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21 November 2011

Are You Hunting or Farming Sustainability?

One of the most frustrating responses to a potential sustainability solution is "I wish you'd suggested that six months ago when we were replacing that equipment/redesigning that product/moving buildings/launching that new marketing campaign." It is always six months too late.

This is why you must have incredible anticipation of what the organisation is doing and get in there before new projects start to shape up. Predators like to take their prey before the latter has seen the danger - once they're trying to escape, catching them gets a lot more difficult and the hunt is more about luck than skill. In the same way, as soon as a new venture starts building momentum, it is very hard to deflect it the way you want it to go. You have to go in for the kill before they have a chance to get moving.

Of course this is another argument for integrating sustainability into the DNA of the organisation. It is very hard for the typical sustainability manager in their green silo to influence big decisions in the rest of their organisation - even the best predators are only successful in a minority of attempts. In the 'Full Integration' level of the Sustainability Maturity Model, everyone understands the importance of sustainability to the company so by default the product will be designed for sustainability, the building will be an eco-building and the new equipment will have been chosen to deliver part of the sustainability strategy.

Going back to my predator/prey analogy, this is about farming sustainability rather than hunting it. Farming is a much more successful way of achieving the goal of food production than hunting/gathering, but it involves more preparation, more investment and more patience. In the same way sustainability requires resources, commitment, and investment to do it properly.

You may still have to do the odd bit of hunting, but farming should become your ultimate goal.

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16 November 2011

Standing Still or Going Backwards?

You read it and you hear it again and again, the same old mantra "we/you/they can't afford to go green in the current economic climate". It gets repeated so many times it becomes reality and it rarely gets challenged.

The evidence explodes this lazy myth - the latest of many studies to show green businesses out perform the rest was released by Harvard and London Business Schools shows that $1 invested in "high sustainability" companies in 1993 would earn you 47% more than if you invested it in "low sustainability" companies.

The threat from the myth is serious. Companies are losing business as contracts are awarded to greener competitors. Laggards are more susceptible to price rises in utilities and raw materials, will lose out on the best recruits and be at higher risk from legislation and green taxes. In the current economy you have to make modest progress on environmental performance just to stand still commercially, and you really have to go for it to get competitive advantage.

Some people clearly get it - my business is booming!

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7 October 2011

It won't happen by magic...

I am very saddened by a large organisation I know well which has lost its way on sustainability. It had been rated best in class by independent evaluators, but the pipeline of green projects has suddenly dried to a trickle, employees are getting cynical and partners are getting frustrated.

What happened? A change in management bringing a change in management style. In tough times, they say, we must focus on a smaller list of priorities. The revised list has no mention of sustainability at all.

When they are challenged on this, the weasel words come out. Of course we are still committed to sustainability, it's a cross cutting theme, it's embedded in each of the new priorities, we consider it all the time, it doesn't have to be written down to be important.

Utter nonsense.

To do sustainability properly it must be embedded in the culture, systems, infrastructure, strategy and product/service of the organisation. That won't happen unless the leadership say "this is a priority for us, we want you to do it." Clear unambiguous commitment and direction is required.

To say to your staff and partners "we want A, B, C and D", and expect "E" to somehow happen by magic, osmosis or ESP is idiocy.

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22 September 2011

Green Academy October Sessions

As usual, we will be holding two Green Academy on-line sessions on 5 Oct 2011. Each session lasts for one hour. You need access to a computer with sound or a computer and a telephone. You will receive a workbook to apply the learning to your organisation prior to the start of the session.

This month's sessions are:

11am BST: Basic level: Environmental Policy

Contents:

  • The importance of having a compelling policy;
  • Developing an effective policy;
  • Building on the policy to develop a strategy and action plans;

Cost: £45+VAT. To register for the basic level session click here (Paypal)

 

2pm BST: Advanced level: Advanced Sustainability Mindsets

Content:

  • 12 breakthrough paradigm shifts for green business;
  • Learn the cutting edge tricks of the pros;
  • All replete with case studies and risk assessments.

Cost: £45 + VAT. To register for the advanced level session click here (Paypal)

 

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5 September 2011

Have you got what it takes?

The Green Executive was conceived and written as a manual for the new breed of senior businesspeople who want to guide their organisation to an environmentally sustainable future. So here's a handy checklist of behaviours, knowledge and skills required of green business leaders to give you an idea of whether you've got what it takes.

