How to Champion Sustainability … From the Middle Toronto Sustainability Speaker Series June 10, 2009 Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com 5-Stage Sustainability Journey 5. Purpose/Passion Values-driven founder / CEO 4. Integrated Strategy Enhanced business value 3. Beyond Compliance Eco-efficiencies PR crisis Regulatory threat 2. Compliance Regulatory enforcement 1. Pre-Compliance Sustainability Change Process Step 1: Wake Up and Decide Sustainability Change Process Step 4: Develop Strategies Step 3: Assess Current Realities Step 2: Inspire Shared Vision(s) Step 1: Wake Up and Decide 7-Step Sustainability Change Process Step 7: Embed and Align Step 6: Mobilize Commitment Step 5: Build the Case(s) for Change Step 4: Develop Strategies Step 3: Assess Current Realities Step 2: Inspire Shared Vision(s) Step 1: Wake Up and Decide TNS A-B-C-D Change Process Based on “Applying the ABCD Method,” the Natural Step website, (www.thenaturalstep.org/en/canada/applying-abcd-method). Step 3: Assess Curent Realities Sustainability Vision Hindering Forces Key Executive Mgmt System Cost Pressures Budget Plan Workload Change Fatigue CURRENT Hot Issue 2 Customer Demand External Threat Key Executive Mindset Hot Issue 1 Capital Shortage External Threat REALITY Regulations NGO Actions Compensation System Talent War Key Customer Helping Forces Company Values Profit Potential Hot Issue 3 Step 4: Develop Strategies Sustainability Vision Key Executives Leverage Points for Action Circle of Influence Circle of Control Circle of Concern Based on Stephen R. Covey, The 7 Habits of Highly Effective People 7-Step Sustainability Change Process Step 7: Embed and Align Step 6: Mobilize Commitment Step 5: Build the Case(s) for Change Step 4: Develop Strategies Step 3: Assess Current Realities Step 2: Inspire Shared Vision(s) Step 1: Wake Up and Decide The Sustainability “Sweet Spot” Business Results The Non-Financial Sustainability Stakeholder “Sweet Spot” Interests New Products and Services New Processes New Markets New Business Models New Governance Systems Andrew Savitz, The Triple Bottom Line, Jossey-Bass, 2006 7-Step Sustainability Change Process Step 7: Embed and Align Step 6: Mobilize Commitment Step 5: Build the Case(s) for Change Step 4: Develop Strategies Step 3: Assess Current Realities Step 2: Inspire Shared Vision(s) Step 1: Wake Up and Decide 7 Leadership Practices Embed and Align Get Credible, Stay Credible Mobilize Commitment Dialogue Collaborate, Educate, Network Build Case(s) for Change Influence the Influencers Develop Strategies Meet Them Where They Are Piggyback Existing Initiatives Practice “Planful Opportunism” Assess Current Realities Inspire Shared Vision(s) Wake Up and Decide Dialogue Advocacy High Telling DIALOGUE Asserting Explaining Exploring each other’s assumptions to generate meaning Observing Asking Bystanding Sensing Clarifying Interviewing Low Low Inquiry High Based on Peter M. Senge et al., The Fifth Discipline Fieldbook, Doubleday, 1994 Collaborate, Educate, Network Government Agencies Suppliers NGOs Senior Executive Network Your Inner Circle Customers Networks in Other Departments Influence the Influencers Important Senior Executive “No” Important Senior Executive “Yes” Influencer “Yes” Influencer “Yes” You You Ineffective Approach Effective Approach 7 Leadership Practices Embed and Align Get Credible, Stay Credible Mobilize Commitment Dialogue Collaborate, Educate, Network Build Case(s) for Change Influence the Influencers Develop Strategies Meet Them Where They Are Piggyback Existing Initiatives Practice “Planful Opportunism” Assess Current Realities Inspire Shared Vision(s) Wake Up and Decide 7 Leadership Paradoxes 7 P R A C T I C E S Embed and Align Mobilize Commitment Build the Case(s) for Change Develop Strategies Assess Current Realities Inspire Shared Vision(s) Wake Up and Decide You Have to Do It Yourself; You Can’t Do It Alone Motivators Inhibit Commitment Things Need to Get Worse Before They Can Get Better To Get “Hard Results,” Work on the “Soft Stuff” One Person’s Dream Is Another Person’s Nightmare Go Slow to Go Fast Go Small to Go Big Do it Yourself; You Can’t Do It Alone All Industries All Whole Industries Industry Whole Company Kindred Spirits You Kindred Spirits Their Networks Their Networks Whole Company Whole Industry The World? For “Hard Results,” Use “Soft Stuff” Organizational Systems, Structures, and Processes M A R E K X E T T