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ADOPTING A SUSTAINABILITY LENS IN YOUR WORK
July, 2016Anthony Marker, Ph.D, OPWL, Boise StateLinda Urban, MS, OPWL, Boise State
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Why this session, for you?• What attracted you?
• What are you most hoping to learn or discuss?
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Why this session, from our perspective• The world is in desperate need of solutions to a variety of problems, from climate
change, to pollution, to inequality, poverty…. they are interconnected…
• Performance Improvement (PI) practitioners are well positioned to help address these problems. Many of these problems can be viewed as performance problems (and opportunities), and our tools and approaches can be used to tackle them.
• By adopting a “sustainability lens,” we can help organizations address environmental and social, as well as economic outcomes, and adopt a more sustainable approach to their work, throughout their business and beyond(Sustainable—across a triple bottom line)
• Tools can help us adopt that lens: today we’ll show one we think can be useful
• Encourage ongoing discussions about how to integrate this type of work into our profession3
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Where we’re headed• A bit of background
• Definitions• Urgency
• Where “sustainability” fits within HPT• One specific tool: Sustainability Impact Assessment
• Using the tool’s structure to develop a sustainability lens• Walk-through using examples
• Debrief and wrap-up
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What is sustainability? • “Meeting the needs of the present without
compromising the ability of future generations to meet their needs.” • Brundtland Report (“Our Common Future” WCED, 1987)
• “How do we love all the children of all species for all time? Not just our children. Not just our species. Not just now. All the children, of all species, for all time.” • William McDonough & Michael Braungart (2002)
Cradle to Cradle5
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A REMINDER OF THE URGENCY
July 26, 2016
Link to CR slides
Global Carbon Emissions from Fossil Fuels
0
2,500
5,000
7,500
10,000
1850 1875 1900 1925 1950 1975 2000
Mill
ion
Met
ric T
ons
of C
arbo
n
2013
Summer Temperatures Have Shifted1951 – 1980
0
0.1
0.2
0.3
0.4
0.5
Freq
uenc
y of
Occ
urre
nce
Deviation from Mean0 1 2 3 4 5-1-2-3-4-5
Cooler than average
Average
Warmer than average
Baseline (1951 - 1980) mean
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1983 – 1993
0
0.1
0.2
0.3
0.4
0.5
Deviation from Mean0 1 2 3 4 5-1-2-3-4-5
Cooler than average
Average
Warmer than average
Baseline (1951 - 1980) mean
Extremely hot
Freq
uenc
y of
Occ
urre
nce
6
0
0.1
0.2
0.3
0.4
0.5
Deviation from Mean0 1 2 3 4-1
1994 – 2004
5-2-3-4-5
Cooler than average
Average
Warmer than average
Baseline (1951 - 1980) mean
Extremely hot
Freq
uenc
y of
Occ
urre
nce
6
0
0.1
0.2
0.3
0.4
0.5
Deviation from Mean0 1 2 3 4-1
2005 – 2015
5-2-3-4-5
Cooler than average
Average
Warmer than average
Baseline (1951 - 1980) mean
Extremely hot
Freq
uenc
y of
Occ
urre
nce
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The “extreme” temperature events
used to cover 0.1% of the Earth. Now they
cover 14.5%.
The “extreme” temperature events
used to cover 0.1% of the Earth. Now they
cover 14.5%.
February 2016 was the 372nd consecutive month
with a global temperature above the 20th century average
-1.0
-0.5
0.0
0.5
1.0
1.5
1880 1900 1920 1940 1960 1980 2000 2020
Ano
mal
y (°
C)
February 2016February 2016 exceeded
“normal temperature” by more than any month ever measured.
And from the New York Times, this week (July 19, 2016), Henry Fountain reported:
Link back
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Problems
Solutions
Climate Change
Changing WeatherElectronic Waste
Sustainable Energy
Process Pioneers
Product Innovation
Organizations contribute to the problems…
…but they also hold the keys to many of the solutions
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AND THAT’S WHERE WE COME IN…
July 26, 2016
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Where Might We Use Our Skills? - 1With pre-identified “sustainability related problems/opportunities” (organizations know they want to address environmental and social issues)
• Work as performance consultants (whether we use that label or not): Clarify the need, identify gaps (current versus desired state), Identify appropriate interventions, design & develop solutions, evaluate progress and provide feedback for improvement
• Partner with groups who are tasked with sustainability-related performance issues, but do not necessarily think in terms of “performance improvement” • Corporate Social Responsibility• Sustainability• Safety/Risk-mitigation • or … [What groups do you see, in your organizations?]9
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Where Might We Use Our Skills? - 2By integrating sustainability factors into other performance problems
• Ideally, we learn to use a “sustainability lens” as part of our standard way of viewing problems—a piece of “taking a systemic view.”
• As we solve various performance problems, we can ask about factors that impact all three bottom lines—financial, environmental, and social.
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(art by Lynn Kearny; model is part of Addison, Haig & Kearny’s Performance Architecture)
We are all part of the same, interconnected system….… and so are the organizations we work in and with
Addison, R., Haig, C., & Kearny, L. (2009). Performance architecture: The art and science of improving organizations. San Francisco, CA: Pfeiffer.Kearny, L. (2014). What is performance improvement? Talking points. Performance Improvement, 53(6), 31-34.
