Developing a Cleantech Strategy

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Developing a Cleantech & Sustainability Services Growth Strategy; for executives in AEC, EPC, and Environmental Services industries.

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  • Developing a Cleantech Strategy

    1. 1. November 2008 Developing a Cleantech Strategy American Council of Engineering Companies (ACEC) Scott Boutwell C – Level Strategies LLC
    2. 2. Overview <ul><li>My Background </li></ul><ul><li>Definitions </li></ul><ul><li>Market Drivers in EPC & Sustainability </li></ul><ul><li>Cleantech Segments and Related Service Areas </li></ul><ul><li>Benchmarking: what are other firms doing? </li></ul><ul><li>Strategy Framework </li></ul><ul><li>Q&A </li></ul>
    3. 3. “For Those About to Rock….We Salute You”
    4. 4. Scott Boutwell Strategy Consultant in Sustainability & EPC <ul><li>Former EPC executive from URS Corp, Oracle, & the Shaw Group </li></ul><ul><li>25+ years in business development & strategy; clients include HP, Chevron, PG&E, Unocal, Lockheed Martin </li></ul><ul><li>Published on Cleantech.com, Greenbiz, GreenerBuildings, ENN, Celsias, TriplePundit, and SustainableMinds ; plus books on water quality modeling & chemical risk mgt </li></ul><ul><li>Thought leader in buildings & asset mgt, water, & environmental mgt systems </li></ul><ul><li>AEC & Cleantech Trends Blog: www.scottboutwell.blogspot.com </li></ul><ul><li>Complete Profile on LinkedIn: www.linkedin.com/in/scottboutwell </li></ul>(Representative Clients)
    5. 5. What Level is this Presentation?
    6. 6. What Level is this Presentation? Not really this…..
    7. 7. What Level is this Presentation? … but more of this
    8. 8. Today’s Headlines…. FDA Asked to Rethink Bisphenol A Safety Panel Says FDA Should Reconsider Earlier Conclusion That Plastic Chemical Is Safe Sustainability Reporting Grows Dramatically Among Multinationals By GreenBiz Staff Coca-Cola Continues to Make Strides on Water, Recycling By GreenBiz Staff Baxter Named to Dow Jones Sustainability Index for Tenth Consecutive Year Company Named 2008 Medical Products Industry Leader ENVIRONMENTAL CAPITAL   Daily analysis of the business of the environment by The Wall Street Journal. Industry to Congress: Renew the Expiring Clean-Energy Credits     
    9. 9. Sustainability Sustainability means “ meeting the needs of the present without compromising the ability of future generations to meet their own needs .” “ Sustainability is not a new market, but a retooling of the business model”
    10. 10. Sustainability and Cleantech Cleantech : used to describe knowledge-based products or services that improve operational performance, productivity , or efficiency while reducing costs, inputs, energy consumption , waste , or pollution .
    11. 11. EPC Market Drivers External Driver Consolidation Outsourcing Scarcity Abundance Global (new construction, envt) and US (security, upgrades, hazwaste). ( Example: 7.5% compound annual growth rate on infrastructure spending from 2005 to 2013) Lack of qualified technical personnel: Aging workforce and fewer engineering graduates Fortune 100 and national governments are increasingly relying on relationship-based E&C firms Successful mergers require compatible corporate cultures, repeatable processes, and integrated multi-discipline toolsets Risk Management <ul><li>Potential impacts on profits, brand, and resources: </li></ul><ul><li>Health & Safety </li></ul><ul><li>Regulatory Compliance </li></ul><ul><li>Bonding & Insurance </li></ul>
    12. 12. EPC Market Drivers…and corresponding sustainability issues… External Driver Consolidation Outsourcing Scarcity Abundance Global (new construction, envt) and US (security, upgrades, hazwaste). ( Example: 7.5% compound annual growth rate on infrastructure spending from 2005 to 2013) Lack of qualified technical personnel: Aging workforce and fewer engineering graduates Fortune 100 and national governments are increasingly relying on relationship-based E&C firms Successful mergers require compatible corporate cultures, repeatable processes, and integrated multi-discipline toolsets Risk Management <ul><li>Potential impacts on profits, brand, and resources: </li></ul><ul><li>Health & Safety </li></ul><ul><li>Regulatory Compliance </li></ul><ul><li>Bonding & Insurance </li></ul>Sustainability Issue Customer satisfaction Ability to provide services Shareholder value Competitive position Service quality Employee satisfaction
