sustainable direction ltd€¦ · sustaining business transformation reinvents corporation as an...
TRANSCRIPT
Sustainable Direction Ltd
30th May 2019
Sustainability err ESG err CSR err ?
Past, Present and Future
?
Economics of permanence – projected long
term continuance.
“…there can be ‘growth’ towards a limited
objective, but there cannot be unlimited,
generalised growth”
– E.H.Schumacher, 1973
“Small is Beautiful”
Incr
easi
ng
ran
ge o
f ca
pab
iliti
es
Time
Huntergatherer
Agrarianeconomy(Primary)
Industrial andManufacturing economy(Secondary)
Technologicaleconomy(Tertiary)
Information and Services based(Quaternary)
Industrial Revolution
TODAY’sIndustrial
Revolution?
Sustainable Age?
1950s – 1970s
Post-War era
“Golden Age”
1972
“Limits to Growth”1980s – 1990s
“Paradigms shape perceptions;
perceptions shape emotions;
emotions shape actions”
Today’s Main Messages
The two most important days in your life are:
• the day you are born, and
• the day you find out WHY.
• Today is not about growth, growth is a secondary outcome of understanding and living out your Why. (hamsters treadmills)
• Business to Business and Business to Consumer are not the approaches. Business is People to People. Process is essential but is secondary.
• First kill all the marketers (more on this later). • 'The first thing we do, let's kill all the lawyers,'' was stated by Dick the Butcher in ''Henry VI,'' Part II, act IV,
Scene II, Line 73
Where are we?
How do we
get there?
Where do we
want to be?
RejectionNon-
responsive ness
EfficiencyStrategic proactive
Sustaining Business
Compliance/Reactive
Value destroyers
Value limiters
Value conservers
Value creatorsSustainable
Buisness
Opposition
Employees and natural environment
are instruments to be exploited.
Oppose government and green
activists.
Rejection
Non-responsive
ness
Ignorance
Focus on finance and technology.
Seeks compliant work force.
Environmental resources seen
as a free good.
Efficiency
Strategicproactivity
Compliance/Reactive
Risk
Focuses on minimum legal standards, but
maintains good citizen image.
Little integration between HR and
environment.Cost
Increasing productivity and efficiency through
management systems to reduce costs.
Increased employee engagement and team
involvement.
Competitive Advantage
Creatively destroying to recreate.
Sustainability leader, increasing stakeholder
engagement to innovate and add value to
products and processes.
Shift business paradigm to
environmental and social ideas.
Sustaining
Business
Transformation
Reinvents corporation as an integral element of its
society and ecological context.
Strong internalised ideology of
working for a sustainable world.
Pursues excellent return to investors.
Voluntarily goes beyond,
and actively promotes ecological
sustainability values and practices in
industry and society.
Fundamental commitment to
facilitate a society that supports
ecology, and just/equitable social
practices for human fulfilment.
“DO MORE WITH LESS”
Transformation
Reinvents corporation as an integral element of its
society and ecological context.
Strong internalised ideology of
working for a sustainable world.
Pursues excellent return to investors.
Voluntarily goes beyond,
and actively promotes ecological
sustainability values and practices in
industry and society.
Fundamental commitment to
facilitate a society that supports
ecology, and just/equitable social
practices for human fulfilment.
Beyond the Triple Bottom Line
Employees Customers Environment
Profit
People Planet
People Planet Profit
Improved by Sustainable Direction’s Trifocal Perspective
Beyond the Triple Bottom Line
£
Time
Revenue
Cost
Beyond the Triple Bottom Line
£
Time
Revenue
Cost
Increased worker productivity
Beyond the Triple Bottom Line
£
Time
Revenue
Cost
Increased worker productivity
+increased customer
satisfaction
Beyond the Triple Bottom Line
£
Time
Revenue
Cost
Increased worker productivity
+increased customer
satisfaction
+reduced environmental
impact
Beyond the Triple Bottom Line
£
Time
Revenue - GROWTH
Cost
Increased worker productivity
+increased customer
satisfaction
+reduced environmental
impact
Happiness and Productivity
Reduce sickness absence – this costs UK businesses £29 bn per year
Increased attendance
Increased performance – happy people are more productive
137.3 million working days lost in 2016 – 4.3 per worker
Wellbeing / happiness includes mental and physical fitness, e.g. ability to manage stress
Q: What do you and your company currently do to measure / understand health and wellbeing?