  • Do you understand the business case for sustainability as it applies to your business?
  • Do you understand the risks of inaction and the risks of action?
  • Do you have a vision ie do you know what you are trying to achieve and by when?
  • Can you communicate that vision in environmental, economic and practical terms?
  • Can you frame that vision in a form which inspires your colleagues, customers, suppliers and other stakeholders?
  • Are you smart enough to see how to align sustainability goals with business opportunities and vice versa?
  • Are all your personal actions and decisions compatible with delivering that vision?
  • Do people trust you to do what you say you will do?
  • Are you hard headed enough to push ahead with sustainability even when it gets difficult?
  • Simultaneously, are you smart enough to circumvent problems rather than run headlong into them?
  • Are you prepared to make mistakes and learn by doing?
  • Are you committed enough to kill off profitable products, projects and activities which are incompatible with your vision?
  • Can you hold colleagues' feet to the fire, even when it hurts?
  • Are you crafty enough to know which buttons to press and with whom?
  • Are you a creative problem solver, able to see the bigger picture?
  • Are you big enough to be honest about what you have achieved and what you haven't?

OK, out of 16, how many did you get? If it's less than 16, then maybe you should read the book!

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13 July 2011

Green Business Confidential: Stretch Yourself

Here's the latest Green Business Confidential podcast, entitled "Stretch Yourself" - it's about how incremental targets are a false friend.

Audio MP3

Or, you can download it here and listen on your MP3 player:

GBC7 Stretch Yourself

You can get the whole podcast series here.

Play

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24 June 2011

What I learnt this week...

I’ve said it before, and I'll say it again: one of the things I love about the sustainability field is that it is so broad and fast moving that you are constantly learning. This week was full of discovery

On Tuesday I had a meeting with Dan O’Connor of Newcastle University to discuss his (private) venture WARPit – a social-media style reuse portal to allow organisations to trade used furniture etc (check it out here). But our chat about his day job were interesting too:

  • The Daily Mail’s paranoia knows no bounds. The University’s interesting student bin cam research project to test how a webcam in a student household bin connected to Facebook can affect recycling rates is, in Daily Mail land, a potentially vicious attack on civil liberties by ‘council snoopers’;
  • Cardboard now has such a scrap value in the UK that gangs are raiding students’ wheelie bins to get their hands on it – theft of metallic items is common when scrap metal prices soar, but I’ve never heard of people stealing cardboard before.

On Thursday I ran three sessions at the Low Carbon Best Practice Exchange at Olympia in London: Staff Engagement, Greening the Supply Chain and Environmental Strategy. We had some great discussions and here are the points that I took home:

  • There was quite a debate about the role of environmental champions. Most participants in the engagement session had appointed champions, but there wasn’t a clear consensus of why or whether they were actually making a difference. One participant had actually abandoned champions as they found the idea counterproductive in practice (I intend to explore this in a later blog post);
  • One participant has an almost real time energy consumption readout along with a traffic light system to show if consumption is low (green), high (amber) or very high (red). This is a nice way of converting data into a form that staff can easily grasp and of course you can tighten the amber and red settings to encourage continual improvement;
  • There was an anecdote about a company that paid actors to dress as cleaners and go through the office bins, tutting over waste that wasn’t being recycled to embarrass staff members. While such stunts only have a transient impact, I like the creative thinking;
  • Another anecdote was about a company that deliberately but surreptitiously changed their travel system so staff who want to use short haul air have to pay for the tickets out of their own money then submit a claim. Train tickets are purchased directly by the company, so staff members don't have to tie up their own cash in the process. Crafty, possibly underhand, but why not?;
  • On green procurement, one participant is using broad sustainability questions at the PQQ stage to determine what best practice in that sector might look like. This is then used to benchmark bidders during the formal tender process;
  • Many junior staff are desperate to get their managers to take a more strategic approach to sustainability, but the latter have their heads in the sand. We discussed many ways of ‘managing up’, but concluded that eventually top level buy-in is required. I am still strongly of the view that delegating the development of a strategy is an oxymoron and a derogation of responsibility.

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2 June 2011

From niche to normal

One of the main trends I identified in my new book The Green Executive is the shift from 'green' being the exception to it becoming the rule. Examples include:

  • Redesigning mainstream products to be green as opposed to launching a green range (which is so 1990s);
  • The killing off of products incompatible with sustainability objectives;
  • Environmental objectives put into all managers' job descriptions rather than being the sole responsibility of the environmental manager;
  • A shift in emphasis of the role of green teams from delivering sustainability to facilitating sustainable behaviour in others;
  • The integration of sustainability strategies into business strategies (and vice versa);
  • Rebuilding supply chains to deliver sustainable goods and services, de-listing suppliers who don't make the grade;
  • Showing leadership amongst peers, disassociating themselves from organisations with a regressive attitude to the environment and even calling for stricter environmental legislation.

