The Natural Step Framework Guidebook
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THE NATURAL STEP FRAMEWORK GUIDEBOOK © 2000 The Natural Step. All rights reserved. "The Natural Step," "Natural Step," the Natural Step logo and "TNS" are among the trademarks of The Natural Step. No individual or entity may identify itself as a representative of The Natural Step or as presenting Natural StepSM workshops, programs or materials unless it has an express license or written permission from The Natural Step to do so or is a current employee of The Natural Step. INTRODUCTION forests and oceans. As a result, we have to input The TNS Framework is a methodology for success- more resources to harvest or catch as much as we ful organizational planning, developed by The Nat- did last year. For example, to obtain the same ural Step. It enables organizations to create optimal amounts of food, wood and other raw materials, we strategies for dealing with the present-day situation, need bigger fishing boats, more energy, more pesti- by incorporating a perspective of a sustainable cides and more fertilisers. future. Today’s perception of what can be achieved never determines the direction of change, solely its Fig. 1 A Global Perspective pace. This results in investments and activities that not only move the organization toward sustainabil- ity, but also maximize short-term profitability and long-term flexibility. The TNS Framework has helped many organizations around the world proactively embrace sustainability as a strategic opportunity rather than an unknown liability. THE NATURAL STEP The Natural Step is an international organization that helps organizations move strategically toward sustainability. The reason for nature’s reduced productive poten- The Natural Step's approach is: tial is that we are polluting and displacing nature in various ways. Renewable resources are being used o to continuously develop the TNS Frame up at such a rate that nature does not have time to work, and the tools related to it, in associa build new ones. At the same time, there are more tion with clients and scientists. and more people on earth in need of these o to support the implementation and use of resources, and the gap between rich and poor is the TNS Framework in companies and widening. It’s as if all of civilization is moving into other organizations, through training and as a funnel whose narrowing walls demonstrate that consultant advisors. there is less and less ‘room for maneuver’. o to provide a forum for dialogue, particularly for decision-makers capable of influencing Fig. 2 The Funnel ideas and becoming global role models in the field of sustainable development. THE FUNNEL In the quest for good health, welfare and economic prosperity, we are systematically destroying the sys- tem that we, as humans, are completely dependent upon - nature. Life-sustaining natural resources, such as clean air and clean water, are subject to increasing deterioration due to human activity. Forests are being lost and species extinction is gath- ering pace. At the same time, nature’s long-term productive capacity is being degraded in fields, Everyone is in this funnel, from the smallest family as an organization evolves in a sustainable direc- to the largest multi-national corporation, and it has tion, the risk of being too far ahead of the market a direct bearing not only upon us as a society, but needs to be considered. However, that risk must be also upon the economy. Increasingly, organizations balanced with the greater risk of being too late to are noticing that changes in demand, rising raw evolve. The key is to be on the "leading edge", and materials and waste handling costs, punitive taxa- using the TNS Framework has helped many organi- tion, more rigorous demands from lenders, and zations do just that. other factors in the market are already starting to affect their daily operations. STRATEGIC PLANNING NEEDS A FUTURE PERSPECTIVE The TNS Framework is based upon a method While sudden economic setbacks may be viewed as known as backcasting – looking at the current situ- ‘bad luck’, we know that the room for maneuver of ation from a future perspective. Initially, you envis- any activity is constantly diminishing. The ‘bad age a successful result in this future scenario; then, luck’ is usually caused by earlier investments in you ask: What can we do today to reach that result? techniques or activities contributing to ecological This allows you to make sure that your actions and non-sustainability or undermining human needs. strategy are taking you in the direction that you The self-benefit of being able to avoid many of wish to head, that they align with your vision. This these setbacks in the future is obvious, an effective may seem simple and obvious, but many people do strategy is fundamental if we are to avoid ‘bad luck’ not do it, and without backcasting you can not and create opportunities. strategically pursue a future vision. STRATEGIC PLANNING IN TODAY’S NON-SUSTAINABLE A prerequisite for