growing a sustainability-driven culture

8/14/2019 Growing a Sustainability-Driven Culture

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Growing a Sustainability-Driven Culture

Using the SustainabilityValues Assessment (SVA)as a Catalyst for Whole-System Change


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The Next Business Revolution: SustainabilityAn enormous segment of the public stockholders, workers, managers, consumers

are out shopping for ideas that will work: a new way to think, a new paradigm thatwill guide our hand as we dismantle the economy we have so feverishly erected andreplace it with something that will sustain.

- Janine Benyus, author of Biomimicry

As Bob Dylan once wrote, the times they are a-changin. Never before in the history ofmankind has that simple phrase been so true and this rising tide of systemic change has hadan unbelievable impact on the business environment and business as usual. Just a quicklook back over the last 12 months shows how the collapse of the financial system; adeteriorating natural environment; globalization; corporate scandals; rising energy costs;product recalls; new stringent government regulations and proposed legislation; moreorganized shareholders and activists; and a growing consumer consciousness, coupled withsuccess stories of budding social entrepreneurs and emerging multimillion dollar market

opportunities, have pressed business leaders to consider and adopt previously unimaginedalternatives and business strategies at a more rapid pace.

Sustainability , or going green, which focuses the efforts of an organization on economicprosperity, environmental stewardship, and social justice (e.g., human rights) is now at theforefront of many strategic discussions that are currently taking place in boardrooms and C-Level suites around the globe. A perfect example of this is Wal-Mart. On August 1, 2006Charlie Rose of PBS interviewed Lee Scott, the CEO of Wal-Mart, asking him about thecompanys extraordinary push into the realm of sustainability. Scott stated,

Its a transformation that will better prepare us for the opportunities that willexist in the future.What were finding is that in many cases, this stuff is notas hard to do as you and I would have thought. It is not counter to good

business. Much of what were doing is actually less expensive, and peoplehave been waiting for somebody to say, Lets step forward.

Like so many other savvy business leaders, Scott understands that the next wave ofbusiness transformation, the sustainability movement, arises from the convergence of anumber of societal and business trends once thought unrelated. Global challenges such asclimate change that were once viewed as the domain of scientists and governments are nowbeing recognized as a source of unprecedented business opportunity. Scotts contemporaryRobert Parkinson, Baxter Internationals Chairman and CEO, equates the burgeoningsustainability conversation to the quality management discussions that took place 20-30years ago.

Managers used to say if we want quality we have to pay for it, and it will

increase our costs. They said it was a trade-off, and you have to find thebalance. Well, we learned from the Japanese that its a symbioticrelationship. You can have both. I think in a few years well look back and askhow could we have been so shortsighted [regarding sustainability]?

Jim Hartzfeld, Managing Director at InterfaceRAISE and former Chairman of the U.S. GreenBuilding Council, explains that a companys serious commitment to people, profit, and theplanet can result in a tremendous upside. Realized benefits can include: an enhancedcorporate reputation, more powerful brand, and increased customer goodwill; a reduction incosts coupled with an increase in production; a competitive edge in the war for talent; a


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more energized and vision-guided workforce; and a green values-driven organizationalculture that opens the door for rapid business innovation. Of course Hartzfeld knows whathes talking about as he, along with company founder Ray Anderson, has been one of thedriving forces behind Interfaces leap to the head of the green business world (see Interfaceprofile in the section below).

Yet even with the obvious advantages possible from a forward thinking sustainabilitycommitment, many organizations are at a loss at just how to get there or where to begintheir journey. As Mike Harrison, Timberlands Senior Vice President of Worldwide Sales andMarketing, explained in a report penned by Boston Colleges Center for CorporateCitizenship:

In private conversation, nine out of ten CEOs will, a) agree that managingtheir companies impact on society is important, and b) will quite openlyconfess that they wish they knew more about how to do something about itor how to wrestle with it.

Perhaps whats most daunting about an organizations move towards sustainability - thisparadigm shift - is the realization that our traditional ways of thinking, acting, and running abusiness simply are no longer sufficient. Whats required is bold new leadership, areconceptualization of business, and rampant innovation that all weave together into thefabric of the 21st centurys values-driven, vision-guided sustainable firm.

We believe that sustainability manifests differently in every organization. At its essence,sustainability really comes down to a collective set of core values and behaviors shared andenacted by all employees, managers, leaders, and other stakeholders system-wide. Aculture measurement tool such as the Sustainability Values Assessment is a useful tool,providing a quantifiable overview that can direct an organization to current challenges andhotbeds of opportunity that increase the likelihood that sustainability is embraced by thefirm, leading to innovative products and services and greener business practices,structures, and systems.


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Why Measure Culture?What gets measured, gets managed.

- Peter Drucker, Management Guru

Organization Culture: The Catalyst to Move from Legal Compliance toSustainability Innovation and ValueAccording a report by SustainAbility1 on The Changing Landscape of Liability: A DirectorsGuide to Trends in Corporate Environmental, Social and Economic Liability, organizationsare moving from passive sustainability (legal compliance) to a more active form ofsustainability grounded in moral liability. Many of the reasons for this change that theauthors site are grounded in an accelerating shift in personal, organizational, and societalvalues. For example, a new generation of lawyers is placing more importance onsocial/environmental justice than on salary and career development.

Similarly, a growing number of consumers and stakeholders have higher expectations ofbusiness (e.g., follow the spirit of laws not just the letter) and are voicing the need forgreater accountability. As a result of this demand for quantifiable data, numerous NGOs,government agencies, industry councils, and individual businesses alike have investedsignificant time and effort in developing sustainability frameworks and coherent sets ofmeasures (e.g., environmental management system EMS) that can guide organizationaldecision-making and action while enabling leadership to assess and monitor the progress oftheir annual sustainability performance.

When you look across the many existing frameworks and measurement systems (e.g., ISO14000, The UN Global Compact, The Global Reporting Initiative, Ceres Principles, etc.) thatcan comprise a contemporary EMS you find that most of the standards, measurements, andindicators fall into to one of the three areas covered in the triple bottom line: 1) economicperformance(e.g. profitability, shareholder value, etc.), 2) environmental performance(e.g.,energy usage, GHG emissions, waste, etc.), and 3) social performance(e.g., occupationalhealth and safety, indigenous rights, anti-corruption, products and service labeling, etc.).And yet while it is obvious that a culture of sustainability underpins these measurementsystems, and in some cases such as CERES culture is eluded to through standards such asmanagement commitment, none advocate a specific metric for culture itself.

So the way forward appears to be clear; build strong trusting relationships through ongoingsystem-wide dialogue and develop a comprehensive, systematic public reporting processlinked to the shared values that drive organizational culture. In practice, as theSustainAbility report highlights, this translates to:

Adopting a beyond compliance mentality

Keeping aware of stakeholders expectations and values Exemplifying the values of transparency and openness.

Reviewing the companys values and business principles to ensure they are alignedto sustainability standards;

By embracing this values-driven approach organizations will be better prepared to anticipateemerging sustainability opportunities and be in a much better position to address growingstakeholder needs and expectations.


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Therefore, if an organization needs to leverage its corporate culture to drive sustainability,as GE had done with its Ecoimagination strategy2, it has to be able to measure and assessorganizational culture in a manner that provides actionable data. This isn't news to mostcorporate leaders. Another recent poll of business leaders found greater managementattention needs to be focused on a corporation's culture to achieve higher levels of ethicalbusiness. According to the survey, conducted by the Center for Corporate Change, a

corporation's culture was found to be the most important factor influencing the attitudes andbehavior of executives. This factor was named twice as often as any other factor, includingshare price (25 percent) and incentive compensation (23.2 percent).

Yet, 88 percent of respondents said that their organization devotes little attention toconsidering the effect of culture on their executives. It comes as no surprise that measuringand managing culture is one of the most elusive elements on the sustainability journey.

