Archive for the ‘Management’ Category

The Sustainability Continuum – The Corporate Path to Being Truly Sustainable

Monday, March 15th, 2010

Reading time: 4 – 6 minutes

There is a concept in the ‘World of Sustainability’ that speaks to the evolution of a business towards becoming sustainable called the Sustainability Continuum (yes, it sounds like something from Star Trek!).  I’m not sure if he coined the phrase, but it’s referenced in Bob Willard’s book, “The Next Sustainability Wave: Building Boardroom Buy-in” (New Society Publishers, 2005).

There are five stages to the Sustainability Continuum:

Stage 1 – The company is profit driven, cuts corners and tries not to get caught

Stage 2 – The company obeys laws but reacts to change when required.  Sustainability is given lip service.

Stage 3 – The company moves from defense to offense.  It realizes being proactive and community minded saves money and enhances reputation

Stage 4 – The company has re-branded and is committed to sustainability.  Product life-cycle and stakeholder benefits are key concepts.

Stage 5 – The company has a values based commitment to building a better world and is driven to improve the well-being of the company, society and the environment

Most organizations are in the Stage 1 – 2 range; somewhere between being “unaware” of their legal obligations and assuming that awareness of legal compliance equates to being sustainable.

The organizations that “get it” are those that recognize that corporate sustainability is not an annual report; it’s not about calculating your carbon footprint; it’s not what you do well or responsibly; it’s not a message nor a campaign or a product innovation.  They see sustainability as a process rather than a single event, phase, or goal.  Sustainability entails constant adaptation to changing circumstances—both risks and opportunities—in communities, institutions, markets, and, of course, the global environment.  Specifically, it requires a recalibration of how organizations produce an internal “good”—profitability— while aiming toward the creation of more and better public “goods” such as healthy ecosystems, thriving societies, stable nations, and productive economies.

Very few companies get to Stage 4, fewer still to Stage 5.  It requires the singular vision of a charismatic leader who generates energy, creates commitment and directs the organization towards new objectives.  An example of a company in this range is TOMS Shoes, who give away a pair of shoes to a child in need with every pair we buy.  But this is not typical of how organizations are structured.  Anyone who works with business management systems will tell you it starts with management commitment and a clear vision.  Because there is no single definition of sustainability, clarity in vision is usually lacking.  So the implementation process looks more like the figure above—there is an iterative process of analysis, strategy development, implementation, analysis, etc., that eventually leads to a vision.  When organizations can define their vision, they have arrived at Stage 3.

Getting past Stage 3 depends largely on the vision and strategy.  Rupert J. Baumgartner and Christian Zielowski describe it this way:  Some organizations develop a Visionary strategy that focuses on sustainability issues within all business activities.  They incorporate Sustainable Development in vision and strategy.  Competitive advantages are derived from differentiation and innovation, offering stakeholders unique advantages, where, for example new “product to service solutions” are introduced.  Management board has to choose the relevant strategy type and to develop the corporate sustainability strategy.  Some organizations choose a Transformative Strategy that interacts with the market and tries to change market conditions actively.  This strategy aims to create new market opportunities in the light of Sustainable Development.

To learn more about organizational culture and leadership requirements for sustainability, I suggest checking out the work of Edgar H. Schein.

This article was written by Glenn Keays MSc, CEA (SFM), EMS(LA), Senior Consultant, Sustainability Services, AMEC Earth & Enviornmental (www.amec.com)

A specialist in environment, natural resources and sustainability management with the Earth & Environmental division of AMEC Americas Ltd., in Fredericton, New Brunswick, Glenn has extensive experience in environmental auditing, program review and assurance; facilitation and training; carbon management strategies; development and implementation of environmental programs and management systems; and in development of strategic approaches to deal with environmental and sustainability issues.  Glenn has over 20 years experience as an environmental manager and consultant, is a certified non-financial auditor, and chairs the Atlantic Chapter of the Auditing Association of Canada.

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Follow The Leader

Friday, January 8th, 2010

Reading time: 4 – 6 minutes

Ducks Following The Leader

Here is a list of five blogs from leaders in various industries and professions such as marketing, publishing and software. The list represents only a fraction of the CEOs that are passing on their knowledge, experience, insights and commentary on new and emerging issues affecting their business or industry. Each one is an interesting read. If you are not in the field of the particular leader, I insist you still read through their recent posts. Cross-disciplinary knowledge is a good way to round out your business reading, providing you with new frames of reference.

Seth Godin

Seth Godin writes the most popular marketing blog in the world. He has authored over ten best selling books, holds an MBA from Stanford University, is the Founder and former CEO of Yoyodyne (Sold to Yahoo! in 1998), Founder of Squidoo.com (A fast growing recommendation site) and is a world-renowned speaker (Recently named one of the top 21 speakers of the 21st Century by Successful Meetings Magazine).

While the blog does present a clear focus on marketing, communications and brand development leaders can benefit from his acute insight into fostering ideas, creating sustainable publicity, emerging marketing trends and effective market communication methods.

Recent Posts: Why Ask Why? and What Every Marketer Can Learn From Grucho Marx

Michael Hyatt

As the Chief Executive Officer of Thomson Nelson Publishers, the world’s largest Christian publishing company in the world and the seventh largest trade book publisher in the U.S. Michael Hyatt is a leader.

