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MicroAgility Institute for Business Agility




        Sustainability: A Strategic and Tactical Approach to
               Succeed in the Interdependent World




© MicroAgility, Inc. and/or its Affiliates. All Rights Reserved, but you may distribute this publication in its original form only.
The information contained herein has been obtained from sources believed to be reliable. MicroAgility disclaims all
warranties as to the accuracy, completeness or adequacy of such information. MicroAgility shall have no liability for errors,
omissions or inadequacies in the information contained herein or for interpretation thereof. The opinions expressed herein
are subject to change without notice.
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World


                                                      1 Introduction

            Table of Contents
1 Introduction                                        “The science is beyond dispute… Delay is no longer an option. Denial
2 What is Sustainability?                                   is no longer an acceptable response.” President Obama
3 Why is Sustainability Important?                    Over 60% of companies rate Green in their Top 5 priorities in a recent
4 What Does It Mean for Business
                                                      survey by MicroAgility.
  Strategy?
5 Holistic Approach to Achieving                      The awareness of “Green” or “Sustainability” issues has led to a
  Sustainability                                      fundamental shift in addressing environmental and social issues.
6 Conclusion                                          Businesses are responding to this shift not only for environmental and
                                                      social reasons but also for a very good economic reason: customers
                                                      are demanding the shift. According to Deloitte, a survey shows that
                                                      Green is becoming a “tiebreaker” in shopping decisions.
                                                      At the surface level, Green means environmentally friendly, i.e. placing
                                                      less burden on our declining natural resources. It is often a "less bad"
                                                      activity, whereby fewer toxins are released, less energy is consumed,
                                                      and/or waste is reduced. Certainly, Green is good for increasing sales,
                                                      attracting investors, and placating regulators. However, many Green
                                                      activities are low-hanging fruit, easily copied by competitors and
                                                      commoditized by the market.
                                                      The thrust to become Green may overlook social issues that can smear
                                                      brands and cut earnings. Imagine opening the newspaper one day and
                                                      learning that your organic cotton clothing was stitched together by a 12-
                                                      year-old girl in a sweatshop in a remote village of Sri Lanka.
                                                      Therefore, Sustainability is far more encompassing than Green. Green
                                                      initiatives are a subset of a Sustainability program.
                                                      This paper includes a definition of Sustainability and its benefits,
                                                      followed by what it means for business strategy and a very holistic
                                                      approach to achieve Sustainability.

                                                      2 What is Sustainability?
         Sustainability means using                   Sustainability, in general terms, is the ability to maintain balance of a
      resources to support the current                certain process or state in any system. It is now most frequently used
      mission without compromising the                in connection with biological and human systems. For humans to live
         ability to accomplish future                 sustainably, the Earth’s resources must be used at a rate at which they
                   missions.                          can be replenished. However, there is now clear scientific evidence
                                                      that humanity is living unsustainably, and that an unprecedented
                                                      collective effort is needed to return human use of natural resources to
                                                      within sustainable limits.[1][2]
                                                      Over the last two decades, the idea of human sustainability has
                                                      become increasingly associated with the integration of economic, social
                                                      and environmental spheres. In 1989, the World Commission on
                                                      Environment and Development (Brundtland Commission) articulated
                                                      what later became a widely accepted definition of sustainability: “the
                                                      needs of the present without compromising the ability of future
                                                      generations to meet their own needs.”[3]
                                                      The dimensions of sustainability are often taken to be: environmental,
    Scheme of interaction of the three "pillars" of
                             [6]
                                                      social and economic, known as the “three pillars.”[4] These can be
    sustainable development                           depicted as three overlapping circles (or ellipses), to show that they are
                                                      not mutually exclusive and can be mutually reinforcing.[5] While this




© MicroAgility, Inc. All rights reserved.                                                                          Page 2 of 8
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World

                                              model initially improved the standing of environmental concerns,[7] it
                                              has since been criticized for not adequately showing that societies and
                                              economies are fundamentally reliant on the natural world. According to
                                              English environmentalist and author Jonathon Porritt, “The economy is,
                                              in the first instance, a subsystem of human society ... which is itself, in
                                              the second instance, a subsystem of the totality of life on Earth (the
                                              biosphere). And no subsystem can expand beyond the capacity of the
                 Economy                      total system of which it is a part.”[8]

