Our Italian client is launching a new brand around this tasty product and they appear to be making some smart moves- including hiring The Groop! We are taking on many of their identity and branding efforts, which I will discuss in future posts. However, what is most interesting as I dive deep into the culture of Balsamic, is how little I knew about this unique product. Let me share some info with you.

The following is a brief primary from Gourmet Retailer:

Article Title: Traditional Balsamic Vinegar

Shrouded in mystery and steeped in tradition that extends back centuries, balsamic vinegar remains one of the most popular and yet misunderstood items in the specialty food world. Balsamic is unique among vinegars in that the juice from the grapes never becomes wine, but rather goes from a cooked grape “must” through a singular process that transforms it into a rich, viscous elixir considered to be one of the greatest condiments in the world. Floor personnel, faced with varying levels of quality, age, and price, should be able to separate fact from fiction, and dispel the myths and misconceptions about the balsamic vinegar category. This is especially important in light of the preciousness of the most expensive Aceto that would preclude regular tastings. Following is a primer on this sublime ingredient that in a very short time has become one of America’s favorite vinegars.

Hint: a gift idea for Charles Erdman

What is balsamic vinegar of Modena?

Two completely different products lie within the category of balsamic vinegar of Modena — traditional and commercial — and each is subject to completely different production methods, trade associations, and legal requirements in Italy.

Traditional balsamic vinegar of Modena is a very rare product that is always expensive. It is produced from the cooked and filtered “must” (the juice of crushed grapes) derived primarily from late-harvest Trebbiano grapes. The “must” is aged in different types of wooden casks for a minimum of 12 years in what is one of the world’s most unique and important culinary traditions. The content of the final cask is brought to the consortium in Modena, which is the governing body that certifies traditional balsamic vinegar of Modena.

If the product passes inspection, the producer is authorized to have the product bottled by the consortium in its patented 3.5-ounce bottle. Aging claims are forbidden on labels, and the difference between 12 and 25 years is indicated by a seal on each label (white or gold). The vast majority of balsamic vinegar of Modena consumed in the U.S. is commercial. Commercial vinegar is the result of the fermentation of two ingredients, cooked or concentrated “must” made from grapes of the local region and red wine vinegar. No legal aging requirements exist for the production of commercial vinegar. Usually, but not always, it is aged for a short time. Again, aging claims on the label are not allowed.

Does a balsamic vinegar that claims to be aged mean that I am getting better quality?

Traditional balsamic vinegar of Modena is verifiably aged, and its quality is strictly enforced and regulated by the consortium. However, very few consumers are willing to pay $100 or more for a 3.5-ounce bottle.

The quality of commercial balsamic vinegar is determined mainly by the quality and quantity of “must” in the product, which can be measured by lab tests. There is no aging requirement by law in Italy for commercial vinegar, and the majority of it is not aged at all. The differences in commercial prices are generally due to differences in the quantities and qualities of “must.” Aging also plays an important role, as does the type of wood, size of the barrels, etc. There are some extraordinary commercial products that are made in the traditional manner and thus, are very expensive as well.

How do I know which type of balsamic vinegar to use?

Fortunately for American consumers, an Association of Italian Balsamic Tasters (A.I.B., or Assaggiatori Italiani Balsamico) has been formed in Italy to establish a labeling system to help sort out the various levels of quality and price, and how best to use them. Some producers have divided the product into four categories that indicate the different characteristics, as well as the recommended usage for each level. The labels have varying numbers of vine leaves under a chef’s hat.

One leaf indicates a moderate-density vinegar, which is best used for salad dressing. Two leaves signify a greater density and should be used for salads, marinades, and BBQs. Vinegar with three leaves on its label is characterized by sweetness, with scents of spices and wood. This level is excellent served simply with cheese, strawberries, or other fresh fruits. Four leaves indicate exceptionally smooth and thick authentic balsamico tradizionale, and should be used for the highest culinary creations, such as transforming — with a mere drop — a perfect steak, serving as a last-minute addition to a sauce, or as the Italians do, sipping it as a digestivo.

