Sustainability in organizations

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Given at the Project Management Institute - Portland Chapter's conference on Managing Projects & Programs on August 5, 2009.

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  • honored to work with so many inspiring companies, govt agencies, universities, NGOs and their sustainability and climate efforts
    and our team and their commitment to our mission
    introduce michael
  • thank you daniel for having us; exciting speaking with all of you
    100 degrees in portland: climate
    daniel: something different from the great past a-ko webcasts, and across different sectors
    title: climate stakeholder engagement: it’s all about change agents
    my background (nike global, cr, founded FMYI, what is FMYI)
  • introduce fellow panelists
    honored to have michael, dave, and patrick join me today
    Michael Armstrong – Deputy Director, Bureau of Planning and Sustainability, City of PortlandDave Newman – Former Head Global Climate & Energy, NikePatrick Nye – Vice President, Climate Business Group, Bonneville Environmental Foundation
    portland case study in climate stakeholder engagement
    my piece: ideas for approach and tools
  • This is an overview of sustainability integration at Nike, including some of the programs I was involved in and led.
  • I divided up sustainability integration into building the vision (strategy and business case), innovation integration (internal consulting), and creating the culture (employee communications and training). First and foremost, I tried to connect sustainability to the core business by comparing it to Nike’s roots as an innovative, entrepreneurial company.
  • Brief overview of the history behind corporate responsibility at Nike to show that the foundation was already laid to do execute the sustainability innovation integration work.
  • This sustainability education program was instrumental to getting sustainability into the business beyond the work being done by full time CR people. When I was head of Europe footwear product integrity, I was a captain representing the Europe footwear division, and started a project team (aka “The Brady Bunch”).
  • This is an overview of the strategic plan I designed when I became a Senior Manager in Nike CR. The diagram on the left visually shows that everything begins with the vision, innovation internal consulting should reach only targeted divisions in order to maximize the efficiency of the programs, and building the culture for sustainability within the entire company is the foundation of what we’re trying to do.
  • The business case was divided into three main benefits, which are listed above. We developed an internal website that covered the CEMP students’ findings/recommendations. I have more details about the results if you’re interested.
  • Two of the targeted divisions for the innovations internal consulting are listed above, in addition to the major initiatives launched.
  • In order to facilitate a culture of innovation, enhance networking, and sharing of best practices, an early version of interact was launched.
  • This was a global employee communications campaign around corporate responsibility that I managed. We branded it “kyosei: living and working together in favor of the future” to give it a more international feel to mitigate the complaints that Nike seems to be very US-centric in its internal communications.
  • Examples of the kyosei campaign elements: speaker events (Bill McDonough is standing next to Nike’s CEO, Mark Parker, who gave me budget for this campaign), promotional items (t-shirts were given to receptionists, fortune cookies were placed on everyone’s desk across the globe with a CR-themed message inside and the URL to our intranet site), and more (signage at world headquarters, posters in offices around the globe, CR FAQ downloadable to PDAs at the global leadership summit of the top 500 employees at Nike).
  • we all operate at such a high level, thinking on the organization level
    to effect change, need to think about our roles as change agents
    and talking to people we want to engage and view them as change agents
  • seminal fast company article from 1997 - revised now for ideas, not just job function
    economy 2.0 and our role as climate change agents
    each idea we have should be viewed as our own startup
  • Sustainability in organizations

    1. 1. for my innovation
    2. 2. Sustainability in organizations in 90 minutes… Justin Yuen President, FMYI
    3. 3. FMYI Sustainability opportunity Nike case study You
    4. 4. Social networking facebook linkedin myspace twitter multiply yelp ning
    5. 5. Social networking Work facebook basecamp linkedin salesforce myspace sharepoint twitter google docs multiply webex yelp jive ning zoho
    6. 6. Social networking + Taking action
    7. 7. Social networking + = Taking action
