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Sustainability of Systems

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In this lecture I discussed the role of systems within the firm, and how firm who are moving towards "sustainability" move from pilot projects to systemic changes across the organizations. …

In this lecture I discussed the role of systems within the firm, and how firm who are moving towards "sustainability" move from pilot projects to systemic changes across the organizations.

Primary case study is of HP printers, the various wastes of these machines, and their inject recycling program set against the Xerox "Zero Waste" product design.

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  • 1. Programs and Platforms - The role of systems
  • 2. Economic Systems BP and Sinopec oil spills: Sign of failed systems? BP: 5m barrels (est. Flow Rate Technical Group) • Cause was methane bubble causing explosion • Spill was exacerbated by equipment failures (valves) , training, and disaster preparedness Sinopec: 500,000 barrels (est. Greenpeace) • Cause was explosion in holding tank • Spill was exacerbated by equipment failures (valves) , training, and disaster preparedness
  • 3. Who Do You Boycott? Or
  • 4. Projects are: • Short timeline/ clear definition in nature • Require significant upfront planning with little long term benefit • Have clear result/ measurable with limited potential impact • Opportunity for “splash” – press, public awareness, education, etc Programs / Platforms are: • Longer term in nature with preparation time/ infrastructure that can be leveraged • Opportunity for “scale” – creation of platform for building out/ up • Requires dedicated vision, planning, and staffing • Deeper level of long term impact possible Systems are: • Longer term in nature with investments in process, equipment, and people • Goal is to “scale” with long term impact KPIs as benchmarks • Requires separate vision, planning, and staffing The Basic Definitions
  • 5. Examples: • Moratorium on off shore oil drilling • Raising deposits on new home sales for 2nd time buyers • Free plastic bag ban campaign • Factory closures • Law enforcement monitoring of migrant districts Projects Benefits of Projects: • Management responsibility is easy to define • Easy to justify and implement as a pilot program • Can result in, or appear to be, a quick win • Can provide breathing room while a real solution is found • Does not (typically) require a significant investment in infrastructure, talent, or process • Can be killed easily – internal and external visibility is (typically) low
  • 6. Programs/ Platforms Examples: • Ban off shore oil drilling / implementing hybrid standard/ car sharing • Limiting the amount of apartments 1 family can own • Plastic bag ban campaign • Factory efficiency upgrades • Providing incentives for migrants to return home Benefits of Platforms: • Management awareness, engagement, and ownership across business function and organization • Leveraging the lessons of projects • Able to capture measure of scale • Can be owned by a BU/ department
  • 7. Systems Examples: • Banning petroleum based energy product/ investing in urban planning & public transport • Payment of annual property tax on properties owned • Plastic bag manufacturing ban with product take back • Economic restructuring and removal of energy consuming industry • Promoting incentives for migrants to stay Benefits of Systems: • Management awareness, engagement, and ownership across business function and organization • Full benefits of scale – financial, infrastructural, organizational, and external • Stability – removal of gaps and inconsistencies in multi- project system • Risk – Reduced risk of external pressures forcing decisions • Profit – top line and bottom line opportunities to improve
  • 8. Systemic Wastes
  • 9. Or + Or +
  • 10. HP Printers The Facts:  HP is the largest manufacturer of inkjet, laser, large format and multi- function printers in the world  In September, 2009, Newsweek ranked HP #1 on its 2009 Green Rankings of America's 500 largest corporations  Currently offer 58 home printers on website  34 printers are Energy Star rated  28 offer double side (auto) printing / 19 offer double side (manual)  1 printer is made of 100% recycled plastic and can be 100% recycled  HP produced Inkjet cartridges are non refillable Home Printer Product Line: Environmental Programs include:  Eco Highlights labeling program  Cartridge Recycling
  • 11. Labelling Recycling HP Eco Programs 3 questions: 1) Is HP working at the system level? 2) Is HP working systematically? 3) What elements are project vs. program?
  • 12. Xerox: Zero to Landfill Backdrop:  In early 1990s the Xerox team working on new product development for “all-in-one” machine took a 2 day group outing  On the last day, one half of the group was hiking past a waste dump and decided to see what was there…They found a Xerox copier “It was hard to explain what happened, but after 2 days in the pristine wilderness, the waste of it all became clear” What Happened Next:  The engineers began calculating all the other machines in landfills, and during a discussion they decided to “stop“ - Zero to Landfill was born  6 years later the new product line was launched – 93% remanufacturable and 97% recyclable  800 managers, engineers, and technicians worked on the project  Manufactured waste free plant – no remaining scrap, packaging, or plastic.
  • 13. Xerox: Cartridge Free Printing Backdrop:  In addition to Zero to Landfill policy, Xerox has other major policies  Xerox supplies recycling program  Cartridge Free printing – Solid Ink technology  Takeback and recycling program – Since 1991 2b lbs of waste  Waste-free factories  90% meet Energy Star v1.1 certification Solid Ink Technology:  Technology developed by Xerox that requires no outer casing  “Over the 4 year life of a typical cartridge-based toner printer, the waste generated amounts to 450 lbs. A Xerox solid ink printer produces only 23 lbs. of waste”
  • 14. Awareness: Key Issue: Moving the organization past projects and into systems Projects are: • Short timeline/ clear definition in nature • Require significant planning with little long term benefit • Have clear result/ measurable with limited potential impact • Opportunity for “splash” – press, public awareness, education, etc • Can be funded through one-off / one-donor Systems are: • Long term in nature with preparation time/ infrastructure that can be leveraged • Opportunity for “scale” – creation of platform for building out/ up • Requires long term vision, planning, and staffing • Deeper level of long term impact possible • Long term funding plan/ vision in place before kickoff Implementing Systems
  • 15. Vision and Planning: Key Issue: Keeping focus, Staying on Track, and Knowing when to make changes Vision • What is goal that will be accomplished? • Who are you looking to help? • What is your REAL value add? Planning • What will it take to accomplish goals? • What are the short term/ long term steps to achieving those goals • Does the organization have the capacity to reach those goals ? • How well have you done in the past and how can you improve? • What gaps exist Implementing Systems
  • 16. Capacity Development: Key Issue: Creating an organization / product / process that is bigger than one person, process or business unit and can survive the transfer of leadership Strong Vision and Commitment to organization •Initial start up conditions should not exist long term •Move towards developing talent that maintains continuity Investment •Investing in a process’s need for R&D, equipment, and people •Working with externals (suppliers and customers) to manage variables and expectations Implementing Systems
  • 17. Stability and Scale: Key Issue: Creating a system base that grows across the organization and core processes Scale • Taking the next steps to increase program size, scale, and geographic reach • Building programs extensions and new programs • Finding new partners • Finding new ways to assist outside of own organization – training others Stability • Organizational funding, programs, and people are stabilized at current level • Processes are in place to improve efficiency and protect against unexpected shocks Implementing Systems
  • 18. Learn More : Collective Responsibility www.collectiveresponsibility.org Cleaner Greener China www.cleanergreenerchina.com Follow my Tweet! Crossroads @chinaCSR Cleaner Greener China @greenerchina Contact Me! Richard Brubaker rich@collectiveresponsibility.org