue to believe that to implement public policy r e q u i r e s ' t o p - d o w n' t a r g e t s , implemented through structural and te c h n i c a l - l o g i c a l m a n a g e m e n t systems and management which demands compliance and
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transactional management. In the 1990s, research on challenging women in the public sector demonstrated their innovation as transformative leaders. The contrast between such innovative women and th o s e m o re c o m fo r ta bl e w i th d o m i n a n t m a n a g e r i a l s y s te m s became more obvious as public sector reform called for transformation of services. A growing tension between the 'system enthusiasts' and more 'adaptive and transforming' leaders first appeared in the late 1990s, when transformative leaders were sought by politicians, particularly in local government and for the first time women were promoted for their skill in transformation and willingness to challenge institutional practices [Maddock, 1999, 2003, 2006; Fox and Broussine, 2001]. The number of transformative men and women leaders in the UK has grown since then [Maddock 2008, 2010],however, there is no critical mass of such leaders and most still demonstrate a preference for logical/technical systems, and adhere to processes rather than seek social outcomes; focus on policy and ideals rather than action and implementation; uncomfortable with uncertainty and risk; prefer formalities and protocols to informal networking; do not listen or observe live evidence of change; seek control rather than participation; and 'one-off' radical solutions. While public leaders aspire to being transformative in Britain; in the reality system enthusiasts are much evident in all sectors and there is a lack of confidence in innovative leadership. The tension remains a tension between 'system enthusiasts' and
'adaptive leaders' in most public bodies (Maddock, 2003, 2006). Although, theoretically discredited the preference for structural solutions and technical management tools as a substitute for political and strategic leadership continues and is problematic because it reinforces a delusion that perfect management will make political decision-making less relevant [Sandel, the Guardian 2013]. Over the years [Maddock 1999, 2003, 2006, 2010] women executives report how there is a connection between the compliance with managerial solutions and systems and complacent male cultures, which is changing as younger men appear but it is not changing fast enough and is a problem through UK management. Public procurement is reinforcing this hegemony of t e c h n i c a l – l o g i c a l a p p ro a c h e s following the increase in privatisation (outsourcing), that has not only shifted ownership from the public to private sector, it has also further embedded transactional management rather than learning and innovation (Maddock 2010). This is an excerpt from a white paper.
A growing tension between the 'system enthusiasts' and more 'adaptive and transforming' leaders first appeared in the late 1990s, when transformative leaders were sought by politicians, particularly in local government and for the first time women were promoted for their skill in transformation and willingness to challenge institutional practices
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VERBATIM
WHO IS AN
INNOVATOR? Ayomide Akindolie, Researcher, Dalberg Research
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Wole Odetayo, Managing Partner, Lofty Inc.
Smith Nwokocha , MD/CEO, Marketing Quest Service
A n i n n o v a t o r d o e s n' t necessarily "reinvent the wheel" He just might tweak a few things, with the end result of an improved process, product or service.
An innovator is an individual who provides a cheaper, faster and better solution to an existing problem.
An individual, an entrepreneur who dominates and ignites change in the phase of doing things or business; he changes will bring about positive impact, increase and dramatic effect of a balance. An innovator is a continuous change maker.
Enyinnaya Ijoma , IFRS Consultant , Wema Bank Plc
Nelo Edeh, Insurance Executive
Dr. Akinwunmi Adesina, An Innovator
An innovator, in a general sense, is a person or an organization who is one of the first to introduce into reality something better than before, and that often opens up a new area for others and achieves i.e. one who is a pace setter.
An innovator is someone who invents things from nothing; one who creates history and alters the course of history. Innovation can be in the form of a new product, way of doing business, of offering service and at the introduction of his or her innovative thing it causes quite a stir. Innovators have always changed companies for the better.
An innovator is someone who delivers something that never existed before. Think of "Steve Jobs" of Apple and how innovative he was. Introduced Iphones, Ipads, Ipods which in themselves started an entire industry.
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COLUMN
INNOVATION IS OVERATED What Really Separates Growing Companies From Those Who Stay Stagnant By Curtis M. Alexander
Years ago, a company sold a medicated balm for arthritis via traditional advertising in the back of health magazines. While profitable, revenues had been stagnant for some time. The owners decided they had two options: (1) Design a new product that the market wanted more, or (2) Sell the company. They chose option two and got their money from a product they considered to be a dud. Within 18 months the new owners – using a third option the original owners didn't see – took this medicated balm from under $100,000 a year to just over $13 million. It was then sold for eight figures to a pharmaceutical company. This medicated balm went by the name Icy Hot®. Maybe you've heard of it? How You Can Replicate What the Owners of Icy Hot Did? I'm going to share with you what the owners of Icy Hot did to grow it so dramatically. But before I do, let me ask you a quick question. How you answer it will tell me a lot about the direction your company is headed:
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If I told you that you had to grow your company by 30 percent this year, how would you do it? Nine out of ten executives or business owners automatically respond with one of the most popular buzzwords today: innovation. Like the original owners of Icy Hot, they think they have to invent a new process, product, or something similar to get those kinds of returns. The good news: getting a 30 percent jump is not only possible, but you can do it with much less risk if you focus first on optimization. That's what the owners did in the story I shared above. They continued to advertise like the original owners – but they optimized and improved upon that process. Why Optimization? First of all, it's a physical law. It takes a lot less energy to keep an object moving than it does to initially get it started moving. In business-speak: innovation is an expensive, time consuming, hit-or-miss proposition that requires proportionally more of your company's resources. Optimization, on the other hand, is taking the processes you already have
in place, but finding ways and means to do them better, more efficiently, and more profitably. In some cases, a lot more profitably. The problem with optimization – no matter how many real-life stories I share – is that business owners don't think optimization can get the job done. So, let's do a little math.
If I told you that you had to grow your company by 30 percent this year, how would you do it? Nine out of ten executives or business owners automatically respond with one of the most popular buzzwords today: innovation
COLUMN
Little Hinges Swing Big Doors If you brought me in to help grow your business, the first thing I would do is take you through Curtis Alexander 101 and start looking at the big three drivers in your business. In short, there are only three ways to grow a business:
1. GET MORE CLIENTS 2. GET THOSE CLIENTS TO SPEND MORE EACH TIME
3. GET THOSE CLIENTS TO SPEND
Now, as a hypothetical example and to keep the math simple, let's say you have a ten million dollar business: 10,000 clients x $500 per purchase x 2 purchase per year = $10,000,000 per year. Now let's look at what happens if we can conservatively bump each of your drivers by 10percent this year: 11,000 clients x $550 per purchase x 2.2 purchases per year = $13,310,000 per year.
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By optimizing each of your three drivers by a mere 10% each, it has resulted in an overall increase of 33.1 percent. That's the power of small, incremental optimization. And again, I've used conservative numbers to try to illustrate my point. Massive Action Now, I've shared this with enough folks in the past to know what is going through your mind right now: “Curtis, your math makes sense, but how in the heck do you think we are going to be able to find a way to grow 10 percent in each of these areas?� The good news is you don't need (or want) just one way. Or, put another way: I don't know one way to grow a business 100 percent in a year. But I do know 100 ways to grow a business by 1 percent each. Add those up and you have a big improvement. The trick is to take your blinders off. This is one of the areas where it helps to have an outside set of eyes look at your business. Once you do that, then you need to take massive action. What Can You Optimize In Your Business? Take a quick snapshot of your business. How are you getting your clients right now? Is it advertising? If so, I've seen headline changes boost response rates by two, three, even ten times current rates. I've seen follow-up messages (most businesses are terrible at lead follow up) bump rates by 25 percent or more. How many media outlets are you currently advertising in? It always surprises me that if a company has an ad that works in one media, they aren't running it in every media where their potential clients congregate.
