building the business case for csr & sustainability engagement webinar
TRANSCRIPT
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Building the Business Case for
Sustainability & CSR Engagement
Mark Bissell – VP, Customer Success
Daniel Aronson – Researcher & Consultant
Dec 10, 2014
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Presenters
Mark BissellVice President,
Customer Success
WeSpire
Daniel AronsonSustainability Consultant
& Founder
Valutus
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About WeSpire
Cloud-based environmental,
social, and business impact
through:
• Behavior Science
Foundation
• Social & Game Mechanics
• People-Centric Design
• Customized Content
• Active Learning
Empowering employees to impact positive business outcomes.
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A Holistic Platform for Engagement
• Zero Waste
• Water Conservation
• Energy Efficiency
• Health
• Custom
Sustainability Projects
CSR Projects
• Social Responsibility
• Citizenship
• Volunteering
App-based model for creating employee engagement programs.
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About Valutus
Valutus provides consulting and tools to help organizations realize more
value—for their business and for the world—from their sustainability and
responsibility efforts.
Valutus does this through helping:
• Uncovering submerged value to make visible the full benefit of
sustainability & responsibility (3x-10x as much as previously believed)
• Creating tools that reduce the time required to do things like set
targets by 95% or more
• Helping communicate benefits to finance and business executives
Latin ('val-yü-tis): Value, Values
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Agenda
• The Premise and the Disconnect
• Understanding Submerged Value
• Prove the Value
• Improve the Value
• Questions
• Final Word
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The Premise and the Disconnect
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Premise
• It is possible to simultaneously drive
improvements in sustainability,
engagement and business results
• Direct business benefit
• Raises employee engagement
– Participating employees
– “Bystander” employees – “pleased or proud”Quote: Andy Savitz
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Engagement Leads to Revenue
Bain & Company Research shows:
“Companies with highly engaged workers
grow revenues two and a half times as much
as those with low engagement levels”
“Employees increasingly view their company’s
sustainability agenda as a critical factor in
engagement.”
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Understanding Submerged Value
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Disconnect!!
Despite the value provided - professionals
in CSR and Sustainability say things like:
“I wish the business better understood what we
do in Sustainability & CSR and how it matters!”
“It would be nice if more people appreciated
the value of what we do”
“Sometimes, I feel separated from the core business.
I would like to be more involved.”
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Business Case: Direct Value
• Articulate future direct business value
• $84/year per employee in certification project at
Sony Electronics
• As program evolves – report back
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Business Case: Direct Value
Share widely for brand benefit as well as engaging “bystander employees”
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Business Case: Engagement Value
The impact of improved
employee engagement can
quickly surpass “direct
value”
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Prove the Value
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Changing the Question
What if we could change the questions…
FROM
Should we be more
sustainable?
How do we know how much
to do?
TO
How should we be more
sustainable?
Are we investing enough?
Where could we shift
investments to improve
results?
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A Starting Point: Proving the Value
Should we be more sustainable?
How do we know how much to do?
There is real value in sustainability and CSR, much of it
submerged.
When you uncover the submerged value, the total value is
much more than expected
How should we be more sustainable?
Are we investing enough?
Where could we shift investments to improve results?
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Prove
To stakeholders
To the market
To customers
To executives
To employees
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Actions Create Engagement
Which creates results!
Taking
Sustainability
& CSR
Actions
Becoming
More
Engaged
Business
Results
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The Value of Engagement is Submerged
e.g., Attrition Costs
e.g., Customer
Relationship
e.g., Brand
e.g., Brand Clarity
e.g., Organizational
Execution
TANGIBLE INTANGIBLE
e.g., Energy Conservation
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Engaged Employees Are Less Likely to Leave
Likelihood to Leave (Index)
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…And Work Harder
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…And Affects Lots of Outcomes
Negative:
• Attrition
• Absenteeism
• Shrinkage
• Safety Incidents
• Defects
Positive:
• Productivity
• Innovation
• Customer Service
• Profitability
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Once Identified…
Human Capital Value Element Explanation
New Hire Comp Premium as Percent of Total CompensationNew hires are willing to accept lower premium at a company with strong CR program
Value from Recruitment Premium Savings in new hire premium
Productivity with Engagement Effects Productivity effect of more engaged employees
Value from Productivity GainThe (minimum) amount it's worth to have more work done by the same number of employees
Attrition RatePercentage of the organization's employees that leave every year
Average Productivity of New EmployeesProductivity of someone new (Where's the bathroom? How do I do this?)
Turnover DifferenceNumber of employees that do not leave a company due to CR program
Average Recruiting & Training Cost as Percent of Total Compensation
The cost of recruiting, interviewing, training a new employee, as a % of their comp
Retention Savings from Vacancy The savings from not having vacant positions
Retention Savings from New Employee ProductivityThe savings in productivity from not having new (less productive) employees
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…These Benefits Can Be Quantified
For more information about this
calculator, please contact Daniel
Aronson directly:
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Process Case Study: 100,000+ Person Company
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Prove
To stakeholders
To the market
To customers
To executives
To employees
Sharpen discussion
Enable experimentation
Support tools
Link to continuous
improvement
Im
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Improve: Targeting Investments
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Improve: Added ContentE
mphasis
/ Investm
ent
Diffuse:
Some higher-return initiatives,
some lower ones
Focused:
Fewer, higher-return initiatives
with more investment behind
them
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Improve: Targeting Investments
That Raise the Floor
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Improve: Targeting Investments
That Affect Locations Differently
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Improve: Targeting Key EE & Groups
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Employee Group
Engaged
Partly Engaged
Disengaged
Engagement
2013
Engagement
2014
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Recap
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Recap: Business Case/ROI
Consider the full impact of program
Map out intended business results in addition to
external benefits
Define plan to assess, track and report impacts
As you achieve success – jointly analyze
Sustainability/CSR program participation and
HR data
Questions
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Improve:
Supporting Company Strategy
Execution DisciplinesF
inance
Sale
s &
Mark
etin
g
HR
Susta
inability
& C
R
Overall Corporate Strategy
Opera
tion
s
1
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Improve: Support a Service-Oriented
Strategy
“The correlation between high employee
engagement and high customer satisfaction
scores at Vi is no accident. Our attention to
giving employees best-in-class training leads to
a dedicated workforce that keeps our residents
happy.”
— Judy Whitcomb, Vice President of Human Resources, Learning &
Organizational Development
2
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Or an Innovation-Focused One3