Leadership From the Top Common Evolution for Executive Commitment Principles, Sign Declarations, Mission Statements Common Evolution for Executive Commitment Setting Goals, Integrating into Strategic Planning Processes. Some funding support Awakening Principles, Sign Declarations, Mission Statements Common Evolution for Executive Commitment Setting Goals, Integrating into Strategic Planning Processes. Some funding support Awakening Principles, Sign Declarations, Mission Statements Pioneering Integrate into Organizational Identity. Formalize responsibilities across executive teams, faculty and staff. Sustainability planning. Common Evolution for Executive Commitment Setting Goals, Integrating into Strategic Planning Processes. Some funding support Awakening Pioneering Principles, Sign Declarations, Mission Statements Integrate into Organizational Identity. Formalize responsibilities across executive teams, faculty and staff Transformation Use sustainability as an organizing principle and lens for executive decision-making and institutional reform Continuous improvement in sustainability as established organizational expectation. Senior Leadership will need to play a central role in reforming key institutional systems across the organization Capital Budget Managers Maintenance Budget Managers Barrier: Accounting structures are driving inefficient design and operations by limiting the appropriate movement of investments and savings Utility Budget Managers Human Resources Managers Common Practices: 1. Capital Budget Managers Utility Budget Managers No capital budget consideration of operating costs implications and opportunities 2. No efficiency funding in annual maintenance/operating budgets 3. No way to return savings to the people that achieve them 4. Reduced annual operating budgets when energy costs reduced 5. No funding for piloting and testing new practices Maintenance Budget Managers Human Resources Managers Senior Leadership will need to play a central role in Navigating Interdependence in the organization Interdependence between: Professional, departments, groups & organizations Capital, Finance & Accounting Leadership Technology, products & Services Information Capacity Building/Education Values and Culture Policy and more…. Business Modeling for Cost Neutral Climate Neutrality Building Name Leverett Towers F & G Department Faculty of Arts and Sciences Description Complex of 2 11-story towers Age Built 1959; renovations every 4 years Size 121,697 square feet Occupancy 158 suites, 20 tutor apartments; 300 residents Demographics Undergraduates, graduate tutors Lease format Academic year appointments; temporary summer housing Building systems and utilities Heat/ventilation: Steam to forced air and radiant heat; Hot water: steam Air conditioning: window units Electricity: tutor kitchenette appliances Natural gas: dryers (1990-2001 only) 2006 GHG emissions 1537 MTCDE Business Modeling for Cost Neutral Climate Neutrality Cost Neutral Climate Neutral Building Case Study Leverett Towers Investment Summary Component Energy Conservation Measures % of Portfolio Investment Period MTCDE/yr 17% 2007-2009 255 3% 2007-2009 49 Fuel Switch 22% 2012-2020 345 Offsets 58% 2012-2020 888 ((2%)) 2007-2020 ((33)) Renewable Energy Technology (onsite) Behavior Program Business Modeling for Cost Neutral Climate Neutrality Cost Neutral Climate Neutral Building Case Study (Research provided by 2008 thesis student Debra Shepard (dshepard@eheinc.com) Leverette Towers Financial Summary for Climate Neutrality Net present value through 2020 Financial Category Investments (Energy Conservation Measures, Onsite Renewable Energy, Fuel Switching, Behavior change) Savings (Energy Conservation Measures, Fuel Switching, Behavior change) Carbon Offset Purchases ($1,068,958) $1,142,947 ($68,268) TOTAL PROGRAM Net Present Value (12yr timeframe) Leverett Tow ers: Climate Neutral Portfolio at 2020 17% 3% ECMs RETs Fuel Sw itch 58% 22% Offsets 11 $5,721 attributes of Transformation Organizational Systems Attributes of an Organization in Transformation Leadership Deep & visible sustainability commitment, values/preserves trust, drives collaboration as well as individual performance, leverages influence & authority from bottom-up, horizontal, top-down Governance Distributed ownership and engagement, drives continuous improvement, enables systemic reform Management Structures Cross-departmental permeability, interdisciplinary collaboration, bottom-up and horizontal interactivity Finance and Accounting Financial drivers for innovation and systems efficiency, rewards performance, drives collaboration Capacity Building Empowered workforce that is engaged in life long learning, broad engagement in implementation cycles for continuous testing and learning Knowledge Effective prioritization, gathering and dissemination of knowledge Sustainability Viewed as Change management team embedded with senior report and Requiring a Change organization-wide connectivity with the capacity to undertake all Management Function core change management functions for sustainability Produced by Leith Sharp Leadership From Us Trust is the Fuel of Transformation TRUST Three Types of Relationship Models in Organizations Transaction Reference: Professor Karen Stephenson, http://www.netform.com Authority Relationships provide a Powerful Force for Change If the average person can change the thinking of 3 people they have a relationship with over a period of 6 months and each of these people go on to do the same…. 