‘Regenerative by Design’: Good Life X launches THRIVE Business Model Canvas

From left: RETRACE™ Hospitality Founder Chalana Perera, Good Life X Partner Anushka Wijesinha, MAS Holdings General Manager Sustainable Business Amanthi Perera, Good Life X Founder/ CEO Randhula de Silva, Good Life X Partner Arj Wignaraja, Good Life X COO Vihangun Ariyaratne, Good Life X CFO Savan Perera, Good Life X Admin Manager Kamil Jayah, Good Life X Intern Randuli Rubasinghe, Good Life X Communications and Community Emma de Silva, Good Life X Intern Hari Jashwanth, Good Life X Program Associate Saseni Wijegunawardene and Good Life X Program Manager Thushan Wickramasinghe

By Rivi Wijesekera

Good Life X (GLX), Sri Lanka-based innovation and development catalyst, recently launched it’s new “THRIVE Business Model Canvas”, charging regenerative business principles into the popular management tool.

GLX has already begun using THRIVE BMC with over 15 of the businesses it supports and hopes to push the idea forward within the business sector as part of their greater vision for a circular Sri Lankan economy.

The program is supported by The USAID Catalyze Sri Lanka Private Sector Development (PSD) Activity.

Developed by Swiss business theorist Alex Osterwalder in 2000, The Business Model Canvas (BMC) is a strategic tool used by businesses to describe, design and analyse their business models. It is a visual chart that shows the key elements of a business, such as customer segments, value propositions, channels, customer relationships, revenue streams, key partnerships and cost structure.

According to Strategyzer, the company that developed the canvas, over 5 million people from more than 150 countries have used it, and businesses that do are more likely to have a clear and concise business plan, be customer-focused, and have a higher likelihood of success.

Introducing the concept, Growth at GLX Alchemist Good Life X Partner Arj Wignaraja, emphasised the adaptability of the BMC, citing the development of the ExO Canvas: a variation of the model designed for businesses that aim to become exponential organisations (ExOs) using disruptive technologies such as artificial intelligence and big data. Variations such as the ExO Canvas are a testament to how businesses can experiment with different business models and pivot their strategies based on feedback and market conditions.

The significance of Good Life X’s THRIVE BMC, designed alongside PepperCube Consultants, is in its replacement of traditional elements of the canvas with regenerative principles. For example, instead of a value proposition, GLX encourages businesses to consider their Purpose, Principles, and Paradigms (P3). “We, through our business, are trying to solve a social or ecological challenge, and that is articulated through a clear and transformative purpose,” added Good Life X Partner Arj Wignaraja.

Regenerative principles in business are gaining popularity globally, as companies recognise the need to prioritise long-term sustainability over short-term profits. “The climate crisis is impacting supply chains. Grassroots communities are increasingly left behind in global value chains. Conscious consumers seek brands with purpose and importance. The best of Gen Z talent try alternative ways to work, seeking meaning in their jobs. We’re beginning to see deep changes in the global regulatory landscape.”

Arj Wignaraja and GLX Founder and CEO Randhula De Silva were alluding to the urgency of incorporating circular models into businesses both locally and globally. “All of these are signalling the rise of the second wave of disruption in the way we live and work.”

Case studies also demonstrate that focusing on regenerative principles can lead to financial success while benefiting the environment and society. Interface, a leading US-based carpet manufacturer, transformed its operations to become a carbon-negative company by 2040 and has seen a 96% reduction in Green House Gases (GHG) emissions at the manufacturing stage and an 86% reduction in waste to landfill since 1996, all while maintaining YoY growth – profits doubled four years into their venture into sustainable practices. “Being regenerative is a complete change of mindset and a new way of operating: actively seeking to give back more than we take,” said Randhula De Silva.

GLX also gave voice to home-grown case studies of companies “fighting the good fight,” tapping into a network of 100+ businesses they’ve worked with and supported. BoardPAC Founder and Executive Director Lakmini Wijesundera, Kalundewa Retreat Director and COO Gihan Candappa, and the Goodfolks Founder Dinesh Gratian Perera took to the stage to showcase their business models and speak on their experience with GLX and THRIVE BMC.

“Before [working with GLX], it was just this blur of things that we wanted to achieve and stood for, but actually sitting down with GLX and going through the value-oriented aspects of [Goodfolks] put things into perspective, aligned our day-to-day job on the field with our purpose, and tied it to our results,” said Perera commenting on the value of GLX’s expert advice in the family company’s journey toward becoming truly regenerative. “We have already integrated one of our products – our honey project – into this new model.”

The incorporation of regenerative principles into the business world has been a topic of debate in recent years, as there are those wary of its potential to be perceived as a passing trend. Concerns have been raised on these principles being co-opted by companies as a form of green washing, bypassing meaningful changes to their business models or practices.  GLX echoed these concerns at the launch, urging businesses to incorporate regenerative practices into their operations in a way that is thoughtful and backed by a deep understanding of the principles.

“I think with larger companies it’s even easier, because they already have systems in place, making it easier for them to move towards regenerative principles on an operational level,” said Randhula De Silva in response to a question posed by The Daily FT on the effort needed by Sri Lanka’s corporate leaders to help reshape the business sector. “The real concern for legacy firms would be the mindset and cultural shift necessary to approach it the right way. If you dedicate yourself for a good six months to a year, it’s possible. Commitment really is key.”

References

1 Amarsy, N. (2015) Why and how organisations around the world apply the Business Model Canvas, Strategyzer.

2 Interface, Inc. (2020) 2020 Sustainability Highlights. 

3 Lovins, H. (2018) How interface realised that the carpet business as usual wasn’t sustainable, Greenbiz. 

4 Giles, J. (2019) The fight to define Regenerative Agriculture, Greenbiz.