Bottled Water and a Gallon of Gas: Using Systems Thinking to Reframe the Issue of Rising Prices.
June 18, 2008
Ok, a long title, and a bit cryptic again. However, you should be able to guess where this post is going by now. (That is, if you have read the previous two posts dealing with the idea of “reframing” in the context of organizational strategy, social change, and everyday personal experience and thought.)
First, there is this editorial from the New York Times that expounds on the effect of rising gas prices in the U.S. on environmental outcomes. Here is a brief excerpt:
Still, Americans’ response to rising gasoline prices makes an excellent case for a gas tax. It proves that drivers will change their behavior in response to high fuel prices. And even if Detroit doesn’t buy global warming, drivers can help persuade it to embrace fuel efficiency. They don’t even have to know that the Honda Civic emits less than half the 13 tons of greenhouse gases spewed by the Ford F-150.
So, rising gas prices not only have the effect of raising the price of food and other daily commodities, but also work to change the mindset of corporations and society toward environmental and ecological issues as well. We can promote the benefits of global sustainability all day long and never get the type of change necessary for long-term human betterment (i.e. avoiding overshoot and collapse scenarios), but… well, what is that old saying about money talking?
Here’s a similar article that deals with the movement toward drinking tap water over buying bottled water due to rising prices - which is in turn caused by the increased price of gasoline and the flailing economy:
The lousy economy may be accomplishing what environmentalists have been trying to do for years - wean people off the disposable plastic bottles of water that were sold as stylish, portable, healthier and safer than water from the tap.
Oh, how the times have changed - and how the market has changed them:
Chicago started a 5 cent tax on plastic water bottles in January. San Francisco has done away with deliveries of water jugs for office use, instead installing filters and bottle-less dispensers, and has banned the purchase of single-serving bottles by city employees with municipal funds. The city has already cut its government water budget in half, to $250,000 a year, said Tony Winnicker, spokesman for the San Francisco Public Utilities Commission. “It’s becoming chic to say, ‘Oh no, I don’t drink bottled water, I’ll have tap water,’ ” he said.
(Sidenote: Campaigns advertising the environmentally hazardous use of petroleum-based containers haven’t helped sales of products such as bottled water any either! Possible “popular meme” solution for this luxury item? How about the promotion of USDA ”BioPreferred” containers such as those created by Cereplast? )
So, gas prices rise, thus raising food prices, and then consumers stop spending so much on SUV’s and bottled water, which in turn forces companies to rethink (or “reframe”) their new product development, innovation, growth, and risk strategies (as well as strategic competencies and organizational purpose). This dynamic will ultimately affect everything from your corner “7-11″ (their purpose and vision) to your favorite drive through fast food restaurant (which is already having to reframe based on nutritional and dietary change in the American psyche and zeitgeist; what happens with less cars and consumers on the road?)
Now, if organizations had the foresight to utilize scenario development strategies, systems thinking, risk management processes, and horizon scanning…
BTW, what’s about to change in your world?
Image: Joe M500 (Flickr)
Ok, so that’s a fairly overstated title for the post that follows, but these are some of the things that I’ve been thinking about as of late while doing some research for a foresight project. And, when I read the 