Internal Influence in an Age of Authenticity SBN Conference 2016 – Panel discussion The panel The interactive session linked discussions held with conference participants throughout the day with insights from an expert panel. Participants gained insight on how to successfully influence and drive internal change around sustainability within their own organisation. As preparation for the panel discussion, thinkstep collected answers to a series of questions throughout the day. Feedback was collected on Post-It Notes and placed on two whiteboards in the coffee/lunch area. Kevin Golding, Manager Future, Winstone Wallboards (GIB) Mark Stevens, Head of Sales New Zealand, Tork Professional Hygiene Adam Schofield, Environmental & Quality Compliance Manager, Autex Maree Willetts, Sustainability Specialist, Meridian Energy “Integrity and transparency are key to a successful business” “Sustainability is key from a procurement perspective, as a point of difference.” “Autex is a family business and sustainability speaks well to family.” “Sustainability is logically linked to the Meridian brand due to our commitment to 100% renewable electricity.” Pannel discussions chaired by: Jim Fava, Chief Strategist, Anthesis; Retired Chief Sustainability Strategy, thinkstep Supported by: Jeff Vickers and Matthias Nebel, thinkstep 2 of 15 Voices of the conference Why do sustainability managers often live in silos? Sustainability managers and sustainability teams often operate in isolation from the rest of their business. This can occur for many reasons, e.g. they don’t speak the language of the business, their role was created to serve a specific stakeholder need (e.g. CSR reporting to investors), or because other people within the business don’t consider what they do to be a core activity. 3 of 15 To be effective, sustainability thinking and initiatives need to be “lived” by all people within the organisation. To help make this happen, sustainability managers need to translate their ideas into terms that resonate with the people they want to influence. For example, improving efficiency, communicating more authentically, retaining social license to operate, community involvement, etc. Why do sustainability managers often live in silos? Panel discussion “Many sustainability managers historically come from a compliance background and this perhaps has created the silo mentality.” “Perception is that it will cost you more, and this makes it an add-on.” Agreeing with the feedback received throughout the conference, all of our panellists stressed the importance of fully integrating sustainability into the organisation. However they also understood the challenges faced by many sustainability managers not being viewed as vital to the organisation’s success “many sustainability managers historically come from a compliance background and this perhaps has created the silo mentality.” Personal experiences also came from the audience “Sustainability generally works with the “moral imperative” – people doing things because they think it’s the right thing to do. Perception is that it will cost you more, and this makes it an add-on. They like to put it in a silo so that if it doesn’t work it can be lopped off in the next budget.” This stresses the importance of the need to “integrate as business-as-usual so it can’t be lopped off. It needs to be subversive; it needs to be part of culture.” 4 of 15 “Sustainability has transitioned from risk management to resilience-building.“ “Brand protection is very important. Sustainability is becoming more core to the business for this reason.” “From a structural perspective, sustainability people often operate in isolation or as part of a sustainability team; however, you can’t be successful if you don’t work across the business. You can have a core skill set, but you must serve the business.” Many would struggle to give a clear answer to the question “what does a sustainability manager do?” Our panel shared their experiences and the development of their roles over time as sustainability became further integrated into their organisation’s strategy – “it transitioned from risk management to resilience-building. Compliance focus switched to this more proactive, forwardlooking approach.” “Part of your role as a sustainability manager is to break down silos.” Sustainability should not be just about meeting reporting requirements or reducing your organisation’s environmental impact. It is about future-proofing your brand and the way it functions. “Brand protection is very important. Sustainability is becoming more core to the business for this reason. This should help to break down silos.” 5 tips to get out of the silo Why do sustainability managers often live in silos? 1. Collaborate Collaboration is key to breaking down silos. Involve many divisions within the organisation and show them the benefits of working together to succeed sustainably. 2. Be a leader, not a reporter Drive change within the organisation by demonstrating benefits to other members of the organisation. 