Creating Shared Value (CSV) Practices Lab
The Center for Strategy, Execution and Valuation
Dr. Mark L. Frigo
The Creating Shared Value Practices Lab in the Center for Strategy, Execution and Valuation at DePaul University is an engagement platform for thought leaders, business leaders and government leaders to co-create and share leading practices in shared value creation. The work of the CSV Lab is spearheaded by Dr. Mark L. Frigo, Director of the Center, along with his research partners, clinical professors and research fellows.
Creating Shared Value
Creating Shared Value (CSV) is based on the pioneering work of Michael Porter and Mark Kramer at Harvard University and involves value creation for business that simultaneously yields more profit and greater social impact, resulting in powerful transformations and opportunities for growth and innovation in both business and society as described in Harvard Business Review article by Porter and Kramer. For more information, visit hbr.org/2011/01/the-big-idea-creating-shared-value.
A number of companies including Nestlé, Medtronic, Pfizer, General Electric, Google, Intel, Johnson & Johnson, and Unilever have begun to develop creating shared value initiatives. Creating Shared Value is consistent with concept of making sustainability work for business and for society. Incidentally, many of these companies meet the criteria of sustainable high-performance companies in the Return Driven Strategy initiative as described below.
Conscious Capitalism and Creating Share Value
The Creating Shared Value Practices Lab will also integrate the "Conscious Capitalism" concept as described the book Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard University Press) by the founder and Co-CEO of Whole Foods Market, John Mackey, and Bentley Professor Raj Sisodia. For more information, visit hbr.org/product/conscious-capitalism-liberating-the-heroic-spirit-/an/10845-HBK-ENG.
Conscious capitalism has four tenets: higher purpose, stakeholder integration, conscious leadership, and conscious culture and management. The tenets and concept of Conscious Capitalism are consistent with the 11 tenets and three foundations of the Return Driven Strategy framework of sustainable high-performance companies and is used in the CSV Practices Lab to analyze the strategic activities of companies in our seminar courses and workshops.
Creating Shared Value (CSV) Practices Lab Mission
The Creating Shared Value (CSV) Practices Lab in the Center for Strategy, Execution and Valuation in the Kellstadt Graduate School of Business at DePaul University is an engagement platform for thought leaders, government leaders, international organizations and business leaders to co-create and disseminate leading practices to drive sustainable business shared value.
Research on High-Performance Companies and Creating Shared Value
The CSV Lab's work is based on extensive research in the Return Driven Strategy Initiative, which focused on the strategic activities of high-performance companies as described in the book DRIVEN: Business Strategy, Human Actions and the Creation of Wealth (with Joel Litman) and continuing streams of research of the strategic activities of high-performance, high-integrity companies, which includes the forthcoming book by Stanford University Press, DRIVEN STRATEGY: Creating and Sustaining Superior Performance. The Return Driven Strategy framework described in the book DRIVEN, describes 11 tenets and three foundation of sustainable high-performance companies.
The framework is being used In the CSV Practices Lab to analyze strategic activities of companies and develop CSV initiatives. We are also using the Return Driven Strategy framework in seminar courses and workshops where we analyze CSV initiatives of high performance companies. The Commitment Tenet "Ethically Maximize Wealth" can encompass how organizations can create shared value. For more information about the Return Driven Strategy framework, see www.markfrigo.com.
The CSV Practices Lab will research leading practices in strategies and strategy execution for aligning business strategy to create shared value. It helps future and current business leaders to develop approaches for co-creating shared value and co-creating leading practices for Shared Value Business Models. One of the initial projects of the CSV Practices Lab is to identify and describe CSV initiatives and strategies and the performance measures used to manage and monitor them. Companies can create shared value opportunities in three ways: (1) Re-conceiving products and markets, (2) Redefining productivity in the value chain, and (3) Enabling local cluster development. In this research project, we will analyze these three streams of creating shared value through the lens of the Return Driven Strategy framework and identify the performance measures used to manage and monitor CSV performance. In addition, we will examine the use of Strategy Maps to implement shared value strategies between private, public and NGO sectors. This study will also use the "Win More - Win More" philosophy of the Value Co-creation Paradigm (see reference 4) through engagement platforms. Value Co-Creation with both external and internal stakeholders helps balance Risk-Return by mitigating different types of risks while enhancing shared value creation. Co-Creating Shared Value Strategy is about taking a balanced approach to Risk-Return management by engaging in value co-creation with customers, employees and other key stakeholders, which reflect strategic choices made by the company to maximize value ethically through co-creation. Value co-creation rests on the four key building blocks of Dialogue, Access, Risk-reward understanding and Transparency (DART) that enable interactions among stakeholders to be more co-creative, which will be used to examine CSV initiatives. Through engagement platforms that are DART-enabled, organizations can:
- Engage all stakeholders in the co-creation of organizational purpose and decision making, thereby not only focusing on what stakeholders truly value, but also going beyond the conventional firm-centric view of product-service strategy
- Reduce risk by leveraging the knowledge and skills of all stakeholders — both individually and as communities
- Incorporate a more broad-based experience-centric view of value into their operations
For more information about the Creating Shared Value Practices Lab and its research reports, seminars and workshops, please contact:
Dr. Mark L. Frigo
Director, The Center for Strategy, Execution and Valuation; Shared Value Creation Lab
Ledger & Quill Alumni Distinguished Professor of Strategy & Leadership
(1) Porter, Michael E. and Mark R. Kramer, "Creating Shared Value: How to Reinvent Capitalism and Unleash a Wave of Innovation and Growth" Harvard Business Review (January-February 2011)
(2) Frigo, Mark L. and Joel Litman, Driven: Business Strategy, Human Actions and the Creation of Wealth, Strategy & Execution: Chicago, IL (2007)
(3) Frigo, Mark L. (with Robert S. Kaplan and David P. Norton), "The Balanced Scorecard: 20 Years and Counting" Strategic Finance (2012)
(4) Value Co-Creation is described in Venkat Ramaswamy and Francis Gouillart, The Power of Co-Creation (2010); and C. K. Prahalad and Venkat Ramaswamy, The Future of Competition: Co-Creating Unique Value with Customers, Harvard Business School Press (2004)
Frigo, Mark L. and Venkat Ramaswamy, "Co-Creating Strategic Risk-Return Management" Strategic Finance (2009)
(5) Epstein, Marc J. Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts, Greenleaf Publishing, (2008)
(6) Mackey, John and Raj Sisodia, Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard Business Press) 2013