End of Article

Once we receive final approval to make public, I’ll release screen shots of the wireframes and the design solution. We will be using a lot of video and weaving it in to the online experience. Until then, happy eating!

Problem: In North America, the Nokia brand image is confused.

Solution: Target the user who wants both business and fun in one device.

As I outlined in my last post on Nokia’s brand, I think the company needs to make some swift changes in their product and service offering, while unifying their communications from both an identity and branding perspective. There was good reason to think that their new flagship N97 smartphone combined with the Ovi application marketplace could be the “it” combination to tackle their eroding awareness in the U.S. market.

Unfortunately, early reviews are not positive as seen in this TechCrunch post. Apparently, the overall user experience lacks consistency and suffers from poor industrial design (eg., screen tilt is fixed) and materials choices (eg., the primary screen hinge). If this assessment is true and consumer’s begin to feel the same way as the reviewers, Nokia will not generate needed buzz… and that is exactly what they need right now based on the results of personal inquiries.

In my survey, I made certain to target a wide range of age groups that tended to be broken down in to three audiences- senior, mid-age and twenty-something. The following are the direct quotes from my US and European friends.

Each was asked the same question: “what are the first words that come to mind when you think of “Nokia?”

United States

Nokia means cell phones. That’s all I know. (age 72)

The best thing from Finland. The only thing in Finland. Wonderfully cheap Nokia phones that we use in Mexico (true). (age 70)

Are they still in business? I haven’t used one of their products, or considered one of their products, for many years. As I remember them, they were cool, crisp, current, workable, effective tech tools and toys. (age 54)

Nokia…weird brand…techie, not hip, Asian, kind of generic electronic manufacturer, cheap products, not Multi media, no hook like blackberry and iPhone. (age 42)

Innovative… Product design… Dominant outside of the US… Ovi… Friendly… Tech savvy. (age 36)

Outdated phones… did not know they were still around. – Sent from my Verizon Wireless BlackBerry (age 34)

I don’t use their phones because I don’t know much about them. They seem to have a lot of “starter” phones on the market. I want the status of owning an iPhone. (age 22)

Europe

The one problem would be that it (N95) takes a week to figure all the stuff out and I am very good with gadgets. And some simple functions related to calling and emails still have me perplexed and I don’t have them working correctly. (age 39)

I have the Nokia N95 (older model) smart phone and love it. It’s like a mini computer. (age 32)

Nokia is the phone I look for when I start a new contract with a carrier. They are dependable and I need that in a phone – which is my life! (age 28)

In general, the above simply shows a lack of awareness in the North American market. In the EU, they have a stronger presence, but this may be country by country. When recently visiting Austria and talking with an 18-year old, he used a Sony-Ericsson and stated that all his friends do as well. He claimed that Sony-Ericsson has 60% of the market in Austria. Who knows if that’s true, but the perception is there and will be hard to change.

In the US market, I think Nokia has a real opportunity if they target the business-user first. Apple controls the conversation around ease-of-use and cool design for the consumer population. If you want to be perceived as hip, you own an iPhone. However, the business-user marketplace is still primarily defended by RIM and I think there is room for competition.

If Nokia can meld the slide-out keyboard and an enterprise software solution with a multimedia device (photos, movies, MMS, etc.) AND an open-source application store, they could really erode the Blackberry market share. This is why the N97 + Ovi combination could be the “it” solution.

It will only happen if Nokia values the total customer experience supply chain (described in the book “Do You Matter? How Great Design Will Make People Love Your Company“). This concept makes the interaction design of the total experience – ie,. every customer touch-point, be it physical or marketing – the overarching directive of all product development initiatives.

In the North American market, Nokia could maintain a healthy price point and revive their image as a solid technology solution if they understand that the business user wants one device for both business and personal use. This could be their sweet spot that once claimed, could change people’s opinions of the brand in both the States and Europe.

Problem: Nokia is struggling with a fractured product offering and image.

