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“The best time to plant a tree was 20 years ago. The second best time is now.”
~ Chinese Proverb
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Decisions to align executive packages to objectives is not a new idea. However, to illustrate how some companies are seriously taking Sustainability, forward-thinking corporations are doing just that. In January 2014, more than 1600 global business leaders attended Davos 2014 World Economic Forum in Switzerland. The hot topic, ‘doing business the right way’.

A kick-off panel introduced a new and radical strategy on executive packages and aligning efforts to Corporate Social Responsibility (CSR). Panel members included PepsiCo CEO Indra Nooyi and Pricewaterhouse chairman Dennis Nally, both are considered global leaders in promoting Sustainability.

Today, some 269 company’s in the Standard and Poor’s 500 Index are considering implementing some Sustainability measures relating to environmental and social issues. Two examples are: Intel, computer chip maker maker, and Alcoa one of the largest producer of aluminum.

“For sustainable solutions you have to have a responsible private sector,” says Stephan Tanda, top executive of Royal DSM NV(a Dutch-headquartered life and materials science company). “But it’s also good business. We are not philanthropists. We absolutely believe that Sustainability is good for business, otherwise we wouldn’t have that in there.”

To read more about incentives that affect executive behavior, read how the incentives are taken seriously: http://www.bbc.com/capital/story/20140122-the-big-payback

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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: Building a Bridge to Benefits –  Password: book2013  Discount: A37ZVRKK
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Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“I am not a product of my circumstances. I am a product of my decisions.”
~ Stephen Covey
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Decisions, decisions, decisions – and they don’t stop with Sustainability. In fact, they place executives and executive decisions on the carpet each time they make financial corporate decisions. Although the complexity of the enterprise can be simplified, decision-making that considers more than financial consequences can put social and environmental levels in a tug of war – moving away from a financial centric decision to a Sustainability decision that reflects a holistic perspective.

Most of today’s executives were indoctrinated under the economic doctrine of Dr. Milton Friedman. Friedman, who has argued that the primary responsibility of business is to make a profit for its owners, albeit while complying with the law. According to this view, the self-interested actions of millions of participants in free markets will, from a utilitarian perspective, lead to positive outcomes for society. If the operation of the free market cannot solve a social problem, it becomes the responsibility of government, not business, to address the issue.[1]

Friedman also argued against CSR. He believed that management is to make as much money as possible within the limits of the law and ethical customs. He argued that the primary responsibility of business is to make a profit for its owners, albeit while complying with the law. According to Friedman, an agency theory perspective implies that CSR was a misuse of corporate resources that would be better spent on valued-added internal projects or returned to shareholders. It also suggested that CSR was an executive perk, in the sense that managers use CSR to advance their careers or other personal agendas[2]. If the operation of the free market cannot solve a social problem, it becomes the responsibility of government, not business, to address the issue[3].

So why would any executive or owner want to take a journey that could be more complex, filled with harder decisions, juggle the tensions between stakeholders and shareholders and for what? I think Ray Anderson said it best; “And I have not mentioned the value of a tree and removing carbon dioxide, a greenhouse gas, from the atmosphere, sequestering carbon, and producing oxygen for us to breathe, nor the songs of birds that are heard no more where the forests used to be. Neither have I mentioned the disease spreading insects that now proliferate unchecked because of the birds, their predators are gone, resulting in an increase in encephalitis in the children of the region. So you see, there are serious questions to be raised about the traditional calculation a profit on the sale of timber harvested from clear-cut forest.”[4] So, we are all products of our decisions and Sustainability is a commitment to do the right thing.

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[1] CORPORATE SOCIAL RESPONSIBILITY, Reference for Business; Encyclopedia of Small Business; Retieved: 12 Sep 2011
[2] McWilliams, Abagail; Siegel, Donald S. and Wright, Patrick M.; Corporate Social Responsibility: Strategic Implications; Journal of Management Studies 43:1 January 2006
[3] Corporate Social Responsibility, Reference for Business; Encyclopedia of Small Business; Retrieved: 12 Sep 2011
[4] Anderson, Ray C.; Mid-Course Correction, Chelsea Green publishing Company, White River Junction, Vermont, 3rd printing September 2005

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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: Building a Bridge to Benefits –  Password: book2013  Discount: A37ZVRKK
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“The art of life is a constant readjustment to our surroundings.”
~Kakuzo Okakaura
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Herb Kelleher is often quoted as saying; “If you don’t change, you die.” When asked by his successor, Gary Kelly, to expand on that notion, he said, “If things change faster outside your company than they change inside your company, then you have something to worry about.”

Change is often called the “business constant”. For change in the marketplace, the government, regulations, Customer needs and wants, various forms of technology, even the issues of land, water and air are variables that influence business and your enterprise. So, I agree whole heartedly with Mr. Kelleher and Mr. Kelly.