The implication of this shift is that directors and senior managers must have a good grasp of sustainability issues, how they impact on the core business and the range of solutions available. Which is why I wrote the book!

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11 May 2011

Are we done yet?

A delegate on this month's Green Academy webinar gave me very some insightful feedback. She said she valued the webinars because everytime her company thought they were "there", she learnt something new to try.

I occasionally come across people who are much less prescient than my wise correspondent. "We've done all that!" they declare, no matter what case study or technique you describe. The obvious rejoinder is "Oh, so you have a zero environmental footprint then, do you?"

Harsh, but fair.

These people have made the fatal mistake of confusing process and results. Yes, they can tick all the process boxes, but that's no guarantee that they are delivering results. The cutting edge of green business has gone way beyond commitments, beyond processes and techniques and is now focussed on delivering clear, demonstrable and impressive results.

The bad news is that you are never "done", never "there", never "finished".

The good news is that you are never "done", never "there", never "finished".

Life would be very dull if you were.

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5 May 2011

Sustainability goes strategic

Interesting research from KPMG saying that almost 55% US companies have a sustainability strategy. KPMG go on to say:

When asked to identify the key business drivers for implementing sustainability-related business objectives within their companies, the U.S.  executives cited enhancing brand reputation (37 percent), regulatory or legal compliance (35 percent), reducing costs (34 percent), product or service differentiation (24 percent), and increasing profitability and managing sustainability risks (both 23 percent). Other business drivers included: customer retention (20 percent), staying competitive (15 percent), generating shareholder value (13 percent), and recruitment and employee retention (8 percent).

This research backs up three of the main points from The Green Executive:

1. That instead of an issue to be "managed" by environmental managers with environmental management systems, sustainability is a strategic leadership issue;

2. "Go green, save money" is for amateurs - the real benefit is competitiveness in the marketplace (which in turn should inform your entire strategic approach);

3. While everyone gets excited about going "beyond compliance", never forget about compliance. Compliance is the base of the business case for sustainability pyramid - if you get it wrong then the whole thing comes crashing down.

By the way, I'm planning a load of freebies for this month's Low Carbon Agenda to celebrate the publication of The Green Executive - sign up here to make sure you get them!

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13 April 2011

Sexing Up Sustainability

Sustainability story of the day must be Marks & Spencer's launch of a carbon neutral bra, knickers and suspender belt set - certainly taking the hair shirt out of corporate social responsibility. Interestingly, the most popular news story on last month's edition of The Low Carbon Agenda was that the WWF had signed up a top lingerie model as an ambassador. One of my favourite quotes is from Ashley Lodge of Harper Collins who said their staff engagement strategy is "more stilettos than sandals". Has the sustainability world gone sex mad?

The oldest marketing maxim in the world is "sex sells" - and sustainability is no different. And why shouldn't sustainability be sexy? The industry has a tendency to fear that "sexy" can mean "sexist" and that all communications have to be worthy and dull.

But when you're trying to catch someone's attention - the average joe, not a treehugger - ranting at them doesn't work, being boring doesn't work, being smug doesn't work, and a pair of hands cupping a sapling certainly doesn't work. You have to really grab them - and sex is one way of doing that. Marks & Spencer know that carbon neutral suspenders will gain more column inches in the mainstream media than carbon neutral socks. WWF know that a top lingerie model will get more attention from non-greens than, say, Jonathan Porritt (no offence, Jonathan). It works, so why not?

Can you put a bit more va-va-voom into your sustainability programme?

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31 March 2011

Why you need a Sustainability Strategy

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18 February 2011

Current Trends in Green Business

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3 February 2011

Green Business Webinar #2: Making It Happen

The second of our Green Business Webinars will be held on 2 March at 14:00 GMT. The hour long session will cover the Sustainability Maturity Model, strategies, management systems, target setting and action planning. It aims to give you the tools you need to create a compelling green vision for your business and put the systems in place to deliver that vision. Importantly, we'll cover the pitfalls you will want to avoid along the way.

The webinar costs £45.00 + VAT per person - use the button below to pay by card or Paypal. Contact us to make a BACS payment.


This is just one in our series of 10 webinars - you can see the full list and terms and conditions here. All ten cost £330 + VAT - reserve your seat using the button below:


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19 January 2011

"Switch" and Sustainability

I've just finished reading the wonderful book Switch: How to change things when change is hard by Chip & Dan Heath. It's one of those books that takes a topic which, for most people, is something of an amorphous soup of ideas, refines it down to the essentials, adds in a couple of fresh perspectives, and packages the lot in a simple framework that makes it much easier to apply. In sustainability, change management is the difference between success and failure. As an engineer I hate to say it, but technology is the easy bit.