The blog covers a variety of topics with staple subjects of leadership, productivity and publishing. He has also included an ongoing list of resources that he uses such as software applications, videos and books.

Recent Posts: 7 Ways To Build Your Online Platform From Scratch, Using Email Templates To Say “No” With Grace and So You Can’t Seem To Land An Agent-Now What?

Craig Newmark

Craig Newmark is the founder and current Customer Service Representative of Craiglist, which need no introduction. Craiglist has over 6 billion pageviews per month, is present in 450 cities over the world, operates with a staff of 23 and generates millions in annual revenue.

Craig is involved in a number of community efforts and is particularly interested in public diplomacy, peace in the Middle East and new forms of journalism.

The blog covers a number of topics including U.S. communications policies, economic commentary and his latest charity efforts.

Recent Posts: FCC Launches Reboot Site and The DonorChoose Challenge.

Jonathan Schwartz

Sun Microsystems is a Silicon Valley landmark that provides network computing infrastructure solutions including computer systems, software, storage and services. Its core brands include the Java technology platform, the Solaris operating system, MySQL, StorageTek and the UltraSPARC processor and Jonathan Schwartz is its leader.

As one of the first Fortune 500 CEO bloggers Jonathan’s blog embodies many of the qualities of the products produced by Sun such as openness and communication.

Recent Posts: Java Script Running App Stores and Sun’s Cloud

George Soros

A global financier and philanthropist, George Soros is the founder and chairman of a network of foundations that promote, among other things, the creation of open, democratic societies based upon the rule of law, market economies, transparent and accountable governance, freedom of the press, and respect for human rights.

George Soros blog is a compilation of articles and essays about open society, financial reform and philanthropy.

Recent Posts: Three Steps To Financial Reform and One Way To Stop Bear Raids

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Design Thinking and The Management Implications

Tuesday, December 15th, 2009

Reading time: 4 – 6 minutes

Design-ThinkingThe design process with its elements of open idea generation, multidisciplinary collaboration, prototyping, execution and constant refinement is a comprehensive approach to solving business problems. But the majority of businesses do not utilize it and even worse, the majority of business schools do not teach it.

Design thinking is essentially a user centric approach, project based work flow, inductive, deductive and abductive reasoning combined with group collaboration. Instead of focusing solely on analytics and rigorous quantitative analysis the goal of the design process is to generate ideas keeping the customer in mind. It involves an almost anthropological insight into how the user will perceive, interact and use the product or service and how best to optimize these action and reactions.

As more and more businesses such as Proctor and Gamble, General Electric, Philips Electronics, Apple, Nike and Levi Strauss become more focused on their leaders adapting a design approach to problem solving business schools will be entrusted to develop a curriculum that incorporates design.

Numerous forward thinking business schools are embracing this shift in thinking and developing curriculum, hybrid models and strategic partnerships with design schools.  The Rotman School of Management, Stanford University, McDonough School of Business at Georgetown University and INSEAD in Paris are sterling examples of schools leading the way. Business schools currently teach a narrow form of collaboration. It involves finding someone who shares the same approach and views as you and working with them. The design approach is to collaborate with individuals who’s way of thinking could not be more different than your own in order to foster new approaches and unique insights. Business schools do not teach the understanding of users, visualizing something that does not now exist, prototyping and continual improvement. Obstacles to design thinking in business schools are prevalent. Semantic gaps, improper understanding of the brainstorming process, conceptual blocks and social barriers exist in abundance in many post secondary institutions. Educators also need to adopt a more interactive approach, instead of the “I am right, listen to me” mentality, they need to act more as a mediator between student led groups, offering expert advice and teaching the main deliverables.

The onus is not only on business schools to adopt design thinking but also businesses themselves, from small enterprises to huge multi-nationals. Roger Martin of the Rotman School of Business says, “We are on the cusp of a design revolution in business and as a result, today’s business people don’t need to understand designers better, they need to become designers.” Firm-specific executive education programs can teach problem driven design thinking, ad-hoc approaches and leveraging in-house design thinking. General Electric Healthcare sends its top managers to the Crotonville Learning Center in Ossining, N.Y. for the Technical Development Course. Managers are put outside their comfort zones and focus on creativity, imagination and problem-solving tools. The training program coupled with the appointment of designers to the executive level have increased the bottom line and instilled a culture that keeps the company at the edge of innovation.

The success of design thinking is evident in numerous large companies. Arguably, the company who has seen the most success from a foundation built on design and design thinking is Apple Inc.. Apple has continually trumped analyst forecasts and churned out profit quarter after quarter despite a weakened economy and the existence of numerous cheaper substitutes. Jonathan Ives, VP of Product Design at Apple claims that the focus on design is a motivation to make a product that is simple, intuitive and fulfills a function for the customer. Ives has the ear of Apple’s enigmatic CEO Steve Jobs and since the duo hooked up in 1997 they have created products that have revolutionized both the personal computing and music industries.

Design thinking can be utilized in companies big and small. The goal is to step outside an established way of thinking and approach a problem or a project with a designer’s mentality. As business schools and individual firms start to recruit, train, hire and rely on designers and design thinking the customer will see the direct benefit with better designed products and services.

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