Blueprint 7: Value Cycle (forthcoming)

Purpose of the Blueprint

AspectExplanation
IntroductionThis Blueprint seeks to redefine Michael Porter’s linear notion of a Value Chain to the more holistic notion of a Value Cycle that operates in alignment with thermodynamic laws and the cyclical, regenerative aspects of natural, social, and economic systems. This redefinition also extends beyond the notion of the Circular Economy, which has been critiqued for focusing on material circularity without factoring in the sustainability of other natural and social cycles, including on human beings and wellbeing in general.
FocusThis Blueprint focuses on both elements of its title:

  • Value: Linear industrial models focus on monocapitalist value extraction (which ultimately leads to value extinction), whereas cyclical multicapitalist models focus on what the Future Fit Foundation calls System Value Creation, or Strategic Management Forum calls Valueism – both of which define value holistically, not just financially.
  • Cycle: Systems-based approaches recognize the cyclical nature of resource regeneration where carrying capacities define thresholds dividing capital (resource) stocks (that need to be retained) from flows (that can be drawn upon).
Link to other Reporting 3.0 Blueprints
  • Reporting Blueprint: The Reciprocity and Circularity Principles call for value cycle approaches.
  • Accounting Blueprint: Multilayered, multicapital accounting sets a strong foundation for value cycle accounting.
  • Data Blueprint: The Daly Hourglass calls for seamless data architecture across value cycles, enabled by digital applications such as distributed ledger technologies (DLT, or blockchain / holochain).
  • New Business Models Blueprint: Integral Business Models account for impacts across the value cycle, as covered in the Integral Business Model Template.
  • Transformation Journey Blueprint: The Transformation Journey calls for taking a holistic approach that seeks to build “economies of reciprocity” in value cycles where system value can be generated in ways that scale mutually beneficial positive impact.

Areas the Blueprint will cover

AspectExplanation
System Value & Valueism To redefine Value Chainsto Value Cycles first requires redefining Value by defining System Valueand Valueism, which challenge the fundamental underpinnings of prevailing economic theory.
Circular Economy Cyclical EconomyA Circular Economy is a subset of a Cyclical Economy, which takes into account not only cycles in built capital (ie material), but also cycles across all other capitals (natural, social, human, etc).
Scope 3A Value Cycle Blueprint will necessarily have to grapple with challenges inherent in Scope 3 accounting.
Technology & the Value CycleDistributed Ledger Technology (DLT, or blockchain / holochain) in particular enables data tracking across the value cycle.
Lifecycle AssessmentLCA has always encompassed the entire value chain, so shifting to a value cycle lens promises to further enhance LCA approaches.

Resources the Blueprint will build upon

ResourceExplanation
System Value & ValueismSystem Value and Valueism represent emerging concepts that this Blueprint will build upon and extend.
Circular Economy & its Critiques The Ellen MacArthur Foundation has produced an invaluable body of knowledge around the Circular Economy that this Blueprint will build upon, while also addressing critiques of the Circular Economy that identify gaps.
Scope 3 in Standards / FrameworksStandards and frameworks such as the Science Based Targets Initiative address Scope 3 issues with variable degrees of discipline and cyclical holism, providing opportunities for enhancement.
Data / Technology ResourcesData and technology play a key role in transforming mindsets and performance tracking, so resources such as this resource laying out the potential for DLT to address ecological valuation across the value cycle will be important to integrate into BP7.

Expected outcomes of the Blueprint

OutcomeDetail
RepositoryBlueprints typically result in a repository of source materials numbering in the hundreds, compiled into a repository.
Infographics from virtual dialogueBlueprint development typically involves a virtual dialogue on Convetit for each Exposure Draft, resulting in infographic reports.
Public comment After vetting two Exposure Drafts with the Working Group of 20-40 global experts, a Public Comment period precedes final publication.
Blueprint #7The final version of Blueprint #7 will be published as a Reporting 3.0 Blueprint Report.

Parties who should be involved

Main role – (S)=sponsors; (W)=work/research partners; (D)= Data providers; (V)=validating / networking partners
Sponsors (S)Economy-oriented foundations, governments, multilaterals; companies with complex value cycles.
Research partners (R)Research universities and think tanks; individual experts.
Work partners (W)Advocation Partners and Transformation Journey Program Participants.
Data providers (D)Supply and Demand Chain (Value Cycle) Data Providers.
Validating / networking partners (V)Reporting 3.0 involves influential players that aren’t in a position to contribute formally in this Blueprint Project to reflect and add opinions where deemed necessary. This increases the visibility of the project and recognition of the outcome.

Management of the Blueprint project

FunctionRole Description
Program managerRalph Thurm
BP Lead(s)Bill Baue, Ralph Thurm
Corporate Participants7-10
Network Representatives7-10
Non-Profit Representatives7-10

Timeline

MonthActivities
1Call for participation, set up of working group, budget check, official launch
2-3Literature collection, analysis, 1:1 expert interviews
4Structuring of outcomes, 1st meeting working group
5-6Development of first draft blueprint with participants
7Online Think Tank, infographic development
8Structuring of outcomes, 2nd meeting working group
9-10Final draft to working group, public comment period
11-12Final version of blueprint and release

Resources

ContributionsDescription
Funding200k EUR, accepting donations as matching funding, and corporate contributions between 10k and 20k EUR
In-kindpossible

Value Cycle Blueprint

forthcoming

Value Cycle Blueprint Repository

Lead Authors
Bill Baue

Senior Director

Reporting 3.0

+1 413 387 58 24

Ralph Thurm

Managing Director

OnCommons / Reporting 3.0

+31 64 600 14 52

Working Group Members
Martina Prox

Martina Prox

Chair of the Board of Directors, FSLCI

James Quilligan

James Quilligan

Senior Advisor, Economic Democracy Advocates Senior Advisor, Peer to Peer Foundation

Henk Hadders

Henk Hadders

Founder, Impact in Context

Prof. Dr. René Schmidpeter

Prof. Dr. René Schmidpeter

Director Center of Advanced Sustainability Management (CASM), Cologne Business School

Dr. Koos Wagensveld RA

Dr. Koos Wagensveld RA

Professor Financial Control, HAN (Hoogeschool Arnhem Nijmegen)

Renilde Becqe

Renilde Becqe

International Sustainability Consultant

Dr. Reiner Hengstmann

Dr. Reiner Hengstmann

Founder, Go4moreGlobal

Antony Upward

Antony Upward

Flourishing Enterprise Designer, Better My Business

Karel Leeflang

Karel Leeflang

CEO StrategyPod, powered by AlignAlytics

Sponsors

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