strategy for the long‐haul - people, principles &...
TRANSCRIPT
LowittAssociates
HowSustainabilityCreatesValueThroughCompe88veDifferen8a8on
Envir
onment
Economics
Society
StrategyfortheLong‐Haul
What to Expect
Whatissustainabilityandwhydowecare?
Howsustainabilityleadstovaluecreation
Howtointegratesustainabilitysoyoucancreate
valueforyourorganization
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About Me
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Whatissustainabilityandwhydowecare?
Towards ‘Sustainability’
Our CommonFuture (1987)Introducedconcept ofSustainableDevelopment
Cannibals withForks (1994)Introducedconcept of TripleBottom Line
Gro HarlemBrundtland
John Elkington
Silent Spring (1962)Introducedconcept ofenvironmentalism
Rachel Carson
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What Sustainability Means forBusiness
Envi
ronm
ent
Eco
nom
ics
Soc
iety
…but why is thisrelevant to industry?
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Howsustainabilityleadstovaluecreation
Research to Answer Why…
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…Begins to Reveal Answers
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Suppliers Buyers
PotentialEntrants
Substitutes
Industry Rivalry
Sustainability has altered competition…
Power Power
Power
Power
Power
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…leading some to see sustainability‘sweet spots’
Core competencies andcapabilities Social, economic, and
environmental challenges
Consumer concerns andexpectations (link to brands)
Business growth strategy
Lenses to look through
“The sweet spot”
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These companies are called SustainableMarket Leaders
Average Years in Business per ScoredSustainability Leadership Quartiles within
2010 Global Fortune 500
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Sustainable Market Leaders: Viewsustainabilityasameansforvaluecrea4ontodayandtomorrow
Iden4fyenvironmentalandsocialproblemstosolvewithavailablecapabili4es,ina(mutually)beneficialway
Employsustainabilityasanaddi4onallensforevalua4on
Acceptthatembracingsustainabilityispricklyandhard
Gobeyondemployeeengagementtoemployeeco‐crea4on
Developnetworksofpeers,non‐peers,academics,andNGOs
Con4nuouslyrenewtheirsustainabilitystrategyandmanagementefforts
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Howtointegratesustainabilitysoyoucan
createvalueforyourorganization
Here’s How Sustainable Market LeadersCreate Value
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Craft Sustainability Strategy
Sustainability strategy or no sustainability strategy?
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Craft Sustainability Strategy
Materiality assessment is critical but not a panacea
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Lead and Manage Strategy
Core Sustainability Team
Cross-DepartmentCommittee
Stakeholder Engagement
Board of Directors
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Lead and Manage StrategyPe
rce
nt o
f Co
mp
ani
es
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Implement Sustainability Strategy
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Measure and Communicate Progress
Reporting Frequency
Rep
ort
ing
Me
diu
m
Annual Quarterly
Online
Paper
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Renew through Engagement
NGOs’ level of influence
NG
Os’
will
ing
ne
ss t
oc
olla
bo
rate
Low High
Low
Hig
h
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Keep Sustainable via Agility
Quality BusinessProcess
Reengineering
Globalization Dot-Com Sustainability NextImperative
Time
Initi
ato
r of I
mp
era
tive
Business
Society
1980s Today Tomorrow
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Questions to Consider
GoalWhat do you want to achieveby embracing sustainability?
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CompetitionHow do your sustainabilitystrategy and implementationefforts compare with yourpeers’ efforts?
ImplementationWhat roadblocks arepreventing your company fromembracing sustainability forvalue creation?
Value CreationWhat benefits are you gainingfrom your sustainability efforts?Are your competitors creatingmore value for theirstakeholders throughsustainability than you are?
Thank You!
For more information, here’s how to contact me:
Eric LowittEmail: [email protected]: ericlowittWeb Site: www.ericlowitt.com (coming soon)
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