How about purchase price? As simple as it sounds, sometimes you
The good news is you don't need (or want) just one way. Or, put another way: I don't know one way to grow a business 100 percent in a year. But I do know 100 ways to grow a business by 1 percent each. Add those up and you have a big improvement
OPINION
Sustainability is Largely About Innovation BY Armond E. Sinclair & Sandeep B. Jagani
Current times have managers racing towards sustainability and innovation. Do managers really understand the interdependent relationships of these two variables? When looking at sustainability over the last twenty years, the rate at which the topic has been examined has significantly increased in research. From 2004-2013 the amount of research that has been published has more than doubled than in the previous decade(1994-2003). To give a more concise picture on the level of significance sustainability has taken on, the number of publications that has focused on sustainability in the last decade has out numbered the aggregate total of all research published prior to 2004. Firms, consultants, and researchers are beginning to see the value that sustainability plays in the success and long-term viability of a firm. To m a i n t a i n m a r k e t s h a re , m e e t consumer demands and retain a competitive advantage, firms are now required to learn how to champion sustainability through the strategic implementation of innovation. But what do we really know about innovation?There are various types, l e v e l s , a n d c h a ra c t e r i s t i c s o f innovation that must be understood
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before the assumption that Innovation leads to sustainability can be held as true. Not every type of innovation that is adopted will be salubrious for the organization. Firms must be able to first ascertain their core competencies, before adopting an innovation strategy. A misalignment of innovation strategies and core competencies is a misappropriation of resources (i.e. knowledge), which can be detrimental to the sustainability of the firm. To give light to some common stratifications of innovation,we will segregate innovation into two core sections: The How (Explorative &Exploitative) and The Where (Product &Process). EXPLORATIVE VS. EXPLOITATIVE – THE HOW Innovation can be explorative or exploitative in nature. Firms that have high levels of innovation and costs, such as Boeing or Sony, typically embrace explorative innovation strategies, while firms with low levels of innovation and costs engage in exploitative practices. Explorative innovation practices look for advancements beyond the local domain of previous adopted te c h n ol o g i e s a n d p re - e x i s t i n g platforms. This is the stratum where we
see disruptive innovations come to fruition. Cost efficient imitator firms would not conventionally fair well against highly innovative firms if they were to change their innovation strategies from exploitative to explorative, because it causes them to abdicate their core competencies. Conversely, low innovation and low cost firms specialize by embracing exploitative innovations. These firms look at how to incrementally advance the pre-existing adopted technologies and platforms by investing their efforts within the local domain in which they specialize. Whether explorative or exploitative, a strategic orientation of core competencies and innovative practices must exist in order for innovation to be beneficial to the firm. PRODUCT VS. PROCESS – The where Innovation does not just come in the form of products; it can also come in the form of new processes too. Typically, when someone says innovation, we as consumers get excited about a new innovative t e c h n o l o g y. We e x i s t i n a n exponentially growing epoch, where the excitement and sexiness of
OPINION bottom line into new product and process development is one way in which a company can respond in a proactive manner to the challenges of sustainability.
INNOVATIVE LEVEL Low
High
High
Costly Imitators
Costly Innovators
Cost Efficient Imitators
Cost Efficient Innovators
Firms can enjoy a sustainable competitive advantage when they unswervingly integrate innovative products or processes into their strategies and practices, which correspond to the key buying criteria for the majority its consumers in their market. These attributes will include factors such as: price, specification, reliability, aesthetics, functionality, availability, image, and etc. It is essential that firms continuously try to differentiate themselves from their competitors within the market. Hence, looking from the lens of sustainability, companies will have to closely observe customer value determination and customer value change.
COST LEVEL
Low
innovation is technology driven. Companies like Samsung have mastered the art of showcasing their ability to stay on the leading edge of innovation, which has positioned them as a globally recognized leader that has outperformed Apple in many categories. But Samsung's success does not just come from product innovation; it also comes from process innovation. Process innovation is largely about knowledge management. Distinguishing what the organization's explicit and tacit knowledge echelons are can succor the question “What do we already know, and how can we become better at it?� Process innovation is largely seen as a core competency within service sectors and imitator firms, and is typically exploitative in nature. Although, we do occasionally see a firm become highly explorative and leave the local domain when adopting a process-based innovation. This is typical when a leapfrogging phenomenon occurs. A great example of this is with the mobile money systems that have been widely adopted in developing African markets. Firms were able to take a preexisting technology, see a new perceived benefit and adopted new innovative processes outside the local domain. The magnitude of this explorative process innovation can be considered disruptive in nature, because it bypassed the need for traditional financial institutions.
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SUSTAINABILITY Characteristically, depravity is the driver for innovation. If innovation is the adoption of a technology or process new to an organization, then deprivation is the impetus for innovation adoption. The greater the depravity organizations face, the higher the requisite for a sustainable solution. The fulfillment of depravity originates via innovation (i.e. an adoption of a new product or process), but the product or process life of the innovation is what constitutes sustainability.
Depravity
Sustainability
SUSTAINABILITY AND INNOVATION Companies have started the concept of open sustainability innovation; use of open innovation (using external ideas as well as internal ideas) in development of sustainable products and processes. Almost all of the automobile manufacturers are focusing on going green via hybrid, electric, ethanol, hydrogen, natural gas or biodiesel. The R&D departments are not hesitating to borrow ideas from various fields to increase the efficiency of their innovations. Third generation models of the Toyota Prius integrated a solar panel on the roof of the car for better efficiencies. These solar panels not only recharge the battery when the car is moving or at rest but also airconditions the car. Innovative ideas play a critical part in building of sustainable products and processes. Innovation, coupled with sustainability, brings the acquisition of both competitive advantage and differentiation to firms.
Innovation
Sustainability literally means the ability to sustain, or a state that can be maintained at a certain level. Using available resources to meet the needs of the present without compromising the ability of future generations to meet their own needs is sustainability. Sustainability phenomena come from the triple bottom line that involves economic growth while considering social and environmental dimensions. The triple bottom line has helped companies conceptualize their approach to sustainable development and sustainability. Integrating the triple
As stated earlier, innovative ideas derive wherever there is depravity. Innovation facilitates and expedites the development of sustainable products and processes, and is a critical protagonist in the process of d e v e l o p i n g sustainability.Innovationsmay be explorative or exploitative, but are typically shaped and directed by environmental, social, and economic demands, as enabled by technology.As innovation continues to nullify the voids within society, the overall consensus is that the attribute that innovative products and processes must possess is sustainability.
ABSTRACT
A brief summary of the invention described in a patent application to help quickly identify its key features.
APPLIED RESEARCH
Scientific study targeted to use in a product or process.
BETA TESTING
Beta testing of a new-to-the-world product includes a limited group of users outside of the company. The twin aims of the Beta test are to do a sanity test and to get customer feedback on how the product is used and works in the real world.
BUSINESS INCUBATION
A dynamic process of business enterprise development. Business incubators nurture young firms, helping them to survive and grow during the startup period when they are most vulnerable.