                  Society                     For this reason a second diagram shows economy as a component of
                                              society, both bounded by, and dependent upon, the environment.
               Environment                    The Earth Charter goes beyond defining what sustainability is, and
                                              seeks to establish the values and direction needed to achieve it: “We
Another representation showing economy
                                        [9]
                                              must join together to bring forth a sustainable global society founded on
and society bounded by the environment.       respect for nature, universal human rights, economic justice, and a
                                              culture of peace. Towards this end, it is imperative that we, the people
                                              of Earth, declare our responsibility to one another, to the greater
                                              community of life, and to future generations.”[10]

                                              3 Why is Sustainability Important?
                                              Many businesses have launched Green initiatives and some have
                                              launched Sustainability initiatives too; however, few businesses have
                                              truly mastered the art of implementing a Sustainability program and
                                              therefore have been unable to reap the benefits of Sustainability. Here
                                              are some of the benefits to implementing a Sustainability program.
                                                   Leads to Innovation
                                              An effective Sustainability program should lead to innovation resulting
                                              not only in operational efficiencies but also in new products and
                                              services that delight customers.
                                                   Purchase, Loyalty, and Influence
                                              Stakeholders have high expectations with regard to corporate
                                              sustainability, according to the Natural Marketing Institute’s 2007
                                              LOHAS Consumer Trends Database. Nearly 80% of America agrees
                                              that “it is important for companies not just to be profitable, but to be
                                              mindful of their impact on the environment and society.” This equates
                                              to 168 million adults who expect more than just profitability from
                                              companies, according to the Natural Marketing Institute. Knowing that
                                              a company is wary of that impact translates into a variety of consumer
                                              behaviors, and makes the benefits of Sustainability tangible.[11]




© MicroAgility, Inc. All rights reserved.                                                                   Page 3 of 8
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World

                                                 Creates Barriers to Entries
                                            By implementing a Sustainability program, an organization can have
                                            first-mover advantages and can create obstacles in the path of other
                                            firms that may want to enter into a given market.
                                                 Simply Good For the Business
                                            Sustainability addresses not only social and environmental issues but
                                            also economic issues that lie at the core of any company when
                                            everything is interconnected in today’s global economy. Perhaps it’s
                                            the only viable strategic and tactical option to succeed while addressing
                                            the complexity, volatility and ever-broadening spectrum of risk when
                                            operating within global markets, relying on global energy supplies, and
                                            depending on global supply chains.

                                            4 What Does it Mean for Business Strategy?

                                            A Green business strategy alone may not hold up as a long-term
                                            sustainable business strategy.     A sustainable business strategy
                                            requires a level of systems thinking and should include a very wide
                                            range of Green activities.

                                            It will incorporate innovative business models that open new markets
                                            and generate new revenue. And it will actively seek out innovative
                                            technologies, products and services that not only lower costs, liability
                                            and regulatory pressure, but that also shift business models and alter
                                            the competitive landscape.

                                            Businesses also need to integrate sustainability and risk management
                                            fully into their strategy – not only to minimize potential losses but also
                                            to exploit new business opportunities arising from the sustainability
                                            agenda.

                                            Despite these many benefits of Sustainability, few businesses have
                                            been agile enough to reap them. To successfully implement a
                                            Sustainability program and reap its benefits, business must adopt a
                                            holistic approach.

                                            5 Holistic Approach to Achieving Sustainability
 Implementation Approach
                                            To help you succeed, we have prepared this comprehensive approach
   Customer Needs
   Management Commitment                    using the following eight principles.
   Fact-Based Decisions
   Process is the Engine                    5.1 Emphasize Customer Needs
   Collaboration
                                                                   Businesses often write mission statements
   Manage Risks
   Agility
                                                                   promising to “meet or exceed customer
   Innovation                                                      expectations and requirements,” yet they fail to
                                                                   understand their customers’ expectations or
                                                                   even their requirements.
                                            A Sustainable or Green product alone is not the solution. To
                                            successfully implement a Sustainability program, a business must
                                            understand its customers’ needs, meet those needs, and exceed
                                            customer expectations.   Measuring performance begins with the
                                            customer, and improvements are defined by the impact on customer




© MicroAgility, Inc. All rights reserved.                                                                Page 4 of 8
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World

                                            delight and by eventually increasing the stakeholders’ value. For
                                            example, by simply providing Green products to customers, a business
                                            might be reacting to customers’ environmental or social concerns.
                                            However, if the Green products also cost less or provide additional
                                            features, the customers will be delighted. So, it’s critical that when
                                            designing Green products, businesses need to translate Green into
                                            features that offer customers value and delight them.

