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Sustainable development
Corporate transformation
Mark Wade
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Complex challenges
We may have less than a generation to solve the world’s most
pressing problems • climate change/clean energy
• bottom of the pyramid development
• unsustainable consumption and resource depletion etc
Corporations have an huge role to play
Need to master complexity
Need a new paradigm of sustainability thinking and behaviour
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The change challenge
Paradox - there is an urgent need for change but the rate of
organisational change is usually slow and littered with failed
attempts…. WHY?
The deck is stacked against change
• generative complexity – unfolding situations
• social complexity – multi-stakeholders
• dynamic complexity – cause and effect far apart
Piecemeal approach
• poor leadership and articulation of the Reason why
• dictat of new Rules in the absence of Consciousness
• Focus on process over person or froth over substance
Need an integral approach driven by inspired leadership
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Complex challenges
Translating
sustainability
into strategy
Driving
results
in large, complex
organisations
Grow business
and societal
value
Developing
the leader as a
whole person
and changing
the culture of the
organisation
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Leadership beyond the norm
Leadership that is:
• sensitive and responsive to global and local realities
• comfortable in diverse cultures
• builds multi-stakeholder relationships
• uses insights to inspire and innovate and set strategic direction
• manages inner complexity as well as global market complexity
• breaks silos, joins up and aligns the organisation to new ways
• drives lasting change to a new culture for the organisation
Leadership qualities
Yesterday
Technically smart
Intelligent (IQ)
Process champion
Drives execution
Performance manager
Analytical thinker
High performer
Competitive
Customer satisfier
Locally effective
Today +
People smart
Emotionally intelligent (EQ)
Innovation champion
Inspires others
Performance coach
Lateral / non-linear thinker
High learner
Collaborative
Customer intimate
Globally (cross culturally) effective
EABiS Ashridge research
Leadership in a complex world: the ‘U’ Process
Adapted from Otto Scharmer’s Theory U:
Leading from the Future as It Emerges
1. Sensing
•Test assumptions
• Identify customer/stakeholder
needs
• Engage stakeholders
• Suspend judgment
• Resist jumping to solution or
conclusion
• Open up to and use all senses
and input
• Collect data
• Build a powerful team and
stakeholder relationships
2. Reflecting
• Connect to individual and
collective purpose
• Take time for reflection
• Allow new futures to emerge
• Crystallise vision
3. Acting
• Rapid prototyping of
concepts and ideas
• Accelerated action based
on solid alignment
• Milestone planning
• Market testing
• Learning and growth for
the individual and
organisation
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‘Integral model’ of change
Inte
rio
r E
xte
rior
• Observable behaviours
• Governance
• Commitments
• Policies and standards
• Management systems
• Procedures, tools
• Observable behaviours
• Leadership skills
• Competencies
• Attitudes
• Beliefs
• Values
• Motivation
• Culture
• Values, business
principles
• Assumptions
• Norms
Organisation
Individual
Wilber model
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Integral model of change
Paradox – what comes first, the chicken or the egg?
Where to start when you need to do it all?
It is an interactive process whereby a small minority of Innovators
begin to set the new norm
vip.vyas1
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Formula for Change
C = S + V + Ca + E + C
Change = Sponsorship +
Vision +
Change
architecture +
Engagement +
Communications
vip.vyas1
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Innovators and early adopters mobilise the early majority
Typical population undergoing change
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Integral model of change
Innovators:
• see the need for a new paradigm
• articulate the reason
• set the new rules
• drive implementation - often ahead of wide spread understanding and deeper consciousness
• create a network of Early Adopters • identify • enlist, equip • instil with a new consciousness
vip.vyas1
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Integral model of change
Early adopters
• become change agents
• engage the early majority
Early majority
• apply the new thoughts and actions
• become a critical mass of people sharing a new consciousness
• reach the tipping point for lasting change
vip.vyas1
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Integral model of change
Paradox - rules are necessary but they cannot cover everything in a dynamic world
What happens when circumstances go beyond even new rules?