BUSINESS MODEL
Business model converts innovation to economic value for the business and conceptualizes the value proposition that distinguishes a firm from its competitors. It draws on a multitude of business subjects including entrepreneurship, strategy, economics, finance, operations, and marketing, and spells-out how a company generates revenue. BRIDGE ANGEL
A person who facilitates the identification and introduction of investment ready companies to investors who are able to provide capital. Business angels also help the company through its various growth stages by providing advice and expertise. BUSINESS PLAN
Brainstorming is a group session where employees contribute their ideas for solving a problem or meeting a company objective without fear or retribution or ridicule. 10 Brainstorming Rules CREATIVITY
An act of making something new. It is a mental and social process involving the generation of new ideas or concepts, or new associations of the creative mind between existing ideas or concepts. COMMERCIALIZATION
The process whereby an idea is taken successfully to the marketplace. It involves working the idea into your business plan, consideration of protection options, using appropriate commercial strategies, and considering how to market and distribute the finished product. COPYRIGHT
An exclusive right to reproduce and sell an artistic or published work. Copyright protects the original expression of ideas, not the ideas themselves. It is free and automatically safeguards your original works of art, literature, music, films, broadcasts and computer programs from copying and certain other uses.
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G L O S S A R Y
DATA MINING
Synthesizing research data using a new filter or perspective to identify fresh new thinking and insights. DISRUPTIVE INNOVATION
An innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology
EARLY SEED CAPITAL The initial cash injections required starting up a company, protecting intellectual property, developing prototypes; field and market test the product or service, and conduct market assessment. EQUITY FINANCE Finance provided by venture capitalists that take an equity share in the investee company
FIDUCIARY DUTY An equitable duty to act in good faith for the benefit of another. Persons subject to a fiduciary duty are not permitted to profit from their positions (other than where expressly permitted) or to put themselves in a position where the fiduciary duty and personal interest may conflict. It is essentially a relationship of trust between members of a company and the responsibilities they owe each other. INFRINGEMENT Infringement occurs when someone willingly or unwillingly uses your intellectual property without your permission INITIAL PUBLIC OFFERING (IPO) The first sale of shares of a company to the public INTELLECTUAL PROPERTY Any idea or work that can be considered proprietary in nature and is thus protected from infringement by others. Types of intellectual property include patents, trademarks, designs, confidential information/trade secrets, copyright, circuit layout rights and plant breeder's rights. MOCK-UP A scale or full-size model of a design or device, used for teaching, demonstration, design evaluation, promotion, and other purposes. A mockup is called a prototype if it provides at least part of the functionality of a system and enables testing of a design RADICAL INNOVATION Radical Innovation: Radical innovation projects produce an entirely new customer value and set of performance features, produce improvements in known performance features of five times or greater, and create new market niches REGISTERED TRADE MARK A registered trade mark gives you the exclusive legal right to use, license or sell it within Australia (and for any other country in which it is registered) for the goods and services for which it is registered 27
G L O S S A R Y
ROYALTY A royalty is a compensation paid to the owner of a right for the use of that right, for example, the fee paid by a licensee to a licensor. A royalty is usually payable as a portion of proceeds from sales, but may also be a lump sum or in some other form START-UP A new business, at the earliest stages of development and financing. SEED CAPITAL Capital provided by venture capitalists to start-up companies that are unable to access conventional debt finance SUSTAINING INNOVATION Innovation that does not create new markets or value networks but rather only evolves existing ones with better value, allowing the firms within to compete against each other's sustaining improvements SOFTWARE LICENSE A software license is a legal instrument to govern the use and distribution of copyright protected software. It may provide the licensor and/or the licensee with the opportunity to commercialize software. Most commercial (proprietary) end user licenses enable the customer to use the software, but not sell or commercialize it TECHNOLOGY TRANSFER Purchasing or 'trading' technology between companies to enable new innovations or the further development of innovations TRADE MARK A trade mark can be a letter, number, word, phrase, sound, smell, shape, logo, picture, aspect of packaging or any combination of these, which is used to distinguish goods and services of one trader from those of another TRADE SECRET A trade secret is both a type of IP and a strategy for protecting your IP. It includes proprietary knowledge (know-how) and other confidential information VALUE INNOVATION The search for new, radically different value curves. It is an eclectic mix that integrates different ideas from different sources in order to deliver higher customer value. Value innovation focuses on making the competition irrelevant by creating a leap of value for buyers and for the company, thereby opening up new and uncontested market space VENTURE CAPITAL Money used to support new or unusual business ventures that exhibit above-average growth rates, significant potential for market expansion and are in need of additional financing to sustain growth or further research and development; equity or venture financing traditionally provided at the commercialization stage, increasingly available prior to commercialization Source: Innovationtoolbox.com.au Cloverleafinnovation.com
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G L O S S A R Y
Leadership for Sustainable Innovation
COVER STORY
Prof. Bart. A.G. Bossink In many situations, the improvements of the sustainable performance that is environmental friendliness, of an organisation means that the organisation needs to innovate. A manager who wants to guide and steer the sustainable innovation processes has to be, or become, an innovation manager with substantial leadership competence (cf. Jung et al. 2003; Krause 2004; Llorens Montes et al. 2005), and a broad repertoire of leadership skills (cf. Chakrabarti 1974; Roberts and Fusfeld 1981; Kim et al. 1999; Hauschildt and Kirchmann 2001). However, much of the discussion focuses on the influences of leadership on innovation processes, and the body of literature on a leader's influence on sustainable innovation processes is not yet well developed. To contribute to the development of a body of knowledge in this area, this article investigates the characteristics and effects of leadership on sustainable innovation processes. It concentrates on two basic research questions: 1. 2.
What are the characteristics of leadership for sustainable innovation processes? How does leadership affect sustainable innovation processes?
This article provides an analytic framework that enables an in-depth investigation of a manager's sustainable innovation stimulating behaviour. It introduces an overview of effective sustainable innovation leadership styles, and offers a set of empirically grounded examples of fits and failures of innovation leadership. Innovation Leadership Styles The literature frequently defines innovation leadership as a manager's style, largely influenced by individual behaviour. Repeatedly mentioned leadership styles in the literature are charismatic (cf. Nadler and Tushman 1990; Stoker et al. 2001), instrumental (cf. Nadler and Tushman 1990; Eisenbachet al. 1999), strategic (cf. Harmsen et al. 2000; Waters 2000), and Interactive leadership (cf. Burpitt and Bigoness 1997; Eisenbach et al. 1999). This section reviews these styles: Charismatic Leadership A charismatic leadership style communicates an innovative vision, energises others to innovate and accelerates innovation processes. Barczak and Wilemon (1989), and Nadler Tushman (1990) write that charismatic leadership generates energy, creates commitment and directs individuals towards new objectives, values or aspiration. Howell and Higgins (1990) claim that leadership contributes to the development of new products. They argue that charismatic leadership style neglects organisational boundaries, uses visionary statements and stimulates co-workers contributions to renewal. Nonaka and Kenney (1991) state that charismatic leadership catalyses innovation. It creates a context for selecting the relevant people, and helps them overcome barriers. This is also emphasized by Eisenbach et al. (1999). They substantiate that a charismatic leader develops a vision that is attractive to followers, that considers the underlying needs and values of the key stakeholders, and is intellectually stimulating.