E R F N O A R L C E S Customer Satisfaction and Business Results Products and Services Leaders’ Competencies 20-30% Organizational Climate Business Goals and Strategies Leadership Styles 50-70% Based on a model developed by the Hay Group and IBM Commitment vs. “Motivators” Clarity Relevance Commitment Meaning Involvement Belgard-Fisher-Rayner Inc. © 1991. Used with permission. Go Slow to Go Fast Fast Decision Executive Executive Idea Decision X Company Buy-In X X Sell / Communicate Faster Buy-In Executive Idea X Collective Decision and Buy-In X Dialogue / Engagement Go Small to Go Big Small Moves Big Shifts 7 Leadership Paradoxes 7 P R A C T I C E S Embed and Align Mobilize Commitment Build the Case(s) for Change Develop Strategies Assess Current Realities Inspire Shared Vision(s) Wake Up and Decide You Have to Do It Yourself; You Can’t Do It Alone Motivators Inhibit Commitment Things Need to Get Worse Before They Can Get Better To Get “Hard Results,” Work on the “Soft Stuff” One Person’s Dream Is Another Person’s Nightmare Go Slow to Go Fast Go Small to Go Big 7 Potential Derailers Embed and Align Displaying Hubris Mobilize Commitment Mishandling Office Politics Build the Case(s) for Change Being a “Problem Child” 7 P R A C T I C E S Develop Strategies Failing to Produce Results Assess Current Realities Succumbing to Stress Inspire Shared Vision(s) Wake Up and Decide Changing Everything at Once Getting Off to a Bad Start 7 PARAD O X E S Transformational Leadership Embed and Align 7 P R A C T I C E S Mobilize Commitment Build Case(s) for Change Develop Strategies Assess Current Realities Inspire Shared Vision(s) Wake Up and Decide 7 PARAD O X E S 7 D E R A I L E R S 5-Stage Sustainability Journey 5. Purpose/Passion Values-driven founder / CEO 4. Integrated Strategy Enhanced business value 3. Beyond Compliance Eco-efficiencies PR crisis Regulatory threat 2. Compliance Regulatory enforcement 1. Pre-Compliance Nested Dependencies ENVIRONMENT SOCIETY ECONOMY Based on Bob Doppelt, The Power of Sustainable Thinking; Peter Senge et al., The Necessary Revolution; Linear Take-Make-Waste Model ENVIRONMENT SOCIETY ECONOMY TAKE MAKE WASTE WASTE PRODUCTS WASTE Based on Bob Doppelt, The Power of Sustainable Thinking; Peter Senge et al., The Necessary Revolution; Ray Anderson, Mid-Course Correction Unsustainable Take-Make-Waste Model ENVIRONMENT Degradation of nature by physical means TAKE SOCIETY ECONOMY MAKE WASTE WASTE Increasing concentrations of waste from extraction Increasing concentrations of waste from manufacturing, use, and disposal PRODUCTS WASTE Overconsumption and undermining people’s ability to meet their needs Bob Doppelt, The Power of Sustainable Thinking; Peter Senge et al., The Necessary Revolution; Ray Anderson, Mid-Course Correction; The Natural Step’s four systems conditions Cyclical Borrow-Use-Return Model ENVIRONMENT SOCIETY ECONOMY BORROW LESS WASTE USE RETURN SERVICES Based on Bob Doppelt, The Power of Sustainable Thinking; Peter Senge et al., The Necessary Revolution Sustainable Borrow-Use-Return Model ENVIRONMENT SOCIETY Radical resource productivity ECONOMY BORROW LESS WASTE Investment in natural capital USE RETURN SERVICES Service economy Ecological redesign and closed-loop production Responsible consumption and support for people’s ability to meet their needs Based on Amory Lovins, Hunter Lovins, and Paul Hawken, Natural Capitalism; Bob Doppelt, The Power of Sustainable Thinking; Peter Senge et al., The Necessary Revolution; and Ray Anderson, Mid-Course Correction Reinventing the Economy • • • • • • Low-carbon economy vs. fossil fuel-based economy Local supply chains vs. global supply chains Services vs. products Responsible consumption / thrift vs. over-consumption Low / No-growth model vs. “grow or die” model New ownership models: employees, customers, co-ops, social venture funds, government funding • New company purposes: “For-benefit / B-companies,” “social enterprises,” “fourth sector,” “hybrid companies” In Summary … Lead the transformation like any culture change Can protect & enhance company value Sustainability is smart business Relevant to existing business priorities Opportunity to help reinvent the company Many willing, helpful partners and networks Opportunity for leadership … by example How to Champion Sustainability … From the Middle Toronto Sustainability Speaker Series June 10, 2009 Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com