Solution: a renewed focus on the user’s needs and an immediate re-organization of all consumer-facing projects around this premise.

Irrelevant is a powerful word in a capitalist economy. Irrelevant happens when a company’s products or services don’t meet or exceed the baseline expectations. In the fast paced technology marketplace, if you don’t provide a comparable service you lose market share and become irrelevant in a very short time frame.

Nokia may still be the largest mobile phone manufacturer in the world, but that may not be enough to keep them relevant to the consumer dialogue happening around mobile applications, social networking and location based services. After reviewing their offering and taking an informal survey about their brand, I’ve generated some conclusions expressed in this post.

My observations are that (1) its all about the software; (2) Nokia must match their competitors before they can exceed them; (3) they need to leverage their newly emerging service platform; (4) they need to unify their communications to support one brand; and finally (5) I think they should consolidate their handset lines.

Here are my five thoughts in greater detail:

1. The Software Now Drives the Hardware

Hardware and software are no longer distinct in the eyes of the consumer. They must be as one. The touch screens place the emphasis on the software interaction. This new paradigm provides greater flexibility as the user interface (UI) can evolve over time and change according to an application’s needs. If the software must conform the hardware’s inputs, it is constrained. The hardware must only serve as a container for the software experience.

The fact that the UI drives the car is why Nokia may soon be irrelevant if their new flagship model, the N97, doesn’t create a stir with a satisfying TOTAL user experience. By total I mean the entire physical and screen experience. This includes: how the device sits in your hand; how the buttons feel when pushed; what feedback is provided upon input; how the UI behaves; how intuitive each transaction feels; and even how the whole phone syncs. Simply put, their OS needs to match the iPhone’s OS. That is the gold standard.

2. Match Standards

Nokia is still viewed as a hardware company by most of the world. They make a huge range of phones that serve a variety of audiences. If they are to succeed, their services solution (Ovi) needs to be fully integrated with their media handsets. If they can develop truly smart phones that has a comparable OS to their competitors linked to an expanding application marketplace, then they can match their competitors.

The key will be if they can do something unique with the core software applications (mail, calendar, contacts, media files, etc.). One application that is part of the Ovi offering is mapping. After a thorough review, my opinion can be summed up in two words, “not yet.” They haven’t even incorporated the basic features that we have been taught to expect by Google or Yahoo Maps. Once they can provide the baseline, then they can make incremental improvements.

The CEO has publicly declared that they are a “solutions company”. He has also stated that they are placing a greater emphasis on location based services. They will need to match the standard set by a number of others, like Google’s Latitude service, in order to fulfill on that promise. Once that is achieved, then they can start providing innovative solutions.

3. Be an Open API Service Provider

As with all social structures and software initiatives that are fluid, Nokia must harness the power of the community. Communities know what they want. They are quick to reward a product or service that successfully addresses a need.

To stay innovative, Nokia should focus on providing developers with their OS and Ovi Mapping API. If Nokia provides a solid OS and core applications platform, then fully opens (not partially) the APIs, the development community will go nuts. The mapping features can be expanded and touch all the core communiation and social activities. that model simplifies Nokia’s task immensely by placing the burden of innovation upon the community.

So follow the open-source movement. Focus on creating a platform that encourages experimentation, commercial reward and community input. Considering the market share of handsets that Nokia enjoys, they can easily get momentum in their favor.

4. Unify The Brand

Nokia currently has a number of products and services that utilize different style guides and messages. This provides their marketing and service vendors with a huge opportunity to unify the consumer’s perception of Nokia.

“Comes With Music”, the Ovi Store, the Nokia Store, local and global websites, and .Mobi all appear different and disconnected in the online environment. There is little energy around their traditional marketing. It feels fragmented and unfocused. They need to consolidate their vendors and unify their internal fiefdoms. It’s a process of change management on a very large scale.

The rewards will be a consistent impression of the company and its services. Remember, a brand is not what YOU say it is. A brand is what THEY say it is. Capture your core audiences loyalty and their friends will follow.

