Sustainable Growth Strategies:
360°view in Belgian companies
Quality Research CxO Leadership Forum 2011
Purpose? Qualitative Research amongst CxO’s members internal processes on Sustainable Growth Strategies
Who? 25 qualitative personal phone interviews
amongst CxO’s “Board of the Wise” and CxO’s “Experts Groups”:
CEO
Finance Human Resources Logistic ICT Marketing
Sustainability within companies
Sustainability is present … … Awareness seems to have been created
“Not behaving sustainably” is no All undertake, to some extent,
longer an option
actions in the field of sustainability
Sustainability is more and more seen as a need / willingness to adapt to the changing environment and to a new,
economic model
long term oriented
Sustainability remains a broad concept provoking a wide range of associations and internal triggers
Connecting
No way back
Human Ressources Authenticity People Management
Globalization Conviction
Responsability Return Identity
Continium
Mind set
Determination
Industry
Top Down
Transparency
Services
Emotion
Time
Distance
Future
Engagement Female
Facebook
Nature
Bottom - up
Profit
DNA
Logistics
Measurable
Growth Strategies
Government
Marketing
Water
Health
Values
Communication
Greenwashing
Education
New generation
Investment
Vision
Social Impact
Innovation
ICT
Safety
Health
Technology
Relationships
Sustainability
Partnerships Trust
Impact
Finance
Modern
Consciousness
Urgency
Creativity
Long Term
Consistency Entrepreneurship
External triggering factors
Politics
Ecological situation Trade Unions
Policy
NGO
Retailers
Civil society Customers
Demograpical reality
Social pressure
Media & Press
can be identified:
Competitors Clients
“Er ontstaat een stroomversnelling waarin je gedwongen wordt door politiek en economie. Er is een maatschappelijke druk en daar willen we als eerste bij zijn.”
“Het moet van het beleid komen, zelfsturing is er niet in voldoende mate.”
However …
Sustainability >< Sustainable Growth strategies Sustainability isn’t always part of a corporate vision Conditions to convert sustainability measures to a
implemented as a culture
linked to company strategies linked with value
creation
set as overall goals (within all departments)
long-lasting, in depth, sustainable growth strategy
linked to tactics (measurable projects)
“Het zit in alle metingen ingebakken.”
“Als we het van uit strategisch oogpunt belangrijk vinden moeten we het ook in de belangrijkste objectieven integreren.” 11
More industry oriented –
impactful when it comes to Planet (carbon footprint)
Challengers
Leaders Sustainability as
strategy
Ability to execute
Less strategic –
- want tocreators of a sustainable demand
“Must do”– external demand Non-believers
Visionaries
More service oriented “People Business”-
less impactful internally when it comes to Planet (carbon footprint) Completeness of vision
Sustainability within different company departments
This has of course an
implication
on
Internal integration of sustainability into operational processes :
Ability to execute
“Voor ons is het niet zo moeilijk om duurzaamheid te implementeren, aangezien het een deel is van onze waarden en normen. Het is ingebakken , waardoor het gemakkelijker is om iets te cascaderen.”
Completeness of vision SILO ATTITUDES Frictions between departments – less involvement More difficulties in implementing sustainable processes
COMMON GOALERS all heads / departments pointed in the same direction when it comes to sustainable processes – Overall high involvement Easier to implement sustainable processes
CEO
PROFIT
Integration
PEOPLE
PLANET
Within a fast changing and chaotic world, a new type of leader has arisen … “Duurzaamheid wordt een strategie van succes.”
… He’s a co creator of
future trust based business models
Awareness and Responsibility are amongst their key features: Put other accents people management
Are “Human”
Think
alternatively Have a global mindset
Have other
attitudes:
Are world
sensitivity, modesty, empathy, integrity, generosity
centric
Set an exemplary role
Are long-term oriented
Are facts oriented: <> Mirage Clearly focus on values: ethics, humanity, social relevancy, equality, honesty, transparency, commitment
Think holistic
His overall goal:
improving
business for future
generations
“Ons doel is om telkens een beter bedrijf door te geven aan volgende generaties.”