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COVER STORY Instrumental Leadership An instrumental leadership style structures and controls the innovation processes. Nadler and Tushman (1990) argue that it ensures that the employees' activities are consistent with new goals. They conclude that an instrumental leadership style sets goals, establishes standards, and defines roles and responsibilities. It creates systems and processes to measure, monitor and assess results, and to administer corrective action. Nadler and Tushman (1990), Eisenbach et al. (1999), Norrgren and Schaller (1999), and Stoker et al. (2001) support these conclusions. In addition to this, McDonough and Leifer (1986) reason that instr umental leaders use delineated task boundaries. Barzak and Wilemon's (1989) conclude that instrumental leadership heavily relies upon project planning, and interfaces between co-innovating departments in the departments in the organisations. Strategic Leadership The person performing the strategic leadership style uses hierarchical power to innovate. Harmsen et al. (2000) substantiate that managers performing a strategic innovation leadership style know the strategic competences of the organisation. Waters (2000) concludes that top management commitment to innovation is a basic characteristic of innovative organisations. Nam and Tatum (1997), and Eisenbach et al. (1999) argue that a highly effective strategic innovation leader has the authority to approve key ideas. Moreover, Norrgren and Schaller (1999) report that a strategic innovation leadership style facilitates the development of the innovative capabilities of employees. Managers of innovative companies score relatively high on the aspects commitment, and risk taking. They strategically commit themselves to innovation, make bold decisions despite the uncertainty of their outcomes and invest in innovation, even when faced with decreasing profit margins (Saleh and Wang 1993). Interactive Leadership The interactive leadership style tries to empower employees to innovate and to become innovation leaders themselves. Eisenbach et al. (1999) support the conclusion that an interactive innovation leadership style concentrates on individualised c o n s i d e ra t i o n w h e n p rov i d i n g support, coaching and guidance. Because of this leadership style, employees sometimes develop into
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The interactive leadership style tries to empower employees to innovate and to become innovation leaders themselves
innovation leaders who assist the overall leader. Nadler and Tushman (1990) argue that only exceptional individuals can handle the behavioural requirement of performing all leadership styles at the same time. Thus, an effective alternative for leaders who do not combine one or more is to develop leadership throughout the organisation. Rice et al. (1998), Markham (1998), and Burpitt and Bigoness (1997) draw similar conclusions. They stress the effectiveness of multiple leadership and empowered innovation teams. Effectiveness Of Leadership For Sustainable Innovation In each studied project, the municipal manager performed one of the four leadership styles. Within the structure of the analytical framework, and for all projects, this section describes the effects of these leadership styles on the sustainable innovation processes. CASE 1: Charismatic leadership and Sustainable Innovation In the first case, the manager coordinated a municipal project to design and construct various civic facilities with environmentally friendly materials in an urban area of 250 houses. The manager performed a charismatic leadership style to direct the design activities of a municipal design team, communicated in visionary images about a sustainable society, and organised meetings to stimulate the team to discuss various sustainable topics. The team members complained about the so-called vague ambitions of the project, the absence of realistic goals and measures and fuzzy management. The municipal manager tried to energise the participants, and invited them to
express their views on sustainable building. They did not respond and did not develop new ideas. In a last attempt to accelerate the team member's contribution, the municipal manager organised meetings and invited the participants to brainstorm on the specifications of a sustainable design for civic facilities. The project members did not know what to say and what to do. The overall outcome of the charismatic leadership style in this project was a completely traditional design, without sustainable innovations. In terms of sustainable building, this project failed. The municipal manager lacked knowledge of sustainable building, did not absorb useful information and knowledge during the project, and did not hire internal or external consultants to inject the project with the knowledge needed. The manager coordinated a project team, consisting of members without competence in the field of sustainable building, and believed that a charismatic leadership style inspired the team members to develop expertise. This approach had the opposite effect. The team members were not able to transform the manager's visionary ambitions into practical results. They chose to blame the manager. Case 2: Instrumental Leadership and Sustainable Innovation In the second case, the manager coordinated a municipal project to develop green design for an urban area of 500 houses. The municipal manager led a design team, consisting of architects of a commercial firm and designers of the municipality. The manager performed an instrumental leadership style and organised several design meetings. In the meetings, the design team discussed the transfor mation of the basic requirement into a detailed town and country design. In all meetings, the d e s i g n e d te a m e v a l u a te d t h e e n v i ro n m e n t a l q u a l i t y t o t h e preliminary designs. The manager used a formal planning scheme to assure the quality of each step in the design process. During the project, a municipal engineer, who also participated in the project team, developed a sustainable system for drainage. The municipal manager integrated this contribution into the designs of the town and country project. The overall result of the instrumental leadership style was a design with many sustainable innovations. It protected the natural
COVER STORY environment, contained many green areas, and utilised sustainable building materials. In terms of sustainable innovation, the performance of the instrumental leadership style was successful. The main reasons were that the manager I. hired three designers from an e x te r n a l a rc h i te c t 's f i r m w i t h sustainable competence; II. Was assisted by a municipal engineer with relevant sustainable knowledge; III. Defined sustainable project goals; IV. Selected green building methods; V. Introduced checklists for green design; VII. Used project management methods to plan, realise, and control the sustainable building process Case 3: Strategic Leadership and Sustainable Innovation In the third case, the manager coordinated a municipal project to develop an ecological garden, for an urban area of 50 houses. The manager used a strategic leadership style and hired a managing designer of an architect's firm to develop the design. The manager directed the architect's activities. The architect had to adjust the rough draft and preliminary design to the wishes and demands of the commissioning manager. The municipal manager showed the rough draft, preliminary design and final design to a municipal designer. The manager enabled the municipal designer, who was highly motivated to contribute to the design process, to develop several sustainable subdesigns and integrate them in the overall sustainable garden design. The result of the strategic leadership style was a sustainable garden design, consisting of many existing, renewed and new natural elements. It integrated natural elements such as trees, bushes and fields and urban elements like houses, lanes and playgrounds. In terms of sustainable innovation process, the performance of a strategic leadership style was fruitful. The main reasons were that the municipal manager I. Hired a designer from an external consultant's firm with sustainable competence; II. Had a municipal designer with knowledge of sustainable gardens; III. Concentrated on directing their activities. The municipal manager used the power to commit, enable and sometimes force the designers to develop innovative ideas and solutions.
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Case 4: Interactive Leadership and Sustainable Innovation In the fourth case, the manager coordinated a municipal project to develop 200 environmentally friendly houses. The manager used an interactive leadership style and worked with seven real estate agents, each represented by a manager. All seven real estate agents coordinated the development of ten to fifty houses on an area owned by the municipality. The real estate agents and the m u n i c i p a l i t y a g re e d t h a t t h e municipality had to sell the ground to the real estate agents. It enabled the latter to sell the houses on the commercial market. Part of this transaction was that the real estate agents allowed the municipal manager to co-direct their design processes. As an informal commissioner, the municipal manager requested the real estate agents to work with the sustainable architects and they all agreed. The municipal manager convinced the real estate agents and their architects to use environmentally friendly materials and sustainable design checklists. The manager also organised workshops to evaluate the designs. All real estate agents and their architects participated and took notice of each other's results. Furthermore, the manager facilitated the architects to act as additional innovation leaders, and they all did. They developed housing designs with a high sustainability score. The result of the interactive leadership style in the housing project was as set of seven highly sustainable designs for ten to fifty houses each. In terms of sustainability, the performance of an interactive leadership style succeeded. Main
reasons were that the municipal manager I. Became an informal commissioner in all project teams; II. Convinced all real estate agents to hire a sustainable architect; III. Supported these architects to become innovation leaders.
In terms of sustainable innovation, the performance of the instrumental leadership style was successful. The main reasons were that the manager: 1. hired three designers from an external architect's firm with sustainable competence Leadership Styles and Knowledge Measurement The manager's leadership style and active capability to coordinate the necessary information and knowledge exchange jointly support the innovativeness of the studied projects. In all cases, the managers showed distinct leadership styles. In the first case, that is the project had failed, the manager did not coordinate and facilitate the exchange of knowledge and information. In each of the other three cases, that is the projects that succeeded, the manager actively managed the exchange of knowledge and information between co-workers.
CASE STUDY
innovation in ordinary things
Nigeria has been reported to be the most populated nation in Africa, but it lacks the basic social amenities which has caused a lot of brain drain and untapped talents in the nation. Talents can be discovered and the spirit of entrepreneurship can be imbibed by the unemployed and even people aspiring to start up businesses with a passion to impact positively in the society.