The Heath brothers use a great analogy for people and/or organisations - a rider guiding an elephant along a path. The rider is the rational, data crunching part of our brains, the elephant is the emotional parts of our brains (which we don't like admitting is stronger than the rider), and the path is our situation/environment. The book gives the following menu of options for effective change:

Direct the rider:

  • Follow the bright spots - see what's working and copy it (more effective than focussing on problems);
  • Script the critical moves - make very specific instructions where necessary;
  • Point to the destination - define the desired endpoint.

Motivate the elephant:

  • Find the feeling - make people connect emotionally with the topic (knowing isn't enough);
  • Shrink the change - break it into easily digestible chunks;
  • Grow your people - instil a 'growth mindset' where people always want to do better.

Shape the Path:

  • Tweak the environment - make it easy to do the right thing, harder to do the wrong thing;
  • Build habits - habitual behaviour is 'free';
  • Rally the herd - behaviour is contagious.

The Heaths illustrate their points with a huge number of case studies, but none of the in depth examples include sustainability (apart from a comment that climate change campaigners shouldn't talk in terms of parts per million carbon dioxide if they want to succeed). So I thought I would look at some of the change management tools I have found successful and see how they map against this framework.

1. Strategies, management systems, action plans etc

These are all 'rider' type solutions, ignoring the elephant, which is why organisations find it hard to embed them into the organisational culture. Systems and technologies may be installed, but are unused and people tend to follow their old habits. At best, some of the 'shape the path' principles may be included in the action plans and sheer force of will from management might just make them habitual over time. Don't get me wrong, these elements are essential for the rider and the path, but for them to succeed the elephant needs attention.

2. Switch it off campaigns

Such simplistic instructions are for the rider - scripting the moves - and you simply have to hope they feed through to the elephant. The best example I have seen, Northern Foods' colour labelling of machines (red = leave on, green = switch off if left on, amber = ask supervisor), tweaks the situation to encourage and facilitate good behaviour and to a certain extent 'shrinks the change'. If you get the message right, then the instruction can touch a deeper nerve - my friends at GPM Network developed a staff campaign for a charity which revolved around messages like "Switching off this PC every night is the equivalent to an £XX donation to our projects".

3. Involving staff in generating solutions

This is where the elephant gets some serious attention. People love being part of something exciting (the feeling) and encourages people to grow and the problem to shrink as it is better understood. Pride in a solution will mean it is more likely to be used properly. Done properly in groups this approach will rally the herd as teams see their ideas take fruit and put pressure on peers to make them succeed.

4. Staff competitions

Again an elephant type solution. People love competing - or we wouldn't pay footballers gazillions a day to run up and down a piece of grass after a ball - so competition taps into our emotional elephant. Dividing staff into teams and awarding a notional prize to the team that, say, cuts its carbon most, is a very effective method of staff engagement. The herd instinct is there too - if someone is letting the side down, their peers will soon let them know.

5. Training

Very much a mixture of scripting the moves and growing your people, but it needs to be part of wider methods to have an effect. Otherwise the elephant goes back to its old habits with the occasional guilty reminder from its rider. In my training courses I try to bring elephant-centric elements into the sessions by including elements of section 3 above.

In conclusion, I whole-heartedly recommend the book if you are serious about any form of change management in your organisation. Sustainability fits very well with the model - as you can see from the above. Organisations tend to provide their staff with information, but find, as the Switch authors repeat, knowing isn't enough - you've got to tap into that emotional feeling (some examples here) and create the right situation.

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22 November 2010

When the going gets tough...

You have to be living on the planet Zog not to notice we are at a time of great economic uncertainty - with whole economies teetering on the brink, banks still in part or full state ownership and the dark shadow of redundancy hovering at the back of people's minds. Green might seem like a luxury at such a time but many of the world's biggest names - Wal-Mart, IKEA, Marks & Spencer, Tesco, P&G and Unilever - are not just sticking to their sustainability strategies but boosting them.

Why?

Crudely speaking you can do two things to increase profits: cut costs and boost turnover.

While cutting jobs is attractive due to the size of wage bills, cutting energy, raw material, waste and water costs is easier and cheaper - you don't have to pay electrons redundancy. I know of one organisation which has a £2 million road fuel bill who are literally telling their drivers that every £25k they shave off that bill will save somebody's job.

Boosting turnover has a similar story. Yes, public sector spending is being cut back, but that makes tendering more competitive not less, and green tender points might just give you the edge. Other big buyers such as retailers and brands looking for contract manufacturing still want to go green - which means either their suppliers go green or they find suppliers who will.

