Point: Make sustainability decisions at the start of new product development.

Story: “Seventy-five to 90 percent of a product’s environmental impact is determined in the product development stage,” says Kevin Myette, director of product and supply chain sustainability at outdoor gear and clothing retailer REI (Recreational Equipment Inc.).

Given that fact, it’s extremely important for product designers to have access to information about the sustainability of materials when making decisions about which materials to use for new products.

For example, which do you think is environmentally more damaging: wool or polyester? Intuition might point you to rank wool as the more sustainable product, because it is natural. But, the processing of wool uses chemical washes, and wool as a material in apparel requires much more washing and energy use after purchase. Thus, although polyester uses more energy during manufacture, its lifetime energy usage is lower. Even better, polyester can be recycled. Nike used this information to design uniforms made from recycled polyester for the 2012 European Cup soccer championships, thus earning them high marks on sustainability.

A tool that’s helping the apparel industry with this problem is called the Higg Index, which lets manufacturers and brands score the environmental impacts of their garments across the apparel life cycle (materials, manufacturing, packaging, transportation, use, and end-of-life).

Getting industry-wide agreement on the metrics has been key. “As our CEO says, ‘sustainability is a team sport,'” Myette told me. “We’ve been working collaboratively with partners and competitors alike, pre-competitive, to develop the language and metrics of sustainability.”

Internally, to help its product designers make the right choices, REI implemented a product lifecycle management system that gives its designers a dashboard view of how materials rank across the lifecycle for sustainability.

Myette is encouraging REI’s suppliers to use the system, as well using a dyeing process that requires no water and using patterns that minimize scrap waste. “Five percent of our landfills are just textiles, apparel,” Myette says. Avoiding scrap material and encouraging recycling of apparel is vital for reducing this waste. Few consumers know that it takes 10 times more energy to produce textiles than to produce glass. Greater awareness could spur consumers to demand retailers offer recycling of their synthetic fabrics.

Action

• Think about sustainability before you design the product, not just after you have the product and want the best suppliers
• Consider the entire lifecycle of the product:

— your suppliers’ footprint for the raw materials
— your footprint of your production processes (and customer services, too)
— your customers’ footprint when using your product
— the recyclability/reusability of the end-of-life product (and any scrap produced along the way)

• See if your industry has something like the Higg Index.  And if not, help create one!
• Think holistically — perhaps something that seems unsustainable (e.g., fossil-fuel-derived polyester) might be best if it enables greater sustainability in other parts of the system (e.g., washing, dying, end-of-life recyclining)
• Finally, keep looking for improvements, such as bacteria that can make biodegradable polyester

Sources:

Personal interview with Kevin Myette

Higg Index: http://www.apparelcoalition.org/higgindex/

Bacteria: http://www.asknature.org/strategy/aafff01c6748d9169047522c11c0280a

Note: this post originally appeared in the Huffington Post: Mitigating Environmental Impact of Apparel: REI http://www.huffingtonpost.com/andrea-meyer/mitigating-environmental-impact-apparel_b_2253103.html?utm_hp_ref=tw

Point: Design physical spaces for unplanned collaborations that spark creativity.

Story: One place to look for advice on designing physical spaces for creativity and collaboration is Stanford’s design school, the birthplace of design thinking as we know it today. (The term dates back to Herbert Simon’s 1969 book, The Sciences of the Artificial and was further explained by Robert McKim’s book, Experiences in Visual Thinking, but it was Stanford’s Rolf Faste and David Kelley who popularized the term and applied it to business.)

Now, Scott Doorley and Scott Witthoft, co-directors of the Environments Collaborative at the d.school, have written a book, Make Space: How to Set the Stage for Creative Collaboration that’s full of advice and case studies of these creative spaces.

David Kelley, founder of IDEO and of the d.school, writes in the book’s forward: “Regardless of whether it’s a classroom or the offices of a billion-dollar company, space is something to think of as an instrument for innovation and collaboration. Space is a valuable tool that can help you create deep and meaningful collaborations in your work and life.”

Example: Pixar
A real-life example of a physical space that encourages creative collaboration is the building that houses Pixar, the computer animation studio that created innovative, Academy-award-winning blockbuster films like Toy Story, Monsters and Finding Nemo.