Codes of Misconduct?In the 1987 movie Wall Street the fictional tycoon Gordon Gekko became the poster childfor capitalism run amuck3. In a speech to shareholders of a company he was about totakeover Gekko delivered a monologue that became a mantra for business school graduatesof the day and a culture of management believed by many, yet never so blatantly

verbalized:

The point is, ladies and gentleman, that greed, for lack of a better word, isgood. Greed is right, greed works. Greed clarifies, cuts through, and capturesthe essence of the evolutionary spirit. Greed, in all of its forms; greed for life,for money, for love, knowledge has marked the upward surge of mankind.And greed, you mark my words, will not only save Teldar Paper, but thatother malfunctioning corporation called the USA. Thank you very much.4

While we would like to believe that these were simply lines written for a fictional character, ahyperbolized corporate leader, the undeniable fact is that todays corporation has surpassedeven the church and the state as the core institution of the modern world. With some of thelargest firms generating income and profits greater than the GNP of many small nations5,

numerous firms exercise their power in the pursuit of wealth without regard to their oftendestructive effects on individuals, the environment, and society. In a time of explodingconsumption the culprit behind the ravaging of the planet and subordination of the humanrace can seemingly be traced to corporate greed and shareholder wealth.

Take for example the case of Chevron, which recently was awarded the dubious honor ofnumber three on the Multinational Monitors 10 Worst Corporations of 2008.6 Its reportedlist of ecological and human rights abuses included alleged decimation of the EcuadorianAmazon, for which it may be liable for up to $16 billion dollars, and employing themurderous Burmese army known to use forced labor in connection with its Yadana pipelineoperations. Closer to home, the Inspector General for the U.S. Department of Interiorsblistering report on corruption between oil companies and the U.S. government programhandling oil lease contracts on U.S. government lands and property placed Chevron at the

center of the culture of ethical failure.

Yet even with these highly visible affronts to the society and the planet Chevron still boastsof finding newer, cleaner ways to power the world along with respecting nature andsupporting corporate responsibility on its corporate website homepage.7Additionally, thecompanys stated values, which are described to guide their actions, include: integrity, trust,partnership, diversity, ingenuity, high performance, and protecting people and theenvironment.8


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Obviously, even though being values-driven, Chevron is a clear example of greenwashing, orform over substance with regard to sustainability. However, for organizations aggressivelypursuing sustainability and serious about the need to align behavior to the emerging greenagenda, it is the cultural environment where decisions take place that is must be addressedfirst and foremost.

The Benefits of a Sustainability-Driven Culture: Interface, Inc.It was 15 years ago that Ray Anderson committed his carpet manufacturing companyInterface, Inc. to a different path, an expanded business purpose that transcendsshareholder value and regulatory compliance. Viewed as a creative, positive alternative tobusiness as usual, Interfaces new purpose revolved around the triple bottom-line (people,profit, planet), collective responsibility, sustainable development, and unwavering ethicsthat reflected the higher purpose and moral duty of creating a better world. As Ray reflectedon that monumental decision he realized its impact:

Costs are down, not up, dispelling a myth and exposing the false choicebetween the economy and the environment, products are the best they haveever been, because sustainable design has provided an unexpected wellspringof innovation, people are galvanized around a shared higher purpose, betterpeople are applying, the best people are staying and working with a purpose,the goodwill in the marketplace generated by our focus on sustainability farexceeds that which any amount of advertising or marketing expenditure couldhave generated this company believes it has found a better way to a biggerand more legitimate profit a better business model.9

Interfaces better business model is strongly anchored in the values of: service, innovation,leadership, commitment, stewardship, integrity, communication, individuality, andprofessional growth. These values are the organizations DNA, which have created a strongsense of identity for the company. This convergence of business and social change is not

just a strategy that drives the organization; rather it is the heart of the organization.

By practicing these [values] principles on a daily basis, we create a culturethat leverages the strengths and talents of our associates, develops customerintimacy and gives us a framework from which to make decisions that lead usto Mission Zero

Every aspect of Interface business is evidence of our culture and that culturesshared commitment to sustainability it is embedded in the ways in whichwe make, sell and distribute carpet and present ourselves to our customersand associates; it is reflected in the LEED-certified and green buildings thatare our workplaces and showrooms; and it is sustained by the innovations thatemerge from our offices and plants around the world.

As a culture forged by change, we look forward to what lies ahead. With adiversity of perspectives and the continued contributions of associates, our

culture of innovation, collaboration and a shared commitment will grow, thriveand help us realize our vision.10

According to the companys EcoMetrics and SocioMetrics measurement system, whichwas installed in 1994, Interface is indeed thriving and continually moving closer to itssustainability vision. Data collected and analyzed on indicators such as: waste reduction,renewable energy, carbon emissions, water and energy usage, philanthropy, volunteering,and social capital among others, demonstrate that Interfaces sustainability driven culture is


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indeed leading to some remarkable achievements - successes that make even the mostskeptical executives think twice. Some of their notable accomplishments include:

Sales have increased by two thirds and profits have doubled since embracingsustainability.

The cumulative avoided costs from waste elimination activities since 1995 arecalculated to be over $405 million.

Total waste sent to landfills from carpet manufacturing facilities has decreased by67% since 1996.

The ReEntry Program has diverted 175 million pounds of material from landfillsbetween 1995 and 2008.

Total energy used at carpet manufacturing facilities (per unit of product) is down44% since 1996.

The use of renewable energy is 28% in 2008. 28% of the companys total energy usecomes from renewable sources - 27% from green electricity and 1% from landfill gas.

The percentage of recycled and bio-based materials used to manufacture its products

worldwide has increased from less than 1% in 1996 to 24% in 2008.

Net greenhouse gas emissions are down 71% from our 1996 baseline. Absoluteemissions have been reduced by 34% as a result of energy efficiency and directpurchases of renewable energy and further offset by 37% as a result of companyowned GHG projects.

Water intake per production unit is down 38% in broadloom carpet facilities.

Water intake per production unit is down 74% in modular carpet facilities.

Frequency of injuries has declined by 68% since 1999.

Interfaces unique culture has been extensively acknowledged with workplaceawards. Interface has been listed among Fortunemagazines Best Places to Work.

As evidenced by Interfaces remarkable transformation, sustainability will revolutionizeevery aspect of an organization, perhaps none more important than the organizationalculture. As such, an organization must be mindful of the range of culture-comprising valuesheld by its members if it is to be able to contour and guide that culture towards supportingthe kinds of behaviors that lead to fully engaged, empowered individuals willing and able toenvision and implement innovative sustainability solutions.

The Government is Supporting SustainabilityWith election of a new administration the US government has been taking a more proactive,even aggressive stance, in addressing corporate ethical lapses, product/worker safety,environmental issues, alternative energy sources, and the emerging green economy. Inaddition to the 2002 Sarbanes-Oxley legislation, it is clear that stricter rules and regulationsare forthcoming on a wide range of issues including, but not limited to: fuel economy (e.g.,tougher CAF standards), climate change (e.g., cap and trade legislation), EPA standards(e.g., ability to regulate heat-trapping gases), financial responsibility (e.g., bank regulation),among a number of other focus areas. In addition to federal law, state and localgovernments, not to mention foreign governments, are also enacting a wide-range oftougher rules and regulations across the sustainability gamut.

Take for example the legislation being written for a US greenhouse gas cap-and-tradeprogram. If passed, this new law will have far-reaching implications for many organizations


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but it will most certainly impact cement, paper, chemical and steel manufacturers causing anumber of tough strategic decisions to be made by senior leadership11. Similarly, theEuropean Union's (EU) new chemicals regulation - Registration, Evaluation, Authorizationand Restriction of Chemicals (REACH) will subject companies to a screening and approvalprocess for the chemicals contained in their products against a list of banned chemicals thatis continuously growing12. This SIN list (as its called in the US), an acronym for "Substitute It

Now," has over 267 identified chemicals that have caused companies like Wal-Mart to takenotice.

Wal-Mart will begin using a new tool called the "GreenWERCS Chemical Screening Tool" thatevaluates and analyzes chemical product characteristics (e.g., length of time persisting inthe environment, accumulation in living systems, known links to cancer, mutations,reproductive problems, etc,) and examines their impact on hazardous waste management.