5. Cull The Herd

Lastly, I think they need to bring down the variety of handsets they offer to fewer lines that target specific activities and budgets. Each line should service a particular need in a simple and elegant manner. Each phone should always, always sync with their software service, Ovi, so a continuous bond between handset and software services is established. The user must feel that they are taken care of by Ovi and Nokia. If a Nokia phone will be desirable if it allows for immediate ownership of cool apps, then people feel special. Consumer’s are all about how to be special within their tribe.

In a world of options, the consumer needs focus. Nokia needs to provide that focus and direct their audience to the right product. Right now, its too confusing.

In conclusion, if Nokia took just a few of these suggested steps, it would gain mind share again. From a recent survey I took of friends from the U.S. and European markets, I learned that Nokia does not control the conversation about their brand. It is a fractured perception- just like their offering. They are not perceived as relevant to the market forces that are driving the mobile industry.

To their credit, they may be putting in place the tools to reenter that space. They are probably wrapping all of their services into the Ovi Store and beginning to unify their brand. The launch of the N97 will hopefully make a splash. The mobile phone market is moving quickly and the consumer’s expectations of how their “media device” must behave has shifted in a massive way.

It’s time for Nokia to turn up the volume and be relevant to the consumer’s needs. It’s time for user-centered product development approach.

Now they are applying the idea of “SHIFT_” to the next generation of automobile purchasers- generation 2000 or the millennium generation. I was slow to realize that anyone born in the late eighties and early nineties is now at an age where their parents are buying them cars. I was slow, because… well… I’m getting older and didn’t realize that they were not only out of diapers, but have become official consumers…

The SHIFT_ tag may be a bit stale, but I could make the argument that the structure provides flexibility while reinforcing core brand qualities. The idea has been to distinguish Nissan as an innovator in the mind of the consumer. Nissan shifts the perception of an automobile- its uses, its design, its ability to inspire, its ability to aspire- away from merely transportation.

The website does this quite well particularly as it pertains to their newest model, the Nissan Cube.

As with everything, the “Millennials” are pushing marketing language to reflect their view of the world: transient, mobile, social, unhierarchical, abbreviated and global just scratch the surface. Chiat Day and Nissan’s interactive vendor (The Designory or are they back with Sapient?) acknowledges this in the website’s section dedicated to the vehicle. One of the first images even declares the car to be not an automobile, but a “mobile device.”

This model is funky, fun and unconventional. It would appear to compete with Toyota’s Scion series and Honda’s Element. The boxy styling is born from Japanese miniature designs that push small personal spaces in tight urban settings. The car has a small wheel base and place the occupants in a more upright position. I viewed a recent exhibition at the London Science Museum on this very subject.

This generation is unique in that it demands to participate with the media being designed for them. They want the opportunity to comment, share and come to their own communal opinions. They want to personalize. They want to tweak mass market products to feel unique. They are a generation who -in a time of endless options- want their choices to proclaim they are distinct from “others.”

Notice the marketing language of the site- its all about personalization. It speaks to two audiences- the child and the parent. The language says- Be different (yet part of a tribe). Be quirky (yet practical). Be unconventional (in your purchases, not in your judgment). It reassures the young adult that they are hip, cool, distinct and… special. And for the parents who are buying the car- be safe (a value statement) and affordable…

This marketing language represents a SHIFT in marketing insight. No longer should communications be “top down” emerging from the company and broadcast to the consumer. It is now about an evolving model of consumer-to-consumer communications with the company trying to participate. It is the language of social networking, blogs and instantaneous access.

However, this is not as new a conversation as it may seem. Quite the contrary, it is the old and relevant dialogue of branding where the consumer tells YOU what the brand is, not the company telling the consumer.

The take-away of this emerging dialogue is that we are at the cusp of a more “interactive” marketing era. The demands of a generation who want to be special in a world of options and commodities are just being felt as their purchasing power grows. Marketers must adapt to the new communication mediums and methods of breaking in to the conversation.