    8. 8. YOUR GREEN ONLINE OFFICE. SUSTAINABILITY PEOPLE PLANET PROFIT The key piece to a Enables telecommuting Empowers your team with Saves money on printing sustainability commitment by providing your team templates and content and shipping is having a green online with an easy-to-use, built in for growing your office like fmyi. organized place for all sustainability initiative Saves money when information people telecommute and Why? It serves as a Promotes digital avoid time lost when platform to grow your Creates community collaboration, leaving a commuting team’s sustainability around your content, smaller environmental initiative, minimizes your bringing together a team footprint Saves money when environmental footprint, across an office or around people are up to date on and generates profits the world Reduces ink, toner, and the site and flying is through eco-effciency paper usage reduced for catch up efforts and fmyi’s Reduces stress by meetings keeping everything Encourages sustainable workflow features. commuting through a Generates profits through organized and up to date Think about the hours in one place tracker embedded into fmyi’s workflow features each day your team each site (efficient project spends sharing Connects people with management, institutional fmyi’s partnerships for fmyi purchases renewable knowledge base, sales information. Having them energy credits for your collaborating on fmyi’s sustainability including tracking, etc) so conferences, car sharing computer energy usage opportunities don’t slip green online office is the while on the site perfect way to emphasize options, and more through the cracks your commitment to sustainability. fmyi’s corporate commitment. Sustainability has been a part of who we are from the beginning and is written into our Articles of Incorporation. Our goal is to minimize our environmental footprint, and maximize our societal impact. We realize that sustainability is a marathon, not a sprint, and is an eternal learning process. Employees are encouraged to commute sustainably. We offer discounts on carsharing through Zipcar, access to bikes, flexible telecommuting options, and encourage use of public transportation to meetings on TriMet. We're a Recycle at Work partner. We utilize paperless collaboration on fmyi, computers rated at least a silver through EPEAT, business cards from Pinball Publishing, and office products from Green Home. Sustainability is also part of the criteria we use when evaluating vendors. Every employee goes through Natural Step training and can take advantage of volunteer opportunities. We’re using our business as a platform to raise awareness about sustainability. It's how we empower teams to make a difference. FMYI [FOR MY INNOVATION] | VISIT FMYI.COM | CALL 888.FMYI.COM | EMAIL US AT INNOVATE@FMYI.COM
    9. 9. 1. concentrations of substances extracted from the earth's crust 2. concentrations of substances produced by society 3. degradation by physical means 4. and, in that society, people are not subject to conditions that systemically undermine their capacity to meet their needs
    10. 10. PRODUCT PROCESS PROFIT
    11. 11. Trends Examples PRODUCT FMYI story Resources
    12. 12. TRENDS Clean tech 11% of total US venture capital market E2: Ahead of medical device, telecom, and semiconductor; behind biotech and software Green building 40 of the world’s largest cities (C40cities.org) Adopted energy efficiency, CO2 emissions, and green building guidelines/policies Food World organic market growing 20% a year Organic Monitor: Global sales grew from $23 billion in 2002 to $40 billion in 2006 Sportswear and fashion Sales for organic cottton products up 85% Organic Exchange: Global retail sales at $1.1 billion in 2006, up from $583 million in 2005
    13. 13. LOCAL ECONOMIC CLUSTERS Energy Green building Food Sports/fashion f my i ® Technology
    14. 14. THE FMYI JOURNEY Past Sustainability collaboration Reduce paper usage and travel Present Sustainability content Ads from organizations with sustainability info Future Sustainability features to track commuting Climate change mitigation features
    15. 15. LOCAL RESOURCES Energy PortlandOnline.com/OSD Green building PortlandOnline.com/OSD EarthAdvantage.com Food FIC.OregonState.edu PortlandOnline.com/OSD Sports and recreation BikePortland.org Services SustainabilityProfessionals.org
    16. 16. Trends Examples PROCESS FMYI story Resources
    17. 17. Efficiency
    18. 18. Efficiency Execution
    19. 19. Efficiency Execution Process
    20. 20. Efficiency Execution Process Focus
    21. 21. Efficiency Execution Process Focus Discipline
    22. 22. Innovation
    23. 23. TRENDS Talent 97% would take less $ at a CSR leader Stanford: Study of 800 MBAs from 11 leading North American and European schools Retention Costco turnover rate is half the industry’s WSJ: Good benefits lead to 24% turnover rate compared to 50% for the industry Efficiency 73% named cost savings as primary driver Pricewaterhouse: Survey of US companies about main driver for sustainability investments Small business 73% investing more in energy-saving NSBA: 76% said cutting energy costs will boost profits; reporting 20-30% savings (CSME)
    24. 24. LOCAL EXAMPLES Climate Transportation Procurement Technology
    25. 25. THE FMYI STORY Past Articles of Incorporation Tech, commuting, recycling, procurement Present Employees, reviews Climate, servers Future Air travel Community engagement/investment
    26. 26. LOCAL RESOURCES Training & education ORTNS.org pdx.edu/sustainability RecycleAtWork.org BestBusinessCenter.org GreenForAll.org Consulting ORTNS.org AxisPerformance.com ZeroWaste.org Media SustainableIndustries.com Greenbiz.com
    27. 27. Trends PROFITS FMYI story Resources
    28. 28. TRENDS Consumers 63 million Americans buy sustainable LOHAS: $227 billion total market Brand marketing 2/3 would switch to a more sustainable brand Cone Roper: If all else is equal, 2/3 would switch B2B 400 CEOs from Wal-Mart’s largest vendors Wal-Mart Live Better Sustainability Summit: Pressure on their vendors
    29. 29. THE FMYI STORY Past Articles in the media Marketing Present Client base Networking Future Building a human energy movement
    30. 30. LOCAL RESOURCES Networking ORTNS.org Greendrinks.org Marketing MarketShiftStrategies.com MetGroup.com Carlson-Communications.com Media SustainableIndustries.com PortlandTribune.com EcoMetro.com
    31. 31. ® NIKESUSTAINABILITY Business integration of sustainability: history, vision, innovation, culture
    32. 32. OVERVIEW • History • Vision • Innovation • Culture
