Defining business success and the relevance of the

“Defining business success and the relevance of the environment on business”

The path we will walk

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 cover that 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 $2 m for longer than we wanted • Recovered when competitors failed – grew to 200+ people and $8 m 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

So how does this relate to ENVIRONMENT?

Clean Technology Innovation Centre (CTIC) Committed to assisting clean energy SMEs accelerate their business performance Part of Enterprise Connect $50 m 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

How the CTIC helps…the Business Review Company implemented recommendations Self-assess Eligibility Business Review Report Presented Application Approved Tailored Advisory Service Researchers in Business Review Our investment in you and your investment in yourself Tailored Advisory Service Contribution of matched funding up to $20, 000 Researchers in Business Contribution of matched funding up to $50, 000 on eligible salaries Firms can also enter the Researchers in Business Program without a Business Review

Business Review Eligibility Australian 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 Firms 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

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

categories of performance 2 Categories of performance • Management & leadership practices • Resource efficiency - energy, material & waste, water • Climate change & Greenhouse gases • Sustainable supply chain • Community & wellbeing • Biodiversity • Innovation & integration 5 Star for SMEs

Peter Senge The Necessary Revolution – Sustainability Value Framework Driver Strategy Clean technology Develop the sustainable competencies of the future Disruption Cleantech Tomorrow Create a shared roadmap for meeting unmet needs Footprint Drivers Climate change Resource depletion Poverty Payoff Sustainable growth trajectory Payoff Innovation and repositioning Internal Strategy Sustainability vision External Sustainable value Driver Pollution Material consumption Strategy Pollution prevention Minimise waste and emissions from operations Waste Payoff Cost and risk reduction Strategy Product stewardship Integrate stakeholder views into business process Driver Civil society Transparency Connectivity Today Payoff Reputation and legitimacy

Interesting business model stories http: //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

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?

Resources Sensis SME success stories at http: //about. sensis. com. au/small-business/free-sustainablegrowth-book Carbon Compass at: http: //www. carboncompass. com. au/ Climate. Works http: //www. climateworksaustralia. com/low_carbon_growth_ plan. html

Interesting references http: //dicksmithpopulation. com/2010/08/03/pr osperity-without-growth-by-tim-jackson/ Tim Jackson Prosperity without Growth Peter Senge The Necessary Revolution The Deakin Lectures: http: //wheelercentre. com/videos