The first step is to create the dialogue and chatter. Next, try and influence it by appropriating the forums for communication. If I were Nissan’s marketing group, I would now create a Cube Owner affinity site which would consist of community stories around vehicle modifications, trips and experiences. Help the car owners own the site. Make it a hub for all things Cube. Generate third-party after market merchandise. In essence, create sustainable buzz and indespensibile membership. SHIFT how the Millennials view their transporation…

Mr. Mau was spot on with this statement and it is exactly the experience I had checking out a bike in Paris, France. The process was rife with usability gaps making me aware of the system’s design.

Problem: A difficult check-out process discourages use.

Solution: Create two entry paths into system for repeat and first time users.

On one early Parisian morning before my family had awaken, I left our hotel and approached a bike station. The kiosk was inviting and after first reviewing the display screen and then the input device, I started punching buttons. I selected my language (British) and then started the process of checking out a bicycle.

The verification and selection process essential is broken down into two phases which was never communicated to me. I’ll start with the first.

Phase One:

1. Activate screen
2. Indicate length of rental pass: one day or one week
3. Chose payment method
4. Swipe card
5. Enter card PIN
6. Card confirmation
7. Receive receipt of day pass purchase and pass number.
8. End session.

Now I should have been on top of this, but during the first phase, I swiped my card and made my first mistake. I was focused on the main screen to provide feedback on my card status. What I missed was that the second screen – located at waist height – was waiting for me to enter my PIN number. Since I didn’t see this prompt, the credit card verification process failed and my card was declined.

I had to re-initiate the process with another card thinking my funds had run dry. I finally realized my error and looked down. I felt a bit foolish, but completed the task. The kiosk printed out a receipt and thanked me for the business. Wait, how do I get the bike? Was I going to be charged for a bike that I didn’t have? I was NOT feeling secure in this transaction (a key usability principle of all digital task flows).

I started the process again, unknowingly starting phase two.

Phase Two:

1. Activate screen.
2. Enter in the day pass number.
3. Receive confirmation that the account is active.
4. Indicate that you do not need help or want to check the status of your account. Instead, select the equivalent of “rent a bike”.
5. Enter the bike number you wish to rent.
6. Bike position is now primed for you to remove the bike (maybe it stays that way for ten minutes?).
7. The screen indicates that the process is now complete and “signs off” returning to the home screen.
8. Walk to bike position, press button and remove bike from the station.

At the point where I was prompted to chose a bike number, I left the kiosk to go inspect the bikes. I wanted one that was clean and had inflated tires. Of course, during this time someone could have come in and started their own checkout. When I returned to the kiosk with my memorized bike number, the screen had timed out…

Obviously the system should have prompted the user to chose a suitable bike before initiating the checkout process. OK, let’s start this again…

After going through the necessary steps again and getting to the seventh step, I notice that the prompt is NOT asking me to choose from all the bikes available, but from two of the approximately twenty bikes available at this location.

I walk out to inspect which of the two is in the best condition and upon my return find the screen has timed out again. This was now officially frustrating…!

This was a longer process than I had anticipated. I was being required to learn the system through trial and error. If this was a website, I would have moved on to another task by now. My time for a ride around the city in the early morning light was being eaten up simply trying to figure out how to checkout a bike- the purpose of the program.

The point of this post is to show how interfaces in the real world are similar to online or mobile ones. If it’s poorly executed, we are aware of the flaws and our perception of the whole business proposition is negatively affected. Each application must be designed with the end-user in mind. Usability design practices must be observed to develop tasks flows that are intuitive and consistent.

My solution for this problem would be to have two entry methods in to the system. The first is for newbies who are being acquainted with the system and require greater guidance. The second is for repeat users who are on the fast track. If this simple solution were instituted, it might encourage a larger population to use the bikes. I know I’m not the first tourist to be frustrated by this process.

A communal bike system is an excellent resource and should be a model for all urban areas. However, this execution failed to live up to the promise. It felt like the processing requirements of each technical system (identify verification, payment transaction, time/place stamping, etc.) were poorly integrated.