backcasting is obviously to know SOCIETY what constitutes the future scenario you are head- The TNS Framework enables an organization to ing for. In terms of planning from a sustainable integrate business development with sustainablity. future scenario, this approach would appear flawed, This strategic approach of systematically moving an as we can not accurately predict and agree upon the organization toward sustainability can easily be jus- future precisely. However, despite not being able to tified on the grounds of improved competitiveness outline a sustainable future scenario in detail, we alone. By expanding their room for maneuver, can agree upon basic conditions that must apply in organizations are improving their prospects for the any sustainable society. These basic principles, or future. The self-benefit stems from harnessing conditions, can serve as a lighthouse to guide us, inevitable changes in: enabling us to backcast with confidence from a future sustainability perspective. These conditions, o raw materials costs known as the system conditions have been devel- o energy costs oped and agreed upon by an international network o costs of waste of scientists. By using backcasting, in line with the o environmental legislation system conditions, targets and measures can be o differentiated taxation chosen that combine long-term flexibility with o insurance premiums short-term profitability. o credit ratings o customer needs This approach means that the strategy focuses on o employee needs the causes of environmental and social problems o brand value drivers rather than reacting to the effects of them. Invest- ments and measures are selected to tackle today’s With the help of the TNS Framework, many orga- problems without creating further problems in the nizations have reduced costs, improved quality and future. Strategies and measures taken will obviously productivity, identified new customers and mar- vary between organizations, but the over-all direc- kets, and have avoided future liabilities. tion will be the same - toward alignment with the system conditions. It is also important to remember Although long-term financial results will improve that today’s perception of what can be achieved will Fig. 3 The TNS Framework only affect the speed of change, not it’s overall direction. The TNS Framework makes it easier to categorize problems and possible solutions so that relevant questions can be asked and informed judgments can be made. Once all team members are using the TNS Framework, a process is set in motion. Every- one starts using the same language, comparing experiences, and therefore learning from one another – a prerequisite for effective teamwork. How then does an organization start to strategically plan for success and combine long term flexibility with short term profitability? By applying the TNS A. FINDING COMMON GROUND framework. TACKLING COMPLEXITY WITH SYSTEMS THINKING Twenty or thirty years ago, environmental ques- THE TNS FRAMEWORK tions seemed simpler than they do today. They A. FINDING COMMON GROUND could be summed up in single images: a factory, How do you find common ground in your sustain- chimneys spewing out smoke, a poisoned lake in ability planning? Discuss the TNS Framework the neighborhood, dead fish floating in the water. among all participants and align behind the sus- Remedies were put in place: filters were placed on tainability objectives. These work as a lighthouse the chimneys and water treatment plants built. The for your organization, outlining the criteria for any problems were apparently solved. sustainable organization. Today, most people are aware that these social and B. WHAT DOES YOUR ORGANIZATION LOOK LIKE TODAY? environmental problems were not solved, and that Analyze current operations with the help of a sus- many may be getting worse, as well as increasingly tainability review. Map out and list flows of raw complex. Because many problems are now global materials and energy that are critical with reference rather than regional, it can also be extremely diffi- to every sustainability objective. cult to find direct instances of cause and effect. This is the underlying reason for all the endless debate C. WHAT DOES YOUR ORGANIZATION LOOK LIKE IN A SUS- that we see and hear every day in the mass media TAINABLE SOCIETY? and between scientists. Imagine what your operations will look like in a sustainable society based upon the sustainability Fig. 4 The Debate Dilemma objectives. Create a mission statement and list all measures, whether or not they are realistic in the short-term. D. PRIORITIZE AND MANAGE Which targets and measures should you prioritize? Which of them will be the most effective from a business point of view? Prioritize measures from C that move the organization toward sustainability fastest while optimizing long-term flexibility and short-term profitability. In addition to local environmental problems, we Fig. 5 System Overview also have global problems such as ozone depletion and the greenhouse effect.