                                            5.2 Seek Senior Management Commitment
                                                                   Businesses rely on senior management. No
                                                                   program can be implemented without their
                                                                   support, and Sustainability implementation can
                                                                   be particularly messy, frustrating, and difficult. It
                                                                   can raise concerns due to a lack of short-term
                                                                   gains, cross-functional cooperation, and clear
                                            objectives. Therefore, senior management must establish a unity of
                                            purpose, believe in the benefits of Sustainability, set the direction for its
                                            successful implementation, and create an environment that encourages
                                            people to achieve this objective.

                                            5.3 Make Decisions Based on Facts
                                                                   While many business decisions are based on
                                                                   intuition and assumptions, businesses perform
                                                                   better when their decisions are based on facts.
                                                                   Therefore, businesses should start the
                                                                   Sustainability initiative after carefully conducting
                                                                   a Market and Competitive Analysis and defining
                                            the Sustainability program based on facts specific to their businesses.

                                            5.4 Process is the Engine of Success
                                                                   Process can be the engine of success in
                                                                   designing new products and services, measuring
                                                                   performance, improving efficiency and customer
                                                                   satisfaction, or even operating the business with
                                                                   the new Sustainability program. Mastering
                                                                   processes is not just essential but are also a way
                                            to build competitive advantage.
                                            Businesses should also analyze and design the process to integrate
                                            Sustainability into other processes including Market Research, R&D
                                            Customer Service, Supply Chain, and so on.

                                            5.5 Strive for Collaboration
                                                                  Before a Sustainability program can be
                                                                  successfully     implemented       and     provide
                                                                  measurable results for customers and other
                                                                  stakeholders, businesses must strive to
                                                                  collaborate internally across functions and
                                                                  externally with their partners, vendors, and other
                                            stakeholders for successful implementation.
                                            People are more willing to collaborate once they learn how their roles fit
                                            into the “big picture” and can recognize and measure the
                                            interdependence of activities in all parts of a process. To encourage
                                            this behavior, people should also be recognized and rewarded not only




© MicroAgility, Inc. All rights reserved.                                                                   Page 5 of 8
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World

                                            for the success of their roles and activities but also for how well they
                                            understand the big picture and collaborate with others for the overall
                                            success of the organization.

                                            5.6 Manage Risks
                                                                   Businesses need to understand any risks in
                                                                   implementing a Sustainability program and must
                                                                   use a structured approach in managing
                                                                   uncertainty through risk assessment, developing
                                                                   strategies to manage it, and mitigation of risk
                                                                   using managerial resources.
                                            The objective of risk management should be to reduce different risks
                                            related to a Sustainability program to the level accepted by the
                                            organization. It should include numerous types of threats caused by
                                            environment, technology, humans, businesses, and politics.
                                            The risk associated with the introduction of a new Sustainability
                                            program can be reduced by the inclusion of external views at an earlier
                                            point in the development process.

                                            5.7 Strive for Agility
                                                                    Businesses must strive to adopt agility and
                                                                    consider lightweight business models. To me, an
                                                                    agile organization is nimble enough to adapt to
                                                                    changing conditions to improve itself: it can do
                                                                    anything it wants whenever it wants. Often
                                                                    efforts fail not because the Sustainability strategy
                                            is flawed, but because of lack of focus on agility.
                                            As a result of improved agility, businesses not only have enormous
                                            potential to allow more rapid and much less expensive implementation
                                            of Sustainability, but also the consequent ability to get the solutions
                                            with the right features in the right place at the right time.

