Business Strategy and Global Sustainability Issues MIM 511/BA 548 Winter 2010 Scott Marshall.

Business Strategy and Global Sustainability

Issues

MIM 511/BA 548 Winter 2010Scott Marshall

Sustainability-based Strategic Theories and Frameworks “Coevolutionary theory argues that the

concurrent operating of adaptation and selection explains the processes of [organizational] change and renewal.”

Flier, Van Den Bosch and Volberda (2003, 2164)

Competitive success depends on External situation analysis Strategic planning Core competency focus Innovation and Organizational Change Resource efficiency And, Luck!

Know what to adapt to…

Figure how to adapt…

Adapt based on strengths…

Change products, processes, systems, structures, etc.…

Do it well.…

So, hope for some luck along the way.…

Sustainability-based Strategic Theories and Frameworks Stakeholder Theory

Successful adaptation depends on being aware of and responding effectively to varied, often conflicting needs of multiple stakeholders.

Stakeholders include customers, shareholders, employees, regulators, suppliers, competitors, activists and advocacy groups, etc.

Employees

Banks

Shareholders

Social Activists

Customers

Local Government

IMPACT

LEGITIMACY PHILOSOPHY

Transformational Leadership Adopting MINDSET Creating VISION Implementing STRUCTURES, GOALS, POLICIES,

PROCEDURES Establishing INFORMATION & COMMUNICATION

SYSTEMS Setting up EMPLOYEE MOTIVATION &

LEARNING SYSTEMS

Sustainability-based Strategic Theories and Frameworks


Transformational Leadership Accomplished through…

Charisma and Inspiration Intellectual Stimulation Individual Consideration


Transformational Leadership Four Core Strengths

Self-Mastery. Often the greatest barrier to success in not others, not the environment, it is ourself.

The Transformational Mind-set. Action is supported by a set of beliefs or one has mindless impulses.

Influence. Mangers rely on authority, leaders rely on influence. Enough said.

Skills Development. Few know how to build a skill, so they waste countless hours in futile effort. One cannot build a skill by reading about it.

Strategic Frameworks

Environmental

Economic

Social

Strategic IssuesOperational Issues



BuildingStrengths andAmelioratingWeaknesses



Drivers:Disruption

Clean TechnologyFootprint

Drivers:Population

PovertyInequity

Drivers:Pollution

ConsumptionWaste

Sources of Creative Tension on Each

Axis


Drivers:Civil Society

TransparencyConnectivity

Shareholder ValueInternal External

Today

Tomorrow

Innovation & Repositioning

Growth Path & Trajectory

Cost & Risk Reduction

Reputation & Legitimacy

Minimize waste and

emissions from operations

Integrate stakeholders into business

processes

Develop new sustainable

competencies

Create shared roadmap for

meeting unmet needs

In a sustainable society, nature is not subject to systematically increasing:

1. concentrations of substances extracted from the earth's crust;

2. concentrations of substances produced by society; 3. degradation by physical means

and, in that society. . . 4. human needs are met worldwide.




Focus on company’s competencies Resources, Assets, Capabilities

Seek ways to enhance competitive advantage Long term investments

Reputation built on legitimate and actual practices Reputation to Brand to Revenue Linkage

Transparency and Innovation

Transparency

Product/Service Design

Mat

eria

l/Com

pone

nt

Sup

ply

& S

ourc

ing

Manufacturing &

Assem

bly

Distribution & Retail

Purch

ase

and

Consu

mpt

ion

Disposal, R

ecover

& R

eintegration

Leadership and Values

Employee Engagement

External Stakeholder Engagement

TransparencyMaterials Used in Products

TransparencyWhere and how materials

and components are made

TransparencyWhere and how products

are made

TransparencyHow products impact

consumers, in-use and when disposed

TransparencyCompany’s strategy,

practices, performance and impacts

Ecological and Social Label Systems Reduce ‘information asymmetry’ throughout

the value chain by revealing ‘credence attributes’

‘Credence Attributes’ – characteristics of processes and products that a buyer is not able to determine before purchase and during use.


Transparency

Process Certifications

ISO 9000 / ISO 14000


Transparency

Product Certifications


Transparency


Corporate Affiliations

Transparency


Innovation

Product/Service Design

Mat

eria

l/Com

pone

nt

Sup

ply

& S

ourc

ing

Manufacturing &

Assem

blyDistribution & Retail

Purch

ase

and

Consu

mpt

ion

Disposal, R

ecover

& R

eintegration

Leadership and Values

Employee Engagement

External Stakeholder Engagement

Innovation in Design(What it’s made of, how it’s

manufactured and sold, how it’s used and possibly

reused)

Innovation in Process(Where materials are

sourced, how their assembled, and

methods of disbribution)

Innovation in Use(The value desired/achieved,

who is seeking the value, and how they will realize this

value through use)


What is Innovation? Change that creates a new dimension of

performance. (Hesselbein, 2002)

A creative idea that is realized. (Frans Johansson, Harvard Business School Press,

2004)

Innovation

The more disruptive, the more

Stakeholders involved to make

viable


Disruptive

Incremental

Higher ViabilityLower Viability

Electric/PetroleumHybrid Vehicles

High OccupancyVehicle Lanes

Telecommuting

Disruptive – changing industry and business

models

Incremental – changing products and product

features

Low Viability – Limited mass

appeal and impact

High Viability – Significant mass appeal and impact

Fuel Cell Vehicles

Innovation

Business Strategy and Global Sustainability Issues MIM 511/BA 548 Winter 2010 Scott Marshall.

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