From: Subject: What I Learned in the Rainforest Date: Sun, 9 Jan 2005 20:39:30 -0800 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0061_01C4F68B.51CF3E80" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.2180 This is a multi-part message in MIME format. ------=_NextPart_000_0061_01C4F68B.51CF3E80 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.via-visioninaction.org/articles/auth8/B.htm What I Learned in the Rainforest

What I Learned in the=20 Rainforest

Tachi=20 Kiuchi
 
My most important lessons about business have not = come=20 from our company. My most important lessons I learned in the = forest. My=20 first lesson in the forest happened 39 years ago, days after I = graduated=20 from the University of British Columbia. I was asleep when I got = my=20 lesson. This was unfortunate, because at the time I was driving a = little=20 British car through the forests of the Canadian Rockies. It is not = advisable to drive a car through the Rockies when one is asleep. = You might=20 drive off a cliff, which is exactly what happened to me. =

When I=20 woke up in the hospital, I had plenty of time to reflect upon what = I could=20 learn from this incident. I remembered advice that my father had = given me=20 a few years before. He knew I was an adventurer, and a risk taker. = He=20 liked that, but didn=92t want me to have too much of a good thing. = So he=20 took me aside and told me: =93Do whatever you want. But don=92t = die.=94

I=20 wanted to call my father to tell him that I had taken his good = advice. But=20 my jaw was clamped shut. So I couldn=92t. He found out anyway. The = Japanese=20 Consul General saw an article on my adventure in the local = newspaper and=20 sent it to him.

I have since passed along my father=92s = advice to=20 others. I think about it when people ask me what I think about=20 sustainability. To me, this is what it means: =93Do what you want. = Follow=20 your purpose. But don=92t die.=94

For a young man, driving = off a cliff=20 in the Rocky Mountains teaches a valuable lesson. Lesson One: = Stay=20 alert. Watch where you=92re going.

It seems to me the = global=20 business community is driving quickly toward a cliff, with our = eyes=20 closed. If we opened them, we would see that 600 million of the = Earth=92s=20 inhabitants=97in Europe, Japan, and the United States=97enjoy the = material=20 benefits of industrialism. Soon, 2.5 billion more=97in China, = India, the=20 former Soviet republics=97will join us. And after them, the final = three=20 billion will demand and deserve the same. To do that today, we = need three=20 planets. But we have only one.

We cannot do that by = continuing to=20 take our wealth from nature. We must learn a new way, a way to = cultivate=20 wealth like nature, to provide affluence without effluence. =

As we=20 approach the 21st century, a path is emerging that could enable us = to do=20 so, one that could move us beyond the industrial era, when we used = machines to expand human muscle, and into a new era when we expand = the=20 human mind. Around Earth Day 1992, I received a small stack of = letters=20 from a class of elementary school students, asking me to do what I = could=20 to stop harming the rainforest. The letters confused me at first. = We are=20 an electronics company. We have no timber holdings. We make no = forest=20 products. We use very little paper or wood. What=92s the=20 connection?

It turned out they were talking about another = company=20 that shares the Mitsubishi name. We=92ve been separate companies = for over=20 fifty years, since 1946. But no one knows this except us. So long = ago, we=20 stopped trying to convince people we are separate companies. = It=92s much=20 easier just to try to do something about the problem, instead of = worrying=20 about the name confusion.

So on my next trip to Asia, I = visited the=20 Malaysian rainforest in Sarawak. I met with expert foresters. I = visited=20 timber cutting sites, as well as reforesting and research = operations. I=20 spoke with visionary environmentalists and executives. What I = learned=20 changed my life as a corporate executive.

Lesson Two: I = learned=20 that saving the rainforests=97in fact, saving the environment=97is = more than=20 an environmental necessity. It is a business opportunity, to use=20 creativity and technology to substitute for trees and for = resources of any=20 kind.

Today=92s fast-changing business environment = requires=20 that we be alert, and responsive, agile, and creative. To do so, = we must=20 structure our companies as learning organizations. Not top-down, = but=20 bottom-up. Not centralized, but decentralized. Not limited by = rules, but=20 motivated by objectives. Not structured like a machine, which = cannot=20 learn, but like a living system, which can.