Ultimately, I had a very enjoyable bike ride. I experienced Paris at a human pace while getting exercise and using no petroleum. I will use the system again, but next time, I’ll know how to work with its eccentricities to get to my ride faster. Fortunately for government, there doesn’t exist a competing rental program.

What I did not know, was that I would be confronted with visualizing my own world! A company called Wordle scanned Erdworks and generated a tag cloud ranking the most commonly used words on the site.

As I uploaded my URL and waited for the applet to scan the site content, I began to ponder what words would be most visible. I made a split second assumption and, when the scan was completed, was proven completely wrong. I had not anticipated that there was a concentration of words surrounding the green movement. I had assumed there would be more language around user experience design.

What this reinforced was how basic assumptions can be evolved or challenged through the use of smart information graphics. This quick experiment quickly made a relatively large amount of complex data understandable.

I have a new found respect for the ubiquitous tag cloud navigation element as an effective communication tool. Thanks Wordle!

When I work towards generating possibility in others, what I get back is the satisfaction of seeing those around me shine. When they are lite up, I’m lite up. Only then can I produce my best work.

When creating a product or service, it is successfully achieved only if everyone feels they are contributing in a positive manner. It doesn’t matter if I’m creating a dinner with family or an international music service. I want to find how to get the best of each person involved. It takes compassion, insight and the ability to listen. This video reminds me of that way of engaging with others.

Benjamin Zander is a person whom I know of only through an audio podcast. I heard his words, his passion, his humor- and now I want to meet him! I was unable to ponder his words without considering my own contribution. Mr. Zander appears to know how to lead those around him to be active participants in their lives.

This talk was recorded live at the TED conference in Feb. of 2008.

Video not working? Here is the direct link.

As a way for all of us to learn the meaning of the language being used in marketing and business forums, I’ve pulled definitions primarily from the Presidio School of Management. They have a project called “the dictionary of sustainable management.” I’ve included only those terms that seem applicable. Take a look.

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Biofuel

Biofuel is any fuel derived from an organic material that is not fossilized like coal or petroleum. Common sources of biofuel grown for the U.S and European markets are corn, soybeans, flaxseed and rapeseed. Biofuel can appear in solid, liquid, or gas form. It is used to produce heat or electricity, or to power machinery using burners, broilers, generators, internal combustion engines, turbines or fuel cells. Biofuel is a renewable energy, but there is some controversy that it is not sustainable due to the harvesting of biomass and the byproducts produced during the burning of biofuels.

Brand

Often referred to as a promise or expectation, a brand is the collective market understanding or perspective of a company, product, or service (either from the perspective of customers, competitors, partners, or peers).

Brand Experience

Often confused with a corporate identity or package design, a brand experience is the total interaction of customers with a company, product, service, or other offering through all senses, media, and touchpoints (such as television advertising, customer service, product use, etc.).

Carbon Footprint

The total amount of greenhouse gases emitted directly and indirectly to support human activities, usually expressed in equivalent tons of either carbon or carbon dioxide. Carbon footprints are calculated by countries as part of their reporting requirements under the Kyoto Protocol, as well as by companies, regions, or individuals.

CSR (Corporate Social Responsibility)

A business outlook that acknowledges responsibilities to stakeholders not traditionally accepted, including suppliers, customers, and employees as well as local and international communities in which it operates and the natural environment. There are few accepted standards and practices so far, but a growing concern that the actions organizations take have no unintended consequences outside the business, whether driven by concern, philanthropy, or a desire for an authentic brand and public relations.

Cradle-to-Cradle

A phrase invented by Walter R. Stahel in the 1970s and popularized by William McDonough and Michael Braungart in their 2002 book of the same name. This framework seeks to create production techniques that are not just efficient but are essentially waste free. In cradle to cradle production all material inputs and outputs are seen either as technical or biological nutrients. Technical nutrients can be recycled or reused with no loss of quality and biological nutrients composted or consumed. By contrast cradle to grave refers to a company taking responsibility for the disposal of goods it has produced, but not necessarily putting products’ constiuent components back into service.

