engaging your organization for environmental social governance
DESCRIPTION
A presentation by Tom Cummings at TBLI CONFERENCE EUROPE 2008.TRANSCRIPT
![Page 1: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/1.jpg)
1
TBLI AcademyEngaging your Organization for
Environmental Social Governance (ESG)
2008 TBLI conference, EuropeAmsterdam, 13-14 November 2008
By Tom Cummings
Copyright © by Executive Learning Partnership, CVBA, 2007. All Rights Reserved. No part of this publication may be reproduced, stored in any retrieval system, or transmitted in any form or by any means –electronic, mechanical, photocopying, recording, or otherwise –without the express written permission of Executive Learning Partnership.
![Page 2: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/2.jpg)
2
The ELP – TBLI Business Case
![Page 3: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/3.jpg)
QuickTime™ and aTIFF (LZW) decompressor
are needed to see this picture.
![Page 4: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/4.jpg)
Systems Maps - Only Useful if we do it together!
![Page 5: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/5.jpg)
5
Leadership Landscapes
Individuals
Team
Organisation
Industry, Markets and CustomersMacro Business Perspective
![Page 6: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/6.jpg)
What the ELP – TBLI Academy stands for
• 1) Informing companies - the landscape and next gen business
• 2) Engaging with leaders and their teams at both the rational and emotional levels
• 3) Enacting the business plan in a sustainable way
![Page 7: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/7.jpg)
Ministers’ LunchRéunions informelles des ministres en charge de l'environnement et de l'énergie
![Page 8: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/8.jpg)
Learning Journeys
![Page 9: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/9.jpg)
CSR and Strategy
“The current economic cycle doesn’t represent a cycle, but a reset –CSR and strategy have to become part of the same conversation instead of competing ones.”- Jeff Immelt, CEO GE, BSR conference, 2008 New York
![Page 10: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/10.jpg)
Next Generation Business
Existing Paradigm – Existing Business and Organizational Models
Vs.
New Paradigm – New Business and Organizational Models
10
![Page 11: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/11.jpg)
ROI on Sustainable Investment
Source: Lawrence M. Miller: Sustainable Wealth, 2008
![Page 12: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/12.jpg)
Assumptions of the Existing Business Models
• Size = Comfort, Safety• Experience = Competency• Knowledge = Formal Education, Diplomas• Measurement = Money
12
![Page 13: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/13.jpg)
13
Existing Business Models
• What rights are being sold (and bought)?• What assets are involved?
– (physical, financial, intellectual, human)– Things are created or invented, distributed, used
and brokered or matched with buyers– Beyond serving needs– To what extent was scarcity vs. plenty considered– What is the lifecycle of this business model?
![Page 14: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/14.jpg)
14
Leadership Landscapes
Individuals
TeamMotivational StatesMindtalkMBTI - InsightsEquanimity shift/Dynamic EquilibriumLogos, Ethos, PathosCompeting CommitmentsAttention Units, Motivational States“User Guide”Diagnostics
Organisation“Why Behaviors matter” values and behavior exerciseDesired BehaviorsLeading ChangeConvening Authority/ Organisational Uniqueness Branding, Engaging
Industry, Markets and CustomersValue mappingHero’s JourneyLandscape OrientationMust-win Battles
Macro Business Perspective
20-20 viewNew External RealitiesFuture FactsForecasting and BackcastingTrendpullingStakeholder Mapping
![Page 15: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/15.jpg)
Supporters
Agnostics
Antagonists
Champions
Cynics
Isolate
Convert
Surround
Encourage
Stimulate
“They”
“We”
“It’s a job”
“Yes, but”
“I’m proud”
Commitment Curve
ContactAwareness
Understanding
Positive Perception
Implem
entation
Adoption
Institutionalization
Internalization
Contact
![Page 16: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/16.jpg)
Business Model Canvas
16Source: Alex Osterwalder
![Page 17: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/17.jpg)
Business 3.2
![Page 18: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/18.jpg)
18
New Business Models
• For the TRANSITION in which the incentive system will remain
• Shareholders Stakeholders• Production costs True costs• Efficiency Effectiveness and Efficiency• Monetary value Overall value• New measures of well-being, beyond GDP
![Page 19: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/19.jpg)
19
New Business Models
• Shareholders Stakeholders
• Production costs True costs
• Efficiency Effectiveness
• Monetary value Overall value
New measures of well-being, beyond GDP
![Page 20: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/20.jpg)
Sustainability vs. Sustainability
20
Unsustainable Behavior
Sustainable Behavior
Sustainable Company
Unsustainable Company
Companies with a success
formula that no longer works
Strategy & Financial Perspective
Industry Laggards
e.g., Body Shop after 10 years
Greenmail
Business 3.2
Behavioral Perspective
![Page 21: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/21.jpg)
Aspen Principles for Long Term Value Creation
• 1) Define metrics of long term value creation – Maximize future value – even at the expense of lower near-term earnings– Understand firm-specific issues– Look into industry best practices
• 2) Communications– Frequent corporate – investor communication– Avoid focus on quarterly earnings
• 3) Compensation– Align company and investor compensation policies with long-term metrics
21
Source: Aspen Institute
![Page 22: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/22.jpg)
Engagement beyond traditional borders of
leadership
Over the last two decades, large companies have moved through five stages:
Being world classRole modelProactive CSRStage 3
Helping out where governments fail
Activist local citizenDevelopment agent
Stage 4
Joining others in moving urgent global problem-solving along
Global citizenGlobal problem-solver
Stage 5
Reputation protectionGood corporate citizen
Defensive CSRStage 2
PhilanthropyPatronCharityStage 1
MotivationRoleCategoryStage
22
![Page 23: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/23.jpg)
New Leadership QualitiesFlat organizations-style personality
Vision and charisma, great communicatorA pattern-seeing mind, providing structure amidst complexity
Creating an opportunities-grabbing rather than issues-raising cultureInnovation-friendly traits
More emphasis on right brain-based skills and attitudesInnovation-friendly values: “workmanship mistakes no, innovation
errors yes”, “management by asking to be stunned”Structuring for innovation: hotspot teams, open innovation setup
Managerial bendsNumerator management rather than denominator management
A relentless enemy of internal process overgrowthYet a stickler for compliance
And a builder of dream teamsIdentity and Mindset
Cosmopolitan, broad based, world-awareRe-energizes through outside networking and scanning
Fearless in fearsome times
![Page 24: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/24.jpg)
Business 3.2 – constant reframing
24
![Page 25: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/25.jpg)
Transitions
25
Pioneers Followers “Laggards”
20% 60% 20%
Time
![Page 26: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/26.jpg)
Seniorsponsors
Champions
Multi-Level Commitment
‘initiate’ ‘involve’
‘inspire’
‘integrate’‘infiltrate’
All employees
Cross-functional core team
Board members and senior management
senior managers able to influence and make recommendations to the sponsors
Brand workshop champions challenge current practice and act as catalysts in the team workshops
Source: ELP and The Brand Inside
![Page 27: Engaging your Organization for Environmental Social Governance](https://reader033.vdocuments.us/reader033/viewer/2022061221/548b0583b47959b1788b466a/html5/thumbnails/27.jpg)
27
The ELP/TBLI – ESG Tool Box