Despite all this, some companies are retracting on green issues - I've been advising a couple of highly talented sustainability experts in the ways of the independent consultant recently as their employers are cutting back. Both will make great consultants which means everyone can benefit from their skills, but it is a great shame nonetheless.

A piece of advice that has resonated with me for years is that the Tour de France is won on the uphills not the downhills. It is tough out there, but don't be fooled into thinking you can't afford to go green in a recession. You can't afford not to.

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12 November 2010

What I learnt on my travels...

I'm writing this post on the train down to Cambridge to finish off a manic three days which has taken in Harrogate, Southampton and next, my old college to talk to students.

Here are the learning points from the various sessions I ran or attended at the Low Carbon Best Practice Exchange at Harrogate:

• Participants did report a worrying relegation of sustainability in their organisations due to the financial situation (despite evidence that green makes you more recession proof than conventional rivals);

• Staff engagement remains a key concern of practitioners;

• Staff engagement should be fun, meaningful and consistent;

• Data collection is essential both to management and staff feedback;

• Communication needs to be tailored to suit the audience;

• Don't preach;

• Green marketing is about giving consumers what they want guilt-free (controversial?);

• Retailers are acting as gate-keepers of consumer demands;

• Once you start down the green path, you need to keep going strong to keep up with your improved reputation;

• The future shape of the UK's Carbon Reduction Commitment (CRC) is a mystery to all - yet the CRC is a massive driver for many organisations.

I wasn't participating as much in Southampton - but it was clear from the participants that they are really starting to get it. I gave two keynote speeches, one on the business case for sustainability (similar to the video clip on our YouTube channel) and one on Green Business Leadership (structured around this popular piece I wrote for Management Issues). The second was slightly marred by my throat starting to creak - I've been fighting the lurgy all week - but it went down very well.

Both days I met people who had read the Three Secrets of Green Business which was great - one person quoted something back at me that I had forgotten I had written!

Tonight's talk is about green careers and is basically the story of my own, comparing and contrasting with what I would do if I was starting now.

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8 October 2010

7 Signs Your Sustainability Programme Is Working

Here are seven tell-tale signs that you are winning:

1. It gets discussed enthusiastically at board level;

2. You hear people talking about sustainability in the canteen/coffee rooms(s);

3. Staff members approach you with suggestions;

4. Spontaneous projects start springing up that you don't even hear about until they're well underway;

5. You get invited to talk about your experiences at conferences and seminars;

6. Authors of books and reports start using you as an example of good practice;

7. You get accused of greenwash at least once (unfairly of course).

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24 September 2010

Green Business Confidential Ep3: The Challenge Ahead

Here's the third Green Business Confidential podcast, entitled "The Challenge Ahead", for your listening pleasure:

Audio MP3

Or, you can download it here and listen on your MP3 player:

GBC3 The Challenge Ahead

Play

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10 September 2010

An Olympian Task

Yesterday I was a guest speaker at a LloydsTSB event about sustainability and the 2012 Olympics. LloydsTSB are the official bank of the games, so they are promoting the business opportunities to their customers. We had 175-ish SMEs from the North East in the room - a real mix of manufacturing, construction and professional services.

I did a variation of my Three Secrets of Green Business presentation with a few elements of The Green Executive and some local case studies drawn from some of my client projects. It went down pretty well and I got some great feedback afterwards - I had to replenish my stock of business cards I was handing out so many.

For those who don't know, the 2012 Olympics is intended to be 'the greenest ever'. Although the scrapping of plans for a large iconic wind turbine has led to some cynicism, there has been a lot of work put into low carbon buildings and a CHP energy system to name but two areas. Suppliers are being required to demonstrate green credentials and rumour has it that one major brand was turned down as a sponsor for having insufficient commitment to the environment.

The last speaker was three times Olympic medalist and breaker of several world records in the javelin, Steve Backley. He did a great turn about success and how big a factor attitude and behaviour are as well as the hard grunt of routine training. It must have been really hard to set a new Olympic record, as Steve did in Sydney in 2000, and see it broken just a few minutes later, but he used it as an analogy of how you've got to keep stretching yourself - as Jan Železný who snatched the gold medal obviously did.

I've seen this in the corporate sustainability world as well - companies who thought of themselves as green pioneers are getting eclipsed all the time. Unlike an athlete whose body must eventually concede to the ravages of time and stress, companies can constantly reinvent themselves with new blood and new thinking. This ability to keep evolving to stay at the front of the pack - I'm thinking of General Electric's Ecomagination programme or Marks & Spencer's Plan A sustainability strategy - truly is an Olympian task.

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