                                            5.8 Strive for Innovation
                                                                   Peter Drucker is right when he says, “Managers
                                                                   must convert society’s needs into opportunities
                                                                   for profitable business. That too is a definition of
                                                                   innovation.” Sustainability offers enormous
                                                                   opportunities for innovation and creativity.
                                                                   Integrating Sustainability thinking into R&D will
                                            help educate those developing new products to incorporate
                                            Sustainability and will force them to think “outside the box” for
                                            innovative designs and solutions that are not only economical but also
                                            environmentally friendly.

                                            This approach drives partnerships across organizational groups in
                                            order to set and achieve common business objectives. As a result,
                                            your organization will shift to a new paradigm to achieve Sustainability
                                            and delight your customers.




© MicroAgility, Inc. All rights reserved.                                                                  Page 6 of 8
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World




                                            6 Conclusion
                                            A Sustainability program improves the environment, enhances society,
                                            and is good for the economy and the well-being of business in the long
                                            run. Businesses that master the art of Sustainability will successfully
                                            delight their clients and increase the value for their stakeholders.
                                            The implementation approach we have suggested should help you to
                                            add simplicity, sense, and speed to the process, allowing you to exploit
                                            the first-mover advantages momentarily available.
                                            Together, we will make a difference.




                                            About MicroAgility:

                                            MicroAgility, Inc. is an award winning boutique management
                                            consultancy. To learn more about MicroAgility, please visit us at
                                            www.microagility.com. Based on the principles discussed above, we
                                            have also developed a framework for the implementation of
                                            Sustainability programs. The framework includes easy-to-follow steps,
                                            templates, and checklists.

                                                      Sajid Khan is the President of MicroAgility and is responsible
                                                      for MicroAgility’s strategy and vision, major client
                                                      relationships, and leading key engagements. Sajid can be
                                                      reached at skhan@microagility.com.




© MicroAgility, Inc. All rights reserved.                                                              Page 7 of 8
Sustainability: A Long-Term Strategy to Succeed in the Interdependent World


        References
        1) Gismondi, M. (2000). Interview of Dr. William Rees. Aurora Online.
        2) Millennium Ecosystem Assessment (2005). Ecosystems and Human Well-being: Biodiversity
           Synthesis. Summary for Decision-makers. pp.1-16. Washington, DC.: World Resources Institute.
           The full range of reports is available on the Millennium Ecosystem Assessment website.
        3) International Institute for Sustainable Development (2009). "What is Sustainable Development?"
        4) United Nations General Assembly (24 October, 2005). 2005 World Summit Outcome, Resolution
           A/60/1, adopted by the General Assembly on 15 September 2005.
        5) Forestry Commission of Great Britain. Sustainability.
        6) Adams, W.M. (22 May 2006). "The Future of Sustainability: Re-thinking Environment and
           Development in the Twenty-first Century." Report of the IUCN Renowned Thinkers Meeting, 29-31
           January, 2006.
        7) Ott, K. and P. Thapa (2003) Greifswald's Environmental Ethics Steinbeckerverlag Rose.
        8) Porritt, J. (2006). Capitalism as if the world mattered. London: Earthscan, p.46 8).
        9) Ott, K. (2003). "The Case for Strong Sustainability." In: Ott, K. & P. Thapa (eds.)
           (2003).Greifswald’s Environmental Ethics. Greifswald: Steinbecker Verlag Ulrich Rose.
        10) The Earth Charter Initiative (October 4, 2000). "The Earth Charter."
        11) (2008). “The Benefits Of Sustainability: Purchase, Loyalty, And Influence.”
           <http://www.environmentalleader.com/2008/01/22/the-benefits-of-sustainability-purchase-loyalty-
           and-influence/>.




© MicroAgility, Inc. All rights reserved.                                                           Page 8 of 8

