Having met with Dennis Jönsson at Tetra Pak, I took what he said about having the confidence in our vision and values and applied it to our exhibition at InterBuild. Interbuild is an international construction event held every year at the National Exhibition Centre, in the UK.
We decided this year to scale up what we offer at exhibitions like Interbuild and EcoBuild and have designed a classroom using the ModCell System. In the UK, Education is one of the largest markets for construction. Despite the credit crunch, the outlook for the education sector is still healthy and the UK Government is committed to the Building Schools for the Future (BSF) programme of rebuilding and refurbishing 3,500 schools by 2020. The BSF programme has a value of £45 billion.
Not only is the BSF programme important economically, but socially and environmentally as well. The Department of Children Schools and Families (DCSF) is committed to delivering sustainable education and we ensure that schools designed using ModCell can be used as teaching and learning tools in their own right. We do this by ensuring that the design, construction and operation of school buildings become an educational opportunity that engages at every turn with the curriculum. For us, making the school a teaching and learning tool is also the means by which we embed sustainability and support the objectives for delivering sustainable outcomes. For some projects, we have been able to provide the opportunity to engage in the assembly of the panels in a 21st century equivalent of an Amish Barn Raising. Both young and old have visited a Flying Factory to get hands-on experience of making ModCell panels to be used on their project. This experiential learning is valuable in engaging children in the reality of building buildings.
At Interbuild we met a business from Ireland that is heavily involved in the provision of 2, 3 and 4 classroom extensions to schools and was interested in lifting the environmental performance of their offering. ModCell seemed to not only fit the bill but add significantly more value than just creating a building. Applying the learning from Dennis Jönsson, I was confident enough to say that it was ModCell that was looking for the right partner to work with in Ireland and not the other way round. A small but important difference in position.
This week we issued our first design for schools in Ireland and hope to be hosting a visit by officials from the Irish Department for Education to see projects we have delivered in the UK. I'll let you know how we get on.
I have just got back from Lund in Sweden having met Dennis Jönsson, CEO of Tetra Pak.
The Tetra Pak story is an incredible one. The original idea is so beautifully simple. Take a vertical tube of card and bond it horizontally in two locations one above the other, but rotated by 90°, and you create a tetrahedron - a 3d triangular form. This elegant solution has developed into one of the most ubiquitous everyday products on the planet.
I met with Dennis in their sample room, a triangular room lined with 3000 examples of the most recent Tetra Pak product range each carrying the brand of their clients products - milk, juices of all kinds, smoothies, food, wine and even a whiskey! It made for a wild backdrop to the discussion with an amazing array of colours.
What stood out for me was the clarity of the vision, from Ruben Rausing's original concept developed just after the Second World War, to the way every part of the business operates today. Tetra Pak is not a publicly quoted company, instead, it remains a family owned business. Dennis saw this as means by which the original vision and values of the company remain intact. Describing the company structure as a flat one, Dennis went on to say that this meant that every member of the Tetra Pak staff feel able to contribute. While many companies talk this kind of talk, I came away convinced that Tetra Pak actually walk their talk.
What was really reassuring to hear was how, in the first 20 years of the company's development, they had what he described as a negative cash flow. However, because of the commitment of the founder to the vision and the family’s continued support and investment, they went on to grow a 9 bn euro business that, even in the teeth of this recession, is still growing.
Dennis took me on a tour of the original Tetra Pak factory. The line starts with 3 tonne rolls of card being fed into a printing machine at a rate of 6m per second! Not only is the card printed, but it is also creased ready for the Tetra Pak origami that follows. The card is then lined with various foils and a super thin layer of aluminium and sent off to their clients' facilities where yet more Tetra Pak machines fill and fold the card into the containers we use every day in our homes.
It was interesting to try and draw out the lessons ModCell might learn from my meeting with Dennis and seeing the Tetra Pak approach. Two things came to the fore. The first, was that ModCell is about delivering renewable materials into the construction market at scales that haven't been done before. The way ModCell is going to try and do this is by developing a way of packaging these materials into a system that the industry can readily use. The second, and more significant, was that Dennis was absolutely certain that it will be the clarity of ModCell’s vision, and the values that underpin it, that will drive the business forward.
This is one of the most important things I think I have learnt through this journey. I had assumed that to scale the ModCell system up to the aspiration set out in the business plan would require compromise, or at least a dilution of the vision and its values. I know now that the vision and our values will help us find the right partners to work with and deliver a sustainable outcome that's good for business, people and planet.
This week I went to see Professor Simon Wakeman at the European School of Management and Technology (ESMT) in Berlin. Simon is an expert in the licensing of Intellectual Property (IP) internationally.
I really like Berlin, and visit it quite often with students of Architecture and Planning at the University of the West of England, Bristol where I teach. Other than ModCell, I have two other day jobs, teaching a day week at UWE and in an architectural practice called White Design.
This trip was interesting in more ways than one. Meeting with Simon Wakemen, obviously, but I also had the chance to meet up with Mathew Holloway of Artica, one of the other shortlisted finalists. Mathew was also going to meet up with a mentor at the ESMT. We managed to get some time talking about each others work as we walked to the ESMT building. Mathew's low energy heat exchanging system looks really innovative.
