Champion Sustainability … From the Middle How to Champion Sustainability … From the Middle 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 Budget Plan Cost Pressures Compensation System Mindset Mgmt System Work- load Change Fatigue Hot Issue 1 Capital Shortage External Threat C U R R E N T R E A L I T Y Hot Issue 2 External Threat Talent War Company Values Regulations Customer Demand Key Executive NGO Actions Key Customer Profit Potential Hot Issue 3 Helping Forces

Step 4: Develop Strategies Circle of Control Circle of Influence Circle of Concern Leverage Points for Action Key Executives Sustainability Vision 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” Non-Financial Stakeholder Interests Business Results 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 Get Credible, Stay Credible Dialogue 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 Assess Current Realities Piggyback Existing Initiatives Practice “Planful Opportunism” Inspire Shared Vision(s) Wake Up and Decide

Exploring each other’s assumptions to generate meaning Dialogue High Telling Asserting Explaining DIALOGUE Exploring each other’s assumptions to generate meaning A d v o c a c y Observing Bystanding Sensing Asking Clarifying Interviewing Low Low I n q u i r y High Based on Peter M. Senge et al., The Fifth Discipline Fieldbook, Doubleday, 1994

Collaborate, Educate, Network Senior Executive Network Government Agencies Your Inner Circle Suppliers Customers Networks in Other Departments NGOs

Influence the Influencers Important Senior Executive Important Senior Executive “No” “Yes” “Yes” Influencer Influencer “Yes” You You Ineffective Approach Effective Approach

7 Leadership Practices Get Credible, Stay Credible Dialogue 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 Assess Current Realities Piggyback Existing Initiatives Practice “Planful Opportunism” Inspire Shared Vision(s) Wake Up and Decide

7 Leadership Paradoxes 7 P R A C T I 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 To Get “Hard Results,” Work on the “Soft Stuff” Motivators Inhibit Commitment One Person’s Dream Is Another Person’s Nightmare Go Slow to Go Fast Go Small to Go Big Things Need to Get Worse Before They Can Get Better

Do it Yourself; You Can’t Do It Alone Kindred Spirits Their Networks Whole Company Whole Industry All Industries The World?

For “Hard Results,” Use “Soft Stuff” Organizational Systems, Structures, and Processes M A R K E T F O C S Customer Satisfaction and Business Results Products and Services E X T R N A L 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.

Collective Decision and Buy-In Go Slow to Go Fast Fast Decision Executive Idea Executive Decision Company Buy-In X X X Sell / Communicate Faster Buy-In Executive Idea Collective Decision and Buy-In X X Dialogue / Engagement

Go Small to Go Big Small Moves Big Shifts

7 Leadership Paradoxes 7 P R A C T I 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 To Get “Hard Results,” Work on the “Soft Stuff” Motivators Inhibit Commitment One Person’s Dream Is Another Person’s Nightmare Go Slow to Go Fast Go Small to Go Big Things Need to Get Worse Before They Can Get Better

7 Potential Derailers Displaying Hubris Mishandling Office Politics Embed and Align Displaying Hubris 7 P R A C T I E S Mobilize Commitment Mishandling Office Politics Build the Case(s) for Change Being a “Problem Child” Develop Strategies Failing to Produce Results Assess Current Realities Succumbing to Stress Inspire Shared Vision(s) Changing Everything at Once Wake Up and Decide Getting Off to a Bad Start 7 P A R A D O X E S

Transformational Leadership Embed and Align 7 P R A C T I E S 7 D E R A I L E R S Mobilize Commitment Build Case(s) for Change Develop Strategies Assess Current Realities Inspire Shared Vision(s) Wake Up and Decide 7 P A R A D O X E 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 ECONOMY 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 MAKE WASTE TAKE 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 SOCIETY Degradation of nature by physical means ECONOMY TAKE MAKE WASTE Increasing concentrations of waste from manufacturing, use, and disposal WASTE PRODUCTS Increasing concentrations of waste from extraction 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 USE RETURN LESS WASTE SERVICES Based on Bob Doppelt, The Power of Sustainable Thinking; Peter Senge et al., The Necessary Revolution

Sustainable Borrow-Use-Return Model ECONOMY SOCIETY BORROW USE RETURN SERVICES LESS WASTE ENVIRONMENT Radical resource productivity Ecological redesign and closed-loop production Investment in natural capital Service economy 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

Champion Sustainability … From the Middle How to Champion Sustainability … From the Middle Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com