3. Don’t give up Changes to thinking can be slow, especially in larger organisations. Change builds in the background and happens suddenly – remember Niki Harre’s talk about change. 4. Think outside of environmental sustainability Demonstrate the social and business case for sustainability. Sustainable organisations understand the value of their brand and protect it by incorporating sustainability into all areas. 5. Share information Promote the sharing of information between divisions of the organisation. This could include data, feedback from customers or progress updates etc. 5 of 15 Voices of the conference Who is your other half? It is unlikely you will be able to achieve your vision alone. You will need partners to make it work, and some partners will be more important than others. For example, a sustainability manager who wants to move towards zero waste will need buy-in from finance to support investment, designers to come up with creative solutions, and operations to implement process changes. There is no predefined number or type of partnerships essential to achieve sustainability goals across all organisations. 6 of 15 There are many opportunities for collaboration between different sectors. Working with the right partners to achieve your specific goals is essential. Respondents from the conference each identified different partnerships based on their unique circumstances. Some identified positions with power to authorise change, whereas others identified partners with similar values open to collaboration, or partners whom the origin of their sustainable image is dependent on. Who is your other half? Panel discussion “It’s about selecting the right people to make these unconventional ideas work in the future.” “Not just half, it’s halves; a multifunctional team. Discussion by the panel over this topic offered up some great examples of partnerships within or between organisations. Kevin Golding and Mark Stevens both gave examples involving a large element of trust and buy-in from other partners within and outside of the company. Kevin’s goal was to reduce waste downstream, but management first needed to understand how selling less initially helped to create a successful business. By optimising the system, Winstone Wallboards is able to reduce construction waste sent to landfill, which also reduces the initial product cost for its customers. He says “it’s about selecting the right people to make these unconventional ideas work in the future.” Mark gave an example of a partnership they have with a large restaurant chain. Tork was able to significantly reduce the number of napkins consumed by restaurant customers, by introducing a new napkin delivery system. They now sell them less napkins, however they have achieved a valuable, long-term partnership. 7 of 15 “Ideas put in front of management are complex, intangible and sometimes counter-intuitive.” “Bring together the leaders. If you bring too broad a group, you will end up at the lowest common denominator.” Incorporating sustainable operation into an organisation often requires approval from higher up. Obtaining investment and support from finance is a common issue faced when trying to achieve sustainability goals - “Ideas put in front of management are complex, intangible and sometimes counter-intuitive.” The development of strong partnerships and being able to clearly communicate benefits is especially important here. The selection of another half or halves should be a strategic decision. Working with the wrong partners, or too many partners, can limit your progress or derail ideas completely. Instead, lead from the front with those who you need to succeed. Jim Fava made the statement “bring together the leaders. If you bring too broad a group, you will end up at the lowest common denominator,” and made an interesting comparison with the SBN’s goal to make New Zealand a model country for the rest of the world, “thinking globally but acting locally.” 5 tips to find your other half Who is your other half? 1. Collaborate with the right people You will not be able to achieve your goals alone. Working together with the right people will enable you to make your ideas a reality. Often targeting strategic areas will be better than attempting to do too much at once. 2. Clearly communicate using terms that your audience understands Your partners may come from a different background and will have a different view of your goals. Use terms which your audience is familiar with and can relate to their own goals. 3. Know what you want to achieve To get others on-board you must first sell the idea to yourself. Fully understanding what you want to achieve, along with the strengths and weaknesses, will allow you to identify the partnerships which are most important. 4. It’s a two way street Partnerships are not about getting permission or boosting your personal agenda. Show how your ideas can be mutually beneficial and be open to learning what is actually important to your other half. 5. Keep looking forward Just because a partnership didn’t work out in the past doesn’t mean it won’t in the future. Learn from past experiences but look at ways to retain the partnership for the future, it may just be vital to successful future endeavours. 