The tool, which will undoubtedly become familiar to Wal-Marts numerous suppliers, is alsobeing adopted by Sears and K-Mart.

However, in addition to wielding a bigger regulatory stick, the US government is alsodangling some significant green carrots. This pro-sustainability stance to jumpstart thegreen economy is most evident in the American Recovery and Reinvestment Act of 2009. Inthis landmark stimulus bill more than $42 billion of the $787 billion package will fundenergy-related investments ranging from homeowners' tax credits to direct governmentgrants including such things as: energy efficiency and renewable energy research,development, demonstration and deployment activities (e.g., biomass and geothermaltechnologies); grants for energy sustainability and efficiency; fuel cells, solar, wind andbiomass power projects; increasing the production of clean renewable fuels; increasing theefficiency of products, buildings and vehicles; improving the energy performance of thefederal government; and manufacturing advanced batteries along with other initiatives.

So todays visionary leaders see the economic opportunity of rapidly accelerating up thesustainability curve and securing first-mover advantages in the green revolution that is uponus. They are equally aware of the costs of staying tied to the status quo. So the key questionthat senior executives need to ask themselves is, Do we want to lead in the sustainabilityarena and take an active role in shaping the future or do we simply want to react to thechanges that are undoubtedly coming? In the end, it will be the progressive companies thatreduce their risks and costs associated with their carbon, water, and toxic footprints andcapitalize on the creativity and innovation of a new business paradigm that will win the day.


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Culture AssessmentsThe Role of Culture in Attaining Systemic SustainabilityCulture is the invisible force that molds our values, beliefs, thoughts, and behaviors.It is the force that makes everything we do seem natural. And while rarely discussed,culture is the single most important determinant of whether we as a society thrivelong into the future, or-like maladapted civilizations before us, go extinct.

-Worldwatch Institute

An organization's culture is not something that is created by the leadership team and thenrolled out and cascaded down throughout organization. It can be most simply defined as theway of life in an organization, or in other words a tapestry of shared values, beliefs, andactions that has been invented, discovered, or developed over time within an organization. Itis an objective picture of the organization, for better or worse. We need to be aware of itsunseen force, understand and experience it, and as the old management axiom goes, If you

cant measure it, you cant manage it. Put simply, culture matters, it sets the stage forwhat will and will not be done.

More specifically, culture is grounded in shared values that dont become real until theyexist in actual context. When values are shared by organizational members they can helpturn routine activities into valuable and important actions; aid members in managing theiractivities and in making sense out of their organizational experiences; link the organizationto the important values of society; and most importantly, can provide a very distinctivesource of competitive advantage.

By definition culture can only be measured by criteria that reflect the individual values of allemployees. Therefore, understanding cultural strengths that can be a springboard tosustainable business requires knowledge of what motivates all of the employees and how

the myriad of human behaviors and interactions fit together like puzzle pieces to create awhole picture of the organization. An organization moves towards a sustainability-drivenculture only if it understands the full range of values and behaviors needed to meet itshigher-purpose goals. The "full-spectrum" sustainable organization is one that creates apositive sense of engagement and purpose which drives individual and organizationalbehavior.

Here is a practical example of this at work Mike Gilliland, founder of Wild Oats and currentco-founder / CEO of Sunflower Farmers Market, understands that the pursuit of sustainabilityis full of experimentation, starts and stops, crazy ideas, and plenty of mistakes:

Our management style is fairly seat-of-the-pants, for better or forworsethrow enough sh*t against the wall and see what sticks. I think that

we are fairly undisciplined in that regard, so you just hope you dont digyourself in too bad a hole. So that was always the shotgun approach. Onething were doing the second time around is trying a new approach but notput the form on it. The worse case scenario is if it doesnt work out, how doyou get out of this thing, you know?....Even in the handbook it said that wepride ourselves on being a ready-fire-aim kind of company.

Yet, creating a culture where management and employees feel safe enough to take risksand admit mistakes requires more than a statement in the employee handbook or words on


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a mission statement. To truly develop a sustainability-driven culture that thrives on healthy,natural foods, experimentation, spontaneity, innovation and cost consciousness like the oneGilliland has managed to create, the organization must be aware of how their managers dealwith these issues up and down the line, and how the values they demonstrate impactdesired behaviors. The organization must understand the competitive marketplacepressures its people are under and how they react to those pressures. The organization

must know how its managers communicate and whether employees have a sense of the lowcost / best natural foods purpose that fuels the creativity and passion of the chain.

Determining whether an organization has the capabilities to put in place, grow and guidesuch a culture requires careful examination. Do employees and managers demonstrate thevalues of sustainability? Do employees feel accountable for their actions and feel that theyhave a stake in the success of the organization? These factors will most likely determine thesuccess of any sustainability journey

Models of Sustainabilty-Driven CompaniesTo be an effective culture assessment the tool must meet certain criteria. The instrumentshould:

Make it possible to translate soft qualitative data on values into quantitative datathat can be reported internally and externally.

Provide a base-line measurement instrument for monitoring changes in theorganizational culture.

Provide a method for measuring the resources available to the organization to meetits sustainability goals.

The Sustainability Values Assessment models presented below have been adapted from theCultural Transformation Tools developed by Barrett Values Centre13. Such tools provide acomprehensive framework for measuring cultures by mapping values. This technique hasbeen used by more than 2000 organizations in 59 countries in the past ten years. It hasbeen adopted by the international management consulting firm Hewitt Associates as its

method of choice for mapping corporate cultures and measuring progress toward achievingculture change.

At the heart of the Sustainability Values Assessment is the concept that all values andbehaviors can be assigned to one of seven dimensions that make up individuals andorganizations. Whatever we focus on in our personal lives is a reflection of our individualawareness; whatever organizations focus on is a reflection of the collective awareness of theorganization. Therefore, if we can identify the values and behaviors of a group of individuals,we can measure the overall culture by mapping individual values to the seven levels.

The 7 Levels of values fall into three categories that have defined values since the days ofSocrates: values that reflect our self-interest; values that reflect the common good, andvalues that reflect transformation and growth which help individuals and organizations in

transitioning from self-interest to the common good.


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Organizations grow and develop in the same way as individuals. Researchers have identifiedseven well-defined developmental stages. Each stage focuses on a particular existentialneed that is common to all forms of human group structures. Organizations develop andgrow by learning to address the fulfillment of these needs. In general, organizations thatlearn how to develop values in each of the 7 Levels have the best chance on sustaining apositive, full-spectrum sustainability-driven culture. Research has shown that theseorganizations are typically the most resilient and profitable of all organizations because theyhave the ability to respond appropriately to all business challenges.

Therefore, an organization needs to know whether its leadership capacity and employee

commitment are strong enough to support a dynamic sustainability agenda. To do that, itmust understand its culture and be aware of its strengths and opportunities. How else canleaders design the means to fill gaps and leverage strengths? To that end, the organizationmust determine if it has the depth to adequately identify, manage, and then implementinnovative sustainability initiatives by empowering employees and unleashing latentcreativity.

A successful sustainability-driven organization looks at values from three distinct vantagepoints. First, what are the collective values of the firm? Has the organization pulled togetherthe right blend of individuals to be satisfied with its "corporate" culture?

Second is a look at leaders. Leaders are the critical link in the success of any sustainabilityjourney and the company needs to be assured that its senior and mid-level leaders have the

character and values needed to demonstrate and drive key sustainability initiatives.Third are the individual employees. Do the individuals within the organization have therange of values to embrace the new sustainability paradigm and be accountable in theirday-to-day activities?

What follows are three values "maps" that categorize the full range of values into the 7levels. Seeing and understanding which levels are well represented and which reflectpotentially limiting values will provide leadership with a deeper understanding of what


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motivates employees and managers in engaging in, or refraining from, key behaviors thatdrive personal and organizational sustainability.

