Unlocking the Business Strategy of Sustainability through Leadership
Credit: Gratisography

Unlocking the Business Strategy of Sustainability through Leadership

The sustainability or green movement as a business strategy continues to expand. Small businesses to billion dollar firms have jumped on this most recent bandwagon. Yet having worked in a small business for over 20 years and now working with small businesses for the last 17 years, this really isn’t a new business strategy.

Forward thinking leaders from farmers to small business owners maximized their profitability through recycle, reuse and reduce for years before it became fashionable. Carbon paper was reused; manure was recycled and the goal was to reduce all waste to increase profits. These leaders recognized the common sense approach was to changing the behaviors of their employees. Back then leadership development was not a staple solution for these small businesses.

One of the better definitions I have read about sustainability is by Doug Morrow, vice president of research at Corporate Knights, a Toronto-based media company who said:

“The hallmark of a sustainable enterprise is not just efficiency, but also mechanisms to encourage meritocracy, diversity, innovation and long-term planning”

People Plus Process Plus Environment Equal Profit

Today, the emphasis on only the environment within the sustainability movement has ignored the power of the people and process along with the desired end result of profit as noted by Morrow’s definition. The emphasis appears to be more on feel good outcomes and translates into outside in directives instead of inside out.

Imagine what would happen if the current stakeholders in any organization would get their talents behind this profit saving endeavor and would have a process to support them in this behavior change?

Do you know your talents or those of your employees? This very affordable talent assessment supports leadership development.

Would the end results be a greater competitive advantage; a more engaged workforce and improved profits?

The Competitive Advantage

Profitability increases when any firm’s competitive advantage improves. There are 4 stages to work (as noted by The Institute for Sustainability) through when analyzing a small business competitive advantage.

The initial stage is non-competitive. Here even with the best research, until the business actually goes live, the business remains non-competitive. This stage is very much like the first phase Gordon’s 4 Phase Learning Ladder that being unconsciously incompetent or “I don’t know what I don’t know; ergo I know everything.” Another example would be Tuckman’s Model of Team Development or Change with the first phase being forming.

Next comes the learning phase of those involved which has a lot of ups and downs. Here leadership becomes aware of what they do not know or become consciously incompetent. This is the second stage of Gordon's learning ladder or if applying Tuckman’s Model, this would be called storming.

The third phase is leading. Now all involved are becoming leaders. They know what they know through actual learning (third stage of Gordon’s Learning Ladder) and are norming, learning together (Tuckman’s Model of Change).

Finally, the last phase is visionary. Now everyone sees the desired end results and continually think about how to take the organization to that next level. The focus is no longer on the competition but on the dynamics or culture within the organization.

In this final stage, habits are formed and innovative thinking rises from the subconscious into the conscious. Inwardly the people are thinking “what if” instead of “it cannot be done.”

Of course businesses have two fronts, external and internal. The external competitive advantage was just reviewed and now it is time to look at the internal front that is responsible for implementation of sustainability.

5 Levels of Development

Here there are 5 Levels of Development as identified by The Institute for Sustainability. These 5 levels take a common sense approach to uniting sustainability with leadership development.

As in any business strategy, the first level is to “Recognize” or see the issue that the business strategy addressed.

How many times have we witnessed sustainability initiatives such as recycle bins in organizations and no one pays any attention to them? The implementation has faced its first barrier of “recognition” and is stopped dead in its tracks no matter what executive leadership does.

Lessons from Change or Die by Alan Deutschman are important at this first level. People will not change even when faced with facts, fear or force.

Level two is to initiate through conformance or what I prefer to call “lead by example.” Even though this is a reactive state, executive leadership can reduce negative reactions by modeling the desired (conformed) behaviors.

In level three, implementation now takes hold because people are engaged with the sustainability strategy. There is now better awareness and understanding as to the necessity for this business strategy. Most are now listening to not only Radio Station WIIFM, but also WIIFU (What’s In It for Us).

As people continue their leadership development, continuous improvement takes hold in Level 4 of Operationalization. Their behaviors now show commitment to this sustainability initiative and provide the springboard to the fifth and final level of Transformation.

The transformation level is one many companies aspire to achieve. Unfortunately because these companies focus on knowledge and skills instead of attitudes and habits, they remain in a reactive state of transition.

At this fifth level, alignment, innovation and stewardship emerge because everyone has the leadership skills and share the same vision for the organization. Now these organizations can truly optimize not only their sustainability initiative, but other business strategies.

Here is where the concept of shared value (as described by Michael Porter) actually takes hold. All employees are leaders in the organization doing what needs to be done to move the company forward. For those firms with clearly articulated positive core values that are consistently demonstrated by all within the organization, the opportunity to improve health of all stakeholders and economic impact becomes the desired ends results.

Why Leadership Development?

People are the greatest asset to any organization. They are the ones who must recognize, conform, implement, commit and transform the organization. To ignore their active roles in sustainability or any business strategy is just foolhardy. Research from Gallup to Manpower continues to reaffirm that many employees are not engaged and are seeking new roles in other organizations.

Consider the answer to this question from this perspective:

Will or has the failure of a sustainability initiative be the result of a lack of knowledge or skills or poor attitudes and habits?

Again, executive management cannot force anybody to change. Those changes must happen from the inside out or from new attitudes and habits. As my husband an engineer has said to me for the last 20 plus years:

It is not a question of do I know it, but rather one of do I want to do it?

If I want to do it, I will find a way.

The Choice Is Yours

With profit margins continually being squeezed from countless compliance regulations to shareholders’ expectations, ignoring people and their leadership development will only increase the barriers to profitability. Now is the time for all firms to unite sustainability initiatives with their people to ensure not only profits, but their own sustainability as a business.

If you enjoyed this posting, please share using the social media buttons at the top and please consider leaving your comments.

Leanne Hoagland-Smith, M.S., is an executive coach, talent management and certified sustainability consultant who takes an heuristic approach to personal and professional growth. Her task is to support you in bridging the gap between today’s results and tomorrow’s goals. She can be reached at 219.508.2859 central time. Follow her on Twitter or check out her profile on LinkedIn.

Denise Frizzell, PhD

Sustainability Organizer-Activist/Writer/Leadership Coach-Consultant/Public Speaker

9y

I enjoyed your article, Leanne. You make a critical point in your essay with your statement that an organization's commitments to leader development and sustainability are related. Thus, the opportunity is to integrate these commitments into every aspect of the organization including mission, vision, strategy, and culture.

Candice Morel

Owner and Founder of Bistro Vie Limited

9y

I am in the process of creating a new company in Canada. One with strong ethics and that falls under a lot of creterias surch as sustainability (in and out), fair trade, human rights, ecology, animal rights, etc... I want to build a team of people who are motivated and driven by ideas similar to mine... But I don't know where to start looking for those people, who are waiting for an opportunity to co-create... Any ideas?

Professor Robert E. Arms lll

18,500 + Contacts - Chairman/CEO Earthlog ® Equity Group, Inc.President Earthlog ® Hospitality Inns International, Inc.

9y

Earthlog's ® Earth Sheltered Homes * you're safe from fire, tornadoes, hurricanes,earthquakes & Man-made Disasters EarthlogEG@aol.com www.EarthShelteredHousing.com

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Tim Hurson

Author: Think Better and The Accidental Salesperson (Never Be Closing)

9y

Well Done.

Frank Velunza Martinez

CSCMP, MBA - Project Management

9y

It will work better when it stops being only about "ethical choice", when the companies using business models that are unsustainable really have to pay for what they do. Governments may not step up to the plate but consumer groups and even the green parties will fail society as well if they don't start making these companies pay.

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