As Walter Isaacson writes in his biography of Steve Jobs, Jobs designed the Pixar building to promote encounters and unplanned collaborations. “If a building doesn’t encourage that, you’ll lose a lot of innovation and magic that’s sparked by serendipity,” Jobs said. “So we designed the building to make people get out of their offices and mingle in the central atrium with people they might not otherwise see.”  The front doors and main stairs and corridors all lead to a central atrium, where a cafe and employee mailboxes are located as well.

John Lasseter, Chief Creative Officer at Pixar, confirmed the success of the building’s layout: “Steve’s theory worked from day one. I kept running into people I hadn’t seen for months. I’ve never seen a building that promoted collaboration and creativity as well as this one.”

Action

• Create open spaces and natural gathering places that draw people out of their offices and into the collaborative social space.
• Organize entrances, stairways, and passage ways to intersect in ways that encourage random encounters and mingling (help people congregate rather than segregate).
• Offer movable walls, whiteboards on wheels, lightweight movable furniture (put things on casters), and other flexible objects to encourage reconfiguration and organic development of the work environment.

Point: Create new business models using a visual, collaborative tool like Alex Osterwalder’s Business Model Canvas.
Story:  Business models are complex, which makes them hard to talk about. A business has many interrelated moving pieces.  It’s easy for you and your team to miss something when creating one. And with so much complexity and so many possibilities, it’s easy misunderstand each other when we try to invent new business models.
Luckily, there’s a solution. Alex Osterwalder’s Business Model Canvas is a visual tool that helps structure our thinking about business models.

At Osterwalder’s Business Model workshop at BIF8 last week, I saw the power of his Business Model Canvas firsthand.  Osterwalder outlined the Canvas method and gave the group the assignment to generate a business model for a specific startup.  Small groups clustered around their canvas and the room buzzed with discussion and the squeak of markers as participants took turns sketching out ideas.  As we worked, I was struck by three key features of Osterwalder’s approach.

The first key feature was that Osterwalder encouraged sketching, not just making lists of words. “Any problem can be made clearer with a picture,” he said. The visual artifact lets people react to something concrete.  To encourage people who think they can’t draw, Osterwalder pointed out that people can interpret a stick figure more easily than an abstract concept. “Drawing something, however badly, makes an abstract concept concrete, giving people an opportunity to react to it,” Osterwalder said. Visual thinking helps with understanding, dialogue, exploration and communication.

The second key feature was that Alex had us make our sketches and notes on Post-It® notes.  We then stuck these to the Canvas.  The key part was that then we could move the notes around as we figured out where on the canvas they belonged. “Post-It® notes are like containers of ideas,” Osterwalder said, that can be easily picked up and moved around.  Thus, we could reconfigure our ideas as we refined them.

The third key feature was that the Canvas with its Post-It® notes ensures you don’t miss an important area. Because business models are so complex, with many interlocking pieces, it’s hard to hold all the pieces in memory and see their interactions and dependencies. The Canvas helps everyone see all the pieces and confirm that they work together and make sense. People can use different colors of Post-It notes for different business models, which lets them compare alternate models on the same Canvas. This side-by-side comparison can help to then pick the most promising model to test.

Action:

• If you’re working in a group, print the Canvas in large format (we used 3′ x 4′ at the workshop).
• Most people start on the righthand side of the Canvas, which is the customer side of your business model. It has the “Customer Segments,” “Channels,” and “Customer Relationships” areas. The lefthand side defines the infrastructure of the business with “Key Activities,” “Key Resources,” and “Partner Networks.” A central “Value Proposition” sits between the infrastructure areas that deliver on the proposition and the customer areas that receive the value. Finally, the “Cost Structure” and “Revenue Streams” areas on the bottom sit respectively under the infrastructure and customer sides of the canvas to define the financial side of the model.
• Play with different kinds of models. For example, Nestlé (in its Nespresso business) tested a model in which Nestlé sold its espresso machine through retail but sold the individual “pods” of coffee directly to consumers. Going direct was new to Nestlé but proved to be very lucrative because Nestle didn’t have to share revenue with the retailer.
• Keep interdependencies in mind. Every revenue stream, for example, must have a customer segment with an accompanying value proposition that makes it clear why they would pay.  And every activity, resource, or partner might incur costs.

Sources:
Alex Osterwalder’s bestselling Business Model Generation book is a must!

Alex Osterwalder’s Business Model workshop at BIF8.  See his calendar of upcoming speeches and workshops.
Alex Osterwalder’s slides on SlideShare, such as