Note by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
This is an interesting discussion of human-induced climate change and how companies can deal with this issue. According to McKeon and Ranney, "climate change is the consequence of a lack of appreciation for the interdependence between the global economic system and the earth's biosphere." One approach to climate change is referred to as "business as usual". However, the recommended approach is based on Deming's theory of profound knowledge. A summary of two approaches is provided in a table at the end of the paper. An adaptation of the table appears below.
|Business as Usual||Using Profound Knowledge|
|Focus on competition||Alert to opportunities for "coopetition"|
|Management through division
|Management informed by an understanding
of interrelationships and interdependencies
|Management sees disparate economic,
social and environmental security needs
|Management realizes the interdependence of economic, social and environmental security|
|Management sees the future of business like the past, e.g., ever increasing in energy intensity||Management examines potentialities for a transition from
energy intensity to
|Addressing climate change is seen as a burden, putting American business at a disadvantage, killing U.S. jobs||Addressing climate change is seen as a transformational
opportunity to build a sustainable U.S. economy and
boost global competitiveness
|A quick solution to climate change
would be to geo-engineer the climate
to align with human needs
|The long term solution to climate change
is to align the human economy with
the workings of the biosphere
|Appoint a Chief Sustainability Officer||Executives learn about climate change
and sustainability and accept responsibility
to lead the organization's efforts
|Business is highly quantifiable and the
task is to manage what you measure
|The greatest gains and losses cannot be measured, but they must be managed|
|Profit is the aim of a well-managed business||Profit is a consequence of managing well|
To download a pdf version of the paper go to http://in2in.org/od/thought/2013-09-ThoughtPiece-McKeon.pdf
For a Note about the Thinking Roadmap see http://maaw.info/ArticleSummaries/ArtSumHigginsThinkingRoadmap.htm
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