E-waste

Waste materials generated from using or discarding electronic devices (such as computers, televisions, and mobile phones). E-waste tends to be highly toxic to humans, plants, and animals and contaminate water, air (often when burned), and dirt (where dumped or spilled). E-waste is a particular problem since technological devices are superceded so quickly, causing them to be thrown-out more quickly than many other product. Few of these devices are upgradable, easily reusable, or easily separated for recycling of components or industrial nutrients.

Eco-Labels

Any label that attempts to certify or distinguish a product or service in terms of environmental issues. The ISO 14021-14025 standards outline four different categories of eco-labels:

Type I labels are product seals licensed by governments or third party private entities based on multiple criteria regarding lifecycle impact, such as the US-based Green Seal or Sweden’s Nordic Swan. Type I seals can vary substantially in their criteria, which may or may not be known or understood by customers.

Type II labels are informative, self-declaration seals about the environmental qualities of a product, such as “contains 75% recycled paper.”

Type III labels offer quantified product information based on a life cycle assessment. These labels are best for comparisons between products or services. There are few examples of Type III labels in use. One in development is the Reveal label.

Type IV labels are single-issue seals licensed by companies or organizations. Examples include: the Leaping Bunny (signifying no animal testing), the Good Housekeeping seal of approval, Underwriter’s Laboratories insignia, and the Forest Stewardship Council seal.

Ecological Footprint

A term coined by ecologist William Rees and Mathis Wackernage to describe the total ecological impact (the amount of land, food, water, and other resources needed) to sustain a person or organization. This is usually measured in acres or hectares of productive land. It is used to determine relative consumption and is frequently used as an education and resource management tool. When addressing large populations (such as countries), the total productive capacity of the Earth is sometimes used. For example, on average, the population of the USA consumes so many resources that were the rest of the world’s population to consume at the same level, several more Earths would be needed to meet the demand.

Green

A common metaphor referring to environmental association based on the shared secondary color of many plants. It is often used to associate products, organizations, political parties, or policies with environmentally sensitivity.

Green Marketing

The positioning and segmenting of consumers by ecologically-driven concerns and the development of strategies and solutions that will meet their needs and desires with as little negative impact on the Earth as possible. Products and services which satisfy or appeal to these consumers are often called “green” and their advertising and promotion often make claims of less environmental impact in terms of energy, materials, processes, or toxic substances.

In addition, green marketing includes the representation of a company, product, or service as less harmful to nature. This can lead to greenwashing when this represenation is neither sincere nor accurate.

Greenwashing

A term merging the concepts of “green” (environmentally sound) and “whitewashing” (to conceal or gloss over wrongdoing). Greenwashing is any form of marketing or public relations that links a corporate, political, religious or nonprofit organization to a positive association with environmental issues for an unsustainable product, service, or practice.

In some cases, an organization may truly offer a “green” product, service or practice. However, through marketing and public relations, one is wrongly led to believe this “green” value system is ubiquitous throughout the entire organization.

See a recent post on GM’s commercial for the Volt. Tell me if you agree with my suspicions…

Natural Capital

One of at least four forms of capital used by people, organizations, corporations, and governments, to build and maintain their livelihoods. Natural Capital includes all forms of resources from the environment, including minerals, water, air, sunlight, heat, plants, animals, and other organic matter. Sustainable organizations seek to maximize their effectiveness and efficiency in using natural capital as well as practice policies that sustain the quality and quantity of natural capital sources in the future.

Opportunity Cost

The benefit that could have been received by taking an alternative course of action. Opportunity Cost is used to determine if a business investment is worthwhile in light of other opportunities. It should be a component in projecting cost flows.

Organic

In regards to food (both plant and animal) and other agricultural products (such as cotton), a term describing the absence of pesticides, hormones, synthetic fertilizers and other toxic materials in cultivation. In some countries, “organic” has a legal definition. For example, in the USA, it is defined in the Organic Food Production Act of 1990 and refers to food and products that are at least 95% free of toxic and synthetic materials as described in the USDA National Organic Program.