When I visited = the=20 rainforest, I realized that it was a model of the perfect learning = organization. A place that excels by learning to adapt to what it = doesn=92t=20 have. A rainforest has almost no resources. The soil is thin. = There are=20 few nutrients. It consumes almost nothing. Wastes are food. Design = is=20 capital.

Yet rainforests are incredibly productive. They = are home=20 to millions of types of plants and animals, more than two-thirds = of all=20 biodiversity, so perfectly mixed that the system is more = efficient, and=20 more creative, than any business in the world.

Imagine how=20 creative, how productive, how ecologically benign we could be if = we could=20 run our companies like the rainforest?

As business people, = we have=20 been looking at the rainforest all wrong.

Lesson Three: = The=20 real value of the rainforest is not in the timber or = pharmaceuticals. It=20 is in the design and relationships. In the rainforest, capital is = hidden,=20 embedded in their design. When we take trees from the forest, we = can ruin=20 its design. But when we take lessons from the forest, we further = its=20 purpose.

In Japan we have two terms to describe this:=20 omote and ura. Omote is the surface or = front of=20 an object, ura its back or invisible side. Omote = and=20 ura. External reality and underlying reality.

We = are=20 beginning to learn the value of this in business. Consider the = microchip.=20 A microchip=92s omote=97its physical content=97isn=92t = very valuable.=20 Silica is the cheapest and most abundant raw material on the = planet=97sand.=20 But a microchip=97its shape, its design, its unseen artistry=97is=20 extraordinarily valuable. Yet it comes from a source that seems = almost=20 unlimited=97the know-ledge and inspiration we draw from the human = mind and=20 spirit. That is the most valuable resource, and the most=20 abundant.

This becomes the most important question for = today=92s=20 corporate executives to answer: How can we redesign, reinvent our=20 corporations, so that they fully harness the human mind and = spirit? How=20 can we transform our top-down hierarchies, our conformist = monocultures, to=20 engage the magical creative qualities we see in the = forest?
 
FOUR PRINCIPLES OF = NATURAL=20 CAPITALISM

That brings me to Lesson Four: To succeed in = the new=20 economy, we must operate by the design principles of the = rainforest, and=20 of all complex natural systems. Among those principles are = feedback,=20 differentiation, cooperation, and fit.

Get Feedback
Compared = to the=20 rainforest, feedback systems in business are not well developed. = One=20 source of feedback dominates all others: quarterly profit. But as = the=20 economy becomes global in scale, it becomes more and more = important for=20 corporations to listen to feedback in a diverse array of forms, = from=20 stakeholders deep within and far outside the company. At = Mitsubishi=20 Electric we want to know the full costs and benefits of every = product and=20 the social and environmental needs we can help fulfill. Our = priority is to=20 create the world=92s best corporate feedback system. =

Already our=20 feedback systems have helped us become among the best in the world = at=20 minimizing the raw materials in our products, making us a leader = in the=20 compact electronics market. Feedback has also been critical for=20 identifying profitable new markets and investments. It makes us = aware of=20 costs that other people have to pay. This way, we can truly earn = our=20 profit by reducing those costs.=20

Differentiate
In the = rainforest,=20 conformity is death. If two organisms have the same niche, only = one=20 survives. The other either adapts, or dies. It=92s the same in = today=92s=20 economy.

Most companies today are trying to be the one = that=20 survives, desperately seeking the lowest cost. We think it can be = smarter=20 to adapt: create unique products, fill new niches, differentiate. = We=20 learned the hard way, in markets like televisions, when we could = no longer=20 differentiate our standard televisions from the competition=92s. = Now, rather=20 than kill or be killed by our competitors, we sidestep them by = making our=20 products distinctive first. Only then is it time to reduce=20 costs.

Cooperate
Many people = think=20 competitiveness is the key to business success, but this = single-minded=20 strategy is out-of-date. In the old, undifferentiated economy, we = all made=20 the same products for the same markets. There was no choice but to = compete. Today, businesses increasingly find profit in cooperative = joint=20 ventures. Each company retains its independence, specialty, and = core=20 competence. Like the rainforest species, together we benefit from = our=20 diversity.

