Show Me the Money Getting Results From the Whole Organization Means It ’ s Not Just About the Environment

Panel Presentation & Discussion Getting Results from the Whole Organization: ANAB Moves Toward Integration of Standards-based Management Systems. Should You? –Chris Spire, QEP President, Spire Environmental Consulting Be Careful Who You Listen To –Douglas B. Johnson, Ph.D. President, Environmental Intelligence Inc. Getting Results: Show Management the Money –Sandra B. Austin and Michael G. Coleman, Ph.D. Principals, The Coleman Austin Group, Inc.

Be Careful Who You Listen To (Lowest) Common Denominators Add Up to Vulgar F r actions RegulatorsManagersExecutives Innovation in lawThis must be for the Legal Department. Must be a new way to stick it to us. How much will this cost us? Voluntary approachesNo one here volunteers to spend on the environment. Who wants us to audit what at our own expense? EMSI don’t need another tool for compliance. You want to spend how much? For what, a certificate?

What do CAFE and CAFO Have in Common? With but a few exceptions: 1.Government is not in the business of setting standards of excellence. 2.Compliance with Permit requirements is not an adequate measure of optimal value to shareholders, stakeholders or the environment. 3.Value is created in the domain that lies beyond the Lowest Common Denominator of Environmental Compliance. Value creation requires the effort of the whole organization.

Don’t Try This at Home (or in your place of business!) Made Sense to Me –Want to be a better manager? –Manage company as a whole system instead of collection of silos –Cost avoidance, cost savings –EO –EPA recognition When That Didn’t Work –Strategy Rules –Proactive vs. reactive –Plan for eco-efficiency –Drive waste out of the system, save money –Virtuous organizations with green PR –Link environmental performance to financial performance

Tough Lessons What I Was Selling The Tool - EMS Something I knew how to do - Teach & Train Deming’s Quality Principles What Sells RESULTS

Lemmings, Lessons & Lemonade My Mistakes Hanging out with the wrong people –What regulators wanted - not what the regulated community wanted –Regulators have never sold, and they run from consultants Could not quantify results The philosophy of quality may resonate with me, but philosophy does not sell well Your Lessons Sell to the buyer and beyond –Use their language –Ask to solve problems Focus on the Basics: Business Process Improvement Quantify, Quantify –Baseline is essential to articulating RESULTS

Three Take-Away Messages ~ 1 1.Risk Reduction (definition, causes, anticipation) 2.Cost Avoidance (compliance improvement, regulatory support, problem prevention) 3.Cycle Time Reduction (process simplification, cross-functional barrier removal) 4.Rework/Defect/Problem Reduction (better quality, eco-efficiency) 5.Cost Reduction/Profit Enhancement (turn lemons into lemonade) If you are an EHS manager or a consultant, your effort to drive continual improvement of environmental aspects and impacts will suffer if you can ’ t show how to deliver value on one of five measurable things:

Take-Away Message ~ 2 Most problems can be solved if people agree on the desired, measurable and achievable results. Absent that agreement, your prospective client will have no motivation or commitment, you will have no sale or project, and there will be no environmental performance improvements.

Take-Away Message ~ 3 ISO Standards are merely frameworks for organizing, planning and performing on plan. Great, we have one or more frameworks! What are we doing to improve business processes so that we are eco-efficient and delivering value? How will we get to RESULTS THAT MATTER?