Pollution Offset

The attempt to offset the results of pollution from some activity of process by improving the environment in an equal benefit. Carbon trading, for example, allows carbon polluters to offset the effect of excess carbon in the environment by trading credits with those whose activities reduce an equal amount of carbon. Pollution offsets can exist for any kind of polluting materials as long as an equal and direct benefit can be established.

Recycle

Recycling is the process of reclaiming materials from used products or materials from their manufacturing and using them in the manufacturing of new products. It is different from Reuse, where products are not destroyed and remanufactured but cleaned and repaired to be used again, also known as remanufacturing. Another strategy to use resources more efficiently includes reducing the use of materials needed for product and process manufacturing, also known as dematerialization.

Many products are now marked with a variety of recycling symbols meant to help consumers and waste managers in separating recycled products and materials. Not all materials and products can be recycled, however. Those designed for disassembly or made from one material are the easiest. Even when used materials and products are recycled, often there is no economically viable market for these materials and they are either disposed of with other waste or stored in warehouses for future uses.

Reduce

One of the most sustainable strategies is simply to reduce the amount of energy and materials we use and, thus, are required to be manufactured. This reduction has an exponential effect as it further reduces packaging, recycling, transportation, cleaning, disposal, and a host of other costs.

Renewable

Any material or energy that can be replenished in full without loss or degradation in quality.

Reuse

Often, the most sustainable option is to reuse materials and objects already manufactured, either for their original or new purposes, rather than recycle them into other products. This decreases further energy and materials use in recreating them into a new form.

Stewardship

Responsible caretaking; based on the premise that we do not own resources but only manage them, and are responsible to future generations for their condition. Making decisions regarding the care of our environment with the goal of passing healthy ecosystems on to future generations.

Sustainability

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

This definition was created in 1987 at the World Commission on Environment and Development (the Brundtland Commission). It is enshrined in the Swiss federal constitution. It is similar to the “seventh generation” philosophy of the Native American Iroquois Confederacy, mandating that chiefs always consider the effects of their actions on their descendants seven generations in the future.

There are many ways to measure or define sustainability. As described in the book Natural Capitalism, in business, these should include the sustainable development and use of, at least, the following four types of capital:

* Financial Capital
* Manufacturing Capital
* Natural Capital
* Human Capital

Sustainable Development

An approach to developing anything that recognizes the need to meet the challenges of the present without compromising the ability of future generations to meet their own needs.

Tipping Point

A way of looking at the way change happens in the world, put forth by Malcolm Gladwell in his bestselling book, The Tipping Point. The book contends that ideas, behaviors, messages, and products spread through society similar to disease, and that societal changes are like epidemics: a tiny force can cause enormous shifts. The “tipping point” is the moment in an epidemic when a virus reaches “critical mass.”

Total Cost Accounting

Total cost accounting (TCA) is a financial tool used to provide a more complete assessment of the true profitability of an entity by taking into account a wider range of direct and indirect costs and savings. It uses longer time horizons that reflect the full economic or commercial life of the project, incorporates the time value of money, reveals hidden costs, and considers uncertain or less quantifiable costs.

Value Chain

Described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance, the value chain identifies the various value-adding activities of an organization or network. Often used as a tool for strategic planning because of its emphasis on maximizing value while minimizing costs.

Waste Reduction

The process of reducing waste material and energy in manufacturing, use, and disposal by techniques such as dematerialization, transmaterialization, recycling, sustainable design, closed-loop supply chains, etc.

Zero Waste

The goal of developing products and services, managing their use and deployment, and creating recycling systems and markets in order to eliminate the volume and toxicity of waste and materials and conserve and recover all resources. Implementing zero waste eliminates all discharges to land, water, or air that may be a threat to planetary, human, animal or plant health. Many cities and states already have set zero-waste goals. For example, San Francisco and other cities have set a goal to create zero waste by 2020.

Go Green!