The CEO’s conviction, vision and philosophy make
the difference:
By finding a balance between growth, responsibility and core values By translating his internal
values into an external vision
By determining the company
culture and its perspectives
The anchoring of sustainability
This by acting accordingly to the companies’ philosophy Setting sustainable goals Measuring sustainable actions Demanding direct reporting and accountability
Appointing a CSR
manager / Excellence Centre
“Als je geen CSR Manager hebt dan gebeurt er niet veel, hij zorgt voor bewustwording.”
“We zijn een resultaatgericht bedrijf. Wat je niet kan meten mag je vergeten, ook qua duurzaam ondernemen.”
Finance
PROFIT
PEOPLE
PLANET
CFO’s are the extension of the CE0 and the guardants of realism:
VALUE for VALUES They are the ones who define the notion of profit who determine the investment of
money and time who come up with creative and innovative
solutions
“We zijn er van overtuigd dat duurzaam ondernemen de weg is naar financial sustainability, naar profit op lange termijn.”
Consistent Sustainable Growth Strategies
Sustainable measures more than a sustainable growth strategy Sustainabiliy = Cost
Sustainability if
Sustainabiliy = Investment
profitable
As a “short –term”, economical benefit Cost / investment related Economical need > internal conviction
Sustainable profit =
growth
As a long–term, in depth benefit Larger meaning given to “Profit”, beyond the ratio Cost / Investment Important aspect of time Necessary to respect one’s DNA and be 100% consistent Economical need // internal conviction
PROFIT
PEOPLE
PLANET
Human Resources
PROFIT
PEOPLE
PLANET
Sustainability is more and more becoming an HR story ….. Or how to have a positive
return
on
society
It’s about: Building long-term relationships Giving opportunities Internal transparency Taking responsibilities Maintaining ethical standards
Taking into account demographics
But overall:
It’s about building a company “Je hebt een impact op de maatschappij waarin je werkt”
culture
HR and Sustainability … the reasons
why:
A new
generation
is born …
Demand consistency and transparency Attracted by socially relevant jobs Become brand ambassadors
… They are imperative within a sustainable culture
“Duurzaamheid wint aan belang als selectiecriterium voor jonge werknemers: die wensen meer en meer in duurzame, zinvolle bedrijven te werken.”
Happy employees are better employees … and good employees are needed
People
Business
Withholding current employees and their
knowledge Improving performance by creating a sustainable culture
They reflect who you are
Sustainable actions in the field of HR are numerous and broad New workplaces
Flexibility Knowledge
Work – life balance
Ethics
Humanity Safety International Employees’rights
Long term relationships Families
Respect
Enriching employees life
Worldwide
Sustainable goals
“Het mag geen opgelegde bedrijfsoefening zijn, de mensen moeten erin geloven.” “Iedere medewerker moet als hij aan zijn shift begint ‘s morgens,s’avonds terug gezond naar huis gaan.”
“Duurzaamheid wordt in de persoonlijke objectieven van onze medewerkers geplaatst. 27 Ze zijn zeer trots dat ze een bijdrage kunnen leveren.”
Important tensions remain, questioning companies’ interpretation of:
Social responsibility
Human Resources strategy
Eg. Local employment, Delocation
Eg. Positive Discrimination, financial compensations when sustainable goals are achieved, salary >< education/ fulfillment
Profitability Eg. Productivity, Efficiency >< Work – Life balance, equality, education
“Duurzaam ondernemen zit mee in ons verloningsysteem. Als je iets belangrijk vindt moet je dat belonen.” “HR is belangrijk op het vlak van duurzaamheid: het bieden van gelijke kansen qua geslacht, leeftijd, maar we doen wel niet aan positieve discriminatie.” “Ik zie verschillende spanningsvelden: op financieel vlak bij het aanwerven van minder valide personen of op productievlak qua efficiëntie als iedereen 4/5 werkt.”
