Friday, May 28, 2010

Sustainability and The Bike Industry

This week, I've been contemplating a deep and disturbing question: is the bike industry as we know it sustainable? What is important to note is that the bike industry is similar in so many ways to all of our other industries. So I ask the question of the bike industry, because that is what I know best, and because that is the industry in which I find myself, but it could and should be asked of all our industries.

We had a meeting with our strategic planning team this week. It was encouraging; the business is doing well. We talked about growth, profit, and partnerships. What wasn't discussed were limits to growth. I doubt anyone in the room would've argued that unlimited growth is sustainable, but limits to growth seem to be the elephant in the room in any discussion of business strategy. The following is purely speculation, but it seems logical to assume that to talk about limits would stifle growth. To recognize openly that, if we want to be serious about sustainable business, we need to limit our growth would be to limit ourselves, rather than being held back by an external limiting factor.

I see in this the tragedy of the commons. If we limit ourselves, that means we'll be leaving resources on the table for others to use. In other words, if we don't use those resources, somebody else will, and then we've sacrificed our competitive edge.

At this point, I'm not comfortable enough at work to actually ask these questions. I don't even know how my asking would be perceived; I don't want others to think I'm questioning the foundation upon which 500 employees depend. But I hope to ask someday.

1 comment:

  1. Chuck, from a sustainability directors standpoint, Ive heard that If you sell a product that is more sustainable than the alternative, then you are sustainable. Check out the 2007 Cardinal Glass Sustainability report. Their point is that since they sell insulated glass, and their product makes homes more efficient and saves Co2, they are sustainable and there is no need for further measure.

    Perhaps the bike industry is similar at least in the eyes of your leadership. Since bikes save Co2 emissions from cars, then they are fundamentally sustainable.

    I would argue that that statement is partly true, bikes are better than cars. But the next step is how long are people using their bikes before they go to the land fill. Can that life be extended? Can people give more money to your company and the company give them less product, but more value?

    Your company can do better. Its goal should be to:

    1. Produce Zero waste
    2. Take back old bikes and reuse the components in future models,
    3. Sell more bikes as an alternative to cars.
    4. Try leasing "transportation" bikes so that they have incentive to produce long lasting models

    There are probably many other areas for improvement, but these stand out to me. Each area can potentially increase overall profitability. You just need to pitch good ideas, and sell them on it. If the person your taking to is not receptive to it, pitch it to their boss. You just need to talk to the right person, or start your own company because they are missing opportunities.

    Ryan

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