The natural step framework

Organisation as machine-designed to operate as a network of parts, which are further specified as

networks of precisely defined jobs, and very little attention is given to the human aspect of the
organisation. It has predetermined goals that are not designed for innovation however this system
of thinking appears to be failing and the metaphor of organisation as brain is becoming more
popular.

“This metaphor sees organisations as complex systems that are capable of learning, there can
process information about current circumstances and are able to imagine different possibilities that
go beyond the present state.”

The organisation has the ability to learn and innovate and knowledge and decision making is spread
through both individuals and teams. This allows them to respond to an ever changing environment
because for them change is the norm. In order to do this the organisation must learn to develop
capabilities strategies and skills rather the top level of the organisation.

“The real power of the learning organisation is the ability to create vision, purpose and direction as
the motivating force for action.

So far, natural systems and cycles have been outside the managerial framework of business reality,
this omission has rendered existing theory inadequate.
Goleman suggest that the future prospects of the planet are intimately linked to the human capacity
for self deception. We allow ourselves to think that small and large decisions within our lives are of
no great consequence and so are oblivious to these decisions and their effects on the environment.
We have moved from being products of evolution to being drivers of evolution, In fact we are having
an impact on the planet at a scale akin to the forces of the earth itself.

The article puts forward that it will soon become mandatory to include environmental factors in the
every day running of the business, we must integrate the natural environment into the frame of our
business reality in a realistic and operational way.

If an organisation only reacts to environmental signals it may waste resources on “minimising the
pain of irreversible damage”

The evolutionary corporation concept puts forward that we must develop “environmentally benign
even restorative, products, processes and systems. The integration of natural systems and natural
laws into the business environment is thought to be both profoundly simple and profoundly
complicated. Profoundly simple because natural law is well known, and profoundly complicated
because it requires a complete rethink of many fundamental assumptions, the redesigning of
products processes and systems. This process will open the eyes of organisations and unleash
creativity and innovation in design.

Environmental awareness has come in for waves,

Wave one-good corporate citizenship consists of simply obeying the law, only focused on
compliance.
Wave two-a move to public accountability pollution prevention and accelerated learning at a price.
Companies became more anticipatory in their environmental strategy and pre-empted legislation.

Wave three – eco-efficiency and dematerialisation, emerging integration and environmental

strategies being viewed as a way to make profit by reducing inputs and waste

Wave four-the new millennium, continuous improvements in environmental performance, zero

waste, whole system thinking, caring for the world as a whole, and focusing upon sustainable
development, full lifecycle of products, cradle-to-cradle, sell a service rather than a product. A
culture change to accommodate a more sustainable way of doing business. The enterprise
recognises that it is part of nature and consciously integrates its visions and operations with natural
cycles and processes.

The Natural Step Framework

As the funnel narrows, options that were originally available are either very expensive to implement
or are unavailable.

The natural step framework is used to develop a new shared mental model of business reality, one
that integrates environmental considerations into strategic business decisions and day to day
operations.

Four Key Components –

Understand why the current direction is unsustainable and establish the self interest needed to shift
to a sustainable direction

Understand the four system conditions

Back-casting – create strategy by imagining the sustainable future wanted and work backwards

Identify the steps needed to get from the current reality to the vision

The natural step framework provides a common language for all those involved to create shared
goals and learn together.

The inactive company is oblivious to the changing environment, it waits till it gets signals from the
environment before doing anything, often it acts too late, thus it is likely to fail.

The anticipatory company has no clear vision of sustainability, it uses out of date data to plot its
course, it is vulnerable and unsustainable, it adjusts slowly to the environment it is still in danger of
hitting the wall.

The proactive company seeks to understand its environment and how and why it changes. It directs
its actions towards the middle of the funnel. It creates an ideal vision of itself as a truely sustainable
company and it works towards it by using back-casting.

Back-casting is most useful when: the problem is complex, radical change is needed, dominant
trends form part of the problem, the problem to a great extent is concerned with externalities and
there is enough time and scope for deliberate choice.

Why is back-casting good?

It makes things simple without losing the detail, it co-ordinates everything, from big to small
together, it creates a shared mental framework, it allows for creative thinking and problem solving,
by looking upstream it is easier to solve problems downstream, and finally its easily measurable.

“To design for sustainability, the company needs to understand what is required for society to be
sustainable and what constitutes an ecologically sustainable and integrated human/nature system. “

Four System Conditions

In the sustainable society, nature is not subject to systematically increasing...

...concentrations of substances extracted from the earth’s crust

...concentrations of substances produced by society
...degradation by physical means

And in that society...

...human needs are met worldwide

It cannot be defined how this sustainable future will look because there are infinite ways in which a
society could evolve. Resources are used efficiently and fairly and no human activity goes beyond
the earth’s capacity.

Applying the Framework

Purpose and operations of the business are re-evaluated and consequentially, re-envisioned and
redesigned to fit the framework.
Through education and training, employees develop the conceptual framework, the shared mental
model that makes it possible to explore what is sustainable and unsustainable behaviour. Employees
must share a common language, the mental model and the responsibility of translating the model
into practice. Employees are empowered to make changes to establish resource effectiveness and
efficiency. It is a continuous learning process, where environmental considerations are integrated
and inherent at every level of the business.

Scientific law imposes non negotiable limits upon human activity & the natural step method is baed
on scientific rationality that has been reviewed, debated and formally discussed on numerous
occasions by numerous scientists and engineers.