Thoreau did it. So did Carter and Brezhnev, and Reagan and Gorbachev too. They all took a walk in the woods, like I did on a recent weekend…to explore and resolve internal and external issues. My hike took place in the coastal redwood forests of the Santa Cruz Mountains on the central California Coast. A hike through these beautiful groves of ancient redwoods is truly an awe-inspiring, reflective experience. Redwood forests are complex ecosystems. From the tallest trees in the world to the tiniest animal, the whole forest is a working system in a very delicate balance. Everything has a role to play in this forest.
Coastal Redwoods (Sequoia sempervirens) are also known for their resistance to fire. They are protected by a very thick bark that lacks the highly flammable resin of other tree species. These resilient trees in some cases, can live for more than 2,000 years, making them one of the oldest tree species in the world. Also, unlike most trees, redwoods lack a taproot. Instead, they have a shallow root system that can extend up to 100 hundred feet outward, forming a network of connected root systems with other trees. But despite the connected roots, high winds and/or flooding can bring these massive trees to the ground.
Now substitute the word “forest” with “supply chain”, “tallest tree” with “largest company” and tiniest animal with “smallest supplier”, and you hopefully get where I am going with this post.
I mentioned in prior posts that to make progress on environmental issues in organizations and in supply chain management, organizations must understand that they’re part of a larger system. Fifth Discipline and The Necessary Revolution author Peter Senge makes valid claims that organizations are in a better competitive position if they understand the larger system that they operate within and to work with people you haven’t worked with before. Like a forest, where all parts depend on the other, if the balance is upset, there can be chaos and poor ecosystem health. A supply chain is in effect a business ecosystem. And a supply chain functions the same way as a redwood, in that it has interconnected roots rather than one strong taproot, but can be blown down by external forces that it may not be able to control.
The Concept of Business Ecosystems
Author James Moore developed and popularized the strategic concept of business ecosystems in his 1996 book The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems. According to Moore, a generic business ecosystem is defined as the economic and social environment that consists of organizations, individuals, regulatory structures and controls, government organizations, customers, competitors, suppliers, and the many entities with which a business interacts. The principal purpose of the business ecosystem is to align its members towards a shared vision that is greater than the sum of its parts. Business ecosystem value is created by the combination of participants and their contributions – and their role within the ecosystem to enable the achievement of a combined vision or goal.
Many organizations have sought ways to deliver greater product and customer value through innovative supply chain solutions. The common link is that customers’ receive value from a whole solution, which takes into account all value chain contributions. Think HP, Microsoft, Cisco, IBM. Traditional high tech companies. But this thinking extends to consumer product and apparel manufacturers (Herman Miller, Procter and Gamble, Unilever, Nike, Keen, Patagonia) and major retailers like Walmart, Starbucks, Kohls. The list grows weekly. Each of these organizations have created business ecosystems through redefining the nature of the value for the client. They have further created new competitive environments, with new rules and practices that account for sustainability and that challenge their industry norms through green supply chain innovation.
While my recent post called out many large companies for being procrastinators and laggards, I continue to applaud the industry leaders who’ve seen how each tree (supplier) contributes to a stronger and healthier forest (supply chain).
So go take a walk in the woods. Breathe the air, take in the silence…and think of ways that you can help your company refocus its sustainability efforts and supply chain health for future generations to enjoy.