THE SEVEN LEVELS OF ORGANIZATIONAL SUSTAINABILITYAltogether, this business of bringing socially responsible [sustainability] goals to life

is quite a process, and companies looking to do the same should understand thatthere's nothing easy about it. Many things have to happen before you can even takethe first step. It all starts with values. You have to get really clear about what theyare, and also about what it means to live by them. On the road to socialresponsibility, a company isn't going anywhere

without this necessary map.- Jeffrey Hollender, Executive Chairperson of Seventh Generation

All organizations are values-driven; the key questions are to what degree and by whatvalues? In many traditional organizations the values listed on the back of their laminatedcard are just words that represent nothing more than wishful thinking. However, in

organizations embarking on the sustainability journey, values take on a whole newsignificance the distinguishing point is that these values are viewed with reverence andorganizational members strive to live them day in and day out.

While there are many core values to choose from, organizations that are playing to win inboth business and society are guided by values that support the tenets of sustainabilitymovement and reflect the commitment required to bring about global economic,environmental, and human prosperity. As George Siemon, founder and CEO of OrganicValley, described it to us, sustainability is a values-driven revolution of the golden rule,where in the long run no one wins unless everyone wins.

Ideally, these core sustainability values (e.g., optimism, equality, honesty,environmentalism, experimentation, transparency, service, humility, integrity, etc.) serve as

a catalyst for self-organizing behavior sparking ongoing conversations and guidingemployees actions and decisions without strict supervision from above. To quote LauraMarkham, Chairwoman of Dragonfly Media, if only people are willing to act on their valueswill we create the world that we need. If we dont do thatthe world has gone to hell in ahand basket.

What follows is an overview of the seven levels of organizational sustainability and thevalues and behaviors representative of the sustainability-driven organization. We comparethose against the more traditional businesses that have yet to embrace the precepts ofsustainable thinking.


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Levels 1, 2, and 3 The Organizations Basic NeedsDoes the organization support values that enable it to balance growth and performance withthe successful pursuit of a strategic sustainability agenda? Is the environment one in whichemployees feel physically and emotionally safe to do the right and work for a greaterpurpose beyond shareholder value?

Level 1 Bottom-line DrivenAs with every type of business, in the sustainable organization there is an imperative forfinancial survival. Without profits or access to a continuing stream of funds, organizationsquickly perish and their ability to do good vanishes as well. Thus, one of the key componentsof the triple bottom line approach to business adopted by sustainable organizations

revolves around a healthy focus on financial stability. The key to success at level 1 is strongfinancial performance balanced with all stakeholders needs and an emphasis on employeehealth and safety.

However, a key challenge surfaces at this level when the traditional company becomes tooentrenched in survival mode - deep-seated insecurities about the future develop into anunhealthy, almost obsessive, focus on the bottom line. In such situations, making thequarterly numbers satisfying the needs of Wall Street preoccupy the minds of the leaders


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to the exclusion of all other factors. This leads to excessive control, micro-management,caution, and a tendency to be risk-averse.

Businesses that operate in this way are not interested in strategic alliances, the commongood, or sustainability. They see people and the earth as resources to be exploited for gain.When asked to conform to regulations, they do the minimum. They have an attitude of

begrudging compliance. These are typically fear-driven organizations with a win-losementality driven to secure the scarce resources they need to maximize shareholder wealth.

Level 2 Stakeholder EngagementHarmonious interpersonal relationships and good organizational communications areimperative for the sustainability-driven firm. Without good, strong relationships with coreand fringe stakeholders the success of all sustainability initiatives is compromised.

The critical issue at this level is to create a sense of loyalty and belonging amongemployees, and a sense of caring and connection between the organization and itsstakeholders. Preconditions for creating a sense of belonging are open communication,mutual respect and employee recognition and for promoting caring whats needed arefriendliness, responsiveness, and listening. When these are in place, satisfaction among all

internal and external stakeholders will be high. New conversations, connections,perspectives, and ideas bring people together around sustainability and begin to help tocement strong relational bonds.

Yet, in more traditional organizations there tends to be a reliance on fear-basedmanagement styles and deficit-based change programs. These negative approaches canmanifest themselves in multiples ways inside and outside the organization. For example,when leaders are secretive, or fail to communicate openly, stakeholders begin to suspectthe worst. Additionally, when leaders are more focused on their own success rather than thesuccess of the organization, its stakeholders, and the broader community, they begin tocompete with each other. The result is typically an environment rife with: a win-losementality, cliques, gossip, territorial behaviors, blame, and information hoarding, all whichincrease the level of cultural entropy (dysfunction) in the organization and promote

adversarial views toward the outside world.Level 3 Eco-EfficiencyThe focus of the third level for the sustainability-driven organization is on performance andmeasurement. It is about keeping a balanced and watchful eye on all the key operationalindicators and beginning the process of sustainability measurement and reporting (e.g.,GRI). At this level, the seed of sustainability takes root as the organization strives towards:becoming the best it can be, embodying its nascent green identity, continually reducing itsenvironmental footprint, and embracing the precepts of quality, productivity efficiency, inconcert with ideas like zero emissions and waste = food.

As a systemic perspective takes hold, best practices such as process reengineering, qualitymanagement, waste reduction, and greening operations are explored and adopted in order

to create an atmosphere of continuous improvement. A prerequisite for this continuousimprovement mindset is a bias for action, a growing sense of identity, and theencouragement and recognition of sustainability effort / excellence.

By way of comparison, many traditional organizations at this level tend to be structuredhierarchically for the purposes of central control. Top-down is the primary mode of decision-making. Very often, steep hierarchies serve no other purpose than to cater to managersneeds for recognition, status, and self-esteem. To maintain central control, these traditionalorganizations develop complex rules to regulate and bring order to all aspects of theirbusiness.


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More often than not, this focus can easily degenerate into rigid bureaucracies. When thishappens, the willingness to empower employees to innovate and/or seek assistance fromexternal stakeholders is nil spontaneity is lacking. When stuck in this overemphasis oncontrol and micromanagement, at a minimum, failure of sustainability efforts, or worst case,organizational collapse will eventually occur.

Level 4 Innovation / AdaptationThe focus of the fourth level for the sustainability-driven organization is on adaptability,employee empowerment and continuous learning. The critical issue facing the organizationis how to stimulate innovation so that new, sustainability-focused products and services canbe developed that respond to current and/or future market opportunities. This requires theorganization to be flexible and willing to take calculated risks. To fully respond to thechallenges of this level, the organization must actively garner core and fringe stakeholdersideas and opinions. Everyone must feel that his or her voice is being heard. This requiresleadership to admit they do not have all the answers, and to proactively invite stakeholderparticipation.

For many individuals this is a new role requiring new skills, especially emotional intelligence.Preconditions for success at this level include: encouraging individuals to think and act like

entrepreneurs; the acceptance of joint accountability coupled with the rejection of micro-management; and a reliance on diversity when exploring new ideas. The organization mustalso have the capability to facilitate high performance across large groups and the readinessto adopt less hierarchical structures. Finally, teamwork must be encouraged and moreattention should be given to personal development and relationship skills. This shift, whichprovides the responsible freedom and initiative necessary to pursue the sustainabilityagenda, cannot fully achieve the desired results unless all employees and teams share thesame sense of direction or purpose.

Levels 5, 6, and 7 Common GoodDoes the organization support values that integrate and expand sustainability with BOTHinternal and external stakeholders? Is the shift in the purpose of the firm evident? Does thetriple bottom line guide decision-making and action?

Level 5: Integration / AlignmentThe focus at the fifth level is on solidifying the sustainability culture by building cohesionand developing a capacity for collective action. This requires individuals setting aside theirpersonal agendas and embracing the re-conceptualized business purpose, sustainabilityvalues, and the shared vision of the future.

This new shared strategic intent clarifies the aim of the organization and gives employees aunifying direction, including guidance in decision-making, only if sustainability values - andsubsequent thoughts, conversations and actions - are aligned and integrated into all theprocesses and systems of the organization, with appropriate consequences for those thatare not willing to walk the talk. As sustainability takes root leadership can feel confident thatnewly agreed upon values will be translated into behaviors that provide a set of parameters

defining the boundaries of responsible freedom.

