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Defining Sustainability
| Guest post by: Tammy Kohl |
Article Overview: There are five levels of sustainability within an organization. In this article you will figure out what level your company is currently in, and then you can strategize how to get to where you should be.
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Free Download - What Does a Customer Really Want? By Tammy Kohl |
Defining Sustainability
“In good times, sustainability can be a competitive differentiator; in
lean times, it’s a defensive strategy and in really hard times, it can
determine your survival.” - Richard Goode, Director of Sustainability at
Alcatel-Lucent
As we have
discussed in previous blog posts, sustainability as a business strategy needs
to be uniquely defined for each company. Understanding the industry, company
size, product or service line, the supply chain, and
stakeholders’/stockholders’ concerns are all important to create a meaningful
definition. Understanding sustainability may start with a definition, but
sustainability is really a corporate wide strategy and culture that ultimately focuses on increasing productivity
and/or the reduction of consumed resources without compromising product or
service quality, competitiveness, or profitability. Embracing a true
strategy of sustainability is never ending, as it ultimately should become part
of the culture and fabric of the organization.
After
defining sustainability for your
organization, the next important question to ask is, “Where does our company
stand as it relates to our sustainability initiative?” Many companies are quick
to react to new initiatives without assessing what it really means for their
organization.
Important questions to consider include:
· Where are
they currently?
· Where do
they want to go?
· What will
it take to get there?
Similar to
the beginning of the quality movement, many companies got on the bandwagon and
implemented the concepts haphazardly with no intent or strategy, reaped some
results from low-hanging fruit, but never really saw the full impact and the
possible results that could have been theirs to realize.
Kevin
Myette, Director of Product Integrity at Recreational Equipment Inc (REI) says
that “sustainability is the next quality movement … and it is no longer just
for big companies.”
If
sustainability is viewed as a strategy to be developed over time, then there
needs to be a systematic approach to be able to move from where your company is
now to where it wants or needs to be. Our systematic approach looks at
sustainability through the progression of five levels.
Level 1: Recognize
At this
level, an organization begins to recognize that something needs to be done.
Perhaps outside forces such as industry regulations or
stakeholders’/stockholders’ concerns are driving some action; however, there is
no real strategy in place. In fact, if industry standards are driving whatever
sustainability action currently exists, the organization is most likely acting
out of shear conformance.
Level 2: Initiate
At this
level, management agrees that it is time to look at sustainability as a
business strategy. Management begins to see a solid business case for why
sustainability makes sense in their organization and management begins defining
their strategy for sustainability. Short-term, measurable results start being
obtained.
Level 3: Implement
At level
3, there is a clearer understanding and awareness of what sustainability really
means to the organization. A detailed action plan has been created and
communicated to employees, customers, and all other stakeholders. Larger
projects within the initiatives are beginning to get traction and see results.
Level 4: Operationalize
At level
4, there is full commitment to the sustainability strategy and the action plan
is in full force. The organization is maximizing its people and processes to
ensure a positive impact on the environment while seeing improvements in their
own profitability and core business measurements.
Level 5: Transformation
The value
of continuous sustainability is now embedded in the organization’s culture. It
is part of how they think and make decisions. There is a commitment to
continually review where they stand on sustainability issues, and they are
committed to take the necessary action steps today and in the future.
At what
level is your organization currently? Where should you be?
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Article Tags: defining sustainability, Kevin Myette, Lucent, profitability, REI, Richard Goode, strategy, sustainability
Referred by: http://www.increase-sales-coach.com
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About the Author: Tammy Kohl RSS for Tammy's articles - Visit Tammy's website www.resourceassociatescorp.com www.theinstituteforsustainability.com 800-762-6227 Tammy Kohl, President of Resource Associates Corporation, has been with the corporation since 1986. During that time she has held a series of increasingly responsible positions until her appointment in January 2002 to the position of President. Tammy's experience in working with personal clients and RAC affiliates has given her practical and extensive experience in the areas of creating customer value, comprehensive knowledge of RAC and TQI processes, and generating results on both the personal and organizational level. This knowledge and experience is invaluable in establishing the future course of Resource Associates Corporation on a national and international level. As part of her duties as Executive Vice President she was responsible for managing the production, customer service and affiliate support areas of the corporation. This knowledge and understanding of running operations gives her an in depth and well rounded working knowledge of how to run a successful business. In addition to her business sustainability, management and people skills she is proficient in setting strategic directions and accomplishing them. Tammy holds a degree in Business Administration. She is the founder of The Institute for Sustainability, an instructor for Achievement Seminars International and heads the RAC Executive Committee. Click here to visit Tammy's website   Why The Emphasis on Teams A Vision for Sustainability Delegating the Right Way Goal Setting for Students Helping Sustainability Make Sense to Small and MidSized Companies |
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Budgeting Approach
- Budget is a roadmap for future operations of the company and it must be realistic. Here are some guidelines (extracted from my company manual) which I like to share with you.
Each cost center in company will submit documentation defining the services provides and resources require. Each department is responsible for maintaining the accuracy of this document over time. Every department is encouraged to take a long-term strategic approach to providing its services.
This approach entails an annual review of the costs that must be incurred to provide valued services (regardless of past practices) at the most efficient (and understandable) cost. Once this level of service and funding is established, increments to the baseline are considered. Ideally this would involve the following approach:
a) Defining the current and future level of services provided, the resources necessary to provide those services and rationale for major change.
b) Evaluate current operations and identify issues and the gaps to providing future levels of service.
c) Look internally for cost saving measures or the elimination of services that are no longer required. It is assumed that before any funding request comes forward that it has the approval of the manager/director responsible for that department.
d) Look cross-organizationally for resource allocations and efficiencies.
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