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Sustainability

  • 1. MicroAgility Institute for Business Agility Sustainability: A Strategic and Tactical Approach to Succeed in the Interdependent World © MicroAgility, Inc. and/or its Affiliates. All Rights Reserved, but you may distribute this publication in its original form only. The information contained herein has been obtained from sources believed to be reliable. MicroAgility disclaims all warranties as to the accuracy, completeness or adequacy of such information. MicroAgility shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretation thereof. The opinions expressed herein are subject to change without notice.
  • 2. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World 1 Introduction Table of Contents 1 Introduction “The science is beyond dispute… Delay is no longer an option. Denial 2 What is Sustainability? is no longer an acceptable response.” President Obama 3 Why is Sustainability Important? Over 60% of companies rate Green in their Top 5 priorities in a recent 4 What Does It Mean for Business survey by MicroAgility. Strategy? 5 Holistic Approach to Achieving The awareness of “Green” or “Sustainability” issues has led to a Sustainability fundamental shift in addressing environmental and social issues. 6 Conclusion Businesses are responding to this shift not only for environmental and social reasons but also for a very good economic reason: customers are demanding the shift. According to Deloitte, a survey shows that Green is becoming a “tiebreaker” in shopping decisions. At the surface level, Green means environmentally friendly, i.e. placing less burden on our declining natural resources. It is often a "less bad" activity, whereby fewer toxins are released, less energy is consumed, and/or waste is reduced. Certainly, Green is good for increasing sales, attracting investors, and placating regulators. However, many Green activities are low-hanging fruit, easily copied by competitors and commoditized by the market. The thrust to become Green may overlook social issues that can smear brands and cut earnings. Imagine opening the newspaper one day and learning that your organic cotton clothing was stitched together by a 12- year-old girl in a sweatshop in a remote village of Sri Lanka. Therefore, Sustainability is far more encompassing than Green. Green initiatives are a subset of a Sustainability program. This paper includes a definition of Sustainability and its benefits, followed by what it means for business strategy and a very holistic approach to achieve Sustainability. 2 What is Sustainability? Sustainability means using Sustainability, in general terms, is the ability to maintain balance of a resources to support the current certain process or state in any system. It is now most frequently used mission without compromising the in connection with biological and human systems. For humans to live ability to accomplish future sustainably, the Earth’s resources must be used at a rate at which they missions. can be replenished. However, there is now clear scientific evidence that humanity is living unsustainably, and that an unprecedented collective effort is needed to return human use of natural resources to within sustainable limits.[1][2] Over the last two decades, the idea of human sustainability has become increasingly associated with the integration of economic, social and environmental spheres. In 1989, the World Commission on Environment and Development (Brundtland Commission) articulated what later became a widely accepted definition of sustainability: “the needs of the present without compromising the ability of future generations to meet their own needs.”[3] The dimensions of sustainability are often taken to be: environmental, Scheme of interaction of the three "pillars" of [6] social and economic, known as the “three pillars.”[4] These can be sustainable development depicted as three overlapping circles (or ellipses), to show that they are not mutually exclusive and can be mutually reinforcing.[5] While this © MicroAgility, Inc. All rights reserved. Page 2 of 8
  • 3. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World model initially improved the standing of environmental concerns,[7] it has since been criticized for not adequately showing that societies and economies are fundamentally reliant on the natural world. According to English environmentalist and author Jonathon Porritt, “The economy is, in the first instance, a subsystem of human society ... which is itself, in the second instance, a subsystem of the totality of life on Earth (the biosphere). And no subsystem can expand beyond the capacity of the Economy total system of which it is a part.”[8] Society For this reason a second diagram shows economy as a component of society, both bounded by, and dependent upon, the environment. Environment The Earth Charter goes beyond defining what sustainability is, and seeks to establish the values and direction needed to achieve it: “We Another representation showing economy [9] must join together to bring forth a sustainable global society founded on and society bounded by the environment. respect for nature, universal human rights, economic justice, and a culture of peace. Towards this end, it is imperative that we, the people of Earth, declare our responsibility to one another, to the greater community of life, and to future generations.”