Ultimately success at this level revolves around aligning individuals personal sense ofmission with the organizations redefined business purpose and sustainability agenda. Whenpersonal passion is unleashed and connected to a higher calling personal productivity andcreativity increase, failures become lessons, and work becomes fun! While high levels ofcommitment and enthusiasm at all levels of the organization are imperative, they can onlyoccur when there is a strong climate of trust grounded in: authenticity, optimism, fairness,generosity, integrity and transparency.


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Level 6: Collaborative CommunityThe focus at the sixth level for the sustainability-driven organization revolves around theunderstanding that no one individual, or organization, can possibly come up with all of theright answers when working in the uncharted, ever changing territory of sustainablebusiness. Thus, the work here is on deepening stakeholder engagement, both inside andoutside the organization, in order to create business success and societal change. It involves

creating the space and context for meaningful conversations to occur, bringing disparatevoices together, and facilitating the change process when required. It is about buildingbroader, deeper stakeholder connections, much more so than the typical product/servicealliances and partnership found in the mainstream business world.

By engaging employees and relevant external stakeholders (e.g., business partners, thelocal community, non-governmental organizations, etc.) in dynamic ways the organizationcan shift energy when needed; network and bring people together to collectively co-create;move people emotionally to live their values and dare to change; and work with differencesand diversity to continually seek innovative ways to further integrate sustainability in thecore processes of the firm. Organizations at this level consistently forge strongorganizational relationships and increase connectedness by: conducting educationaloutreach to stakeholders to engage them in the issues and opportunities of the day; creating

synergistic connections between stakeholders that leverage the strengths of multiple partiesto create positive change for all; and/or by enchanting employees to unleash their passion,wisdom, and expertise in an effort to reach new heights of organizational success,responsibility, and sustainability. Some example of such creative collaborations include: TheBody Shops countless efforts to source products from indigenous peoples and alliances withnon-profits such as Greenpeace; Honest Teas partnering with AmeriCorps to produce a newtea, with Ford to promote hybrid vehicles, and Timberland to develop a line of organic t-shirts; Stoneyfield Farm merging with Group Danone to address problems of hunger andthe plight of the family farmer on a global scale; Interfaces dedication to working with theacademic community; Green Mountain Coffee Roasters commitment to coffee cooperativesaround the world, its leadership in the fair trade movement, and its involvement with variousnon-profits and charitable organizations; and list goes on and on.

A must for success at this level is developing leaders with a strong sense of core lifepurpose, a connection to nature and the concepts of sustainability, coupled with a highdegree of empathy. Leaders must recognize that they must not only provide direction forthe organizations sustainability journey, but they must also become the servants of thosewho work for them. Leaders must be role models and become mentors. Leadershipdevelopment is given significant emphasis at this level of organizational sustainability.

Level 7: RestorationThe focus at the seventh level of organizational sustainability is a continuation of theprevious level of the sustainability journey a further deepening and expansion ofsustainable thinking and action both internally and externally. Internally, the focus remainson building a climate of empowerment, humility, and compassion. Externally, the focuscontinues to revolve around cooperative national and/or global activism in building a

sustainable future for humanity and the planet. The critical issue at this level is on movingbeyond the early successes and quick wins to continually developing a deep sense ofresponsibility for people, profit and planet throughout the organization. At this level there isan even greater emphasis on social justice, human rights, ecology, the global environment,and becoming truly restorative.

A precondition for success at this level is selfless service, displayed through a profoundcommitment to the common good and to the well being of future generations. To besuccessful organizations must embrace the highest ethical standards in all their interactionswith each and every stakeholder. They must always give consideration to the long-term


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impacts of their decisions and actions and strive to integrate sustainability into every facetof organizational life.

THE SEVEN LEVELS OF INDIVIDUAL SUSTAINABILITYIm a big fan of The Godfather. But he got it wrong when he said, Its nothing

personal, its just business. To me, thats anathema. I cant imagine how we couldoperate without the personal dimension. Jeffrey Swartz, Timberland

The values of an organization are the combination of the values of its employees andmanagers. An organization needs to know whether its people embody the values required tomove the sustainability agenda forward.


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Levels 1, 2, and 3 Individual Self-InterestLevel 1 SafetyAt this level, employees focus on matters that impact their livelihood and physical safety. Itincludes values such as financial stability, wealth, safety, self-discipline and health.Individuals who do not feel physically safe and secure in their jobs are less likely to feel

accountable for their actions and be motivated to look for ways to apply sustainabilityprinciples. The potentially limiting aspects of this level (e.g., greed, control and caution) aregenerated from survival fears. Organizations with members who do not demonstratepositive values at this level need to be vigilant in monitoring issues such as environmentalcompliance and ethical conduct.

Level 2 RelationshipsThe focus at this level revolves around the quality of interpersonal relationships. It includesvalues such as open communication, family, friendship, conflict resolution, and respect.Being respected encourages a sense of engagement and willingness to participate inbuilding a sustainability-driven culture. The potentially limiting aspects of this level resultfrom fear of loss of control or regard. The resulting fear-based inability or unwillingness toconnect with other stakeholders dramatically limits the capacity of the organization to

identify potential cross-functional synergies and operational innovation opportunities.

Level 3 Self-EsteemThe focus for the third level of individual sustainability is on an individual's need to feel goodabout themselves and having a sense of pride in the active role they play in the organizationand its sustainability efforts. When motivated by values such as being the best, ambition,and professional growth employees are motivated to contribute to organizations search forgreen product/service innovations and are more willing to help redesign process, structures,and systems to be more sustainable. This also includes beginning to redesign personal andprofessional routines/practices to reflect a growing eco-efficiency consciousness (e.g.,changing light bulbs to reduce carbon footprint)

The potentially limiting aspects of this level stem from employees demonstrating low self-

esteem, feeling out of control, becoming arrogant, and/or being to image conscious whichcreates a high level of integrity risk. Overly ambitious managers and employees put theirown interests first above those of the organization and other stakeholders. This could lead tounwanted turf battles and grandstanding including exaggerated sustainability claims(greenwashing).

Level 4 OwnershipThe focus at this level is on taking personal ownership of the new business purpose doingwell and doing good through self-actualization and personal growth. Individuals areenthusiastic supporters of the sustainability agenda and harness their inquisitiveness andradicalism to address challenges and seek new innovative solutions for both their personaland professional lives. Employees are not afraid to step out of their comfort zones, pushboundaries, collaborate with others, and persevere until workable solutions can be found.

This is the level where people work to overcome their fear of making mistakes and takingrisks, as well as their fear of not pleasing their boss by doing the right thing. Level 4 requirescontinuous questioning of beliefs and assumptions. It is also the level where individualsbegin to find balance in their personal lives, which positively impacts how they act at work.


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Levels 5, 6, and 7 Common GoodLevel 5: Purpose-DrivenAt this level sustainability is deeply integrated into ones personal and professional life andindividuals feel that they can bring their whole selves to work. Employees understand thechallenges and opportunities associated with being sustainable, understand the positive

and negatives impacts that they can cause, and as a result long-term, supportive behaviorsbegin, and continue, to emerge in all facets of daily life. At Level 5 employees are beingsustainability (walking the talk), having fun, and typically characterized as: passionate,authentic, generous, fair, honest, patient, and optimistic. Personal integrity is encouragedand celebrated.

Level 6: Making a DifferenceThe focus at the sixth level is on embracing the need to make a difference in the world. Thiscan include active involvement (e.g., volunteering, educating others, etc.) and collaborationin the local community, nonprofits, communities of practice, and other sustainability-mindedorganizations. Professionally speaking, employees at Level 6 have empathy and deepconcern for the world around them which may lead them to engage in learning experiencesthat bring about deeper understandings and insights around stakeholders situations,

challenges, perspectives, resources, strengths, and unique opportunities. Employees seethe whole, understand the need to transcend traditional roles and boundaries, and realizethat true sustainability will only come through collective action and creative partnerships atall levels. Individuals operating at this level honor intuition, developing others, and personalfulfillment and contribution.

