Building sustainable advantage comprises the activities required to build a position in the marketplace and community-at-large that is responsible, meets both current and future needs, is advantageous, and achieves performance excellence. It is applicable from the creation of a vision to the delivery of the resulting value on an ongoing basis.
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In the
twenty first century, community and business leaders in
both public and private sectors are addressing
sustainability - meeting the needs of the present without
compromising the future. Sustainability is an important
issue for enterprises.
Whereas an enterprise may be started by a single
entrepreneur to transform an innovative idea into a
valuable product and/or service, there is mutual
responsibility with its constituencies to perform and
deliver value over time. Constituencies build vested
interests in an enterprise as a consequence of its efforts
to attract and acquire, expand, and maintain relationships
with them. Employees rely on jobs, customers rely on
products and/or services, suppliers rely upon orders, and
investors rely upon return on investment from generation to
generation. If an enterprise reduces or discontinues
operations, the effect is disruptive on its constituencies,
markets, and the community-at-large, if not devastating.
Accountants and auditors consider whether an enterprise is a "going concern" based upon its ability to meet its financial obligations. Doubts may arise from the inability of an enterprise to generate sufficient cash flows from operating activities, sell assets to generate cash, or restructure debt. Being an "ongoing concern" is an extension of the concept.
Continuing as an ongoing concern means that the management of an enterprise has the confidence, competencies and commitment to operate indefinitely. To do so requires fostering the entrepreneurial mindset and actions through the discipline of intrapreneurship, and reaching beyond business-as-usual by building sustainable advantage.
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Considering
sustainability responsibly in all decision
making...
The sustainable enterprise employs three criteria in all
decision making - are the mindset and intended actions
environmentally, economically, and socially responsible?
Being environmentally responsible impacts the capabilities
of people, processes, and products and/or services. It
means taking care of the ecological biosphere by protecting
natural resources; avoiding pollution of air, water, and
soil; being energy efficient; and reusing and recycling
materials, supplies, and products to reduce waste.
Being economically responsible means applying the
disciplines of stewardship and value management to
constituencies. Employees are offered fair compensation in
exchange for loyalty and productivity. Customers are
offered quality and value in exchange for loyalty and
timely payments. Suppliers are offered loyalty and timely
payments in exchange for quality and value. Investors are
offered returns above the cost of capital in exchange for
commitment. Regulators are offered compliance in exchange
for freedom to do business within laws and regulations.
Competitors are offered challenges in exchange for
fairness. As a consequence, natural, human, intellectual,
and financial capital is not just preserved but appreciates
over time.
Being socially responsible impacts the markets and
communities that the enterprise serves and is served by.
The minimum standards for social responsibility include not
engaging in deceptive or fraudulent practices, and
providing safe facilities and equipment, processes and
functions, and products and/or services.
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Meeting
the needs of both current and future
generations...
What is widely used today may be extinct tomorrow; what is
commonplace tomorrow may not even have been thought of
today. So it is necessary to anticipate the wants and needs
of the future while deliberating in the environment of the
present.
The sustainable enterprise ensures that the
entrepreneurial, leadership, and managerial roles are
performed throughout on an ongoing basis to transform
innovation into value. Plans and policies must be deployed
and executed with anticipation and deliberation, and with
contingency because events may take a different course from
those envisioned.
Gaining
a beneficial position that will continue over
time...
Enacting change, either by causing it or responding to it,
is essential for sustainability. Maintaining
business-as-usual is insufficient - an enterprise must
stretch beyond its comfort zone because the only certainty
is uncertainty.
The sustainable enterprise gains a beneficial position that
continues over time by developing, enhancing, or
maintaining its current posture in marketplaces, or by
being willing to change.
From the creation of a vision to the delivery of value on
an ongoing basis, the sustainable enterprise builds:
* Aspirational advantage - loyal relationships between
employee, customer, supplier, and investor constituencies
because stated values and enacted values are consistent
* Competitive advantage - the position and posture that
offers consistencies better value than competitors
* Collaborative advantage - relationships between
suppliers, or customers, or peers as a partnership with a
common mission, and operating dependently for mutual value
* Cooperative advantage - relationships between suppliers,
or customers, or peers as an association with a similar
mission, but operating independently for mutual value
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Achieving
performance excellence...
The sustainable enterprise tries to do the right things,
and then do them well. It is not afraid to change direction
when it is doing the wrong thing, or when things aren't
going well. It is not afraid to admit mistakes, learn from
them, and move on. It is willing to take preventive action,
but when cure is necessary, it takes remedial action
swiftly. It strives to deepen relationships with current
constituents with existing and new products and/or
services, but also broaden relationships in existing and
new markets.
Achieving performance excellence requires alignment between
the enterprise and its constituencies externally, and
between organizational units internally. It means exceeding
requirements and expectations in terms of commitment to
values and vision, and strength of financial and
non-financial results including market share, resource
utilization, productivity, time-to-market, cycle time,
quality, satisfaction, and sustainability.
Building sustainable advantage from vision to value is an
enterpriship (entrepreneurship, leadership, and management)
competency.
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From Nigel A.L. Brooks
http://www.nigelalbrooks.com
Article Source:
http://EzineArticles.com/?expert=Nigel_Brooks
http://www.scribd.com/doc/32350018/Building-Sustainable-Advantage-From-Vision-to-Value
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