Business in Vancouver
June 2008
IBM Veteran Makes the Business Case for Sustainability
By NINA WINHAM
The business case: still the best place to start
IBM veteran makes the business case for sustainability
First there were a few do-gooders and some niche markets. Then a few major brands got shamed and others got wise. Now, a whole new wave is breaking – businesspeople across all industries are pondering sustainability (at least a little), whether their driver is risk management, new opportunities, tackling climate change, or just keeping up with the pack.
With the boom in interest, I meet a steady flow of people asking about career development, looking for resources, wanting to improve their sustainability savvy. Depending on their skillsets and industry experience, there’s a fast growing smorgasbord of resources to refer them to. Lately, however, I’ve been surprised how many have not heard of the one seminal publication businesspeople should know about – even MBA students doing sustainability specializations are not always finding it. So, with apologies to those of you who know it well already, it’s worth putting this one out there for the folks who haven’t come across it yet.
If you only have time for one book about sustainability, “The Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line” is the one to get. Whether you’re out to change the world, or you just want good tips for improved performance, you need this primer. Written by Bob Willard, a 35-year veteran of IBM, it is a deeply researched, easy-to-access articulation of the business case for sustainability. Before Willard’s research, proof of sustainability’s business value was stuck in the sideline world of hopeful anecdotes and practitioner polemics. Through his work, the potential was made tangible. His bottom line: a large company, instituting a well-developed sustainability program can improve profits by 38% over five years. At a small or medium sized company, results are more startling: up to 66% improvement in profit. This is not wishful thinking, but developed from analysis of labour and consumer market trends, energy and materials costs, training, marketing and recruiting costs, etc. Willard has lectured all over the world based on his research and has received accolades from the best and brightest for his work.
Here’s the quick scan – you’ll need the book for its solid detail. The seven drivers of business value stemming from a good sustainability program are:
- easier hiring of the best talent
- higher retention of top talent
- increased employee productivity
- reduced expenses in manufacturing
- reduced expenses at commercial sites
- increased revenue/market share
- reduced risk, easier financing.
Willard doesn’t pretend this is magic. He’s a savvy business manager (several decades in IBM senior management and the recipient of numerous management awards) and he knows you don’t get something for nothing. His two caveats to the profit promise of sustainability: you must have solid leadership from the top (true for any successful strategy) and you must invest in training for all staff. (He nets the cost of training out of his profit scenarios.) So a little greenwashing and a couple new product lines won’t grab this gain. You do need to get your head into the mechanics of operating differently, instilling culture change, and steadily improving processes. But you can do it a step at a time and you can learn as you go. The benefits add up as long as your leadership is committed and you engage your team.
Willard’s second book is also worth having on your shelf. “The Next Sustainability Wave” helps translate sustainability into board room speak. It’s built from a series of brief, interesting case studies – good fodder for change-inspiring storytelling. Willard also has a DVD and other web resources to help managers get started. Especially useful are spreadsheets with his research and assumptions built in, that you can tailor with your own company’s data to calculate potential benefits of sustainability actions.
Look for Willard’s books at any bookstore, or at www.sustainabilityadvantage.com. You can rest assured you’re starting at the right point. With proof in hand that sustainability is basically a way to do better, more profitable business, you’ll find your own path forward.
Nina Winham (nina@newclimate.ca is principal of New Climate Strategies, specializing in helping clients build value through a shift to sustainability. www.newclimate.ca