Level 7: WisdomLevel 7 reflects the highest order of internal and external connectedness. It focuses onservice to others. Individuals operating at this level are at ease with uncertainty. Theydisplay wisdom, compassion, and forgiveness, yet are humble and unassuming. They usuallyfeel a spiritual calling for the work of sustainability. They have a global perspective and aredeeply passionate about issues such as environmental stewardship, social justice, andhuman rights. They make decisions guided by the potential impact to future generations.

Gandhis quote, Be the change you want to see in the world strongly resonates with thoseat Level 7.

THE SEVEN LEVELS OF A SUSTAINABLE LEADER

[Embracing sustainability] was the only way I knew how to behave. It was never,never something that was just clothes to wear. If Im not going to do this in life, whyam I going to do it for my business? To me youve got to live every part of it.

-Anita Roddick


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As the recent study Step Up: A Call for Business Leadership in Society reports, many oftodays business leaders are struggling with the expansive nature of leadership and thegrowing stakeholder demand for a re-conceptualized business purpose of the firm. And whilemany truly want to commit their organizations to a path of sustainability and addressingsocietal issues; the reality for most is that they feel perplexed, hesitant, and unsure about

actions that may lead to an uproar from critical constituencies such as investors, analysts, orboard members because such efforts typically cant be framed in strictly business termsand/or directly linked to share price or other financial indicators. The natural result is a dowhat you can mentality by leadership with the intent to fly well below the radar of themedia, nonprofits, and others who may decide suddenly to take an aggressive interest in thecompanys every action.

Yet to the contrary, many executives are answering the call for courageous leadership atthe intersection of business and society the ability to do well by building a prosperousbusiness combined with the capacity to do good by embracing high standards of integritywhile propagating social innovation. In looking at the gestalt of what makes this passionate,committed leadership possible, one begins to see a portrait develop, a mosaic of values-driven commitments and ways of being. As a result, these personal values andcommitments become more than just wishes, but organizational priorities. They influencethe intentions, choices, conversations, and interactions of organizational members andstakeholders inside and outside the company.

Unlike many traditional leaders, sustainable leaders approach the world with a servicementality grounded in strong moral beliefs about their obligation to act as agents of worldbenefit a covenant or commitment that binds them to a cause beyond themselves. Theyexpress a desire to help others realize their dreams, protect the planet, and continually liveinto their highest vision of themselves.


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Levels 1, 2, and 3 Tending to the Basic Needs of the OrganizationLevel 1 MoneymakerMoneymakers understand the importance of profit and shareholder returns. They managetheir budgets meticulously. Jeffrey Hollender, co-founder of Seventh Generation, describedthe importance of this notion for his company:

In many ways this is our biggest challenge because social and environmentalgoals are often at odds with purely fiscal aims. Simply put, better worlds costmoney to build, and if you're a company that money ultimately comes out ofthe bottom line. Take too much away and the company itself will dissolve.

There's not much point to that. A company that's history can't make any. Sowe'll be doing everything we can to keep ours financially healthy even if itoccasionally means a short-term compromise or two along the way.In thelarger scheme of things, it's the right thing to do if we want to stick around inorder to do more.[Sustainability] is about linking our company's financialsuccess with its ability to effect the kind of societal change we want to see.It's our acknowledgement that if we don't make money (in an ethical andresponsible way, of course) we won't be in business very long. And if we loseour business, we lose our power to affect change. So this principle is about


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keeping everyone focused on economics in addition to ecology andcontinually emphasizing the crucial balance that must be maintained betweenthe two.

In addition, these leaders look after the health and safety of employees. They areappropriately cautious in complex situations. They deal with short-term issues and goals,and may promote a culture of compliance, but go no further than they have to in satisfying

legal regulations. However, Level 1 leaders can go too far, becoming authoritarian andexploitive. If they feel that only they can save the situation, they may limit debate and inputfrom others.

Level 2 SupporterSupporters invest a lot of time in building harmonious working relationships withstakeholders inside and outside the company. They tap into their passion and positiveemotions when introducing the idea of sustainability and solicit feedback on the conceptwhen and where they can, leveraging multiple communication channels. Anita Roddick,founder of The Body Shop, summed it up nicely, Leaders have to communicate..Im abrilliant, brilliant communicator. I think you can communicate in a hundred and one differentways. I know how to communicate to ten thousand or an audience of one. In addition, theseleaders handle conflict easily and use their relationship skills to handle difficult interpersonal

issues. They use personal engagement to build loyalty among their employees. They delivergood news and bad news to all as required. However, poor communicators can play oneemployee off the other, creating environments where blame runs rampant.

Level 3 System EngineerSystem Engineers bring logic and science to their work. They build green systems andprocesses that create order and efficiency and enhance productivity. They strive to createmetrics to manage sustainability performance. They are typically logical and rational inmaking decisions. Jim Kelly, the founder of Rejuvenation, spoke directly to the SystemEngineer mindset:

Once I found myself in business I took great pride, and part of it was thetimes, of not accepting quote standard business practice. Instead trying tofind innovative, unusual ways because I think the idea was to questionstandard business practice because theres that conventional wisdom on azillion different things related to business how you price products, how youdo most everything, there is an accepted ways to do it. And a whole lot ofthem, as you learn, make a lot of sense for good reasons. But a lot of themdont. We just had that focus from the very beginning to think through everyone of them. As to say, Do I accept them; do I do business this way justbecause its the way its done? The interesting thing is that much of thesuccess of the company came out of that process of questioning thingsbecause in certain areas we decided, hey, we dont like the standard businesspractice is in this area; were going to do it in a different way.

However these managers may be too reliant on objective systems and measures to support

the sustainability agenda. An unhealthy need for self-esteem can lead such managers to beunwilling to admit mistakes, creating ethics risks such as greenwashing.

Level 4 Change AgentChange Agents recognize that they do not have to have all the answers but they arecommitted to being catalysts in the sustainability movement. As such, they seek advice,build consensus, empower employees, set expectations, start experiments, and nudge theorganization when and where it is needed. As Ron Grzywinski, co-founder of ShoreBank put


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it, sometimes you just need to be the irritant that is in the oyster. Level 4 leaders givepeople responsible freedom, making them accountable for outcomes and results.

Levels 5, 6 and 7 - Creating the Common GoodLevel 5: Designer

The Designer inspires and co-creates the sustainabilty vision, mission, shared values, andguiding principles for the organization. Furthermore, these leaders demonstrate congruentbehaviors walk the talk - that guide decision-making throughout the organization. Hal

Taussig, the founder of Untours, is a perfect example:

I hope at this point to lead by example. We have a kitchen back heresometimes the sink gets filled with dishes. I am hoping that someone mighthappen on me back there doing the dishes and that would be an inspiration tosay that we all have to pitch in here. A homely example; but I do feel like myleadership shows that I do hold the principles.

They truly are living examples of values-based leadership and sustainability in action.

Level 6: ConvenerConveners are motivated by the need to make a difference in the world and workrelentlessly to bring disparate individuals and groups together to make it happen. Theycollaborate with internal and external stakeholders to create win-win situations mutuallybeneficial partnerships and strategic alliances with other individuals or groups who share thesame purpose, vision, values, and goals. Yet as Seth Goldman, founder of Honest Tea,described, these alliances and partnership are different from those in traditional business:

We knew that we wanted to have the word green in the green tea and in thename of the product. So we were just doing a brainstorming of names and wecame up with the name Community Green, which is nice because itconnects to this whole idea of common, shared space. We also felt that if wename a product Community Green then we should find a partner that isfocused on helping to rebuild communities. So we partnered with City Year,the AmeriCorps program, in a marketing relationship where we put their logoon our bottleand give them a royalty, some of the sales. So we have anassociation. Thats something that we took the initiative to do that mostcompanies just wont have any interest in doing. Theres no direct connectionbetween selling ice tea and supporting City Year and yet we sort of found away to do it.

