“In good times, sustainability can be a competitive differentiator; in lean times, it’s a defensive strategy and in really hard times, it can determine your survival.” – Richard Goode, Director of Sustainability at Alcatel-Lucent

As we have discussed in previous blog posts, sustainability as a business strategy needs to be uniquely defined for each company. Understanding the industry, company size, product or service line, the supply chain, and stakeholders’/stockholders’ concerns are all important to create a meaningful definition. Understanding sustainability may start with a definition, but sustainability is really a corporate wide strategy and culture that ultimately focuses on increasing productivity and/or the reduction of consumed resources without compromising product or service quality, competitiveness, or profitability. Embracing a true strategy of sustainability is never ending, as it ultimately should become part of the culture and fabric of the organization.

After defining sustainability for your organization, the next important question to ask is, “Where does our company stand as it relates to our sustainability initiative?” Many companies are quick to react to new initiatives without assessing what it really means for their organization.

Important questions to consider include:
– Where are they currently?
– Where do they want to go?
– What will it take to get there?

Similar to the beginning of the quality movement, many companies got on the bandwagon and implemented the concepts haphazardly with no intent or strategy, reaped some results from low-hanging fruit, but never really saw the full impact and the possible results that could have been theirs to realize.

Kevin Myette, Director of Product Integrity at Recreational Equipment Inc (REI) says that “sustainability is the next quality movement … and it is no longer just for big companies.”

If sustainability is viewed as a strategy to be developed over time, then there needs to be a systematic approach to be able to move from where your company is now to where it wants or needs to be. Our systematic approach looks at sustainability through the progression of five levels.

Level 1: Recognize
At this level, an organization begins to recognize that something needs to be done. Perhaps outside forces such as industry regulations or stakeholders’/stockholders’ concerns are driving some action; however, there is no real strategy in place. In fact, if industry standards are driving whatever sustainability action currently exists, the organization is most likely acting out of shear conformance.

Level 2: Initiate
At this level, management agrees that it is time to look at sustainability as a business strategy. Management begins to see a solid business case for why sustainability makes sense in their organization and management begins defining their strategy for sustainability. Short-term, measurable results start being obtained.

Level 3: Implement
At level 3, there is a clearer understanding and awareness of what sustainability really means to the organization. A detailed action plan has been created and communicated to employees, customers, and all other stakeholders. Larger projects within the initiatives are beginning to get traction and see results.

Level 4: Operationalize
At level 4, there is full commitment to the sustainability strategy and the action plan is in full force. The organization is maximizing its people and processes to ensure a positive impact on the environment while seeing improvements in their own profitability and core business measurements.

Level 5: Transformation
The value of continuous sustainability is now embedded in the organization’s culture. It is part of how they think and make decisions. There is a commitment to continually review where they stand on sustainability issues, and they are committed to take the necessary action steps today and in the future.

At what level is your organization currently? Where should you be?

Author Bio: Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve high levels of excellence and success by adopting sustainability as a critical success factor of organizational success. Learn how at http://www.resourceassociatescorp.com

Category: Business Management
Keywords: defining sustainability, sustainability, Richard Goode, Lucent, Kevin Myette, REI, strategy