Org Structure & Sustainability Amr 20090212


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What has been learned about corporate sustainability and the role of the Chief Sustainability Officer that can help leaders determine where to position the role in their organization? See highlights of the Hudson Gain Study of the role of the CSO and explore questions that can sort through the issues.

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Org Structure & Sustainability Amr 20090212

  1. 1. The Organizational Structure of Sustainability and Highlights from GOING GREEN? Don’t Hire a Sustainability Chief Until You Read this Study! Roger Thorne, Managing Partner Victoria Zelin, Senior Vice President Hudson Gain Corporation For AMR Research’s Sustainability Peer Forum Teleconference February 12, 2009 Five Penn Plaza, 23rd Floor, New York, NY 10001 Phone 212.835.1601 w w w
  2. 2. Agenda  Introduction to Hudson Gain  Hopes for Today  Context: Definitions of Sustainability  Hudson Gain Study on CSO Role in Corporations  Does Your Organization Need a CSO?  CSO Career  Tips for Hiring or Appointing a CSO 2
  3. 3. Founded in 2002, Hudson Gain Corporation believes that the work of corporate leadership is to ensure that their organizations are sustainable from the perspective of the triple bottom line: People, Profit, Planet. Hudson Gain’s work is on the People part of the equation: helping management to “build or buy” their leadership talent. As a leadership solutions firm, we serve the talent acquisition, talent development and change management needs of client companies of all sizes and industries. Among Hudson Gain’s leadership solutions are helping companies hire or appoint Chief Sustainability Officers and building employee engagement for Sustainability. Roger Thorne, ManagingPartner 212.835.1601; © 2008-2009 Hudson Gain Corporation 3
  4. 4. Hopes 4
  5. 5. The Context: Definitions of Sustainability  “Meeting the needs of the present without compromising the ability People Planet of future generations to sustainable employee sustainable resources and customer base and operating environment meet their own needs.” Brundtland Commission (1987) Profits sustainable business increased present value 5
  6. 6. Scope and Methodology of CSO Study  “Voice” of executives leading corporate sustainability efforts, summer 2008  1241 large private companies reviewed  Less than 1/2 had execs with partial responsibility  191 had sustainability/environment in job title  214 executive backgrounds reviewed  61 structured interviews in summer 2008  Some mid-sized, universities, others included  Content analysis and conclusions 6
  7. 7. Contents of the Hudson Gain CSO Study  Going Green? Don't Hire a Sustainability Chief Until You Read This Study!  “Universal” Chief Sustainability Officer requirements  Key CSO responsibilities and challenges  Filling the role internally or externally  Examples of Top People/Companies  Sustainability 1.0 vs. 2.0  Quotes 7
  8. 8. The Ideal CSO is a Senior Executive who …  Has the ability to understand complex technologies but keep it simple  Can move the entire organization to where it might not know it needs to go or be willing to go  Will identify the organization’s carbon footprint and reduce that to zero while saving money  Has passion for sustainability but not too evangelical while making sure that everyone hears the message  Can make the organization profitable while doing no harm to people or planet
  9. 9. Basically:  What are the skills needed to be a CSO?  Where does a CSO come from?
  10. 10. “Universal” CSO Skills/Knowledge/Experience  Communication Clear Vision  Technology Passion  Financial/ROI Organizational  Measurement Respect  Innovation Leadership  Ethics Persistence  Supply Chain Tenacity  Operations/Structure Emotional  Culture Intelligence 10
  11. 11. Where Do Sustainability Leaders Come From?  Not yet from having C-level roles, in same firm  High-level technical and leadership roles  Almost all functions, depending on many factors  Previous experience in another function (not sustainability), typically internal, supplemented by technical consultants  Some external candidates; they have gaps, too  Builders vs. Managers, creators vs. maintainers 11
  12. 12. In Our Study We Found CSOs from ….  EHS  Supply Chain  Finance and Audit  Human Resources  Law Compliance  Operations  Public Relations and Communications  Engineering  Research and Development
  13. 13. Hudson Gain Take Aways from the Study  No “one size fits all” for sustainability leadership  Industry, company, culture, decision-making style, timing-impact whether/when to have CSO  Good CSOs are rare, multi-talented leaders  Currently, more CSOs are appointed from within  The external market will get tighter for CSOs  If you don’t have a CSO:  Start building C-level support and planning  Identify internal CSO candidate pipeline/career track  Look for confluence of strategic factors and internal/external needs to be negotiating “at the table” 13
  14. 14. Does Your Company Need a CSO? 14
  15. 15. It Depends!  On your company and …  Timing of a Sustainability Leader at the C-level  Sustainability’s role in your strategy  External marketplace  Internal drive for sustainability as central to who you are  How you are structured (functional, matrix)  Philosophy and values (everyone’s job vs. function)  Other factors  Company size, mission or imperative  What your competition is doing  What your customers are demanding 15
  16. 16. Where Does a CSO sit? 16
  17. 17. Typical Organization CEO CFO Sales/Marketing HR R&D Operations EHS Manufacturing Quality
  18. 18. When is Sustainability at the C-Suite Level? CEO CFO Sales/Marketing HR R&D Operations EHS Manufacturing Quality ?????
  19. 19. What Factors Determine Where “CSO” Sits?  At what level are sustainability decisions/trade- offs currently being made?  At what level should/could they be made given strategy, span of control, your values?  What is the highest level stakeholder to whom your sustainability efforts are accountable, and what priority do they place on sustainability as compared with People and Profits?  To what role should sustainability chiefs be accountable?  Dotted lines, solid lines of reporting? 19
  20. 20. If You Had a CSO, They Would Be/Have/Do … 20
  21. 21. In Your Company, the CSO Would Need…  Credibility for dealing with what strategic issues?  Industry/competitive expertise?  Functional & Technical skill/knowledge?  Company/political/decision-making knowledge?  Other credentials/experience?  Hierarchical/peer level, negotiating about what?  Authority, staff and resources?  Structure for decision-making and execution?  Culture/Style?  Influence/change management skills? 21
  22. 22. The Evolution of a Sustainability Structure  Lessons from the evolution of other functions  Quality  HR  Legal  EHS  IT  Supply Chain 22
  23. 23. Roles and Careers in 2009 and after  Share your journeys  How did you get into sustainability?  Where have you taken your role, re: sustainability?  Evolution of your company/group/function?  What can you learn from others’ journeys?  How can you prepare yourselves for what’s next? 23
  24. 24. Implications for Structures and Careers  Sustainability in the year 2020  What’s possible as a vision for structuring sustainability?  Mindset, leadership, execution 24
  25. 25. Potential Future Career Paths to CSO  CSO  Senior Vice President Sustainable Enterprise  Vice President Sustainable Operations  Director Sustainable Marketing  Senior Manager Sustainable Communications  Manager Sustainable Finance  Sustainability Engineer  Sustainability Analyst
  26. 26. Tips for Appointing or Hiring a CSO  Get senior management aligned  Focus role, responsibilities, requirements, budget  Understand what outside/consulting support needed  Set objectives based on strategic priorities  Use a rigorous selection process  Consider internal and/or external candidates  Do it right and/or get outside help  On-board even internal appointments  Align for collective success, know WIIFMs  Use Stakeholders to make CSO an “insider” fast  Expect continuous learning 26
  27. 27. More Info, Sounding Board, Keep in Touch Roger Thorne Managing Partner 212 835 1601 Victoria Zelin Senior Vice President 908 306 0272 Hudson Gain Corporation Five Penn Plaza, 23rd floor New York, NY 10001 27