Developing wide spread consciousness ASAP is critical
Consciousness equips people with the capacity to
innovate and deal with new realities within the new paradigm
Emerging best practice is disseminated and becomes a new rule
– and so the process continues
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Example Sustainability governance structure
Executive Committee
CEO
Board
Social Responsibility
Committee Sustainability Council
Sustainability Panel
Working Groups
Representatives of all of the above
CEO chairs Businesses & Corporate Centre directors: Planning/Human Resources/ Finance/Legal/External Affairs/ HSE/Sustainable Development
meets 2 times a year
Meets 6 times a year
Sustainable development leadership
Panel members and
functional experts
External Review
Committee
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Sustainability Learning framework
SD = sustainable development/sustainability
HR = Human resources
HSE = Health, safety & environment
SD networks
Cross-postings
Competences
Career planning
Businesses
HR Planners
SD/HSE Advisors
SD practitioners
Objective Activity Medium Agent
Communication
Training/learning
Beyond training
SD e-Portal
Newsletters/e-letters
Sustainability Report
Resource library
Chronos SD e-learning
SD workshops
SD master classes
Leadership assessment
& development
Training & coaching
SD presentation packs
SD case studies
SD best practice guides
SD modules and events
SD e-learning tools
Key messages
Latest updates
Best practice examples
Active learning
Experienced people
Functional leadership
Competency profiling
Corporate Centre
Businesses
Functions
Self directed
SD advisors
Subject experts
Programme
managers
SD change agents
Awareness &
understanding
Skilled
Mastery &
advocacy
Working
Knowledge
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SD Learning - basic awareness & understanding
Communications
Clear, simple, consistent
In the language of the company
Combination of • moral/values case based on company values • business case based on real company examples
Championed by top leadership
Continuously updated and repeated
Using all media
Corporate SD e-Portal hub
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SD Learning approach
Features
• Business relevant
• Tailored to priority audiences
• Based on ‘self-discovered’ and ‘accelerated learning’ techniques highly engaging, experiential, mixed media
• Short, cost-effective and flexible
• Delivers personal reflection and action-planning
• Built around 'train-the-trainer’ concept
• Integrated throughout the talent pipeline
co-created with the Businesses
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SD Learning
Training and leadership development
• E-learning – Chronos
• All-comers SD primer workshops for individuals and networks
• Specialist SD workshops • Manufacturing managers • Project / field engineers • Retail managers • External affairs, HSE, SD, Finance managers
• Country Chair on-boarding – SD and engagement
• Master classes for senior leadership
• SD modules
Integrated throughout leadership talent pipeline
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SD Learning – mastery and advocacy
Beyond training
• Networks
• Active learning
• Placing/cross-posting experienced people
• Use of champions
• Competency profiling
• Assessment and development
• Career planning
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Learning
World needs new sustainability paradigm of thinking and behaviour
Complex challenges need integral solutions
Requires Leadership beyond the norm – values based, masters of complexity - to drive
Integral approach to change – Wilber model
Innovators and early adopters:
• articulate the reason and set the new rules – hard wiring
• governance, policies & standards, systems & processes, reporting, KPIs, targets, verification & assurance etc
• engage the early majority to instil consciousness – soft wiring by targeting • high leverage change agents with deep impact learning program based on ‘U’
• Grow critical mass of transformed individuals to achieve tipping point in
• Cultural transformation to set lasting change around new paradigm
Be systematic, allow innovation to flourish, consolidate best practice as new rules
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Sustainable development – corporate transformation Top Tips
• Recognise and respond to strategic trends and influences impacting the business
• Develop a ‘vision’ for the business based on core values and the drivers for change
• Gain top level commitment and mandate for change
engage top leaders individually, then collectively
relate to individual and company priorities - show how change proposition will add value
• Be systematic
set-up governance structure with company-wide representation to drive change
manage change as any other project - objectives, roles, responsibilities, timeframe, KPIs, reviews etc
• Set common language in simple words with clear definitions resonant with company culture and values
be rigorous in the consistent use of terms – include values case and business case
• Communicate widely - raise basic awareness & understanding, prepare the way for the change to follow
• Address ‘hard wiring’ and ‘soft wiring’ at the same time using the integral approach
develop reason, rules and consciousness, get intimate to be relevant to every day business
• Work through existing systems and processes as far as possible – bolt-on, then infuse and align
• Grow a network of Innovators and Early adopters to influence the Early majority
• Allow a ‘thousand flowers to bloom’ - encourage challenge to old ways of doing things, support experimentation
• Recognise, reward and communicate emerging best practice – consolidate into new standards
• Continuously maintain and refresh communications
• Celebrate success, enjoy the ride – how you travel is as important as the journey.
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Sustainable development – corporate transformation
For more information
If you need a friendly voice to talk to about your change challenge
feel free to fix a time and give me a call on:
+44(0)7957579550 or +44(0)1580 714968
Mark