[10] 3 Why is Sustainability Important? Many businesses have launched Green initiatives and some have launched Sustainability initiatives too; however, few businesses have truly mastered the art of implementing a Sustainability program and therefore have been unable to reap the benefits of Sustainability. Here are some of the benefits to implementing a Sustainability program. Leads to Innovation An effective Sustainability program should lead to innovation resulting not only in operational efficiencies but also in new products and services that delight customers. Purchase, Loyalty, and Influence Stakeholders have high expectations with regard to corporate sustainability, according to the Natural Marketing Institute’s 2007 LOHAS Consumer Trends Database. Nearly 80% of America agrees that “it is important for companies not just to be profitable, but to be mindful of their impact on the environment and society.” This equates to 168 million adults who expect more than just profitability from companies, according to the Natural Marketing Institute. Knowing that a company is wary of that impact translates into a variety of consumer behaviors, and makes the benefits of Sustainability tangible.[11] © MicroAgility, Inc. All rights reserved. Page 3 of 8
  • 4. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World Creates Barriers to Entries By implementing a Sustainability program, an organization can have first-mover advantages and can create obstacles in the path of other firms that may want to enter into a given market. Simply Good For the Business Sustainability addresses not only social and environmental issues but also economic issues that lie at the core of any company when everything is interconnected in today’s global economy. Perhaps it’s the only viable strategic and tactical option to succeed while addressing the complexity, volatility and ever-broadening spectrum of risk when operating within global markets, relying on global energy supplies, and depending on global supply chains. 4 What Does it Mean for Business Strategy? A Green business strategy alone may not hold up as a long-term sustainable business strategy. A sustainable business strategy requires a level of systems thinking and should include a very wide range of Green activities. It will incorporate innovative business models that open new markets and generate new revenue. And it will actively seek out innovative technologies, products and services that not only lower costs, liability and regulatory pressure, but that also shift business models and alter the competitive landscape. Businesses also need to integrate sustainability and risk management fully into their strategy – not only to minimize potential losses but also to exploit new business opportunities arising from the sustainability agenda. Despite these many benefits of Sustainability, few businesses have been agile enough to reap them. To successfully implement a Sustainability program and reap its benefits, business must adopt a holistic approach. 5 Holistic Approach to Achieving Sustainability Implementation Approach To help you succeed, we have prepared this comprehensive approach Customer Needs Management Commitment using the following eight principles. Fact-Based Decisions Process is the Engine 5.1 Emphasize Customer Needs Collaboration Businesses often write mission statements Manage Risks Agility promising to “meet or exceed customer Innovation expectations and requirements,” yet they fail to understand their customers’ expectations or even their requirements. A Sustainable or Green product alone is not the solution. To successfully implement a Sustainability program, a business must understand its customers’ needs, meet those needs, and exceed customer expectations. Measuring performance begins with the customer, and improvements are defined by the impact on customer © MicroAgility, Inc. All rights reserved. Page 4 of 8
  • 5. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World delight and by eventually increasing the stakeholders’ value. For example, by simply providing Green products to customers, a business might be reacting to customers’ environmental or social concerns. However, if the Green products also cost less or provide additional features, the customers will be delighted. So, it’s critical that when designing Green products, businesses need to translate Green into features that offer customers value and delight them. 5.2 Seek Senior Management Commitment Businesses rely on senior management. No program can be implemented without their support, and Sustainability implementation can be particularly messy, frustrating, and difficult. It can raise concerns due to a lack of short-term gains, cross-functional cooperation, and clear objectives. Therefore, senior management must establish a unity of purpose, believe in the benefits of Sustainability, set the direction for its successful implementation, and create an environment that encourages people to achieve this objective. 5.3 Make Decisions Based on Facts While many business decisions are based on intuition and assumptions, businesses perform better when their decisions are based on facts. Therefore, businesses should start the Sustainability initiative after carefully conducting a Market and Competitive Analysis and defining the Sustainability program based on facts specific to their businesses. 5.4 Process is the Engine of Success Process can be the engine of success in designing new products and services, measuring performance, improving efficiency and customer satisfaction, or even operating the business with the new Sustainability program. Mastering processes is not just essential but are also a way to build competitive advantage. Businesses should also analyze and design the process to integrate Sustainability into other processes including Market Research, R&D Customer Service, Supply Chain, and so on. 5.5 Strive for Collaboration Before a Sustainability program can be successfully implemented and provide measurable results for customers and other stakeholders, businesses must strive to collaborate internally across functions and externally with their partners, vendors, and other stakeholders for successful implementation. People are more willing to collaborate once they learn how their roles fit into the “big picture” and can recognize and measure the interdependence of activities in all parts of a process. To encourage this behavior, people should also be recognized and rewarded not only © MicroAgility, Inc. All rights reserved. Page 5 of 8