    13. 13. Sustainability Market Drivers (for EPC clients) Aligned to client’s strategy <ul><li>New business lines </li></ul><ul><li>Higher profitability </li></ul><ul><li>Brand Management </li></ul><ul><li>Optimizing use of Assets </li></ul><ul><li>Managing Risks </li></ul><ul><li>Providing Long Term shareholder value </li></ul>
    14. 14. Sustainability Market Drivers (for EPC clients) Measures to create sustainability <ul><li>Reduce Emissions </li></ul><ul><li>Manage past liabilities </li></ul><ul><li>Materials safety </li></ul><ul><li>Waste reduction </li></ul><ul><li>Energy reduction </li></ul><ul><li>Resource management (land, water) </li></ul><ul><li>Create social value with employees, clients, shareholders, NGOs </li></ul>
    15. 15. Sustainability Market Drivers (for EPC clients) Goals sought by clients <ul><li>Improve Products and Services </li></ul><ul><li>Improve Return on Physical Assets </li></ul><ul><li>Optimize Operational execution </li></ul><ul><li>Optimize Value Chain & Shareholder Impacts </li></ul><ul><li>Enhance Strategy Development & Leadership </li></ul>
    16. 16. Sustainability Market Drivers (for EPC clients) Examples of Goals <ul><li>Operations </li></ul><ul><ul><li>Eliminate operational waste and improve efficiencies within the company’s facilities. </li></ul></ul><ul><ul><li>Reduce waste streams in packaging, process / assembly, and transportation </li></ul></ul><ul><li>Supply Chain </li></ul><ul><ul><li>Maximize profitability throughout the supply chain while reducing product waste and reducing transportation costs </li></ul></ul><ul><ul><li>Eliminating product waste via collaboration with partners in the supply chain. </li></ul></ul><ul><ul><li>Identify new ways to better forecast sales and match product to demand. </li></ul></ul><ul><li>New Business Opportunities </li></ul><ul><ul><li>New product & solution launches; re-formulating old brands for newer markets   </li></ul></ul><ul><ul><li>Identify & prioritize ‘green’ acquisition targets to pursue </li></ul></ul>
    17. 17. CleanTech Market Taxonomy (from: www.greentechmedia.com)
    18. 18. Follow the money….
    19. 19. EPC Services Climate Management <ul><li>Corporate GHG Footprinting </li></ul><ul><li>Climate Risk Assessment and Management </li></ul><ul><li>Climate Change Strategy Development </li></ul><ul><li>Regulatory and Voluntary Market Entry Strategies </li></ul><ul><li>Carbon Market Analysis and Forecasting </li></ul><ul><li>Project Due Diligence and Development </li></ul><ul><li>Climate Policy Analysis and Design </li></ul><ul><li>Life Cycle Assessment & Modeling </li></ul><ul><li>CSR Reporting </li></ul>
    20. 20. EPC Services Environmental Mgt. <ul><li>Air, Water, & Soil Remediation </li></ul><ul><li>Activated Carbon and Resin Filters </li></ul><ul><li>Metal/Sox/NOx, Carbon Removal </li></ul><ul><li>Water and Wastewater Treatment </li></ul><ul><li>Ultra-purification </li></ul><ul><li>Food and Beverage Production </li></ul><ul><li>Recycling and Waste Treatment </li></ul><ul><li>Solids and Liquids Recycling </li></ul><ul><li>Hazardous & radioactive materials Management </li></ul>
    21. 21. EPC Services Energy Mgt . <ul><li>Energy generation </li></ul><ul><li>Renewable resources (e.g., solar, wind) </li></ul><ul><li>Fuel cells </li></ul><ul><li>Microturbines </li></ul><ul><li>Biofuels </li></ul><ul><li>Energy infrastructure </li></ul><ul><li>Advanced metering networks </li></ul><ul><li>Advanced transmission technologies </li></ul>
    22. 22. Design, Construct, Build, & Operate Lifecycle Opportunities to Leverage Cleantech <ul><li>Sustainability “Attributes” </li></ul><ul><li>Energy Efficiency </li></ul><ul><li>Health & Safety </li></ul><ul><li>Resource Mgt </li></ul>Analysis Pre Project Pilot Study Design/Re-design Document updates & delivery Engineering Design Preventive Maintenance Operation Condition Based Maintenance Procurement Commissioning Check Start Improvements Feedback Go live
    23. 23. Benchmarking What are other EPC firms doing in sustainability & cleantech?