What could you do with no additional budget, just changing culture and working practices?
• Extra 1.3 million units production output over 50 working days• 53% productivity increase
• Quality defects, rework and rejects reduced by 60%• Recruitment, training and additional supervision costs reduced by 80%
Output
Cost
The Importance of Purpose
Financial reward is NOT enough – a pay rise motivates for 6 months
A business with purpose will:
• attract and retain the most talented people
• build passion and loyalty among its workforce
• have fewer staff sick days and employees who work longer and harder
• have higher productivity
Culture and Ethics
Performance drivers:
• Self-worth and value within the company
• Personal motivation
• Recognising and rewarding talent
• Clear vision and enthusiastic leadership
Customer Satisfaction
Customer Service is not a department, it is everyone’s job
Happy customers / clients mean reduced rework and less time spent fixing problems
It is quicker to keep customers than win customers – saving BD time
Customer satisfaction is
worthless. Customer
loyalty is priceless.
-Jeffry Gitomer
People Make The Difference
People deliver everything;
• Employees who want the organisation to be a success will contribute discretionary effort
• Customers and clients who become fans not just recipients of a commercial deal. They may be quick to criticise but can become advocates
• Suppliers – Logistics people who like you will ensure deliveries and fairness
• Banks – Confidence and trust make finance available and promote support rather than attention
Earth Overshoot Day
‘…when humanity has exhausted nature’s budget for the year. For the rest of the year, we will live in an ecological deficit, living beyond our means.’
In the 1970s, we crossed a critical threshold:Human consumption began outstripping what the planet could reproduce.
In 2017 we
used a year’s
worth of
resources by
2nd August.
Living Beyond Our Means
Our demand for ecological resources is now equal to more than 1.5 Earths…
What Are You Measuring?
A mass and energy balance highlights hotspots of waste
and typically saves 10 – 20% resource use
Patagonia• In Rose Marcario’s first 6 years at Patagonia, the company tripled its profits.
• Patagonia is growing rapidly. The company had sales of $800m in 2016, twice as much as in 2010.
https://www.theguardian.com/business/2017/mar/07/the-north-face-patagonia-saving-world-one-puffer-jacket-at-a-time
Our Mission:
• Build the best product,
• Cause no unnecessary harm,
• Use business to inspire and implement
solutions to the environmental crisis.
RejectionNon-
responsive ness
Compliance/ Reactive
Efficiency Proactive Sustaining
Value destroyers
Value Limiters
Value conservers
Value creators
Sustainable business
Where is your organisation?
Conclusions
Stop chasing results – pursue the right thing, put the right systems in place, get the culture right, and the results will follow (growth and profit).
Ask why. Say no to things.
“Commit to your cause, not your task”
• Happy, engaged, empowered workforce
• Satisfied customers who keep coming back
• Reduced environmental impact and reducing cost
Conclusions
Employees Customers Environment
Profit
People Planet
Growth
The World’s To-Do List by 2030
Goal 1: End poverty in all its forms everywhere
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 12: Ensure sustainable consumption and production patterns
Goal 13: Take urgent action to combat climate change and its impacts
Facts and Figures
836 million people still live in extreme poverty
#SDG1
About one in five persons in developing regions lives on less than $1.25 per day
#SDG1
One in five people still lacks access to modern electricity
#SDG7
Each year, an estimated one third of all food produced – equivalent to 1.3 billion
tonnes worth around $1 trillion – ends up rotting in the bins of consumers and
retailers, or spoiling due to poor transportation and harvesting practices
#SDG12
Should the global population reach 9.6 billion by 2050, the equivalent of almost three planets could be required to provide the
natural resources needed to sustain current lifestyles
#SDG12
Global emissions of carbon dioxide (CO2) have increased by almost 50 per cent
since 1990
#SDG13
Emissions grew more quickly between 2000 and 2010 than in each of the
three previous decades
#SDG13
It is still possible, using a wide array of technological measures and changes in behaviour, to limit the increase in global mean temperature to two degrees Celsius above pre-
industrial levels
#SDG13
John Henry
Looney
Director and Delivery
Thank You
www.sustainabledirection.com
Chris Springett
Principal
and Delivery
Success