Awojobi Clinic Eruwa Awojobi Clinic Eruwa (ACE) owned by Dr. Oluyombo Awojobi is a typical case study of a social service provided in a s m a l l c o m m u n i ty d e s p i te th e unavailability of resources, he made a land mark in a rural tropical savannah of Eruwa, and about 150 km drive from the heart of Lagos, which is equivalent to about six hours. Considering the general state of the health sector, especially the public or government
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owned hospitals in Nigeria; Awojobi Clinic is a miracle to the Eruwa community. All the equipments and social amenities are provided within the premises, water is pumped up from dams fashioned by hand; electricity is provided from cheap generators; maize curbs disposed from neighboring farmland, which could constitute nuisance if unused, serve as heating source for boiling water and chemicals for sterilizing, among other general uses. Operating and surgery equipment, tricycle and the hospital ambulance are locally fabricated. Other equipments that are locally and cheaply produced include Heath Robinson autoclaves, water distiller, intravenous fluid production and surgical equipments. Dr. Awojobi provides both surgical services and end-stage pathology to members of the community at very low and affordable prices. Though medical service is rendered to the less privileged in Eruwa, the account records are properly kept and meetings are held among staff to discuss administrative issues. The services rendered at Awojobi clinic is based on the love and care for the people in that community. This clinic has been visited by foreign organisations such as British High Commission, which made a donation;
a documentary has been made by TV Continental (TVC) based on the clinic's accomplishment and 25 acres of land given for free by the paramount chief of that community to the clinic administrators to further community development. Dr. Awojobi's believes in proper training, spirit of perseverance and truthfulness, and he derives inspiration from Niccolo Machiavelli, an Italian Philosopher which he quotes, 'There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.’
CASE STUDY
Songhai Centre Another dimension to providing social services through innovation is demonstrated in the story of the Songhai Centre. The Songhai centre located in Porto Novo, Republic of Benin has been described as a bioagricultural research and training institute established to give a viable socio-economic environment in Africa. The centre was established about 30 years ago by Father Godfrey Nzamujo, who was determined to restore the dignity to the African people through invention, innovation and entrepreneurship for sustainable agricultural practices and development. The objective of the Songhai centre is for training, production, research and development though technology to meet specific needs. In other words, Songhai allows experimentation in agricultural practices such as animal h u s b a n d r y, fo o d d i s t r i b u t i o n , marketing, financial management and on-site follow-up to farmers. Young farmers and entrepreneurs go to the Songhai farms to work and gain experience. The centre receives about 4,000 visitors each year and has been termed a tourist area. The Enterprise Development Centre team with some participants from the social sector
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management programme visited the Songhai centre in January, 2010.
Many small businesses do not see beyond the current state of the business and as a result, new ideas are not generated into the business process. These new ideas can cause incremental emergent and revolutionary changes in thinking, products, processes, or organizations. The goal of innovation is positive change, to make someone or something better. Innovation that leads to increased productivity is the fundamental source of increasing wealth in an economy. Beyond talents and skills business owners whether small, medium or big should cultivate the habit of making researches and searching for new innovations in
technology through resources available to them. The internet is one
Many small businesses do not see beyond the current state of the business and as a result, new ideas are not generated into the business process. These new ideas can cause incremental emergent and revolutionary changes in thinking, products, processes, or organizations.
COVER STORY collaboration programmes stimulate innovative cooperation between organisations. All four building projects participated in a national collaboration programme, funded by the government. The programme supported the projects' sustainable ambitions by means of subsidies, information and free consultancy. In the unsuccessful project, the manager did not ask for the programme's support. In the three highly innovative projects, the municipal manager contacted the programme's representatives and arranged that the projects received subsidies and consultants' advice.
The innovation leadership literature does not explicitly emphasise the importance of a leader's efforts to manage knowledge, stimulating sustainable information and knowledge exchange. On the other hand, the literature on knowledge management concentrates on this capability (cf. Lloyd 1996: Grant 1997: Cavaleri and Fearon 2000; Brensen et al. 2003; Huang and Newell 2003; Liebowitz and Megbolugbe 2003; Viitala 2004). Kangari and Miyatake (1997), and Veshoky (1998) argue that information gathering is an important innovation driver. In addition to this, Toole (1998) specifies that a firm's capacity to gather and process information about new technology is a significant stimulator of innovation. In the failing project, the manager did not collect information about sustainability and sustainable technology. In all three innovative projects, the manager hired consultants and designers with knowledge of the technological aspects of sustainable building. Goverse et al. (2001) underpin the importance of the creation, stabilisation and upgrading of knowledge networks. In the project that failed, the manager did not participate in a knowledge network, and did not have contacts with universities, research centres or other knowledge providers. In all three successful projects, the manager had intensive working relationships with several universities, research centres and consultancy firms. Seaden and Manseau (2001) argue that
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According to Nam and Tatum (1992), an integrated and informal R&Dfunction strengthens the innovative capacity of the organisation. It creates attention to innovation in parts of the organisation that work under market conditions. Neither the failing project, nor the successful projects had an informal R&D-function. The project manager initiated all innovative action individually, without support of an R&D-function, R&D-department, or R&D-budget. Toole (1998) concludes that manufacturers and retailers of building materials, who provide information about new products, substantially contribute to innovation in the industry. In the failing project, the manager did not contact suppliers of sustainable building materials, and did not search for the necessary information on new sustainable applications. In the projects that were highly innovative, the manager hired consultants who had intensive contacts with suppliers of sustainable building materials. They informed the p ro j e c t s ' d e s i g n e r s a b o u t th e specifications of sustainable materials. Finally, according to Veshosky (1998), it is important that the organisation facilitates a project manager to obtain information about innovation. All projects were part of the municipal organisation, and the municipality did not provide extra budgets, education or time. The manager had to learn by trial and error. The project that failed also was the manager's first project in the field of sustainability. The manager learned from this project and acted as a broker of information and knowledge in the three projects that were successful. Conclusion The performance of a leadership style and the management of the additional knowledge exchange, jointly stimulate sustainable innovation in building. A manager's perfor mance of an
innovation leadership style is (un)successful when it is (not) combined with knowledge management. The research reported in this paper shows that an effective manager of innovative sustainable building projects in the Netherlands would choose an innovation leadership style with the view to stimulating the exchange of sustainable building information and knowledge. The research indicates that I. Managers of sustainable building innovation in the Netherlands have to be leaders of both innovation and knowledge. II. Managers of innovation in other countries, who lead comparable sustainable innovative projects, would be expected to act in a similar way; III. Managers of innovation in other countries, who lead innovative projects in different technological fields, would be expected to assume specific leadership styles and pay considerable attention to knowledge management. The research introduces a new literature-based framework to analyse manager's innovation leadership styles in their actual contexts. The empirical findings indicate that this analytical framework would need to be extended in order to incorporate management of knowledge. To specifically explore and explain the knowledge factor in innovation leadership, further research has to integrate knowledge leadership in its literature-base, research design and empirical analysis.
It creates attention to innovation in parts of the organisation that work under market conditions. Neither the failing project, nor the successful projects had an informal R&D-function.