Whats more, Conveners are true servant leaders. They are active in the local community,building relationships that create goodwill, educating others about sustainability, andcontinuously looking to increase their social network and links to great ideas and potentialopportunities. These leaders understand the importance of the role of connections andrelationships in co-creating, and ultimately achieving, sustainability success.

Level 7: Global LeaderGlobal leaders are motivated by the need to serve the world. They express a strong sense ofwhat they are here to do and typically their espoused core life purpose has a strongconnection to the principles of social/economic justice, corporate responsibility,environmental stewardship, and/or sustainable development. They speak of leaving theworld a better place, being in service to others, bringing more joy and love into the world,and a sense of responsibility to do the right thing and right injustice. As an example, thewords of Laura Markham of Dragonfly Media convey this sense of deep purpose:


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When I was growing up we were privileged in some ways. We had enough. Wecertainly were by no means wealthy but we had enough to eat and money tobuy books, what else could you want, right? And we, had brains. My fatheralways said, You know, youre blessed with brains and you have to use yourblessing to give back. And so I guess I got that as I was growing up. And then

choosing Antioch as a college changed me somewhat because Antioch is veryexplicitly about, you know, some people say, Antioch graduates are changeagents, leaders who are in service to [bring about] positive change in theworld. Um, you know what I was going to say was as long as Im going out ona limb here and telling you about my spiritual life, I would say that my corelife purpose certainly is to make the world a better place. I see it, in someways, very simply [it] is about creating more love in the world. Thats reallywhat it is.

Global leaders use this clarity around their core life purpose as the driver and key motivationfor setting their personal agenda. Most importantly, these leaders bring their sense ofpurpose into the conversational life of the organization so that they and others can begin toact on it. This personal calling initiates and frames the discussion, choices, and actionsaround the budding sustainability themes that are the foundations of their organizations.


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Beginning Your Sustainability JourneyThe Systemic SustainabilitySM Frameworks key contribution is the rejection of one bigidea in order to offer in its place thousands of practical and useful ones. It is driven by

values, processes, conversation, innovation, and compassion. This approachdemonstrates a flexible, resonant, and generous side of human organizing. It doesnot aim for perfection, the utopian, rather it is extremely pragmatic.14

As with most things in life, when one decides to embark on the sustainability journey there isgood news and bad news. The good news is that the path to a more sustainable future isbecoming clearer; the bad news is that it is largely an organizational journey into theunknown of a movement that is continually expanding and growing as we learn more andnew technological advances continue to come online. The typical sustainability effort seemsto be a plethora of disjointed ideas, models, and solutions all existing in the niches theywere born, with little understanding of how they relate and support one another.

However, as perplexing as this sounds, fret not. The idgroup, through its rigorous research,

practical experience, and numerous conversations with thought leaders and businesspioneers, has identified the key facets of the sustainability journey that make successpossible. Our Systemic SustainabilitySM Framework (SSF) is an iterative, scaleable,customizable, whole-system change approach designed to engage an organizations internaland external stakeholders in the rich, dynamic conversations critical to building the sharedunderstanding and momentum necessary to launch and maintain the sustainability journey.

As connections, relationships andnetworks begin to flourish through aninfusion of knowledge, wisdom, andgrassroots experience, innovationsbegin to emerge in the form of: technicaladvances, sustainable business

practices, new leadership capacity, anda culture steeped in sustainable thinkingand acting. Additionally, the SystemicSustainabilitySM Framework is highlyexperiential at both the individual andorganizational levels. You not only talkabout and understand nature, youinteract with it.

As shown in Figure 1 the SSF is dividedinto four overlapping, perpetual phases:1) Exploration & Foundation Building, 2)Expanding Engagement, 3) Innovating &

Integration, and 4) Refine, Refocus, &Re-energize. In each phase a number ofpertinent questions are answeredthrough a series of collaborativeconversations, transformationalinteractions, and cross-pollinatingrelationships facilitated within individuallearning experiences and cutting-edge,small- and large-group facilitatedsessions, workshops, and seminars.


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The activities in each phase are designed to help individuals, leaders, and the organizationas a whole, move closer to full-spectrum sustainability being a sustainability-drivenorganization (represented by the seven levels of sustainability model at the heart of the SSFframework).

One of the very first activities we recommend for any organization pursuing sustainability,especially in the early stages, is the implementation of the Sustainability ValuesAssessment. The SVA results give the organization a baseline of sustainability in personalvalues and the organizational culture and acts as a catalyst for the serious conversationsand interactions that need to take place. The process also allows the organization to begincharting its dynamic sustainability path, creating the first milestones that will guideupcoming organizational initiatives.

In the section that follows we provide a high level overview of the SVA implementationprocess.

How to Implement the Sustainability Values AssessmentPREPARATION PHASE

The process begins by creating customized organization-specific templates of approximately80-100 values/behaviors for the Sustainability Values Assessment. Two templates are used -a personal values template mapping the values that are important to employees in theirlives and an organizational values template for the values of the current and desired cultureof the organization. Once the templates have been created and the list of demographiccategories, or data slices, has been chosen, the website where employees and stakeholderscan take the 10-20 minute SVA is activated.

TAKING THE ASSESSMENTTaking the SVA is straightforward and easy to do. After accessing the online SVA, leaders,managers, employees and/or other stakeholders are asked to check the demographic

categories that apply to them, and then answer three questions:1. Which of the following values/behaviors most represent who you are, not what you

desire to become? Pick ten (from the SVA Personal Template).

2. Which of the following values/behaviors most represent how your organizationcurrently operates? Pick ten (from the SVA Organizational Template).

3. Which of the following values/behaviors most represent how you would like yourorganization to operate? Pick ten (from the SVA Organizational Template).

ANALYSIS PHASEOnce all organizational members and stakeholders have completed the SVA a data plotassigning the values selected by the participants to one of the 7 Levels is prepared. For

example, the values chosen by the 100 people at hypothetical ABC Corp. are plotted bywhere each value fits into one of the 7 Levels.


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The results generate a revealing snapshot of strengths and weaknesses in the currentculture and indicate whether the entity has the collective vision and capability to become afull spectrum sustainability-driven organization.

In addition, the data serves as the foundation for identifying areas of focus and ways toleverage the organization's strengths to fill these gaps. The assessment results will alsoshape discussion as to what type of next steps will be necessary to meet the organization'ssustainability agenda.

Typically, the SVA is first taken by senior leaders and those interested, passionate about,and/or responsible for sustainability, health & safety, environmental management, or otherrelated functions. The results provide two key indictors:

1. Feedback on how the senior team sees the current culture and their collective visionof the desired corporate culture. This provides insight on how to prioritize initiativesto create, solidify, and expand a sustainability-driven culture.

2. Identification of areas for additional inquiry in terms of either a wider assessment ofthe broader culture or specific assessments of business units, divisions, departments,or other stakeholder groups that require a more focused inquiry.

WHAT CAN BE LEARNEDWith the growing emphasis on being green and a rising corporate interest in sustainabledevelopment, what additional information can a senior leadership team or sustainability


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start-up committee learn about their company that might shape what actions should betaken to ensure success? What questions warrant greater inquiry?

Based on an in-depth review of the sustainability literature and press, the SustainabilityValues Assessment of one of the many companies struggling to make sustainability workcould have looked like this:

The collective responses of the individuals surveyed are plotted on three charts. ThePersonal Values chart in the left reflects the collective Personal Values of the participants.Each of the values is linked to one of the 7 levels. For example "Making a Difference" is avalue that represents Level 6 Collaborative Community, so a blue dot is placed in Level 6.

In the Current Culture Values plot in the middle of the diagram "Control" could be apotentially limiting value, meaning inquiry is required to determined if it is a negativeattribute or not. It is reflected in Level l with a white dot.

A similar plot is developed for the collective responses for the Desired Culture and therelationships between the various levels can be examined. Lets examine each level fromthe company in our example in a little greater detail:

Personal Values:Do we know the values that the people in the organization bring with them to work eachday?

Values such as: Making a Difference, "Commitment," "Integrity," and "Honesty"suggest driven professionals with a strong desire to do the right thing and leave apositive legacy.