The beliefs of Mr. Kelleher and Mr. Kelly are substantiated by McKinsey & Company research. Their experience with scores of major transformation efforts, combined with research they have undertaken over the past decade, suggests that four key functions collectively define a successful role for the CEO in a enterprise transformation:

  1. Making the transformation meaningful. People will go to extraordinary lengths for causes they believe in, and a powerful transformation story will create and reinforce their commitment. The ultimate impact of the story depends on the CEO’s willingness to make the transformation personal, to engage others openly, and to spotlight successes as they emerge.
  2. Role-modeling desired mind-sets and behavior. Successful CEOs typically embark on their own personal transformation journey. Their actions encourage employees to support and practice the new types of behavior.
  3. Building a strong and committed top team. To harness the transformative power of the top team, CEOs must make tough decisions about who has the ability and motivation to make the journey.
  4. Relentlessly pursuing impact. There is no substitute for CEOs rolling up their sleeves and getting personally involved when significant financial and symbolic value is at stake[1].

Change is preparing your organization to lead and be proactive ahead of a change curve. Read this article and understand some of the insights gleaned from Southwest airlines are important. http://tinyurl.com/lxoxyqk

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[1] Aiken, Carolyn B.  and Keller, Scott P.; The CEO’s role in leading transformation; Insights & Publications; February 2007

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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“There’s an awful lot of talented people in this country and a lot of them put their own money into trying to break through. But because they haven’t got the knowledge or the business expertise to do it, they fail.” ~Steve Betts
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Originating from NSA and US military needs of analyzing a changing environment in today’s world, VUCA is a methodology that helps assess the environment. It is based on these four phases:

  • Volatility. The nature and dynamics of change, and the nature and speed of change forces and change catalysts.
  • Uncertainty. The lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events.
  • Complexity. The multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization.
  • Ambiguity. The haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion.

Understanding the VUCA World
September 16, 2013
Bob Johansen, of the Institute for the Future, with David Small, VP of Global Talent at McDonald’s Corporation, introduce the concept of the VUCA (volatile, uncertain, complex, ambiguous) World, and the four strategies to counteract it.

Follow this link: http://www.cvdl.org/blog/understanding-vuca-world/
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Building a bridge to benefits thumbnail

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC
Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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“Process change has become embedded in individual functions and business units, and they have seen the benefits to their bottom lines. So they come to IT because they want to know what other parts of the company have done. We’ve gone from being the engineers of new processes to being the movers of innovation across the company.” ~  Lee Scott, former CEO of WalMart
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“Much more remains to be done to help companies turn Sustainability goals into action,” said Georg Kell, Executive Director of the UN Global Compact. “CEOs clearly see the need to instill Sustainability at all levels and roles within organizations, and this unprecedented level of data and analysis will enable us to help them on their journey to truly embedded long-term Sustainability.”

Business Transformation, when designed as an Opportunity, is the alignment of Business Strategies, Objectives and Requirements that orchestrate your enterprise resources (i.e., Customers, Operations, Financial, IT, Suppliers, etc.). The desired change is directed by unique Roadmaps and is measured by metrics for Growth, Performance and Savings.

Business Transformation can be defined as the “combination of strategic, process, organizational change, and technology development focused around one clear vision, resulting in a significant change in the organization and substantial financial benefits[1].” This has been the theme in previous chapters and now we need to link the value of transformation into actions and milestones.

Corporations, whether small, medium or larger sized, are always faced with refinement and improvement of complex business systems and strategic processes. Often these key structures are intertwined, so Transformation must be controlled and managed.
Transformation is controlling business change in order to reposition your organization by exploiting potential increases in Growth, Performance or Savings. In today’s environment, success can be derived from applied best-in-class solutions.

Successful transformation can be implemented incrementally, based on a project’s focus such as efficiency, productivity, profitability or a selected combination. In the beginning, select the “low lying fruit” that is easy to complete, build team confidence and can quickly apply the new tools and training for your entire organization.

Management of risk and its mitigation are key to any successful project. In a low reward scenario, a single project that is positioned to take advantage of technology could also be applied in order to streamline processes and provide efficiencies with little downside risks. At the operating or department level, productivity gains and financial rewards can be gained through streamlined processes and/or technology. In another scenario, co-transformations between departments can produce a synergistic effect, and again the efficiency increases rewards. Last and most significant is the strategic scenario of transformation that would encompass the whole organization providing systematic rewards and results.

This is an excerpt of my new book “Building a Bridge to Benefits”. Publication date is scheduled for November 2013 and is planned to be available on Amazon. More to come …
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Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Footnotes
[1] Goonan, Brian, “Business Transformation: Doing it Right, Part I,” CIO Magazine, 9 February 2005

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 “Usually, if you’re greening an industrial process, it means you’re turning waste into profit.”
~ Amory Lovins
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William McDonough, one the co-authors of Cradle-to-Cradle that is widely acknowledged a one of the most important environmental manifestos of our time, once said; “You don’t filter smokestacks or water. Instead, you put the filter in your head and design the problem out of existence.” Whether you are designing a new LEED building, designing an end-of-life process or simply integrating CSR into your Strategic Planning framework, the idea is the same; “you put the filter in your head and design the problem out of existence.”