EXECUTIVE EDUCATION
SUSTAINABILITY courses To identify and tackle issues that affect the sustainability of our economy, social welfare, and environment, there are valuable resources that can provide practitioners with the foundational skills and knowledge to build their capacity to create a better future. The failure to manage sustainability issues will affect individual livelihood, businesses, and communities in Nigeria and Africa as a whole. Dernback J.C states that various approaches to an education in sustainability encourages people to understand the complexities of, and synergies between, the issues threatening planetary sustainability and understand and assess their own values and those of the society in which they live in the context of sustainability. Therefore, we have provided a list of selected lists of institutions that provide basic to advanced courses on Sustainability that address a wide range of topics including environmental economics, sustainable energy and market incentives, ecosystems and biodiversity, strategies for sustainability management, among others to ensure a sustainable future. Coursera: Introduction to Sustainability Coursera is an educational technology company offering massive open online courses. One of the courses it offers is a course “Introduction to Sustainability�. This course introduces the academic discipline of sustainability and explores how today's human societies can endure in the face of global change, ecosystem degradation and resource limitations. Workload to complete the course requires 8-10 hours/week. The course focuses on key knowledge areas of sustainability theory and practice, including population, ecosystems, global change, energy, agriculture, water, environmental economics and
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policy, ethics, and cultural history. For more information go visit: https://www.coursera.org/course/sust ain, and sign up for the course. Harvard Sustainability Certificate: Sustainability Training The Sustainability training at Harvard Extension School offers foundational knowledge in environmental management and build skills to i m pl e m e n t b e s t p ra c t i c e s i n sustainability management. It is an online five-course sustainability certificate programme. The courses are practical and come in two categories: the knowledge set courses and skills set courses. Courses offered include Sustainable Business and Technology and Strategies for Sustainability Management, Environmental Economics among others. Visit Harvard extension school site for more information. For more i n f o r m a t i o n v i s i t : http://www.extension.harvard.edu/sus t a i n a b i l i t y o r e m a i l : professional_certificates@dcemail.har vard.edu. Columbia University School of Continuing Education: Master of Science in Sustainability Management The M.S in Sustainability Management, co-sponsored by The Earth Institute and the School of Continuing Education, addresses the need for formal training and education in sustainability. The programme takes a
bold and innovative approach to sustainability that prioritizes the protection of Earth's systems and resources as well as the spread of social and economic opportunities for all people. Who Should Apply? The M.S. in Sustainability Management is ideal for professionals currently working in or aspiring to be in management positions in regulatory compliance, facilities management, operations, and environmental stewardship. For more i n f o r m a t i o n v i s i t : http://ce.columbia.edu/sustainabilitymanagement/apply Sustainable Venturing and the New Energy Economy This Sustainability Executive Education (SEE) is a partnership between Colorado State University and Natural Capitalism Solutions to empower business professionals with the leadership skills, critical concepts, tools, and networks to build more profitable enterprises that create a more sustainable and prosperous future. The Sustainable Venturing and the New Energy Economy course focus on sustainable energy and market incentives. Through readings, examples, and assignments, the course will focus on specific venture strategies that are being utilized to capture economic opportunities in these sectors. For more information visit:http://www.sustainabilityexeced. com/enroll-now
ADVERTORIAL
shell NIGERIA: Achieving Environmental Sustainability
Health Care Waste (HCW), sometimes called Medical Waste (MW), includes all the waste generated by health-care establishments, research facilities, and laboratories. In Nigeria, the dearth of public waste management i n f ra s t r u c t u r e h a s s i g n i f i c a n t implications on sustainable management of HCW. Sometimes generators of HCW have to adopt crude and self-help approaches of disposing their waste; thereby, increasing the potential for health and environmental degradation. While the importance of health care cannot be overemphasized, the waste produced in the course of health care activities can be hazardous and therefore have a higher potential for infection and injury than any other type of waste. S h e l l Pe t ro l e u m D e v e l o p m e n t Company not only promotes an effective managerial approach to HCW through the use of appropriate
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management of HCW.
In Nigeria, the dearth of public waste management infrastructure has significant implications on sustainable management of HCW technologies and robust management policies, but also informs hospital patients, health care workers and the general public about the health risks that result from inadequate
Strategic Approach to Health Care Waste Management SPDC recognises the need to responsibly manage HCW in line with i t s H e a l t h , S a fe t y, S e c u r i t y, Environment and Social Performance Control Framework (HSSE & SP CF). It also recognises the need to comply with international conventions and treaties Nigeria is signatory to, as well as apply Environmentally Sound Management (ESM) best practices that prevent exposure of personnel and pollution of the environment. Our duty-of-care philosophy ensures that HCW from our operations are managed from creation of waste to proper disposal. Several controls have been put in place at all stages of HCW management including segregation, collection, storage, transportation and re s p o n s i b l e re u s e b y f i x a t i o n technique using ash to produce
ADVERTORIAL monolithic blocks/slabs. The waste is accompanied by a duly completed Waste Consignment Note (WCN), which is signed by the recipient before accepting the waste. F r o m H e a l t h C a r e Wa s t e t o Monolithic Blocks/slabs for Beneficial Re-use All HCW generated from SPDC operations in the Niger Delta are incinerated in a dedicated licensed Medical Waste Incinerator (MWI) in the Shell Industrial Area Port Harcourt, Rivers State. The Shell MWI was preinstalled with environmental protection equipment in the plant, the most significant of which is a wet scrubbing unit, which removes microscopic fly ash particles, acid producing compounds, and vapourized metals from the waste gas s t re a m . T h i s p u r i f i e s g a s e o u s emissions before discharging to the environment. Our continuous quest for improved environmental performance motivated the conversion of the MWI fuel system from diesel to natural gas in January 28, 2011. The natural gas is sourced from the nearby manifold which receives gas from the Obigbo Flow S ta t i o n ow n e d by S P D C . T h e motivation for this project was to reduce, if not completely eliminate, the use of diesel as the source of energy for th e i n c i n e ra t i o n p ro c e s s th u s achieving environmental sustainability. Natural gas is known to be a cleaner fuel and therefore more environment-friendly. The use of natural gas to run the MWI is one step further in Shell's efforts to go green in our management of HCW. Optimization of Fixation Matrix for the Regeneration of Medical Waste Ash Residue In July 2008, SPDC commissioned a private waste and environmental management consultant (The Initiates Nigeria Limited) to car r y out investigations on the possibility of using fixation (stabilisation and solidification) techniques for the t re a t m e n t a n d c o n v e r s i o n o f Incinerator Bottom Ash (IBA) resulting from the incinerated Medical Waste (MW) from our facilities into reusable products for engineering applications. The stabilisation/solidification (S/S) process was adopted to encompass both the reduction in pollutants' toxicity and mobility as well as an improvement in the engineering properties and structural integrity of the waste material. The untreated waste material first underwent a toxicity characteristics leaching test to
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determine the level of heavy metals contamination and the treated materials were simulated to determine the leaching characteristics of inorganic components and stability under normal environment. The results show that all essential environmental parameters are within the statutory/regulatory guidelines and limits for reuse. The results were used to classify IBA products as nonhazardous on the basis of their toxicity and leachability properties. Solidification and stabilisation offers significant advantages over other treatment and disposal methods such as permanent storage, land filling or sea disposal because it provides permanent-long-term solutions. In addition, these methods offer opportunities for generating useful products at low cost.
The environmentally sound management practices for HCW in SPDC demonstrate SPDC 's commitment to achieving e n v i r o n m e n t a l s u s t a i n a b i l i t y. However, for a more effective result, it is important to focus on the essential elements of a successful HCW management, that is, the establishment of a national policy and a legal framework; the development of skilled manpower through training of p e r s o n n e l a n d ra i s i n g p u b l i c awareness which is vital in encouraging community participation in generating and implementing policies and programmes.
COLUMN globe. Corporate organizations are downsizing, shutting operations in certain continents and seeking collaborations across other sectors all in a bid to survive and keep operating.