  • 6. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World for the success of their roles and activities but also for how well they understand the big picture and collaborate with others for the overall success of the organization. 5.6 Manage Risks Businesses need to understand any risks in implementing a Sustainability program and must use a structured approach in managing uncertainty through risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. The objective of risk management should be to reduce different risks related to a Sustainability program to the level accepted by the organization. It should include numerous types of threats caused by environment, technology, humans, businesses, and politics. The risk associated with the introduction of a new Sustainability program can be reduced by the inclusion of external views at an earlier point in the development process. 5.7 Strive for Agility Businesses must strive to adopt agility and consider lightweight business models. To me, an agile organization is nimble enough to adapt to changing conditions to improve itself: it can do anything it wants whenever it wants. Often efforts fail not because the Sustainability strategy is flawed, but because of lack of focus on agility. As a result of improved agility, businesses not only have enormous potential to allow more rapid and much less expensive implementation of Sustainability, but also the consequent ability to get the solutions with the right features in the right place at the right time. 5.8 Strive for Innovation Peter Drucker is right when he says, “Managers must convert society’s needs into opportunities for profitable business. That too is a definition of innovation.” Sustainability offers enormous opportunities for innovation and creativity. Integrating Sustainability thinking into R&D will help educate those developing new products to incorporate Sustainability and will force them to think “outside the box” for innovative designs and solutions that are not only economical but also environmentally friendly. This approach drives partnerships across organizational groups in order to set and achieve common business objectives. As a result, your organization will shift to a new paradigm to achieve Sustainability and delight your customers. © MicroAgility, Inc. All rights reserved. Page 6 of 8
  • 7. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World 6 Conclusion A Sustainability program improves the environment, enhances society, and is good for the economy and the well-being of business in the long run. Businesses that master the art of Sustainability will successfully delight their clients and increase the value for their stakeholders. The implementation approach we have suggested should help you to add simplicity, sense, and speed to the process, allowing you to exploit the first-mover advantages momentarily available. Together, we will make a difference. About MicroAgility: MicroAgility, Inc. is an award winning boutique management consultancy. To learn more about MicroAgility, please visit us at www.microagility.com. Based on the principles discussed above, we have also developed a framework for the implementation of Sustainability programs. The framework includes easy-to-follow steps, templates, and checklists. Sajid Khan is the President of MicroAgility and is responsible for MicroAgility’s strategy and vision, major client relationships, and leading key engagements. Sajid can be reached at skhan@microagility.com. © MicroAgility, Inc. All rights reserved. Page 7 of 8
  • 8. Sustainability: A Long-Term Strategy to Succeed in the Interdependent World References 1) Gismondi, M. (2000). Interview of Dr. William Rees. Aurora Online. 2) Millennium Ecosystem Assessment (2005). Ecosystems and Human Well-being: Biodiversity Synthesis. Summary for Decision-makers. pp.1-16. Washington, DC.: World Resources Institute. The full range of reports is available on the Millennium Ecosystem Assessment website. 3) International Institute for Sustainable Development (2009). "What is Sustainable Development?" 4) United Nations General Assembly (24 October, 2005). 2005 World Summit Outcome, Resolution A/60/1, adopted by the General Assembly on 15 September 2005. 5) Forestry Commission of Great Britain. Sustainability. 6) Adams, W.M. (22 May 2006). "The Future of Sustainability: Re-thinking Environment and Development in the Twenty-first Century." Report of the IUCN Renowned Thinkers Meeting, 29-31 January, 2006. 7) Ott, K. and P. Thapa (2003) Greifswald's Environmental Ethics Steinbeckerverlag Rose. 8) Porritt, J. (2006). Capitalism as if the world mattered. London: Earthscan, p.46 8). 9) Ott, K. (2003). "The Case for Strong Sustainability." In: Ott, K. & P. Thapa (eds.) (2003).Greifswald’s Environmental Ethics. Greifswald: Steinbecker Verlag Ulrich Rose. 10) The Earth Charter Initiative (October 4, 2000). "The Earth Charter." 11) (2008). “The Benefits Of Sustainability: Purchase, Loyalty, And Influence.” <http://www.environmentalleader.com/2008/01/22/the-benefits-of-sustainability-purchase-loyalty- and-influence/>. © MicroAgility, Inc. All rights reserved. Page 8 of 8