Kevin WilhelmSustainable Business Consulting@SBC_Consulting

Making Sustainability Stick Internally: Understanding Maturity Levels of a Sustainability Program, Getting Unstuck When Progress Stalls, and Turning Naysayers into Advocates

#SB16SD #ActivatingPurpose

Kevin HagenIron Mountain@KevinHagen

Making SustainabilityStick

Using the Hagen-Wilhelm Matrix To Affect Change

Kevin WilhelmCEO, Sustainable Business Consulting @KevinatSBC

Kevin HagenCSR Director, Iron Mountain @KevinHagen

What we are going to do today• Intros? Who are these guys?

• Into to the Hagen-Wilhelm Change Matrix

• 3 Main Secrets

• Small Group Activity 1 – Self Assessment and Discussion

• Break

• Case Studies, Lessons learned and the Scars to prove it

• Small Group Activity 2 – Rolling up our Sleeves

• Final Thoughts, Conclusion

Common Barriers to Change

Overworked

No perceived senior buy-in

Boss doesn’t appreciate additional time

Don’t know what to do

No budget

Don’t feel empoweredMiddle management

Change Management MethodsCollaborate Oriented

Facilitate group brainstorming sessions

Develop or improve the employeesuggestion and feedback system

Develop an online internalcollaboration platform

Create OrientedUse social media and crowd sourcingto generate new ideas faster

Create a training program tocultivate creative thinking

Empowered intrapreneurs

Control OrientedUnderstand relevant regulations and associated risk exposure

Analyze or audit existing processes andenvironmental impacts (e.g., life cycleanalysis)

Review existing policies for proceduralinefficiencies and opportunities forsustainability

Compete Oriented

Establish goals, objectives, and measuresbased on company vision and standards

Benchmark performance against initiatives of key competitors

Use competitive means for project ideageneration, such as a contest between individuals and teams

Fundamentals in Place

In order to incorporate sustainability into your corporate Change Management Initiative, you first need the six fundamentals.

1. Define Sustainability2. Business Case3. Stakeholder Engagement4. Baseline 5. Set Vision and Goals6. Management Support

Marks & Spenser PLAN A Stages

Via Mike Barry @PlanAMikeBarry

Hagen-Wilhelm MatrixDesigned to visually help a person or organization understand what the dominant characteristics and

drivers are in each stage of sustainability.

It will help you map out your Change

Mgmt Initiative and implementation

steps to be successful.

Type ofChange: Random Systemic

Phase I (Status Quo)

Phase II Phase III Phase IV

Growth & Value Creation

Environmental& Social Negatives

Radical Collaboration Systems view

Industrial Ecology

Hero(martyr)

PersonalInfluence

MetricsProcess

Eco-Efficiency

StructuralCollaborative

Game changing

IndividualTeam/

DepartmentDivision/ Function

Company BusinessSystem

Costs more Investments/ROI Top LineFinancialDrivers:

DominantCharacteristics:

Who:

Environmental& Social Benefits

Phase V

Value creation

Fundamentals Engagement and Value Creation

BreakthroughIncremental

3 secrets to success

There’s Another Step

What got you here won’t get you there;

It will probably stop you

You have to learn

what you have to learn when you have to learn it

Decision Management

All have different drivers, communication styles, and funding mechanisms.

Each Sustainability opportunity may be one of 3 things:

Strategic (Executives)

Tactical (Directors / Division Heads)

Operational (Managers)

The Five Phases of the Hagen-Wilhelm Matrix

Type ofChange: Random Systemic

Phase I (Status Quo)

Phase II Phase III Phase IV

Growth & Value Creation

Environmental& Social Negatives

Radical Collaboration Systems view

Industrial Ecology

Hero(martyr)

PersonalInfluence

MetricsProcess

Eco-Efficiency

StructuralCollaborative

Game changing

IndividualTeam/

DepartmentDivision/ Function

Company BusinessSystem

Costs more Investments/ROI Top LineFinancialDrivers:

DominantCharacteristics:

Who:

Environmental& Social Benefits

Phase V

Value creation

Fundamentals Engagement and Value Creation

BreakthroughIncremental

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Doing business as usual.

Doing less bad instead of doing good.

Focusing on cost mitigation and bottom line results.

Beginning to focus on top line.

Shifting and delivering new solutions.

Challenging the business model and value proposition of company’s products, services.

Using industrial ecology.

Offering regenerative products and services.

Changing the world!

Prevailing Mindsets

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

A maverick challenges the norm or current mindset.