Be a Good Fit
We = once=20 believed that the survival of the fittest permits only one winner. = In the=20 rainforest, there are many winners, and the same can be true in = our=20 economy. The question is not who is most fit, but where we best = fit. If we=20 solve a real problem, fulfill a real need=97then we will fit, we = will=20 survive, and we will excel.

By applying these principles in = our=20 companies, we can create value: economic, social, and=20 environmental.

 
THE FUTURE=20 500
We are learning how. In December = 1995, after=20 eight years as Chairman and CEO of Mitsubishi Electric America, I = met in=20 Aspen, Colorado, with 60 executives from a diverse and catalytic = mix of=20 businesses and organizations. Our objective was to learn how we = could=20 apply the lessons of the rainforest, and all natural systems, to = grow=20 businesses that profit not by consumption, but by = design.

From that=20 meeting emerged a new business network, the Future 500, aimed at=20 developing and profiting from industrial ecology, the application = of=20 ecological principles to business and industrial = practices.

In the=20 years since, we have learned from one another a new set of tools = to grow=20 sustainable businesses=97management, measurement, and policy tools = that net=20 real profits.

From Bill Coors of Coors Brewing Company and = David=20 Hurst of Russelsteel, we learned the four stages of the business = life=20 cycle, and the powerful management how-to=92s that create profit = in each.=20 Coors applied those to systematically transform waste into = products and=20 profits, and leveraged his brewery into a diversified family of = companies=20 that make some of the world=92s most advanced materials, used for = everything=20 from microchips and mobile phones, to solar cells, to organic = plastics=20 grown from corn.

From Gordon Moore of Intel and designer = William=20 McDonough, we learned how to embed value in raw materials, rather = than=20 extracting value from them.

Moore=92s Intel took one of the = world=92s=20 cheapest and most abundant substances=97sand=97and inscribed on it = a pattern=20 that creates extraordinary value, and that today powers most of = the=20 world=92s computers. McDonough applied nature=92s = design-is-capital principle=20 to help companies like Nike, DesignTex and Interface create = clothing,=20 textiles, fabrics and carpets that meet the high demands of = designers for=20 price, color, look, and feel, yet are free of toxins usually=20 used.

From Anita Burke of Texaco and Jim Bosch of Target, = we=20 learned the six profitable systems of eco-accounting. At the = Bakersfield,=20 California, refinery now run jointly by Texaco and Shell, Burke = won not=20 just awards but millions in profits for her company by engineering = ways to=20 turn toxic wastes into safe and valuable raw materials. At Target = Stores,=20 Jim Bosch did the same with a system of eco-accounting that turned = the=20 company=92s 2,000 stores and hundreds of suppliers into innovation = laboratories, constantly finding new ways to cut waste, streamline = processes, and save money.

From Paul Hawken and Karl-Henrik = Robert=20 of the Natural Step, and Ray Anderson of Interface Carpets, we = learned the=20 four system conditions businesses can use as a compass to direct = them=20 toward sustainable profits. We learned how Ikea, Frigidaire, = Mitsubishi=20 Electric and others are applying them to win new sales and = markets.=20 Anderson is applying the principles to shape a radical redesign of = Interface, the world=92s largest commercial carpet = maker.

We have far=20 to go. Our companies are still simple, primitive ecosystems = dependent on=20 complex natural re-sources, which we extract from nature. We = remain=20 primarily takers of value. We must now become givers of value. We = can do=20 so by applying the same principles we find in nature to create = companies=20 and economies that are innovative, profitable, resilient, and=20 sustainable.

This suggests one final lesson from nature: = The=20 highest mission of business is to help fully develop the human = ecosystem,=20 sustainability like the rainforest, in all our diversity and=20 complexity.

What I learned from the rain forest is = easy to=20 understand. We can use less, and have more. Consume less, and be = more. It=20 is the only way. For the interests of business and the interests = of=20 environment are not incompatible. They are the Japanese = omote and=20 ura, the Chinese yin and yang, product and process, = economy and=20 ecology, mind and spirit=97two halves.

Only = together can we=20 make the world whole.
 
 
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