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From Barriers to Building Blocks:
   Overcoming Obstacles to
         Sustainability



        www.thinkpaydirt.com
Sustainability Business Drivers
                         Supply Chain      Talent
                           Pressure
  Cost and
                                          Environmental
 Efficiencies
                          Competitive        Impact
                           Advantage
 Government                                Risk
   Action                               Management




   © 2010 Paydirt, LLC                                    2
Current Attitudes
The Business of Sustainability – MIT Sloan Management Review

 Overwhelming majority of survey respondents said
  sustainability-related issues were having or will soon
  have a material impact on their business
 Strong consensus that the underlying drivers of
  sustainability are highly complex and interrelated
 Fewer than 25% decreased commitment to
  sustainability during downturn
 60% are building awareness of their sustainability
  agenda, but most of these lack an overall plan




     © 2010 Paydirt, LLC                                       3
Impeding Decisive Action
The Business of Sustainability – MIT Sloan Management Review


 Don’t understand what sustainability is and
  what it means to their enterprise
 Difficulty defining the business case
 Execution is flawed
 Once companies begin to act aggressively,
  they unearth more opportunity than expected




     © 2010 Paydirt, LLC                                       4
Sustainability Building Blocks

                         Corporate
                         Strategy

          Internal                     External
        Organization                 Stakeholders
        and Systems
                        Performance
                        Measurement


  © 2010 Paydirt, LLC                               5
Barriers
Corporate Strategy
 Lack of top-level commitment
 Failure to create a culture of sustainability
 Skepticism – within leadership and/or
  employee base




   © 2010 Paydirt, LLC                            6
Building Blocks
Corporate Strategy
 Visible top-level involvement
 Define sustainability for your organization
 Communicate the business case – tangible
  and intangible benefits
 Think beyond the short-term
 Incorporate sustainability into decision-
  making frameworks



   © 2010 Paydirt, LLC                          7
Barriers
Internal Organization & Systems
 Education and engagement limited to few
  employees
 Don’t know where to start
 Lack of alignment with incentive system
 Silos limit interdisciplinary collaboration




   © 2010 Paydirt, LLC                          8
Building Blocks
Internal Organization & Systems
 Focused approach - roadmap
 Utilize existing frameworks and tools
 Incorporate sustainability into product
  development processes
 Cross-functional teams to reimagine how your
  products are made; how you do business
 Management and personal objectives
 Social media and on-demand education




   © 2010 Paydirt, LLC                       9
Barriers
External Stakeholders
 Lack of understanding of external
  stakeholder concerns and challenges
 The “green consumer” doesn’t exist
 Lack of action in Copenhagen




   © 2010 Paydirt, LLC                     10
Building Blocks
External Stakeholders
 Sales teams need to understand their
  customers’ sustainability agendas
 Alliances, industry groups
 CDP, GRI, etc.
 How can your suppliers realize business
  value from reducing their environmental
  footprint?




   © 2010 Paydirt, LLC                      11
Barriers
Performance Measurement
 Lack of transparency – little focus on
  measuring, tracking and reporting results
  of sustainability-related efforts
 Absence of goals or performance targets
 Targets set without sound basis




   © 2010 Paydirt, LLC                        12
Building Blocks
Performance Measurement
 Measurement strategies for every initiative
 Define KPIs and assess your ability to
  report on them today
   Availability of data in existing systems
   System enhancements for data collection and
    aggregation
   Completeness and accuracy – internal controls
   Environmental scorecard – phased approach




   © 2010 Paydirt, LLC                          13
For More Information:
 jkolling@thinkpaydirt.com
 612.840.5673




            www.thinkpaydirt.com

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Overcoming obstacles to sustainability

  • 1. From Barriers to Building Blocks: Overcoming Obstacles to Sustainability www.thinkpaydirt.com
  • 2. Sustainability Business Drivers Supply Chain Talent Pressure Cost and Environmental Efficiencies Competitive Impact Advantage Government Risk Action Management © 2010 Paydirt, LLC 2
  • 3. Current Attitudes The Business of Sustainability – MIT Sloan Management Review  Overwhelming majority of survey respondents said sustainability-related issues were having or will soon have a material impact on their business  Strong consensus that the underlying drivers of sustainability are highly complex and interrelated  Fewer than 25% decreased commitment to sustainability during downturn  60% are building awareness of their sustainability agenda, but most of these lack an overall plan © 2010 Paydirt, LLC 3
  • 4. Impeding Decisive Action The Business of Sustainability – MIT Sloan Management Review  Don’t understand what sustainability is and what it means to their enterprise  Difficulty defining the business case  Execution is flawed  Once companies begin to act aggressively, they unearth more opportunity than expected © 2010 Paydirt, LLC 4
  • 5. Sustainability Building Blocks Corporate Strategy Internal External Organization Stakeholders and Systems Performance Measurement © 2010 Paydirt, LLC 5
  • 6. Barriers Corporate Strategy  Lack of top-level commitment  Failure to create a culture of sustainability  Skepticism – within leadership and/or employee base © 2010 Paydirt, LLC 6
  • 7. Building Blocks Corporate Strategy  Visible top-level involvement  Define sustainability for your organization  Communicate the business case – tangible and intangible benefits  Think beyond the short-term  Incorporate sustainability into decision- making frameworks © 2010 Paydirt, LLC 7
  • 8. Barriers Internal Organization & Systems  Education and engagement limited to few employees  Don’t know where to start  Lack of alignment with incentive system  Silos limit interdisciplinary collaboration © 2010 Paydirt, LLC 8
  • 9. Building Blocks Internal Organization & Systems  Focused approach - roadmap  Utilize existing frameworks and tools  Incorporate sustainability into product development processes  Cross-functional teams to reimagine how your products are made; how you do business  Management and personal objectives  Social media and on-demand education © 2010 Paydirt, LLC 9
  • 10. Barriers External Stakeholders  Lack of understanding of external stakeholder concerns and challenges  The “green consumer” doesn’t exist  Lack of action in Copenhagen © 2010 Paydirt, LLC 10
  • 11. Building Blocks External Stakeholders  Sales teams need to understand their customers’ sustainability agendas  Alliances, industry groups  CDP, GRI, etc.  How can your suppliers realize business value from reducing their environmental footprint? © 2010 Paydirt, LLC 11
  • 12. Barriers Performance Measurement  Lack of transparency – little focus on measuring, tracking and reporting results of sustainability-related efforts  Absence of goals or performance targets  Targets set without sound basis © 2010 Paydirt, LLC 12
  • 13. Building Blocks Performance Measurement  Measurement strategies for every initiative  Define KPIs and assess your ability to report on them today  Availability of data in existing systems  System enhancements for data collection and aggregation  Completeness and accuracy – internal controls  Environmental scorecard – phased approach © 2010 Paydirt, LLC 13
  • 14. For More Information: jkolling@thinkpaydirt.com 612.840.5673 www.thinkpaydirt.com