Sunday, September 28, 2008

“It was the best of times, it was the worst of times.”

In light of the US housing crash, the financial meltdown, and some form of impending recession - the big question is whether corporate sustainability is only a luxury to be had when economic times are good or is CSR even more fundamental to success in this new ‘environment’. Will consumers and corporations revert back to their traditional bottom line focus or will these events trigger a mushrooming rejection of a greed culture and the possible emergence of a new way of doing business?

As is usually the case, the reality will likely reflect neither of these extremes. However, one common element we are likely to see is that a thoughtful, well implemented sustainability strategy will yield benefits in any economic landscape - good or bad.

In difficult times, organizations are looking to trim costs and boost productivity across the organization - from reducing discretionary travel and property costs, to increasing employee efficiency. Companies are also looking to keep existing customers and grow their business but not by cutting prices or risking quality. A properly implemented and communicated sustainability strategy allows your organization to differentiate itself to customers and employees while cutting energy and other costs.

In good times, organizations are looking to keep their best and brightest and attract the leading talent in their industry. They are also looking ahead to see the next opportunity while hedging against any possible risk. Again, an effective sustainability strategy can put your organization ahead of others with minimal investment and risk.


In this particular time of turmoil, we could be witnessing a broad cultural shift in which new forms of value might take shape. Sustainability offers a lens through which an organization might find it's next incarnation - one for the 21st century. More on this next time...


Up, down, or sideways - sustainability will help guide your organization through turbulent times.

Tuesday, September 9, 2008

Journey to Nowhere? The Corporate Environmental Road Trip

Geothermal, passive solar systems, compact fluorescent, carbon footprint, LEED, corporate social responsibility, telecommuting - this is the technical language of the new sustainable organization. Add to these the many low-tech-low-cost solutions, and its clear that the solutions exist, the technology is available, and the expertise is obtainable. Yet, it is rare to hear of overwhelming corporate sustainability based successes.

Why are relatively few businesses reaping the promised rewards of environmental strategies such as quick returns on investment, new business, reduced costs, fresh sources of revenue, and improved staff recruitment and retention? Why are senior managers asking why their recycling program have 5% utilization, why only 2% of employees are choosing to use their remote offices, and why their teleconference facility is rarely leveraged?

It seems organizations are intent on focusing on only one of three areas critical to the success of any sustainability initiative. While environmental technical solutions are well thought out, the organizational alignment and strategic foresight required to implement them are woefully missing. What is most often neglected in developing and implementing climate change strategies is a solid understanding of the complex organizational dynamics of implementing change. Understanding how to develop and implement a climate change strategy that aligns with an organization's business landscape, culture, and management style is critical. Moreover, an understanding of which strategies will be robust in an uncertain future is required to fully realize the business benefits of sound environmental strategy.

Consider, the example where you and your family decide to take a road trip to your favorite destination. You're confident that the trip will be inexpensive, relaxing, and bring your family closer together. Leading up to the trip, you research the size and individual needs of your family, the length and terrain of the trip, and then purchase a state of the art vehicle that will meet those needs in the most fuel efficient way. You marvel at car's hybrid synergy drive engine, the aerodynamic shape, and the integrated audio video system.

On the day of the trip everyone piles in to the car. Only then does it occur to you that your family hasn’t agreed on a destination, nor is there a second driver who is trained on how to drive the car. You also realize that the car is not equipped with a dashboard so you have no idea how fast you are going or how far you’ve gone! Despite these small considerations you decide to depart anyways. As you approach the highway, construction detours your route and you notice ominous storm clouds ahead. You realize that your map is outdated, the weather is unpredictable, and price of gas is changing rapidly. How do you read the signs of change and adjust your course appropriately? You'll need an approach to getting to your destination that is flexible, adaptable and still focused on arriving safely.

In much the same way, organizations are embarking on sustainability trips, confident that they will arrive at some unknown destination despite lacking any strategic direction or organizational preparedness. These journeys to oblivion also oftentimes lack any goals or measurement systems so that even when progress is made, it is unclear and uncoordinated. These problems are only magnified when the physical environment, regulatory and market conditions change rapidly and unpredictably.

Organizations need to understand that in the same way as their primary services or products are integrated into their strategy and organizational alignment, so to do their environmental policies. These policies need to have the support of the business as well as fit within a well defined and communicated overall strategy. Organizations must ensure that the journey is well planned, the destination clearly defined, and the approach to reaching the goal is flexible, adaptable and robust across a variety of conditions. The technology is only one part of the equation - don’t get blinded by the cruise control and heated seats. Bon voyage.