Archive for January, 2011

Defining Sustainability

Friday, January 21st, 2011

A recent survey published by Boston Consulting Group and MIT revealed that there is no single, established definition for sustainability. Some companies engaged in sustainability focus solely on environmental issues while others include economic, stakeholder, and governmental issues. The study also revealed that although companies differ in their definition, sustainability is a force to be reckoned with and is a concept that is here to stay. (The Business of Sustainability, 2009, Boston Consulting Group)

In our research, sustainability emerged out of the concept of “going green.” Because of outside pressure from the community and special interest groups and in an effort to meet new regulatory requirements, some industries were forced to change how their processes and products impacted the environment and people. Even through the last 18 months of economic challenges, sustainability has not gone away. Companies have been forced to remain in compliance while figuring out how to make progress with less capital and resources. Therefore, we can assume sustainability is more than just going green … although being green is a big part of it.

sustainability-globeTo senior management the question is, what does sustainability mean to your business? Leadership teams often lack a full understanding of how to apply the concepts of sustainability to the context of their strategic plan, their operating processes, their employees’ attitudes and skills, and their stakeholders concerns. In our experience, the successful implementation of sustainability will have a measurable and positive impact on the planet, through their people, and the result is improved profitability. Therefore, it is highly likely that sustainability will be defined conceptually as a megatrend, which applies equally to all types of organizations. Organizations that have defined what sustainability means to their business and who have a successful implementation model are seeing significant benefits. Based on the success of early adaptors, sustainability has proven to provide a sound business case of creating value through innovation and employee involvement.

Most organizations need to be presented with measurable reasons why embracing or incorporating a new strategy like sustainability makes sense. Early adaptors like WalMart, IBM, Nike, and GE are measuring value in key business areas. It is our experience that similar outcomes are just as possible in the small and mid-size markets.

The benefits have been shown to include:

  • A Stronger Brand
  • Greater Pricing Power
  • Greater Operational Efficiencies
  • More Efficient Use of Resources
  • Supply Chain Optimization
  • Enhanced Ability to Enter New Markets
  • Enhanced Ability to Attract, Retain, and Motivate Employees
  • Increased Customer Loyalty
  • Reduced Environmental Impact
  • Improved Innovation

In our experience, an organization should not tackle sustainability overnight without first understanding its strategic intent and developing a sustainability implementation plan. It’s not difficult, but an organization needs to understand what it is doing, why it’s doing it, and how it’s going to measure it. Most importantly what sustainability requires is, first and foremost, commitment from the leadership of the organization. “You cannot implement these kinds of programs bottom-up, it’s impossible. It’s always top-down, always. Because it is a cultural change, you cannot do it organically.” George Kern, CEO, IWC

After commitment is established, sustainability needs to be defined for your organization. What outcomes do you want to accomplish in what time frame? How will you measure the outcomes? How will you communicate your plan and establish buy-in with your employees and other stakeholders? These questions are important and need to be addressed before implementation begins. The answers to these questions need to be laid over the existing strategic plan. Do these new objectives require any course corrections? If your organization does not have an existing strategic plan, it will be critical to develop one that includes sustainability, as sustainability is not a strategic plan in of itself. Another often over-looked requirement is structure. Since many of the sustainability initiatives require interdepartmental cooperation there needs to be a systems linkage in both innovation and tactical implementation.

As evidenced by the research, sustainability is not going away. If your organization recognizes this fact and positions itself as a sustainable organization you will have a sizeable competitive advantage while also improving our planet.

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 through sustainability. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.

Tags: , , , , , , , , , ,
Posted in Strategic Planning, Sustainability | 1 Comment »

Take Control of Your Future – Strategically

Wednesday, January 12th, 2011

Over the years, businesses have embraced the fact that defining and having a strategic plan is an important component to long-term success. If you do not plan your direction, you cannot take control of your future. Many businesses are starting to be more aggressive in their strategic timetables. In addition to looking ahead three to five years and deciding where the organization needs and wants to be, more and more companies are becoming very aggressive in their short-term strategic analysis and review. With all the economic changes and uncontrollable outside distractions looking through the short-term strategic lens more frequently is required.

Your business’ strategic plan is a living and fluid document. It needs to be visited and revisited in order to create the flexibility necessary to make required course corrections while achieving organizational goals. A strong strategic plan identifies critical success factors, and when implemented, those critical success factors will create organizational alignment, surface challenges before they become fires, and be the catalyst for breakthrough performance.