    24. 24. Case Study: ENR Top 50 Firm Focus on Key Markets of Strength <ul><li>Strong brand in building design </li></ul><ul><li>Positioned for steady growth </li></ul><ul><li>Changing Customer Demands </li></ul><ul><li>Loss of Sales Opportunities </li></ul><ul><li>Concern with long term growth and talent acquisition & retention </li></ul><ul><li>Identify critical sustainability trends in core markets </li></ul><ul><li>Strategy to partner with thought leading customers </li></ul><ul><li>Built customer advocacy and advisory groups </li></ul><ul><li>Leveraged key wins to build a ‘referenceable’ base </li></ul><ul><li>Strategy to ‘eat your own dog food’ </li></ul><ul><li>Strategy to leverage & incorporate other market changers’, like BIM </li></ul>Background & Challenges Initiatives
    25. 25. Case Study: ENR Top 20 Firm Initiatives in the Water Business Unit <ul><li>Strong brand in water treatment & conveyance </li></ul><ul><li>“ Extremely Siloed” business groups </li></ul><ul><li>Conducting some sustainability projects currently, but: </li></ul><ul><ul><li>How to take credit? </li></ul></ul><ul><li>Where are these projects, and how can they be shared? </li></ul><ul><li>Strategy to provide more planning services </li></ul><ul><ul><li>Increases collaboration </li></ul></ul><ul><ul><li>Opportunity to provide higher value services </li></ul></ul><ul><li>Identify sustainability ‘metrics’ or ‘attributes’ in each project </li></ul><ul><ul><li>Energy efficiency in water pumping & membrane use </li></ul></ul><ul><li>Work with clients in advance of RfPs to include sustainability criteria </li></ul><ul><ul><li>Example: ‘social’ criteria for customer service levels in a water utility </li></ul></ul>Background & Challenges Initiatives
    26. 26. Case Study: ENR Top 10 Firm Leveraging Knowledge Management <ul><li>11,000 employees on 6 continents </li></ul><ul><li>Civil engineering consulting </li></ul><ul><li>Over 120 years old </li></ul><ul><li>Late 90’s ~ 3,000 employees in US </li></ul><ul><li>Rapid growth through overseas M&A </li></ul><ul><li>Project-oriented ~ silos are part of the business model </li></ul><ul><li>Utilized both ‘ Communities of Practice - CoP’ and “ Practice Area Networks - PAN ’ </li></ul><ul><ul><li>Processes not codified </li></ul></ul><ul><ul><li>Groups were not global </li></ul></ul><ul><li>Leverage CoP for collaboration on new practices, methods, technologies </li></ul><ul><li>Leverage PAN as specific communities evolve and growth / client needs evolve </li></ul><ul><li>Focus on business value </li></ul><ul><li>Professional management </li></ul><ul><li>Proactive workshop schedule, along with company portal </li></ul><ul><li>Practice Networks go global </li></ul><ul><li>Develop alliances with outside vendors / partners </li></ul>Background & Challenges Initiatives
    27. 27. Case Study: ENR Top 10 Firm Develop an Alliance Strategy <ul><li>Identify emerging technology needs </li></ul><ul><ul><li>Client feedback </li></ul></ul><ul><ul><li>Practitioners’ networks </li></ul></ul><ul><li>Align with Specific Market Strategy (i.e. water, plant, civil, transportation) </li></ul><ul><li>Identify sources of innovation </li></ul><ul><ul><li>Through clients, NGOs, others </li></ul></ul><ul><ul><li>Through practitioners / GBUs </li></ul></ul><ul><li>Establish responsibility to research and evaluate new technologies </li></ul><ul><li>Solutions / Services </li></ul><ul><li>Client Companies (or groups) </li></ul><ul><li>Start Ups / Early Stage Tech Firms </li></ul><ul><li>Established Tech (i.e. Siemens, JCI, Nalco) </li></ul><ul><li>NGO </li></ul><ul><li>Academia </li></ul>Background & Challenges Potential Partners
    28. 28. Examples of potential academia partners <ul><li>Visibility into emerging technologies </li></ul><ul><li>Limited investment required </li></ul><ul><li>Enhances Brand / Image </li></ul><ul><li>Source of new talent </li></ul>
    29. 29. Cleantech Strategy Development… <ul><li>Integrate with Company Strategy </li></ul><ul><ul><li>Not separate </li></ul></ul><ul><ul><li>Not an add-on </li></ul></ul><ul><li>Starting Off </li></ul><ul><ul><li>Start in one practice area or vertical </li></ul></ul><ul><ul><li>Optimize, then build on success </li></ul></ul><ul><ul><li>Align with key sustainability initiatives of strategic clients </li></ul></ul><ul><li>Benchmark </li></ul><ul><ul><li>Assess competition: current and forecasted </li></ul></ul><ul><ul><li>Input from NGOs and other influencers </li></ul></ul><ul><ul><li>Identify best practices </li></ul></ul><ul><ul><li>Compare and identify gaps within practice areas </li></ul></ul><ul><li>Develop Timeframe </li></ul><ul><ul><li>Prioritize needs according to most important markets </li></ul></ul><ul><ul><li>Quick wins vs. Long Term success; get both </li></ul></ul>
    30. 30. …and some ‘takeaways’…. <ul><li>Identify a strategic client, map to their need; and partner with them </li></ul><ul><li>Find key wins, identify sustainability ‘attributes’, and leverage </li></ul><ul><li>Leverage Social Networking / KM </li></ul><ul><li>Foster development of ‘Communities of Interest’ to identify best practices </li></ul><ul><li>Empower staff to make a difference in their work & community </li></ul><ul><li>Take ‘credit’ for sustainability wins, and communicate </li></ul><ul><li>Develop a Cleantech Alliance Strategy, and implement via a corporate development or BD group </li></ul>
    31. 31. Contact Info Scott Boutwell C – Level Strategies San Rafael CA [email_address] 415-279-3730 Complete bio may be reviewed at: http://www.linkedin.com/in/scottboutwell AEC & Cleantech Trends Blog : www.scottboutwell.blogspot.com
    32. 32. Q & A

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