CSR CONSULTANCY: A ROOKIE'S DIARY Here I am writing as a rookie in Consultancy; to be more specific, CSR (Corporate Social Responsibility) Consultancy. What does it mean to be a Consultant or “to be in the Consulting industry”? First, a simple understanding of a Consultant is a professional who offers expert advice in a particular or various areas such as management, accountancy, law or security, to mention a few. Now, the question becomes: “Since I am a rookie, am I a Consultant?” I could easily say yes, and back my claims with strong arguments, since I have already begun to learn and work the trade as a consultant. However, I must admit that I am not fully qualified to be a Consultant, yet. The experience has been very interesting. It has required a dynamic shift in my perspective and understanding about consulting, since I come from a different professional background as a Sales and Marketing Executive. In that role, I served as an executor of strategies and programmes, in order to bring in revenue to increase the bottom-line. With CSR consultancy, I am involved in the day-to-day grit work such as setting up policies, creating strategies and programmes that must be executed. I have come to appreciate and understand how much groundwork goes on before a CSR Strategy is implemented. CSR applies to Governments and Nonprofits, and TPC (ThistlePraxis Consulting)—based on years of experience in consultancy—has realized that CSR (Corporate Social Responsibility) doesn't represent the process and activity, especially for Corporate Organizations, rather TPC sees CSR as a means for companies to
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act responsibly by evaluating the impact of their activities on the environment and people, which in the long run can impact profitably on their bottom-line thereby increasing their chances of being sustainable. This implies that a Corporation must look internally at its own sustainability, and then its responsibility to both its internal and external stakeholders. Furthermore, I have learned that most corporate organizations appear to approach CSR with a basic template to execute. So a corporate organization renovates a school, builds a few boreholes, provides scholarship to students, sponsors a youth programme and they brand it as CSR. This is pushed to the media to present to the general public as a way of boosting its reputation; therefore, creating brand awareness where necessary. This is based on the fact that organizations don't have an in-built CSR strategy, but an add-on strategy, which is usually handled under their Corporate Communications Departments. As a rookie CSR consultant, it is obvious that this traditional approach to CSR has to be replaced by a strategy built into a business strategy. Corporate organizations would have to consider the impact CSR Initiatives would have for the organization (short and longterm benefits for the organization interms of ROI, Brand Awareness) and also the impact on the various stakeholders. This view has been supported by the recent buzz around “Sustainability”. Sustainability is now so important due to the economic meltdown in Europe; the political instability gradually creeping up from the Middle-East, and the environmental concerns all over the
A corporate organization should constantly seek ways to not only be responsible to society through implementation of community projects, reducing emissions and waste, offering employment, but also be sustainable in terms of boosting revenue, reducing or eliminating unnecessary costs, focusing on staff welfare, upholding a good reputation and maintaining a competitive advantage. Another major fact that I have learned about CSR is that it is important to have the top executives buy-in and fully support the CSR strategy, or else the strategy would not be embedded in the organization's operations and would be a short-lived strategy. From my experience visiting companies and making presentations, it is quite obvious that CSR and its link to sustainability have to be explained always before it is well understood. The conclusion can be reached that majority of Nigeria companies pay lipservice to the term “CSR”. CSR must have a more long-term view and an enduring impact as opposed to the short-term fix-ups to the society such as painting of schools, building a borehole, giving out scholarships. For example, a long term view for giving out scholarships could be to monitor the progress of the people who obtained the scholarships and use it to serve as a guide towards their future endeavors. One of the options may be to integrate the initiative into the workforce of the organization, who selected and awarded the people the scholarship. Finally, with focus on Africa as the next major frontier for development, corporate organizations in Africa need to learn from their counterparts in other continents who have recently just started building sustainability into their frameworks. I believe this is the time for corporate organizations to separate CSR (Corporate Sustainability and Responsibility) as a stand-alone department and also built strategy into its business strategy. This would not only address all the needs and concerns of various stakeholders, but also see the corporate organizations operating effectively and efficiently without damage to the environment and society as a whole.
IN PRINT
AR-CSR 2012 REPORT The planet we inhabit faces dire consequences if people all over the world continue to consume finite resources at the current rate. Population growth is exerting ever increasing pressure on food production, energy, mineral reserves, biodiversity and water. Meanwhile, the impacts of climate change are already being felt, sufficiently devastating and are set to increase in severity; leading to flooding, drought, wildfires, insect plagues, sea level rises, food shortages and social dislocation. However, Sustainable Development is not just about our impact on our environment and the planet as a whole. Practically every decision we make, from where we source our supplies to who we employ, has the power to influence not only our local community, but the society as a whole. In the same vein, organizations cannot operate sustainably if the only thing that matters is protecting the environment or society. Organizations need to secure investment and make money to be able to buy resources and compensate the work force to produce goods and services that we need to sustain us. So, running a sustainable business means a balanced approach to addressing issues relating to people, the planet and profit. As noted at the Conference, there is a growing realization across individuals, businesses and governments that the current model of development is unsustainable. We are living beyond our means and our ways of life are placing an increasing burden on our planet; therefore, the recognition to develop more sustainable approaches to human existence is heightened. In 1987, the United Nations released the Brundtland Report, which defined sustainable development as: T h e p r i n c i pl e s o f S u s ta i n a bl e Development require that we live within the capacity of natural systems to cope, and that we hand on our environmental heritage, whether natural or man-made, to future generations in at least as healthy a state as we found it.
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At the AR-CSR 2012, participants and speakers examined how organizations can best engage with Sustainable Development as well as how individual entities can derive substantial benefits from the implementation of Sustainable Development at the organizational level. Discussions and recommendations were put forward, reviewing ways in which the role of the private sector can be further enhanced and encouraged such as significant energy and materials savings, robust risk management, fewer work related injuries and deaths, and avoidance of the costs of regulatory infringements; and reputation and brand enhancement leading to investor, customer and staff loyalty. Public-Private Partnerships are in vogue, but far less attention has been paid to “private-private�, or businessto-business relationships in a development context. These partnerships are commonplace in many commercial efforts. They cut a c ro s s s e ve ra l i n d u s t r i e s a n d disciplines. No oil major, for example, would dream of investing substantially in a country without a complex network of alliance partners to bring complementary capabilities or to offset risk. The question that begs to be answered is why businesses still view Sustainable Development challenges through the lens of vertical industry silos such as consumer products, technology, financial services, or pharmaceuticals. It has been noted that issues such as access to energy, water, education, or health care do not respect geographic, industry, or corporate boundaries. The Keynote speaker at the AR-CSR 2012, Dr. Gro Harlem Brundtland, twotime Prime Minister of Norway, former director, General of the World Health Organization, UN Special Envoy on Climate Change and Chairman, World Commission on the Environment and Development (a.k.a. the Brundtland Commission) noted that the only framework within which economic opportunities can and must be
expanded through Public-Private Partnerships is the employment of a concerted approach, aimed at moving to a safer, more prosperous world whilst safeguarding the future of planet earth itself. Brundtland further elucidated that the old-fashioned philosophy that the Public and Private sectors are two different arenas and that the public sector alone should be responsible for beneficial social goals cum policies is outdated. In order to reach common goals, which are crucial, both sectors need to move together towards the best incentives and away from disincentives. According to her, good businesses realise that they cannot succeed in societies that fail. Throughout the 20th century, economic growth was measured by the accumulation of physical, financial and human capital without regard to changes in neither natural capital nor social risks. In the 21st century, it must be a green economy, capable of generating economic growth and improvement in people's lives without harming the environment. This means taking advantage of the vast potential of maximizing resource productivity, especially with respect to energy and water as well as reducing waste. It also means investing in sustainable technologies that will create jobs and support the poor, improve health, education and build more resilient, yet equitable resources. In conclusion, the conference noted that to be sustainable, organizations must be able to operate in perpetuity and to continuously support the employees, clients, suppliers, communities and other stakeholders whether they rely or not on their products and services. So sustainability is underpinned by the need to not only understand the impacts of our activities on the environment, the economy and society as a whole, but also to understand, manage and minimize the impact of events which interrupt the continuity of business delivery.
