the sustainability revolution: impact on business, impact on hr gil friend, ceo natural logic inc....
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The Sustainability Revolution: Impact on Business, Impact on HR
Gil Friend, CEONatural Logic Inc.
HR ForumsMarch 7, 2008
Tipping point
• 2005– General Electric– Goldman Sachs– JPMorganChase– Katrina & Wilma– Boeing– Wal-Mart
• 2006– Inconvenient
Truth
• 2007– Stern Report– IPCC– US CAP
• 2008-
Central focus
• Climate change– Carbon footprint
• Zero waste– From Subaru to LA
• Water– Unlike energy, not substitutable
• PBTs– EU changing the game
Wall Street & Sustainability
MakeItFaster
MakeMoreMoney
ReduceRisk
340% 60%
Risk & Uncertainty• Collision course: trends incorrectly boundaried, not
adequately assessed, poorly understood – Regulatory futures– Energy futures– Climate futures– Toxics & balance of flows – Oceans, biodiversity &…
• “Inevitable surprises”– WEEE readiness
• 40+% unprepared, with one-third of industry revenues on the line– Oil - Price, supply, peak
• What happens to your business if oil prices continue to rise?– What’s next? EU standards? Debt? Trade balance? Sea levels?
• Find certainty within uncertainty– How? Principle-based strategies
Fiduciary Responsibility
• Boards and executives exposed– Avoidable risk
• Significant business opportunities, not just cost avoidance– Brand value– New assets– Future-proofing
Premise: Only two things
QuickTime™ and aTIFF (LZW) decompressor
are needed to see this picture.
US Economy: Material FlowProduct
6%
NonProduct94%
Effective demand, burden: P x A x T
Resource capacity
Margin for action ?
Principles• Business
– Buy low, sell high– Build value, build relationship– Don’t make what you can’t sell
• Ecological – Renewable– Cyclical– Edible– Profitable– Don’t buy/make/sell what can’t be metabolized by living
systems
• Reality-based– Ignore the regulations
QuickTime™ and aTIFF (LZW) decompressor
are needed to see this picture.
Implement
• Expand the scan
• Stand on bedrock
• Integrate into strategy
• Reject “tradeoffs”
• Be agile in the face of uncertainty
• Embed into operations
• Everyone on the same page
• Strategic partnerships
• Dashboards and billboards
The issues for HR
• Recruitment• Engagement• Capacity• Enrichment• Autonomy• Reward• Retention
Self-Control• To be in a state of self-control, a person
must know:– what he [or she] is supposed to do– what he [or she] is actually doing– what choices [or she] has to improve results
wherever necessary
• “If any of these three conditions are not met, a person cannot be held responsible.”
– JM Juran, 1948
Personal questions
• What are you really here to do?– (How good are you willing to have it?)
• Can you do it? Can you afford it?• How can you do it?• What promises will you make?
• What can we do together?
Natural Logic, Inc.
Sustainable performance you can take to the bank.™
Contact: [email protected] • 1-877-natlogic • www.natlogic.comCEO Blog: http://blogs.natlogic.com/friend/
Latest articles: http://www.NatLogic.com/publications/Business leadership: http://www.DeclarationOfLeadership.com