Employees operate within the company norms.

Trying to get sustainability done where they can.

Rules begin to get tested.

Employees encouraged to make positive changes in their role.

Rules are being broken.

Employees become more engaged.

Leaders make room for innovation.

Sustainability and innovation become the new rule.

Rules

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Only raw data (utility bills, etc).

Not organized.

Asking about social and environmental data.

Gathering and tracking social and environmental data.

Matching costs and savings.

Developing systems beyond Excel (includes metrics and KPIs).

Looking at ROI and cost savings info.

Integrating sustainability into ERP systems.

Doing future forecasting and planning.

Using data in management and long-term planning.

Data

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

HR is not involved with green team.

Employees have no pride of being in their organization.

Rewarding positive actions.

Hiring CSR/sustainability directors.

HR is formally involved with CSR/sustainability department.

Starting to hire sustainability experts in all departments.

Incorporating sustainability in compensation, job description, and evaluation.

“Gaming” issue arises.

Sustainability becomes fully embedded in HR.

“Gaming” concern is resolved.

Human Resources

Activity 1 – Self Assessment1) Share with the people around you the visual.

2) Then take 5-10 minutes to self assess where you are in EACH category. You will likely be in different phases across categories.

After the Assessment What did you find? What surprised you? Were you better or worse? This is a good check, to balance against other leaders in the room. Also a way to assess others (if benchmarking or if a consultant) What do you do when between two phases (2.5?)

Understanding the Table• Company does not move in lock step- there will

always be folks ahead/behind the curve

• Each phase has valuable learnings necessary for success both in the ST and LT

• You don’t check a box and move between phases- it requires both cultural and operational shifts

• Expect small dips in productivity between each phase

• Tensions arise when you get to that trade-off conversation in Phase 3. This is okay, that’s when innovation & rule breaking occurs

• Start working with NGOs and industry partners early. You will need these relationships later

• WARNING: The dominant behaviors of the leader that are needed for success in one phase are derailers in the next

The Four Hagen-Wilhelm Matrix Questions

• What did you measure?

• How did you share it?

• What did you learn?

• What changed?

Activity 2 – Rolling up your sleeves1) Now flip over your worksheet, and begin working on your action plan for

each category

Specifically:

Now that you know which phase you are in for each category, what are you going to do?

Identify 2 specific actions in each category.

Determine who you need to talk to. Who are the decision makers?

Who’s support do you need? What resources?

Now choose the top 3 things you are going to do to move the needle !

Tailor your messagePerson/Department Explain How Sustainability Will:

Accounting and Finance Save and make the company money

Facilities Make operations more efficient and save resources and costs

Fleets Answer SRI/CDP investor questions, shareholder resolutions

Office Manager Make the office more efficient

Travel Coordinator Reduce business travel and costs

CEO Improve her or his own legacy and peer reputation

PR and Marketing Create brand value and positive press

Sales and Business Development Generate new leads, products, and sales opportunities

CSR and Green Team Become corporate culture

Logistics Improve efficiency

Human Resources Attract better talent and improve retention

Supply Chain Lead to a better understanding of opportunities in value chain

Legal and Issuance Reduce risk and improve resiliency

Think through your organization where you have a skeptic or a personal who doesn’t understand

Extroverts:• Enjoy generating energy and ideas from other people

and prefer socializing and working in groups.• Learn from teaching others how to solve a problem,

appreciate collaborative work, and employ problem-based learning.

• Enjoy working with others in groups and learn best through direct experience.

• Willing to lead, participate, and offer opinions regardless of experience.

• Jump right in without guidance from others.

And Don’t Forget Learning Styles

• Prefer to solve problems on their own and work alone.

• Enjoy generating energy and ideas from internal sources, such as brainstorming and personal reflection.

• Listen, watch, and reflect. They enjoy quiet, solitary work.

• Like to think about things and choose to observe others before attempting a new skill.

• Prefer to read materials beforehand so that they have time to process and reflect on discussion points.

Learning StylesIntroverts:

Conclusion

Making it Personal and Engaging all Learning Styles

Foundations and methods for “doing” change

Obstacles to expect around change management

Hagen-Wilhelm Matrix for sustainable change

Lessons Learned

Feel Free to Contact Us

Kevin WilhelmKevin@sustainablebizconsulting.com

@KevinatSBC

Kevin HagenKevin.hagen@ironmountain.com

@KevinHagen

THANK YOU!

#SB16SD #ActivatingPurpose

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