The percentage of companies reporting a profit from their Sustainability efforts rose 23 percent last year, to 37 percent, according to the most recent global study by the MIT Sloan Management Review (MIT SMR) and the Boston Consulting Group (BCG[1]).

The extent to which a company incorporates Sustainability concerns into its business model often correlates with its increase in profit, the survey found. For example, 50 percent of respondents said they profited by changing three or four business model elements to reflect more sustainable practices, while 60 percent said they profited by including Sustainability as a permanent fixture in their management agenda[2].

This is an excerpt of my new book “Building a Bridge to Benefits”. Publication date is scheduled for November 2013 and is planned to be available on Amazon. More to come …
_____________________________________________________________________
Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Footnotes
[1] Kiron, David; Kruschwitz, Nina; Haanaes, Knut; Reeves, Martin and Goh, Eugene; Companies Profit From Embracing Sustainability; MIT Sloan Management Review; March 12, 2013
[2] Kiron, David; Kruschwitz, Nina; Haanaes, Knut; Reeves, Martin and Goh, Eugene; Ibid.

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“Pollution is nothing but the resources we are not harvesting. We allow them to disperse because we’ve been ignorant of their value.”  ~  Richard Buckminster Fuller (US engineer and architect)
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As a methodology that pursued to improve an enterprise, Sustainability has been available for about two decades. Its savings come from reducing wastes, conserving energy and water; while ensuring compliance. On the other hand, Quality has been applied and institutionalized in corporations around the globe for over a century. Its savings come from removing waste of time, eliminating defects, identifying where the issues are, and fixing it one time to eliminate “fire fighting”. Why wouldn’t any executive want to consider Sustainability with Qaulity as the spine for expanding that functionality? A survey from the UN Global Compact and Accenture found what contemporary CEOs are thinking:
•    96% of CEOs believe that Sustainability issues should be fully integrated into the strategy and operations of a company.
•    93% of CEOs believe that Sustainability issues will be critical to the future success of their business.
•    91% of CEOs report that their company will employ new technologies to address Sustainability issues over the next five years.
•    88% of CEOs believe that they should be integrating through their supply chain.
•    86% of CEOs believe see “accurate valuation by investors of Sustainability in long-term investments” as important to reaching the tipping point in Sustainability[1].

From a Sustainability viewpoint, your organization must recognize how it may be detrimental to the environment and society, but more importantly how those behaviors and practices are costly to your enterprise. The acknowledgement of this waste may be surprising. That means looking at a variety of Sustainability considerations (waste, carbon footprint, water, energy, etc.) that are present in your organization and aware to those living in the community.

Now, let us look at the Quality perspective (e.g., Lean and Six Sigma). These methodologies remove other wastes from your organization and compliments your efforts with eliminating Sustainability wastes. In a business context, it is removing other unwanted wastes, unwanted logistics, improving Customer relations, etc. and often times compliment certifications, whether ongoing or planned.

It also ensures that changes are not adrift, but secured and retain gains already identified. Peter Drucker is remembered by this famous quote; “You can only manage what you can measure.” By measuring refinements changes, by your projects that are effectively implemented, your true gains will hit your bottom line. Remember this simple equation for each project:

Optimizing Profitability = Sustainable Development + Quality +Continuous Improvement + Secured Gains

The results address current CEOs beliefs, as well as, uncovering new opportunities that had not been anticipated. Strategies will be better integrated, establish a common understanding of how Sustainability and Qaulity will be critical to their success in the future, leverage new technology, integrate methodologies into supply chain processes, and favorably impact the financial investment image of your corporation. As Drucker also said; “What’s measured improves.”

Sustainability indicators have proliferated globally. More than 3,500 organizations in more than 60 countries, for example, use the Global Reporting Initiative’s (GRI) voluntary Sustainability standards report on their environmental, social, and governance (ESG) performance. Sustainability and related certification standards have met important needs. They have heightened corporations’ awareness of their impact on society and triggered meaningful improvements in social and environmental performance.[2]

This is an excerpt of my new book “Building a Bridge to Benefits”. Publication date is scheduled for November 2013 and is planned to be available on Amazon. More to come …
_____________________________________________________________________
Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Footnotes
[1] A New Era of Sustainability, UN Global Compact – Accenture CEO Study 2010
[2] Porter, Michael E.; Hills, Greg; Pfitzer, Marc; Patscheke, Sonja and Hawkins, Elizabeth; Measuring Shared Value
How to Unlock Value by Linking Social and Business Results; June 2011, p. 9

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