0 1 1 Year 9 2 Years 81 3 Years 729 4 Years 6,561 5 Years 59,049 Interdependence Case Study: Changing Light bulbs at Harvard Simple Light Bulb Changing Project at Harvard University Full Process = 3 months of constant facilitation by change managers Barriers: Time + Capital + Policy + Training/Education + Values + Service/product School 4 Green Campus Loan Fund 20 19 8 1 2 7 My staff 6 14 Vendor Sales Rep Technician Finance Mgr (capital budget) 18 Finance Mgr (operating budget) 17 3 9 10 House Master 15 12 Univ. Ops 16 Facility Director 5 Building Manager (Superintendent) 13 Maintenance crew 11 House occupants (students) REP coordinator (student) Interdependence Case Study: Green Buildings at Harvard Pilot Projects & Expand Change Attitudes Address Finance & Accounting Issues Engage & Develop Capacities Streamlining and Reforming processes Engage Executive Leaders to Formalize Commitment 2001 3 2002 2003 3 4 4 2004 2005 5 5 2006 2007 12 12 2008 16 16 23 2009 2011 23 50+ 50+ 80+ Rate of Growth re: Number of Green Building Projects on Harvard Campus Extensive Change Management Process Used to Foster Organizational Conditions Necessary for Wide Scale Engagement, Innovation, Learning, Leadership and Commitment Where is the Leverage? The Leverage Principle: Even the biggest ships can be turned by a small force if it is directed at the point of maximum leverage. The Role of the Sustainability Practitioner Advocate, psychologist & educator Politician & experienced administrator Build trust with allies & champions Understand basic organizational characteristics: Power, money, decision-making Leverage new confidence, networks & capacities for larger projects Strategist Engage in 2-way educational exchange Propose trial projects Problem Set: Information Technology & Design Politics & Power Organizational Limitations Cognitive Limitations Institutionalize new practice: standards, reporting requirements Content expert in green building, transportation etc Leverage allies to back ideas Identify service needs and cost savings Establish business plan and financing mechanism Entrepreneur & business builder Build staff capacities to implement new practices Promote success and extract all lessons Systems Developer Implement project Project manager Over time we can build an organizational context to empower the full potential of people as change agents………… Stable experiences of innovation and success Context of institutional commitment and management support Peer to peer interactions Rewards, incentives and recognition Removal of barriers and disincentives Proper inclusion in decision-making processes Ongoing training and opportunities to learn Access to expertise I am fully engaged in working on my part of the solution in every way possible! Produced by Leith Sharp Leadership Across the Institution We Need to Make Change Easier: We Need to Know How our Organizations Really Work Our organizations are limited in their capacity for rationality but they do still have patterns, rules and incentives that can be understood. Organizations are severely limited in their capacity to behave rationally due to inherent characteristics such as: • complexity, • limited capacities to calculate all parameters, • the tendency towards ‘satisfycing’, • fragmentation of problem and solution elements, • limited organizational repertoires, • shifting coalitions, • shortages of time and attention, • quasi resolutions to conflict and • uncertainty avoidance. (Simon and March 1986) Said another way, institutions like universities are generally ‘plagued with goal ambiguity and conflict, with poorly understood problems that wander in and out of the system, with a variable environment and decisionmakers with other things on their minds’. Michael D. Cohen and James G. March. Leadership and Ambiguity – The American College President. 2nd Edition. Harvard Business School Press. We Need to Make Change Easier: Like our own minds our organizations are largely unconscious. They will are revealed to us largely through the change process. 5% of what the individual does is consciously processed In large organizations most daily operations have become a habit, no longer done with awareness, no longer examined for the true costs/benefit. This is why READY, FIRE, AIM can be the right sequence in the early stages of catalyzing change. Will Our Great Leaders Save Us? The educational theorist Kent den Heyer proposes that we have a tendency to believe that it is through the heroic efforts of individuals that real change occurs. This assumption can lead to a feeling of helplessness on the part of many people confronting enormous issues such as the global environmental imperative. Will Our Great Leaders Save Us? To assist with moving us beyond our paralysis, Heyer encourages us to learn from historical social change movements and to understand the innate complexity of social change, the diversity of change agency roles and the unpredictable and powerful interactions of a significant number of forces. Heyer offers “a socially distributed interpretation of agency better suited to the modest zones of influence in which most people live.” Historical agency for Social Change: Something more than “Symbolic Empowermnet (2003) Harvard’s Green Campus Initiative 2000-2008 A Business Model Different to Fund Kinds Green of Leadership Collar Jobs Grass Roots CONFIDENCE & CAPACITY Students, teachers, building