Where does something like a “sustainability impact assessment” fit in the HPT process?
Organizational Analysis
Environmental Analysis
Desired Perf.
Actual Perf.
Cause Analysis
Interventions and Business Case
Implementation and
Maintenance
EvaluationFormative (Level 0) Confirmative (Levels 3-5)
Summative (Levels 1-2) Meta
Gap
Adapted from Fundamentals of Performance Technology: A Guide to Improving People, Process, and Performance, by D.M. Van Tiem, J.L. Moseley, and J. C. Dessinger, 2004, p. 3.
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Organizational Analysis:Facilitate conversations about integrating Triple Bottom Line (TBL) or other framework
…across the TBL
Cause Analysis: Use Impact Assessment to generate questions for each item
Organizational Analysis
Environmental Analysis
Desired Perf.
Actual Perf.
Cause Analysis
Interventions and Business Case
Implementation and Maintenance
Formative (Level 0) Confirmative (Levels 3-5)
Summative (Levels 1-2) Meta
Gap
Environmental Analysis: Create logic models that show desired outcomes and impacts, including economic, environmental, and social
Gap Analysis:What desired sustainability state? What is current sustainability state?
Intervention Selection, Design, Development, intervention & Maintenance:What will be TBL impacts of the intervention?Will there be unintended consequences? Examples:--asbestos mitt (to solve a safety issue)--associated waste, factors in supply chain for products or materials--unintended consequences for people?
Evaluation: Sustainability Impact: Evaluate across TBL (economic, environmental, social factors (6-P Framework)
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Sustainability Factors within BEMInformation Instrumentation Motivation/
Consequences
Additional TBL Factors
Messaging & Communication
Expectations Reporting,
Audits
External resources Supply chain Natural resourcesInternal resources Employees/workers Buildings, tools, space
Impact on environmentImpact on employeesImpact on
upstream/downstream stakeholders (customers & Others)
Environment Data Expectations Feedback Standard
Operating Procedures
Resources Software Tools Support
Consequences Rewards Incentives
Person Knowledge Skills
Physical Capacity Mental Capacity Flexibility Resilience
Motives Affect Work Habits Drive
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THE PROBLEM: EXTERNALITIES ARE TYPICALLY IGNORED BY ORGANIZATIONS
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PeopleHuman Capital
ToolsTechnical
Capital
MoneyFinancial Capital
Process
ValuesSuppliers Customers
Inputs OutputsCash
Raw Materials
Cash
Products/Services
Make
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BiologicalMaterials
Inorganic Organic
Earth’sLithosphere
(NaturalCapital)
Earth’sBiosphere(NaturalCapital)
PeopleHuman Capital
ToolsTechnical
Capital
MoneyFinancial Capital
Process
ValuesSuppliers Customers
Inputs OutputsCash
Raw Materials
Cash
Products/Services
MakeTake
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BiologicalMaterials
Inorganic Organic
Earth’sLithosphere
(NaturalCapital)
Earth’sBiosphere(NaturalCapital)
PeopleHuman Capital
ToolsTechnical
Capital
MoneyFinancial Capital
Process
ValuesSuppliers Customers
Inputs OutputsCash
Raw Materials
Cash
Products/Services
Make
Community
•Employees•Investments•Laws
•Wages•Taxes•Dividends
Take
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BiologicalMaterials
Inorganic Organic
Earth’sLithosphere
(NaturalCapital)
Earth’sBiosphere(NaturalCapital)
PeopleHuman Capital
ToolsTechnical
Capital
MoneyFinancial Capital
ValuesSuppliers Customers
Inputs OutputsCash
Raw Materials
Cash
Products/Services
Make
Community
•Employees•Investments•Laws
•Wages•Taxes•Dividends
Take
Waste to Landfill or Incinerator
Emissions
WasteWaste
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Captured & adapted from Performance Architecture, by Addison, Haig & Kearny, 2009 , p. 62
Notice that even in Rummler’s work, while the natural environment is included in the business environment, it is omitted from the outputs. Waste in all it’s various forms is too often “outside the system.”
Inputs Business Process Outputs
Feedback loops
July 26, 2016
Process
SuppliersInternalResults
Inputs Products
Customers
Outputs
PerformanceFeedback
Society
Outcomes
Are we doing things right?
Are we doing the right things?ValueFeedback
Social Outcomes
Environmental Outcomes
Long-term Financial Outcomes
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Take Make Waste
Borrow
UseReturn
There are alternatives.We need a paradigm shift.
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The Gap
Current linear approach with a focus on activity to… Desired circular approach
with a focus on valued outcomes.
BiologicalMaterials
Inorganic Organic
Earth’sLithosphere
(NaturalCapital)
Earth’sBiosphere(NaturalCapital)
PeopleHuman Capital
ToolsTechnical
Capital
MoneyFinancial Capital
ValuesSuppliers Customers
Inputs OutputsCash
Raw Materials
Cash
Products/Services
Make
Community
•Employees•Investments•Laws
•Wages•Taxes•Dividends
Take
Waste to Landfill or Incinerator
Emissions
WasteWaste
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From Figure 1.15, p. 21, in Willard, B. (2010). The new sustainability advantage: Seven business case benefits of a triple bottom line. 10th Anniversary Edition. New Society Publishers.
