5 Mistakes leaders make when trying to develop sustainable organisations

The movement to becoming sustainable is gathering pace. Political parties are vying to demonstrate their green credentials, investment in sustainable technology is increasing, and low emission vehicles and the de-carbonisation of the electricity grid has arrived. Leaders of companies small and large are keen not to be left behind.  But jumping on the sustainability bandwagon can bring more risk than reward. We explore the 5 common mistakes leaders make when trying to embrace sustainability…

1. Misunderstanding the buzzword

Sustainability does not have one common definition. It means different things to different sectors and companies, and even different things to people in the same organisation. Leaders need to understand what their definition is, the scope of that, and how it applies to their business. A fundamental starting place could be - developing more environmentally ways of operating, such as M&S' increased use of renewable energy to power their stores. Other ways could be through the specific creation and delivery of programmes to improve sustainability practices, for example, UPS' use of electric vehicles to reduce reliance on fossil fuels.

2. Seeing sustainability as a burden, not an opportunity

When a leader's heart is not really in it, sustainable initiatives inevitably fizzle out, and don't bring any true business benefits.  However, embraced in the right way, becoming sustainable offers a huge opportunity to impress clients, win new contracts and build a business that can be future-proof. A business case that assesses the opportunities that becoming sustainable could bring, and what they equate to in revenue and profit, is what a leader needs to start seeing opportunity rather than headache. Reducing energy use and consolidating IT are often good places to start, where there are usually green ways of working and savings to be made quickly. Weaving this intent into cost reduction initiatives, which are clearly prevalent at the moment, is another opportunity. Leaders should also examine the bigger picture: regulatory responsibilities, wider market and industry activity, as well as the competitive advantage sustainable practices can bring and the positive impact it can have on their employees.

3. No clear vision of what they want to achieve – or an approach to getting there


Sustainability has become such an umbrella term for many things, it's easy for leaders to lose sight of what they really want to achieve under it. Here the business case mentioned above is key.  Leaders should use it so they are crystal clear on their key business drivers – which will provide the vision at the heart of any change programme they implement.
 
As for implementation, rolling out a sustainable initiative should be approached in the same way as any major change programme – clear goals, defined outcomes, governance and the right team in place.  But the clear vision from the leader at the top is paramount – without it, internal and external support will be severely lacking, and success is unlikely to be achieved.  



4. Underestimating the need for a flexible plan

When it comes to going green, many leaders want to 'spread their bets' a little, and try out some small scale initiatives that might bring 'quick wins', whilst still considering longer term objectives – and changes in the environment and marketplace. An over-arching programme of ongoing initiatives of this type requires a mix of both structure and flexibility. Structure is required to deliver with confidence when the business case is finely balanced, and flexibility is essential in a landscape that is volatile, as demonstrated by recent fluctuations in oil and commodity prices. When circumstances change this allows leaders to vary their approach and understand the specific impacts on their structured initiatives, whilst holding to the overall vision. 
 


5. Lack of measurable results 



In times of fiscal hardship, it is essential for leaders to be able to attach measurable results to any new programmes.  They are required to prove the return on their investment, build momentum for the scheme, and provide a platform for growth. However, many sustainability initiatives don't provide measurable benefits, mainly because they weren't clearly defined upfront, or a process put in place for tracking their realisation. A robust business case that sets out what the measurable results are and how they will be achieved enables leaders to justify their initial outlay and articulate future payback. However, measurable results don't always mean monetary benefits. For a utility company, sustainability measures taken to meet key regulatory targets could be measured as 'avoided cost', whilst reducing the potential impact of related risk.

© 2011 Moorhouse.