8 of 15 Voices of the conference Why is sustainability dead? Similar to a sales person announcing that “we sell products,” “being more sustainable” really has nothing to do with the price of fish. Sustainability is not dead, but, as a term, it is too broad to be meaningful. It needs to put into terms your target audience will fully understand. 9 of 15 In addition to being vague, sustainability is perceived as a “buzzword.” We hear the word sustainability so often in many different contexts that we don’t associate it with any value. Internally sustainability is often perceived as a moral add-on; externally, it is often associated with “greenies.” Why is sustainability dead? Panel discussion “Sustainability as a term is dead as it puts people off talking – it’s a matter of using the right language.” “There is an assumption by consumers that the sustainability box has already been ticked.” The panellists all gave examples of their experiences trying to sell sustainability internally. Kevin’s experience is that “sustainability as a term is dead as it puts people off talking. The goals and outcomes are still there, but it’s a matter of using the right language.” Adam even put this question to his sales team. Their response was to say “there are many stories in the marketplace and not all are authentic or can be supported. People are jaded.” He pointed out that “This is problematic when the jaded person is the decision-maker, the buyer in this case. Non-authentic stories are what make the news.” We also heard a great example of this from earlier in the day, with the controversy surrounding vitamin C in Ribena and the need for authenticity. 10 of 15 “Message around what you’re trying to achieve rather than sustainability by itself.” “Words like ‘resilience’ and ‘resource efficiency’ work well.” Mark agreed that sustainability was not dead, but “complex.” “Business to business will often have a procurement panel and you can talk through the nuances. “Customers, on the other hand, need to make a snap decision and there is an assumption by consumers that the sustainability box has already been ticked.” Maree added that she doesn’t use the word sustainability in her day-today operations, but talks about the specifics, such as efficiency, transport etc. “Message around what you’re trying to achieve rather than sustainability by itself.” Jim added “sustainability is complex as there are so many issues. Different people need to hear different things.” Kevin finds words like “resilience” and “resource efficiency” work well. Adam has found marketing “want hard numbers to be made relative, for example equivalent number of km driven by a car.” 5 tips to revive sustainability Why is sustainability dead? 1. Use meaningful language Sustainability as a term can often put people off talking. Instead use meaningful words that resonate with the intended audience. Examples include business value, authentic communication, transparency, efficiency, resilience and risk management. 2. Be specific Sustainability is a broad subject. Talk about the things you want to achieve. For example, increasing energy efficiency, creating a business with a unique social purpose, etc. 3. Tell authentic stories Let others know what specifically is important to you and your organisation and show them what you are doing in these areas. Make sure your information is credible. Authenticity and transparency are highly valued. 4. Give tailored evidence People want to see the results of their efforts. Sometimes intangible results can lead to a lack of understanding or motivation. Present evidence and results in a way that is meaningful and useful for the target audience. 5. Be innovative Sustainability as a “green” term is overused, and puts companies into one of two baskets: sustainable, or unsustainable. Sustainability is not a feature, it is a process with varying levels of success. Find innovative ways to distinguish yourself from the pack. 11 of 15 Voices of the conference Small steps don’t matter for sustainability? Can sustainability only be achieved through big wins? Some people see large transitions as the only way forward, as they force problems to be viewed from a different angle. However, small steps can be more motivating for people and long-term targets often seem too far away to affect day-to-day business. Perhaps both are equally important and one without the other cannot achieve its full potential. 