A must have for successful strategic planning is an operational dashboard. Just engaging in the strategic planning thought process and laying out the plan is not enough. The management team needs an operational dashboard to measure and evaluate current outcomes and data by which decisions can be made on a daily basis. A strategic plan that sits in a drawer or on a bookshelf to be revisited a year or two down the road is virtually useless. Taking the critical success factors from the plan and creating a dashboard gives management the business intelligence necessary to make solid decisions and to manage course corrections when they are required.

As important as it is for management to have this working document, it is also important that a version of the dashboard be shared and communicated to all employees. Every contributor in the organization has an interest in the progress and success of the company. The more they know about the organization’s objectives and feel part of the big picture, the more they will take their contribution to the success of the plan seriously. With rare exception, most people want to be part of the solution and not part of the problem.

Communicating the strategy and creating alignment in your organization is one of the most important things you can do beyond formulating the plan. Linking organizational goals with employee goals creates a driving force towards results. Alignment will make it much easier for you to push the organization in the right direction.

Creating alignment is significantly linked to employee’s buy-in to the plan. Spending time to help your employees see how the future success of the organization impacts their career path and their personal success is critical. Communicate the details of the plan in a way that is easy to understand and reinforce your message often. Positive traction towards results is accomplished by frequently communicating and reinforcing the plan. The daily contributions of your employees will actually make the strategic plan a reality. Let them know where you want the organization to go so they can help take it there!

Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching and youth leadership. For more information visit http://www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.

Tags: , , , , , , ,
Posted in Strategic Planning | No Comments »

Why Businesses Succeed

Wednesday, January 5th, 2011

If you search Google for “why businesses fail” you will get about 6.9 million results. Many of those articles will talk about the pitfalls and untold reasons why businesses go out of business. Our stance is, instead of the focusing on what went wrong, focus on planning and building for success. Outcomes that are focused on are typically the outcomes that are generated. If you want to build a successful business you need to focus on success.

We can learn a great deal from businesses that fail and apply that knowledge to actions step that propel a business toward success and away from failure. Here are some important elements of a successful business to consider.

  • Develop a plan. You can get where you are going much faster if you have a road map. Developing a plan for your business that includes a vision, objectives, and critical success factors creates a road map. Evaluating potential problems and challenges before they happen often eliminates crisis. Reviewing financial, equipment, and employee needs creates preparation. Developing a marketing, advertising, and customer growth plan ensures focusing on the right activities. Develop a plan and revisit it frequently.
  • Execution is key. Developing a plan is the first step to executing your plan. Daily action steps are what make it come to fruition. Do you and your team members know what they need to do, focus on, and accomplish in order to make the business goals a reality? Frequent and consistent communication with your team will help ensure that everyone is working towards the right outcomes.
  • Know your customers. Who are your customers and why do they buy from you? What makes your product or service different or better? Creating and growing a loyal customer base is the key to business sustainability. If asked, customers will tell you exactly what they need. Ask frequently and listen intently. As the world changes so do customers requirements of your product or service.
  • Evaluate competition. Who is your competition and how do you compare? Competitive research is well worth the time and effort. Know what your business is up against. Understand competitor’s products and services and how potential customers compare those products or services to your company. This knowledge is vital as it allows you to make well-informed advertising and marketing decisions.
  • Be able to adapt. Business environments and customers change. The ability to adapt to the ever-changing face of business is just as important as planning. Your plan provides the road map but every once in awhile there will be obstacles located in the middle of the road and a course correction will be necessary. Being able to adapt quickly will allow the course correction to be as seamless as possible.
  • Maintain focus. Know where you going and what you want to achieve at all times. Distractions can mean death to a business. It becomes very easy to lose sight of the big picture when a distraction presents itself. Again, count on your plan to provide the road map and make goal-oriented decisions. Distractions have a bad habit to allowing us to race down blind alleys and take our eyes off of the real objectives.

Creating a successful and sustainable business is not always easy; however, the rewards often out weigh the challenges. Put yourself in a position to win at business by giving yourself all the advantages listed above and the results you desire will follow!

Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses and individuals achieve high levels of excellence and success. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.

Tags: , , , , , , , , , , ,
Posted in Business Management, Sustainability | No Comments »