managers, custodial staff, kitchen staff etc •Evidence •Confidence •Business base for green projects Top Level Leadership AUTHORITY Middle Management MANAGEMENT •Legitimacy •Priority •Mood/culture •Goals •Green building standards •Green purchasing contracts •Green training programs Harvard’s Green CampusLike Initiative Leadership Is More a System or Cycle Than a Linear Process A Business Model to Fund Green Collar Jobs Grass Roots CONFIDENCE & CAPACITY Students, teachers, building managers, custodial staff, kitchen staff etc •Evidence •Confidence •Business base re:green projects Top Level Leadership Middle Management Change Management AUTHORITY •Legitimacy •Priority •Mood/culture •Goals MANAGEMENT •Green building standards •Green purchasing contracts •Green training programs Formalize the Design of Governance Based on the Larger Leadership System Direction Executive - Goals - Priorities - Accountability Systemic Reform and Continuous Improvement Middle Management Grass Roots - Governance structures that enhance horizontal & bottom up engagement - Finance and accounting systems that enable savings and reinvestment - Sustainability staffing (change management professional) - Organizational training and capacity building - Culture of Trust and Engagement Momentum: Pilot Projects/Case studies - Develop confidence and capacities - Prove functionality and Enable expansion - Inform Direction and Systemic Reform Towards Sustainability Frameworks of Engagement for Wide Scale Ownership and Progression: Democratizing Leadership Green Office Program Harvard Office For Sustainability Frameworks of Engagement for Wide Scale Ownership and Progression: Democratizing Leadership Harvard Green Lab Certification Transformation Insight: Systems Leadership At the heart of the systems leadership is the belief that the relationship between individuals has its own emergent, creative potential beyond that of the individual people or components involved. Systems leadership involves leading and participating with a commitment to cultivate, explore and utilize the emergent potential of the relationships involved. The art of effective change agency must involve a systems leadership approach. Leadership Within Groups/Project Leadership Green Building Design – Nathan Gauthier – 4.9.08 Owner Designer www.aangepastbouwen.nl Contractor Supplier Traditional Design Process www.hansa-klima.de Understand the Team Designer Green Building Design – Nathan Gauthier – 4.9.08 Owner Project Team Supplier Integrated Contractor Design Integrated Design Requires an Process Understand Integrated the TeamTeam Optimizing Individuals and Relationships Conventional Approach to Engagement Integrated Process of Engagement Involves team members only when essential Inclusive from the outset Less time, energy, and collaboration exhibited in early stages Front-loaded — time and energy invested early More decisions made by fewer people Decisions influenced by broad team Linear process Iterative process Systems often considered in isolation Whole-systems thinking Limited to constrained optimization Allows for full optimization Diminished opportunity for synergies Seeks synergies Emphasis on up-front costs Life-cycle costing Typically finished when construction is Process continues through post-occupancy complete Source: ‘Roadmap for the Integrated Design Process’. Prepared Busby Perkins+Will, Stantec Consulting We Need to Make Change Easier Most people believe that humans are innately averse to change. This is not true. A more accurate assessment is that people have an aversion to instability and risk and they assume that change equals instability and risk. People are actually invigorated by change when it occurs with adequate stability and low risk. The most common source of unanticipated instability/risk is the failure to address interdependence. In other words ignoring the system and focusing only on certain parts. Group Intelligence Will Matter More in the Green Economy Than Individual Intelligence “When it comes to intelligence, the whole can indeed be greater than the sum of its parts. A new study co-authored by MIT, Carnegie Mellon University, and Union College researchers documents the existence of collective intelligence among groups of people who cooperate well, showing that such intelligence extends beyond the cognitive abilities of the groups’ individual members…. They discovered that groups featuring the right kind of internal dynamics perform well on a wide range of assignments, a finding with potential applications for businesses & other organizations.” http://web.mit.edu/press/2010/collective-intel.html Group Intelligence Will Matter More in the Green Economy Than Individual Intelligence Three key factors that enhance group intelligence: 1. Groups whose members had higher levels of "social sensitivity" were more collectively intelligent. “Social sensitivity has to do with how well group members perceive each other's emotions,” says Christopher Chabris, a co-author and assistant professor of psychology at Union College in New York. 2. In groups where one person dominated, the group was less collectively intelligent than in groups where the conversational turns were more evenly distributed," adds Woolley. 3. And teams containing more women demonstrated greater social sensitivity and in turn greater collective intelligence compared to teams containing fewer women. http://web.mit.edu/press/2010/collective-intel.html