12 of 15 Transformational thinking is crucial, as incremental improvement (e.g. improved efficiency in the appliance industry) will only get you so far. However, transformation can also create barriers for change, such as the fear of losing your own job. This links to the idea of efficiency (doing things right) to effectiveness (doing the right things). There is often an optimum position between the two, but finding it can be a challenge. Small steps don’t matter for sustainability? Panel discussion “You’ve got to earn your stripes. You have to achieve small wins to earn them.” “Big lofty goals are too easy to put aside. Small steps are harder to stop when times get tough.” The panel stressed the importance of smaller steps, especially for sustainability. Kevin’s reasoning was that “you’ve got to earn your stripes [credibility & expectations]. You have to achieve small wins to earn them.” Adam argued “Big lofty goals are too easy to put aside. However, the small steps should lead to something. Small steps are harder to stop when times get tough.” Maree pointed out that it also depends on the size of the company “small steps for a big company can lead to big outcomes. Small companies can be agile, make big changes fast and have ripple effects.” Mark was also in favour of the smaller steps and Toyota’s [Kaizen] approach “you make a small step every day and things change.” Mark also gave an example which many of those in the audience enjoyed: “Our office in Newmarket (40 people) converted to a zero waste to landfill goal. We took away the rubbish bins. It is tiny thing in the scope of our operations (being a paper mill) but it got people engaged.” Small steps often provide tangible results and that is great for motivation. 13 of 15 “It is tiny thing in the scope of our operations, but it got people engaged.” “It forced them to think about the problem differently – not just tightening your belt.” It is clear that large goals without direction are going to be a struggle. Breaking down goals into smaller steps can show you a path to other side of the forest when you are surrounded by trees. However, if you take only small steps, without larger, more transformational thinking, you may never discover a better path right beside you. Jim gave an example of a company who moved from a goal of reducing pollution by 10% per year to a goal of zero waste. “People thought he was crazy. However, they achieved this in a series of process steps as it forced them to think about the problem differently – not just tightening your belt.” The sizing of goals and targets can be more than just a measurable endpoint. They end up determining levels of buy-in, motivation and innovation from those involved, and ultimately how successfully a sustainable culture is incorporated into an organisation. A staircase without steps is a slide – you keep ending up at the bottom when you wanted to go up. Steps without a staircase are a trip hazard. 5 tips to keep stepping forward Small steps don’t matter for sustainability? 1. Set personalised goals For sustainability to be fully integrated, it must become part of the culture. Allowing people to see that they have a personal impact, no matter the size, can help to get them engaged. 2. Know your purpose Your focus should be figuring out what is really important for your organisation and how to achieve this purpose better. Ensure there is a clear link between your goals and your purpose. 3. Balance ‘effective’ and ‘efficient’ goals Make sure that goals, targets and KPIs etc. are actually producing results in line with your purpose. You may need to stimulate transformational thinking and balance resources. 4. Identify your hotspots Find out what your ‘hotspots’ are. These are areas where there is the greatest opportunity for improvement and often offer the best return on investment. 5. Celebrate your achievements Recognise milestones and share stories of your progress both internally and externally. This will be important to engage stakeholders and demonstrate the benefits of sustainability. 14 of 15 Panel’s closing remarks Maree: Collaborate. Fail fast. Try lots of things. It will come together. Adam: Don’t give up. It’s too easy to shrug your shoulders and say “I tried”. There is no change for a long time, but it builds in the background, then it does change. Mark: Don’t tell lies. Don’t be at that end of the spectrum. We are hyper sensitised to seeing “green” next to products and very sceptical of this. Kevin: You’ve got to walk the talk. Follow through. Have integrity. It can be a long, slow process. It is a journey – there is no immediate end. Jim Fava’s three walkaway messages 15 of 15 1. You can’t achieve your vision alone. You may need support from finance, procurement, product/service designers, external partners, customers, etc. Sustainability problems are almost always multi-disciplinary problems. 2. Sustainability needs long-term disruptive goals, but you have to break these goals down into steps that people can achieve today. Short-term wins help to create motivation and act as stepping stones to your longer-term vision. 3. “Sustainability” by itself is too broad to be meaningful. Instead, use terms that resonate with your stakeholders. Examples include business value, authentic communication, transparency, efficiency, resilience and risk management. Talk about the things you are actually doing or hope to achieve, not just about becoming “more sustainable”. Engage with us thinkstep Sustainable Business Network Barbara Nebel 04 889 2520 [email protected] James Griffin 09 826 5642 [email protected] www.thinkstep.com www.sustainable.org.nz
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