PROFILE The Sustainable Solutions Showcase (SSS) initiative is an annual competition that seeks to promote, expose and connect innovations and inventions of social entrepreneurs with potential partners, funders and clients. The products or services presented must be designed with the aim of solving social, economic or environmental problems and turning them into opportunities for advancement and wealth creation. The 2012 AR-CSRTM produced two winners Achenyo Idachaba of Mitimeth and Otto Orondaam by Slum2School Project, who received recognition and opportunities from investors at the conference.
MitiMeth
MitiMeth is a for-profit social enterprise founded by Achenyo Idachaba. The enterprise is an inclusive business initiative. It engages people at the Base of the Economic Pyramid (BOP) in producing handcrafted home and personal accessories from invasive aquatic weeds and non-timber resources into home décor and personal accessories. The weeds are harvested from the waterways in the riverine communities, pre-processed and upcycled into new value added products such as multi-purpose baskets, vases, ottomans, mirrors, lamps, coasters etc. Stubborn aquatic weeds choke up several waterways in Nigeria; thus, hampering traditional fishing activities and curtailing access to water bodies. The goal of the company is to create sustainable livelihood through the creation of products using renewable resources. It received the 2013 Local Raw Materials Content Award given by the Raw Materials and Research Development Council of the Federal Ministry of Science and Technology. During the 2012 Sustainable Solutions Showcase, Ms. Idachaba emerged as
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one of the winners and was given the unique opportunity to pitch her social enterprise before a distinguished audience at the 2012 AR-CSR conference. Some organizations expressed interest in partnering with the company to replicate this inclusive business model in riverine communities in Nigeria. One of the organisations that approached the company was Convention for Business Integrity (CBI). The representative of the organization, Executive Director, Mr. Soji Apampa, indicated his organization could potentially assist with some technical assistance that could take MitiMeth to the next level. By September 2012, MitiMeth had completed the application for noncontracted support from the BIF for assistance to scale up the MitiMeth business model. By February 2013, the BIF had mobilized a consultant to start working with the company. By March 2013, the consultant had facilitated introductions to potential partners and as a result MitiMeth products are now being retailed in a couple of “high foot traffic” outfits—Quintessence and Terra Kulture—promoting African arts and crafts in Lagos. The “trial” products on display have been received well and there has been an increase in demand for the products.
It engages people at the Base of the Economic Pyramid (BOP) in producing handcrafted home and personal accessories from invasive aquatic weeds and non-timber resources into home décor and personal accessories
PROFILE
Slum2School Project Slum2School project is a project founded by Otto Orondaam. It focuses on an innovative approach to mobilize grassroots collaborations geared towards providing children, mostly orphans and vulnerable children, in slums access to quality education. It involves a comprehensive youth driven advocacy and reorientation campaigns, provision of educational scholarships to disadvantaged children, complete educational materials, several psycho-social support programmes for teachers and school management and construction o f l ow c o s t s c h o ol s i n p o o r communities. The project has achieved to enroll 320 children into three schools under its scholarship programme; organized about 15 major community outreaches, advocacy and sensitization on health related issues, education, family planning, among others in three communities. It has also formed and trained a community based volunteer group made up of 20 community youths to ensure effective monitoring, evaluation and mentorship. And owing to its success, the project has received awards and recognitions among which are Community Shields Awards for Leadership; Lagos State Honors Award for Most Outstanding Corps Member in 2011; Future Awards for Innovation in Education; Nigerian CSR Awards; Young Social Entrepreneur of the Year by the Global Foundation; Nominee for the MDG Presidential Awards During the 2012 Sustainable Solutions Showcase, Mr. Orondaam emerged as one of the winners and was given the unique opportunity to pitch his social enterprise before a pool of top executives and CEOs at the 2012 ARCSR conference. It presented Mr. Orondaam to meet and network with like-minded individuals and
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organizations that shared a similar passion for development, and access to potential investors for partnerships/collaborations�. However, he is looking forward to more sustainable collaborations to create more impact.
Slum2School project is a project founded by Otto Orondaam. It focuses on an innovative approach to mobilize grassroots collaborations geared towards providing children, mostly orphans and vulnerable children, in slums access to quality education
9 QUESTIONS
ASHISH THAKKAR CEO & Founder Mara Group of Companies
In 15 years, founder and CEO of Mara Group, Ashish Thakkar, has grown his company, Mara Group, from the humble beginnings of selling computers to friends to the global firm that exists today in 18 African countries, employing over 4,500 people. In this interview, Ashish tackles how the African environment can encourage more innovation; Mara Group's successful approach to leadership and how to operate in a unique African Market.
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9 QUESTIONS
1
Does the African economic environment encourage or enhance Innovation? Not nearly enough. Sub-Saharan Africa lacks an enabling environment for entrepreneurship, holding back the region's youth from actualizing their potential. There are so many young entrepreneurs out there with ideas, enthusiasm and motivation, who really want to make things happen. But they are not empowered in the right way. We need to provide young African entrepreneurs with mentorship, incubation, and access to capital, enabling them to turn ideas into sustainable businesses.
2
What is the relationship between Innovation and Leadership towards the success of a Company in Africa? Continual innovation is the key to success. Africa needs both entrepreneurs who will create viable businesses to drive the economies and intrapreneurs who will work for SMEs and MNCs and provide the visionary leadership to innovate industrial sectors and increase economic growth.
3 Do African companies need to be innovative to be more sustainable and responsible towards the society? I believe innovation, sustainability and responsibility should go hand in hand. At Mara, we strive to grow by continually seeking opportunities where a new approach to a problem or addressing market demand can create meaningfully value.
4
How well has Innovation helped Mara Group become a leader in various industries it is engaged in?
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Africa needs both entrepreneurs who will create viable businesses to drive the economies and intrapreneurs who will work for SMEs and MNCs and provide the visionary leadership to innovate industrial sectors and increase economic growth Innovation is one of our core principles. We use a partnership approach in selecting and participating in new investments and opportunities across the continent. Mara brings "onthe-ground" expertise and seeks to work with strategic partners capable of contributing meaningful intellectual capital and operational know-how.
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Does Mara Group pride itself as transformational in its approach to Leadership or what kind of leadership does it thrive on? We work in a dynamic way, adjusting our approach to continuously challenge the status quo to shape and define a new and optimum way of working. I believe in creating flexible environments where we grow with people, enabling them to be their best through them taking responsibility and ownership. Basically, I think you should always strive to surround yourself with people smarter than you; that's one of the key elements in leading a successful business.
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What should be the role of an organization towards the society it exists and operates in? Businesses must strive towards making a positive social impact in the communities where they operate, and not only focus on the financial return.
At Mara, awareness and sensitivity to the communities we work in are essential. We see our interactions and interventions as a key step in building sustainable communities.
7 How do African companies survive the tight economic climate and political disturbances currently taking place? There are still many challenges when it comes to doing business in Africa. However, the continent has really started transforming over the last few years and today, Africa holds a fantastic opportunity going forward.
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For a holding company like Mara Group which makes investments and enters into strategic partnerships in so many countries, what measures do you put in place to ensure stability and responsibility to the society? We believe that making profitable investments does not preclude a principled, impactful investment approach. To us, principled means aligning with partners of uncompromising quality, unimpeachable ethics, and with a long-term orientation towards enhancing the lives and prospects of Africans. True corporate social responsibility lies in creating and supporting companies that are built on sound principles and formed to serve a true need.
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What advice do you give African companies looking to operate outside their local territories? Every African market is unique, and therefore I would advice them to partner with local companies with the right on the ground expertise, who share the same values, interests and vision.
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