    33. 33. HISTORY: TIMELINE • 1989 Phil Knight’s scenario planning • 1999 Footwear and Apparel divisions hold sustainability workshops; Shambhala sustainability business integration program launched • 1993 Nike Environmental Action Team (NEAT) formed with focus on compliance, manufacturing, monitoring, and Reuse-A-Shoe • 2000 Shambhala program runs through April NEAT employs 20 people in the US, 2 in Europe, and 7 in Asia Sustainability positions created (5 in Footwear, 1 in Apparel) • 1995 Sarah Severn, Director of NEAT, takes the group to hear Paul NEAT, Labor Practices, and Community Affairs united to form the Hawken speak about his book, The Ecology of Commerce Corporate Responsibility division • 1996 NEAT focuses on supplier education, pollution prevention, and • 2001 Shambhala projects progress with no structured follow up the greening of materials used in the manufacture of products 11 Nike internal “Maxims” released, including “Do the right thing” Board-level Corporate Responsibility Committee formed First Corporate Responsibility Report released Corporate Responsibility Division reorganized to integrate into the • 1997 Adoption of The Natural Step principles business • 1998 Hiring of Maria Eitel, VP for Corporate Responsibility; launch of Nike’s environmental policy with Paul Hawken
    34. 34. HISTORY: SHAMBHALA (1999-2000) • 55 captains • Three offsites • Project teams
    35. 35. nike sustainability business integration objectives initiatives key milestones (fy03) Q1 Q2 Q3 Q4 business case > vision strategic planning > build case & tool plan integration launch website investigate integration into strat plans, cfes, los > build into scorecards knowledge sharing > innovations human energy > design of tool present 101 to groups design rollout plan package expand scope begin rollout "human energy" sustainable innovations package to support operational/financial priorities and develop new sources of growth a. alignment of package with divisional/departmental strat plans & culture b. training program to introduce sustainability into organization c. technical resources and contacts available for help d. online tool to share innovations and track progress e. follow up meetings to continually raise the bar for progress targets: equipment, procurement, memphis, emea, facilities, nike pacific, americas/asia returns, ftwr/apparel, americas sales ops, t&e, nike japan employee engagement > culture targeted plan cr month build cr month launch cr month continue internal comm groups sustainability network > monthly project development meetings and newsletters with subgroup projects enhance the brand, raise roic, invest in team, organize around our strengths/master our weaknesses
    36. 36. VISION • Impact the bottom line • Enhance the brand The Bottom Line. You know it's the right thing to do. You know it's part of who we are and our values. Now learn how sustainability adds financial value to the Nike business. Making the business case for sustainability and reporting the results demonstrates to • Lead the future shareholders and other financial stakeholders that sustainability efforts add value, both now and in the future. And looking at potential projects through a business case framework will allow people to choose those projects with the highest total returns, including those with non- obvious value drivers. So dive in, and see the business case in action! CONTACT: Justin Yuen • UPDATED: January 9, 2003 • DEPARTMENT: Nike Corporate Sustainable Development • Design: Dragonfly Interactive
    37. 37. INNOVATION US Retail Global Equipment Sustainable construction, renovation, and operations Sustainable product innovations and merchandise sustainably Incorporate green rubber Organic cotton Product takeback
    38. 38. INNOVATION • network • best practices • project workspace
    39. 39. CULTURE • educate • inspire • global INTRANET 19,284 unique visits from around the world in 6 weeks (665 average visits a day) EVENTS 1525 people attended 7 speaker events at WHQ (full house for all employee meeting) DISPLAYS 500 posters, 250 easels, 120 table tents, 100 speaker series posters, 25 lobby displays 24 bridge banners, 8 Pre Hall displays, and event posters in 75 locations around the world GRASSROOTS 300+ people from all over the Nike family helped make this event a reality in less than 2 months GLS 500 senior leaders educated through integration of the Kyosei theme into the community session and Heidi’s presentation, sending a strong business case and innovation message
    40. 40. Is it all about the organization? It’s about you.
    41. 41. Is it just about sustainability? It’s all about innovation.
    42. 42. What is innovation? Sustainability, collaboration, and tech.
    43. 43. How do you create a long term sustainability vision? Backcasting. The business case. Passion.
    44. 44. the natural step network’s training tools. thenaturalstep.org/usa
    45. 45. How do you collaborate to generate new ideas? Training. Events. Internal consulting.
    46. 46. northwest earth institute’s discussion courses. nwei.org
    47. 47. How do you scale your impact using tech? Social media. Crowdsourcing. Open source.
    48. 48. External social media tools. Twitter. Blogs. Communities.
    49. 49. FMYI’s sustainable internal collaboration hub. FMYI.com
    50. 50. What is your philosophy in regards to project management?
    51. 51. What are your experiences with sustainability?
    52. 52. Is your organization ready for an employee driven sustainability initiative?
    53. 53. What are the key things you need to get sustainability projects to the next level?
    54. 54. justin@fmyi.com
    55. 55. Empowering teams to make a difference.

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