Logistics
PROFIT
PEOPLE
PLANET
Within logistics, creative alternative solutions are sought for… They reinvent and dare Waste management Relationships with suppliers (business code of practice)
Transport (Partnerships) Measurement (including sustainable criteria, accept external audits, …)
« Goederen transport wordt meer en meer een prioriteit, we zullen slimmer moeten transporteren. »
Certification
« Duurzaamheid gaat gepaard met creativiteit.»
“De logistieke sector moet doorbreken en de alternatieven vinden.”
However, their creativity
relies
on other actors
“ Het is slechts als de overheid zal taxeren op ieder km die teveel gereden wordt dat er iets zal veranderen.”
They feel dependent on … (and expectant towards) local / global governments their internal finance department their sales department
« Bepaalde criteria zullen sowieso opgelegd worden, onafhankelijk van het kostenplaatje. »
(Just in time management, service towards clients, …)
their internal freedom (to experiment, to set up pilot projects…)
They have an educational
role
to play
« Hoe meer verschillende bedrijven voor duurzame maatregelen zorgen binnen de sector, hoe meer de maatregelen aanvaard worden .»
They influence customers and companies when it comes to sustainability:
By changing the traditional By approaching “Just
perceptions of logistics
in time management” differently
By creating partnerships By seeking
alternatives
“Je zou aan gecombineerd wegtransport kunnen doen maar dan riskeer je dat de klanten minder vaak bevoorraad worden, waar de business units het niet eens mee zijn.”
ICT
PROFIT
PEOPLE
PLANET
The ability to process sustainable changes within ICT is important
“Binnen ICT kan alles duurzamer: je hebt green data center, energy recovery, evoicing , virtualisatie wat toelaat evenveel te doen met minder materiaal.” “ICT is een marginaal gegeven binnen de industriële sector als je naar de carbonfoodprint kijkt.”
There’s however a global feeling ICT is less Time
impactful
demanding change program
ICT supports other departments: impact is often attributed to other departments (HR department, Sales, Finance, Logistics, …. )
ICT clearly
depends on the company culture and attitudes (Shutting down screens, ,…. )
ICT is an important innovative actor,
but it needs the freedom to be so
Efficient GPS Heating On-line client service
Purchase
Software
R&D
Home working
Document management Evoicing
Investment
Results Cloud computing
Hardware
Processes
Ecological Driving systems
Home working
On-line follow up
Within ICT
Within other departments
On-line communication Printing
Marketing
PROFIT
Translation
PEOPLE
PLANET
Marketers are translators more than initiators … They are vulnerable to markets’ reactions
They feel stigmatized
…
… and under pressure
(Greenwashing)
Uncomfortable feeling : it’s about doing more than about saying Dependency on the company culture A difficult topic of communication Needing specific communication channels 37
Sustainability and Marketing seem to be fundamentally Sustainability remains a second
opposed …
purchase drive
Not a USP: remains secondary Relevancy depends on type
of product “Het is geen marketingstrategie, het is een noodzaak.”
… which indicates Marketing needs to be
reinvented
Conclusion
We are at a changing
point
Entrepreneurs will have a future
in our current business model
social leading role:
They will have to reply to changes as:
Simplicity Complexity Ego- centric World- centric Competition Collaboration Value Values Taking Giving Profit Profit + Purpose
Linear thinking Holistic thinking
Control Flexibility
Efficiency Sustainability
THANK YOU FOR YOUR ATTENTION
www.quality-research.be
Values-driven consumer research Consumer information platform Qualiblog
Workshops Sustainable brand positioning
Stakeholder audits & interviews Contacts : Thérèse Tasmowski Caroline George
[email protected] [email protected]