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"Adaptability" suggests individuals ready to change the status quo and search formore innovative solutions.

Employees are family-oriented folks striving to get ahead and do better. These typesof individuals may be more likely to see the opportunities inherent in sustainability toprotect their family and advance their career.

Gap in Level 1 reveals no focus on safety / moneymaker values: leaders may feelthese values have been adequately addressed or perhaps there needs to be greaterattention in this area.

The Gap in Level 7 values indicates the next evolution / growth opportunity forindividuals.

Current Culture Values:How ready is the organization to catch the sustainability wave? What fires might besmoldering below the surface that could stall or derail our efforts?

This is an organization in severe crisis! There are no positive values identified in thecurrent culture or any values in Levels 4-7, where sustainability takes root and

flourishes. Systems, structures and processes are mired in red-tape and multiple levels of

approval. This organization suffocates change before it has time take hold and thecynicism of employees leads to a flavor of the month mentality.

Tradition is the only relationship value present in the current culture. Theorganization may have a very impersonal feel leading to a lack of trust.

It is apparent that managers are focusing on making their numbers, doing what isexpected, and rigidly ruling over their individual fiefdoms.

Desired Culture Values:Is this the kind of company we want to have? Can sustainability take root and thrive in ourorganization? Do we have the right people to get us there?

The desired culture signals that the organization wants to bring about change andbuild in higher level values like those reflected in individuals personal values.

The time is right for leadership around a shared vision, perhaps sustainability, toactivate the can-do attitude of organizational members.

Individuals are looking for accountability, flexibility in how they do their work, and theability to take some risks, just the mentality needed for sustainabilityexperimentation and innovation.

The organization is poised to deliver results to the market and become morecompetitive. Sustainability can feed into that desire for a strong competitiveadvantage and should be well received.

Employees havent lost sight of the need to make money and satisfy customers, thestrong foundation required to build a sustainability program on.

Based on how the organization's employees and leaders articulate their current and desiredvalues preliminary sustainability efforts and overall roadmap can begin to be shaped. Inaddition, learning objectives for education, development, and training, in conjunction withmessaging for internal communication, can be targeted to the groups that need the mostwork in closing critical gaps.


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When employees and managers can be shown why certain values and behaviors are criticalfor the organization to meet its sustainability goals and how they link to personal profiles,organizational culture, and the sustainability vision the incentive to change goes updramatically. What follows is an example of a series of high level actions tailored to each ofthe seven levels of sustainability that Company ABC could consider as they move forward. Itis not intended to be exhaustive.

The following recommendations would have resulted as part of the SVA implementationprocess in addition to other small- and large-group conversations and activities found in theSystemic Sustainability FrameworkTM.

Level l: Bottom-Line Leadership must focus on breaking down fear and internal empires. The negativity in

the current culture must be explored and the costs associated with it understood.

A conversation around profit in the context of the triple-bottom line should beinitiated with senior leadership and led by the CEO.

Level 2: Stakeholder Engagement

Hold a 3-day summit to engage internal and external stakeholders (e.g., customers,suppliers, etc.) in developing a realistic sustainability agenda.

Link and leverage employees family orientation into the sustainability program.

Level 3: Eco-Efficiency Explore how reducing carbon footprint can be accomplished. Look for quick wins that

hold value for the customers and search for innovative business practices to increasecompetitive advantage.

Link sustainability to personal achievement in the organization.

Level 4: Innovation / Adaptation Learning from mistakes - senior leaders modeling the benefit of admitting mistakes

early to nip problems in the bud and to learn from lost opportunities without creatingblame.

Conduct a series of innovation summits to encourage calculated risk-taking and tolook for flexible, sustainable work designs.

Level 5: Integration / Alignment Strive for consistent values-based decision-making across the organization.

Actively integrate the shared sustainability vision and values into each division'sbusiness operation.

Look for ways to bring more fun into the workplace.

Level 6: Collaborative Community Begin exploring potential collaborative relationships with external stakeholders.

Provide idgroups Sustainability Leadership Intensive to top three leadership levels(including frontline managers).

The Sustainability Values Assessment, in conjunction with the other activities, education,and assessment tools, is a much needed step in the process of discovering, defining, anddeveloping the sustainability journey. It spurs conversation and points to the priorities and


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efforts that are most need to jumpstart the sustainability agenda or revitalize on that hasstalled.

ConclusionPeople start businesses because they feel they will succeed because theirphilosophy is 'right.' Being right is not enough, it is timing in combination with theright idea and the right business practices. It is important as a business gets bigger to

remember what your values are and keep making decisions in line with your values.-George Siemon, Organic Valley C-E-I-E-I-O

Leaders in todays sustainability-driven organizations realize the importance of the role thatculture plays in enacting their expanded corporate purpose of doing well and doing good.And while there are many core values to choose from, it is the values comprising todaysgrowing sustainability movement that must be understood and shared throughout theorganization. The Sustainability Values Assessment helps you do this important work.

The SVA helps to bring an intangible like culture into focus throughout the entireorganization. This is especially important in organizations driving towards higher levels ofsustainability because of the potential of culture clashes inherent in managing multiplestakeholder needs. In addition to the typical differences (i.e., geography, profession,ethnicity, etc.) found in most organizations, the green organization can find itself withgroups that might normally never interact or work closely together. For example, GeorgeSiemon of Organic Valley talked about having to manage and blend the farmer-orientedculture and the natural foods-oriented culture. Likewise, Joan Bavaria of Trillium AssetManagement described her challenge of supporting and integrating both the financialinvestment culture and the social activist culture. The SVA helps brings this diversity to thesurface and then gain consensus on the values that will be shared across the organization.

In the end, the shared set of core values are analogous to the simple rules that guide the

growth, development and ongoing flow of interaction and conversation as employees try tofigure out how to become more responsible and sustainable all while improvingperformance. The results realized through the SVA process effectively help to guide theemployees interpretation of whats acceptable behavior, what actions are required, andhow these actions will get done.

How does a company know if its ready for sustainability? The SVA should be at the heart ofthat conversation and the start of your sustainability journey.


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About idgroupidgroup is an innovative consulting and creative firm specializing in branding, organization

development, marketing communications and design. Since 1989, idgroup has worked with

organizations to build unparalleled customer experiences, energized employee engagement and

strong marketplace recognition.

Moving sustainability from ideas to action


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Endnotes1http://www.sustainability.com/downloads_public/insight_reports/liability.pdf2http://www.greenerbuildings.com/blog/2009/05/13/ge-treasure-hunts-discover-millions-in-

savings3 Wall Street 2, the sequel detailing yet more greed and excess, begins filming:http://www.nytimes.com/2009/09/08/movies/08stone.html?_r=1&th&emc=th4 See http://www.imdb.com/character/ch0012282/quotes5 Marsden, C. (2000). The new corporate citizenship of big business: Part of the solution tosustainability? Business & Society Review, 105(1).6http://multinationalmonitor.org/mm2008/112008/weissman.html7http://www.chevron.com/8http://www.chevron.com/about/chevronway/9http://www.interfaceglobal.com/Sustainability.aspx10http://www.interfaceglobal.com/Company/Culture.aspx11 Cap-and-Trade Won't Cause Mass Manufacturing Migration By ClimateBiz StaffPublished May 8, 2009 (http://www.climatebiz.com/news/2009/05/08/cap-and-trade-no-

mass-manufacturing-migration)12Across the Pond: ASSESSING REACH'S FIRST BIG IMPACTON U.S. COMPANIES ANDCHEMICALS (http://www.edf.org/documents/8538_Across_Pond_Report.pdf)13 We would also like to extend our deepest appreciation to David Gebler at Working Values.His inspiration and fantastic work on ethical leadership (Is your culture a risk factor? UsingCulture risk assessments to measure the effectiveness of ethics & compliance programs)was a model for this SVA guidebook.14 Inspired by and adapted from Hawkens eloquence in Blessed Unrest, 2007.

growing a sustainability-driven culture

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