1. www.businessillustrator.com
Let’s address
the elephant
in the room

2. OOM cartoon story v.4
Issue number 1

3. Issue number 2

4. The goal:
A just and regenerative economy

5. HOW TO
BUILD A JUST &
REGENERATIVE
ECONOMY?

6. Growth must happen in the right places.

7. Make money to make change.

8. We must remove the constraints to growth.

9. We must work for change both
internally and externally.

10. PROBLEM 1:
EXTERNAL
FRICTIONAL
COSTS

11. (Bureaucratic) friction is unevenly distributed.

14. High external frictional costs drive away
investment where it’s needed the most.

16. High external frictional costs drive away
investment where it’s needed the most.

17. Prescriptive regulation keeps
entrepreneurs in the informal economy.

18. Prescriptive regulation is also a problem in
the transition from grey to green economy.

19. WHAT TO DO?

21. Principle based regulation would create the boundaries,
but leave space for innovation.

22. We must get capital back in the productive economy.

23. We need engaged capital.

24. SUSTAINABLE FINANCE

25. We believe local businesses are a key player in
developing a regenerative and just economy.

26. To make sustainability real, the time horizon
for investment should be generational.

27. The short-term thinking of finance has
made managers short term thinkers as well.

28. With long term investment businesses can invest
in environmentally sustainable solutions.

29. Long term investment helps businesses
make the transition from grey to green.

30. PROBLEM 2:
NON-REVENUE
GENERATING
ACTIVITIES

31. But! In order to reap the benefits of sustainable
investment, businesses have to be investment ready.

32. HOW TO HARNESS THE TRANSFORMATIVE
POWER OF LOCAL BUSINESSES?
Our suggestion:
An approach with which operational businesses
can drive material productivity gains.

33. In OOM the goal is to reduce non-revenue generating activities
that prevent local businesses from flourishing

34. 3 KEY
PILLARS
OF OOM

36. OOM is about being obsessive about eliminating as many
non-revenue generating activities as you can!

37. EMPOWER
STAFF

38. Your employees are the best people to show where the
non-revenue generating activities and costs are.

39. In most companies employees’ role is only to execute.

41. This means you need to allow employees to THINK,
not just follow orders.

42. RESPONSIBILITIES AT
DIFFERENT LEVELS

43. TOOLS OF OOM

44. Employee/mid-level managers:
Maximising free cash flow

45. Senior management:
Balance sheet preservation

46. The Board:
Optimal capital allocation

47. SYSTEM LEVEL VARIABLE
INCENTIVISATION

48. Make employees genuine
partners in the business

49. A key way to make your employees
partners in the business is variable pay.

50. SHORT BUDGETARY CYCLE

52. Variable pay + short budgetary cycle
= more responsive, fast moving company

54. Some of the profit should be invested
every month through cash sweeps.

55. DISCIPLINE IN THE USE &
ACCESS TO DATA
(More data is not the answer)

56. DISCIPLINE IN THE USE &
ACCESS TO DATA
(More data is not the answer)

57. DISCIPLINE IN THE USE &
ACCESS TO DATA
(More data is not the answer)

58. OOM CASE STORIES

59. Case: Bindura mine, Zimbabwe

60. Introduction of OOM v.1
(variable pay, domain autonomy)

61. 18 months after introducing OOM

62. Initiative in the office...

63. ...and initiative on the shop floor

64. Case: Element Six
(Synthetic diamonds / hard industrial materials)

65. For OOM to work we need to let go of old assumptions

66. Do you want to be part of the solution?
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