The ESMT building turned out to be the former East German government's Berlin headquarters and has been completely restored to its former glory. The entrance foyer is clearly set up to be just a little intimidating, not by the ESMT of course, but by the former administration. It is a double height space and about the size of 3 tennis courts, and it's a very long walk to the reception desk!
I met up with Simon Wakeman in the ESMT library and we talked through the ModCell System in general terms and then got in to the detail of IP, patents and assignments of license. It was great to have someone of Simon's experience and knowledge suggest how we might set up the licensing internationally. The important thing to remember is to ensure your IP is protected both going into and, just as importantly, coming out of any licensing agreement. At the same time, the license should allow enough flexibility for all parties to succeed commercially. You need a clear vision, a good business plan, a viable product, good partners and good lawyers. At the end of our session I came away a whole lot clearer on how we might go about licensing. We have had enquiries from around the world, asking whether they can license the ModCell and BaleHaus system. I'm a lot more confident about how we can start the discussions to set these up.
Before heading home the CNBC Director, Bernadine Lim, revealed what the final part of the Good Entrepreneur journey will be. I'm going to Sweden to meet with Dennis Jönsson, CEO of Tetra Pak! It's turning out to be quite a journey.
I first heard about being shortlisted for the Good Entrepreneur Competition sitting in my car, in a traffic jam, (on a hands free of course) in what felt like a tropical downpour, in Bristol a city in the south west of England. In fact, July and August turned out to have been the wettest on record, but that didn't dampen my enthusiasm in any way for the news.
Rain is quite significant to ModCell, especially in summer, for two reasons. Firstly, it affects the key components of ModCell - straw, hemp and timber and how they grow. Secondly, we have just finished building a BaleHaus at Bath University. Building anything in the rain is difficult, but building with straw and hemp takes a bit more care, and that is what we have done. Building traditionally with straw is weather dependant, but because ModCell is prefabricated offsite, we can build the superstructure of a BaleHaus and get the roof on in just 3 days.
So while the rain is a pain, we can work through it. But it's not just the rain that's significant, its the reason behind the rain or, for others elsewhere in the world, the lack of it. It is what's driving the extremes in our weather that's the bigger issue, climate change. Climate change is a global issue and cares not a jot for borders or which continent you come from. Stern has described climate change as "the greatest market failure the world has ever seen". It took an economist to get, what ecologists have understood for a long time, on the agenda of most governments around the world. Stern has given climate change the frame of reference that economists needed to understand the reality of the impact it could have on our economies. And it dwarves the current credit crunch.
This is where CNBC and the Good Entrepreneur start to do their work, the first thing they set up to see how the concept of ModCell would stand up to scrutiny, was not to have someone from the world of construction look at what we we are doing. Oh no! They ask a former economic advisor to the White House to! ModCell has had a number of 'dragon's den' type grillings and we're still standing, but we've never had anyone with a CV like Dr Philippa Malmgren do it!
On the day of the meeting with Dr Malmgren, I met up with the camera crew from CNBC on the train into Paddington, they wanted to get my thoughts on how I was feeling about the meeting. Nervous, but looking forward to hearing what Dr Malmgren had to say and her challenges about the ModCell concept. I wasn't allowed to meet Dr Malmgren straight away, instead we were to be filmed meeting at her office for the first time on camera. So I was sent to the Italian next door for a cappuccino and told to wait until everything was ready.
I was shown in to Dr Malmgren's company board room to await her arrival. Maps of the world covered the walls and two framed documents, one signed by the Chief of Staff of the White House, the other by the president. All really impressive and adding to the significance of the meeting, and then we started. The first thing Dr Malmgren insisted on was that I call her Pippa, which set the tone for the rest of the discussion. First off she said how good it was to meet an entrepreneur, saying a lot of her work involved her meeting with economists or meeting CEOs of Fortune 500 companies, rather than people involved with small to medium sized enterprises. SME's she described as the engines of the economy. So far so good.
She raised the issue of climate change immediately, and challenged me on whether we had other good arguments for our business case other than CO2. Until recently, climate change has been a hot topic for debate in America and that was the financial case for the ModCell concept. Fundamentally it is about resource use, whether that be carbon, water or raw materials, we need to be using them efficiently. In doing so, we also reduce costs across the triple bottom line - social, economic as well as environmental.
It was great to be quizzed by Pippa on our business plan and in particular how we might grow the business. Should we seek investment or grow the business organically? A key challenge was to ensure that I understood the different audiences we will have deal with, and that an investor speaks a very different language to a bank. The investor is interested in the return on investment, a bank, risk, a client value for money. All good advice.
It is a privilege to be on the shortlist and to be asked to present the ModCell story to such interesting people. It also fascinating to know that the other shortlisted pitches are going through a similar process of challenge and mentoring. I look forward to meeting them and comparing notes on their experiences.
Next Blog a trip to Berlin to understand more about how we can license what we do internationally!

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