Not every organization is at the same stage of readiness.
We must work with our clients “where they are”
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What’s in it for an organization?As well as being the right thing to do….
1. Increase revenue2. Reduce energy expenses3. Reduce waste expenses4. Reduce materials and water expenses5. Increase employee productivity6. Reduce hiring and attrition expenses7. Reduce strategic and operational risks
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Willard, B. (2012). The new sustainability advantage: Seven business case benefits of a triple bottom line. 10th Anniversary Edition. New Society Publishers.
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Sustainability can be profitable!• As long ago as 1997, Russo and Fouts analyzed 243 firms and found
financial returns positively correlated to environmental ratings.
• Contrary to expectations that being green costs money: “When you actually crunch the numbers, it turns out the good environmental citizenship is great for the bottom line.”
• Here’s a current example:
Marks & Spencer – UK-based department store**
2007: Launched sustainability plan
Predicted a cost of $56M if it generated no financial benefits
2012: $148M net business benefit2015: $225M net business benefit
From changes such as reducing packaging materials and food waste
**Wheeland, M. (2016). The new bottom line: money is no longer a dirty word in sustainability. The Guardian, Feb 23, 2016. Retrieved from http://www.theguardian.com/sustainable-business/2016/feb/23/corporate-social-responsibility-sustainability-general-mills-patagonia-ben-and-jerrys
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INTRODUCING THE IMPACT ASSESSMENT TOOL: ONE WAY TO ADD A SUSTAINABILITY LENS
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Impact Assessment*
EnergyFacilitiesProcessesTransport
Materials
Major inputs
Products/Services
Residual Products/Waste
Major outputs
*Adapted from Step-by-Step Guide to Sustainability Planning, Hitchcock & Willard, 2008, p. 58
Industry/Influence
Relationships w/stakeholders
Community
Relationships w/community
Core Business(Processes, facilities, employees)
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Impact Assessment*
Energy• Major sources of energy?• Criteria for sustainable
energy?• Ideas for projects?
Materials• Major material inputs?• Criteria for sustainable
materials?• Ideas for projects?
Major inputs
Products/Services• Major P&S• Unintended impacts?• Criteria for sustainable
P&S?• Ideas for projects?
Residual Products/Waste
• Major waste streams?• Criteria for sustainable
waste stream?• Ideas for projects?
Major outputs
*Adapted from Step-by-Step Guide to Sustainability Planning, Hitchcock & Willard, 2008, p. 58
Industry/Influence• Strategic partners/supply
chain relationships?• Criteria for choosing strategic
partners?• Ideas for projects, new
relationships, needs from industry?
Relationships w/stakeholders
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Community• Major challenges for
community?• Criteria for choosing
community projects?• Ideas for projects?
Relationships w/community
Core Business (Processes, facilities, employees)
• Major processes/facilities/people?• Criteria for sustainable process?• Ideas for projects?
Link to Worksheet
Link to GoogleDoc
Organizational Analysis:Facilitate conversations about integrating Triple Bottom Line (TBL) or other framework
…across the TBL
Cause Analysis: Use Impact Assessment to generate questions for each item
Organizational Analysis
Environmental Analysis
Desired Perf.
Actual Perf.
Cause Analysis
Interventions and Business Case
Implementation and Maintenance
Formative (Level 0) Confirmative (Levels 3-5)
Summative (Levels 1-2) Meta
Gap
Environmental Analysis: Create logic models that show desired outcomes and impacts, including economic, environmental, and social
Gap Analysis:What desired sustainability state? What is current sustainability state?
Intervention Selection, Design, Development, intervention & Maintenance:What will be TBL impacts of the intervention?Will there be unintended consequences? Examples:--asbestos mitt (to solve a safety issue)--associated waste, factors in supply chain for products or materials--unintended consequences for people?
Evaluation: Sustainability Impact: Evaluate across TBL (economic, environmental, social factors (6-P Framework)
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Further Discussion• Thoughts? Impressions?
• Can you add this tool to your toolbox? • Do you see opportunities for use?
• Thank you for joining us!
• ------------------------------------------------• To continue the conversation, feel free to contact:• Linda Urban: [email protected]• Tony Marker: [email protected]
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References• Addison, R., Haig, C., & Kearny, L. (2009). Performance architecture: The
art and science of improving organizations. San Francisco, CA: Pfeiffer.
• Hitchcock, D. E., & Willard, M. L. (2008). The step-by-step guide to sustainability planning: how to create and implement sustainability plans in any business or organization. London: Earthscan.
• Kearny, L. (2014). What is performance improvement? Talking points. Performance Improvement, 53(6), 31-34.
• Willard, B. (2012). The new sustainability advantage: Seven business case benefits of a triple bottom line. 10th Anniversary Edition. New Society Publishers.
July 26, 2016