“Defining business success and the relevance of the

environment on business”

The path we will walk

Financial viabilityFinancial sustainabilityMarket positionSomething different Social goodEnvironmental sustainability

Success

Growth pathsEnvironmental issuesThe role of businessSME success stories

StrategyFocus

Commercial imperativeCommon themesBusiness success and the relevance of theenvironment

So what do I want to get out of today’s presentation

• Share knowledge and learn from you• Get some informed discussion• Provide some reference resources and case

studies• Be a point of contact to you for

What do you want to get out of today’s presentation?

Just take 15 seconds –

Make sure you ask about what I don’t coverthat is of interest to you

Traditional business life cycle

Sigmoid curve

So what is success?

Stories from my work history

Focus as an entrepreneur• Focus on the problem you solve – what is your market

offering• Charge and collect on sales• Keep customers happy and the business generation model

working• Prepare cash flow and budgets• Monitor performance weekly and manage cash daily

Tech Co. – what worked as we grew• Industry undergoing significant change• Held our pricing model• Missed a lot of tenders – stayed at 30 people and $2m for longer

than we wanted• Recovered when competitors failed – grew to 200+ people and $8m

quicker than we wanted• Identified further opportunities to entrench market position• Successful exit – taken over by public company – still operating

Supply chain solutions – what worked

• Market change created niche opportunity• Large competitors targeted top 50 companies

– we targeted next level down• Built a great team and had fun• Managed cash carefully and had good

relationship with bankers and suppliers

A growth trajectory – Supply chain solutions

02000400060008000

1000012000

Revenue(ooo's)Profit(ooo's)

So how does this relate to ENVIRONMENT?

Clean Technology Innovation Centre (CTIC)

Committed to assisting clean energy SMEs accelerate their business performancePart of Enterprise Connect $50m per year Australian Government program designed to- boost productivity, improve innovation and increase the

competitiveness of Australia's SMEs- strengthen links between industry and sources of

knowledge, including the research sector

Application

Business Review

Self-assess Eligibility

Business Review Report Presented

ApprovedResearchers in

Business

Company implemented

recommendations

Tailored Advisory Service

How the CTIC helps…the Business Review

Our investment in you and your investment in yourself

Tailored Advisory ServiceContribution of matched funding up to $20,000

Researchers in BusinessContribution of matched funding up to $50,000 on eligible salariesFirms can also enter the Researchers in Business Program without a Business Review

Business Review EligibilityAustralian Company Number (ACN)

> $1.5 m expenditure or revenue in current/previous financial year

Annual turnover < $100 million in the previous financial year

Solvent and have filed BAS for 3 consecutive years

Firm operates in clean technology sector (see following slide)

Clean Technology FirmsFirms involved in - • generation of energy from renewable and low carbon

sources such as solar, wind, wave, tidal, low emission coal, biofuels and cogeneration

• commercial and industrial water, solar hot water, desalination and water efficiency

• the development and supply of methods, equipment and technology used to reduce energy demand or increase energy efficiency

• environmental technologies and services in waste management, recycling, environmental assessment, monitoring and remediation

Sustainability

• Financial meaning – the ability to continue in business

• Environmental meaning – doing no damage – leaving an opportunity for future generations

• Confusion in the narrative• OH & S, staff development has also crept into

Sustainability reports

Sustainability - an environmental perspective

• Carbon emissions• Water usage and management• Waste management• Health issues• Biodiversity• Population

Challenge - Governance model• Business model dynamic/change• Engagement at all levels of organisation• Genuine commitment required from Chair,

board and executive• Process to measure and monitor

• Support strategic direction with systems throughout the organisation

• Report and monitor constantly

Sustainability Victoria Framework Stage of life cycle

Impacts Land and ocean degradation/habitat destruction

Potentially hazardous material

Energy use Water use Greenhouse gas emissions (GHG)

Other emissions

Solid wastes

Raw materials

Production/Manufacture

Sales and distribution

Use

End of life

Copied from Sustainability Victoria http://www.sustainability.vic.gov.au/www/html/1938-energy-and-greenhouse-management-toolkit.asp

Challenge - Risk management• Business risks – what are the implications of

not being ahead of the curve?• Supply chain risks – How will you affect your

suppliers, and what will their impact be on you – e.g. Toyota model, Sony, Wal-Mart,

• Product life cycle issues – Service - Advisory• Consumer activism

Challenge - Areas to consider• Production process – inputs and outputs• Resources usage – wastage• Transport• IT – technology systems – power usage• Supply chain• Recycling – garbage • Lighting

5Star for SMEs

2 Categories of performance• Management & leadership practices

cate

gorie

s of

per

form

ance

• Resource efficiency - energy, material & waste, water• Climate change & Greenhouse gases• Sustainable supply chain• Community & wellbeing• Biodiversity• Innovation & integration

Peter Senge The Necessary Revolution – Sustainability Value Framework

Driver Strategy

Clean technologyDisruption Develop the

sustainableCleantech competencies of the

futureFootprint

PayoffInnovation and repositioningStrategy

Driver Pollution preventionPollution Minimise waste

and emissions fromMaterial operationsconsumption

WastePayoffCost and risk reduction

Strategy

Sustainability visionDrivers

Create a shared Climate roadmap for meeting

changeunmet needs Resource

depletion

PovertyPayoffSustainable growth trajectory

StrategyProduct stewardship

DriverIntegrate stakeholder

Civil views into business

societyprocess

TransparencyConnectivity

PayoffReputation and legitimacy

Sustainable valueInternal External

Today

Tomorrow

Interesting business model storieshttp://www.closetheloop.com.au/

http://www.interfaceflor.com.au/Home.aspx?element=1&category=1

http://www.riversimple.com/

Success stories

Common themes?• Strategic intent

• Environmental value proposition cf business case

• Commercial imperative• Who will pay – where do you deliver value and who will

pay for it

• Focus• Overcoming barriers – market resistance – financial cost

-

• What will you take back with you?• What can you tell me to help improve

sustainability in SME’s?

So what does success look like to you?• What is different to you now?• What is the same?• What have you learned?• What will you take back with you?• What can you tell me to help improve

sustainability in SME’s?

ResourcesSensis SME success stories athttp://about.sensis.com.au/small-business/free-sustainable-growth-bookCarbon Compass at:http://www.carboncompass.com.au/ClimateWorkshttp://www.climateworksaustralia.com/low_carbon_growth_plan.html

Interesting referenceshttp://dicksmithpopulation.com/2010/08/03/prosperity-without-growth-by-tim-jackson/Tim Jackson Prosperity without GrowthPeter Senge The Necessary RevolutionThe Deakin Lectures:http://wheelercentre.com/videos