Change Catalyst Group

Growing Competitive Advantage with Sustainability Practices

Jean Lasee and Shane Snipes

A New Kind of Business Strategy

Creating a new business strategy in the traditional sense involves development
of a business proposition that is unique to the company and the products and
services it provides. Sustainability adds to that strategy by incorporating not
only economic impacts, but ethical, community, and ecological ones as well.
An integral part of the strategy creation process includes an evaluation of all
company activities to ensure a proper “fit” with a sustainable mindset. This
helps everyone know what kinds of things they should be working on instead
of reacting to whatever the competition is doing.

When a company decides to become more sustainable, business strategy takes
on a different and more systemic focus. Not only does the company need to
make a profit, but it also must consider how its actions and activities impact
people and the planet. Crafting such a strategy involves applying the following
four steps:

1. Building a distinctive business position
2. Integrating this position internally
3. Improving engagement, participation and innovation
4. Increasing sales and reducing costs

If we think about how most companies have formed strategy in the past, the
tendency has focused on Steps 1 and then 4. A sustainability framework requires
considerable discussion and eventually the taking of action in Steps 2 and 3.
These two steps are the “sweet spots” of a company’s sustainable competitive
advantage. Not only are business priorities clarified at a deeper and more specific
level, but people at all levels of the company become more engaged and motivated
to move it forward in becoming more “green.” Everyone plays an integral part in
advancing innovation, which leads to both increasing sales and reducing costs.

A company can differentiate itself through identifying an initial set of societal
issues that link to competitive advantage, scaling the strategy across the company,
measuring their business performance, or balancing their scope to where the
company can best make an impact. Midsized and large companies like Seventh
Generation and Nike have developed competitive advantage by integrating these
ideals into their research and development, product management, marketing
and even manager training plans.

A New Lens for Customer Needs

Sustainability also provides a unique differentiator in meeting customer needs
and demands. Every kind of organization has customers it must serve or it does
not stay in operation. Sustainability practices meet customer needs in the following
ways:

1) in the development of new products and services,
2) in designing greater operational efficiencies,
3) in preparing staff to behave in more sustainable ways and finally,
4) in reviewing waste streams to make them more ecological

While all four areas within the model have considerable potential to advance a company’s sustainability agenda, we often hear about customers and other stakeholders asking for explanations of sustainable business practices as a prerequisite to working with them.

This is recent change as customers are now much more sophisticated in many industries. What kind of stories, measurements and indicators do you have for your customers that demonstrate your commitment to being green? Get prepared, they will ask, and your competition might already be there.

The Bumpy Road of Becoming a Powerhouse

April, 2010
Jean Lasee, MAOM

Sending Mixed Messages

The last few months have been filled with many mixed messages in support of renewable
energy or a lack thereof in this state. You may remember in my last blog that SunTech
announced it will be building a new manufacturing facility in the Phoenix area. In December
of last year, PVNews, an industry newsletter published an article called “Arizona Solar
Market in Focus.” The article described …”the momentum in Arizona as it pursues its goal
of becoming a major solar powerhouse in the U.S., with a mix of manufacturing, PV and
thermal projects, and R&D located in an area with some of the highest insolation in the
world.” As I listened to a representative from SunTech announce why the company chose
the Phoenix area, he mentioned the state’s forward-thinking energy policy. That was in
January of this year.

 

Redefining the Renewable Mix

In February, our Legislature presented a bill to redefine what was included in the
renewable mix by adding nuclear power. As one of our local utilities, Arizona Public
Service (APS), already gets more than 25% of its electricity from the Palo Verde
nuclear plant, the state would not be required to create additional renewable energy.
The Renewable Energy Standard & Tarriff or REST (designed by the Arizona
Corporation Commission) contains rules for generating a larger portion of the
electricity sold in the state from renewable energy sources. Its goal is to have
15% of electricity sold from renewable resources by 2025; nuclear power was
not defined as renewable energy in the REST.

 

Outside of the legislature, there was very little support for the bill as SunTech,
SolarCity, Kyocera and APS all expressed their dismay. Lyndon Rive, CEO
of Solar City said “…(the bill) would pull the rug out from under the solar industry,
eliminate jobs and reverse the flow of investment coming into the state.” Shortly
after it was introduced, the bill was withdrawn. A lot of emotion, some quite
negative, emerged in this “resistance to change” scenario.

 

Government and the Market

In March, I attended a debate between representatives of the Goldwater
Institute, the Legislature, and the Corporation Commission on the role of
renewable energy policy. Again, there was confusing mixed messages about
how to support growing the renewable energy industry. Much of this discussion
was about the role of government and the market in developing the solar industry
in the state. However, one comment from a solar entrepreneur whose business
was about to be severely impacted if the above legislation had been passed
made a passionate plea for government and market forces to better collaborate.
New businesses, jobs, and tax revenue are good for the state's economy. Right?

 

A Renewable Future

Finally, the Arizona Renewable Future forum, held this month and organized by
Governor Brewer’s office stated that “...we all believe in renewables”
(http://www.azgovernor.gov/renewable/). She mentioned two executive orders:
1) having agencies in which she is responsible be more available to renewable
energy companies, and 2) having the Department of Commerce streamline regulatory
and tax policy that specifically targets the industry. This forum, along with the recent
passage of a legislative bill that continues tax credits and solar subsidies may make
support more even again— maybe not.

From an organizational change perspective, it is not unusual to have bumps in the road,
however, the last three months have slowed important work from getting done. Is it possible
for all stakeholders of renewable energy to work together to move forward? Yes, but not
without courage, patience, and flexibility.

 

Talk to you later.

 

Sources

http://www.azgovernor.gov/renewable/

http://www.greentechmedia.com/articles/print/Arizonas-Solar-Industry-Killer-Bill-Dropped-Updated-Feb-25-5PM

Arizona Solar Market in Focus, PVNews, Volume 28, Number 12 (2009, December). Prometheus Institute for Sustainable Development
and Greentech Media, p. 1.

 

Jean
© 2010

 

 

 

 

Arizona Solar Industry Gains Momentum

January, 2010
Jean Lasee, MAOM

I have some great news to report about the Arizona solar industry-- it is definitely
building momentum! On January 27th, I attended the Arizona Solar Manufacturing
Symposium, corrdinated by Az4Solar, an organization whose mission is to "promote
development of a solar economy that will create thousands of sustainable high-wage
jobs in Arizona." Check this group out at www.az4solar.org.

 

Manufacturing Gets a Major Push

The highlight of the day was the announcement by Suntech, a chinese-based company.
They selected a local site in which to build a new PV manufacturing factory that will
start producing 30 MW of solar panels each year. Goodyear, part of the Phoenix
metropolitan area, is the lucky city to receive Suntech's thumbs up. The announcement
included words from the state's governor, Jan Brewer and Phoenix's mayor, Phil Gordon,
who both expressed their thanks in welcoming the company to "the neghborhood."
Congratulations also went to the Greater Phoenix Economic Council for working hard
on bringing green jobs to the state.

I had the pleasure of talking with Senator Barbara Leff, who was the impetus behind
SB1403. This legislation, passed in the first half of 2009, provides tax incentives
for renewable energy manufacturing, as well as research and development. It was
gratifying to have a disucssion with an articulate politician who wants to move the
state forward in green business. Kristin Mayes, Chairman of the Arizona Corporation
Commission and another hard-working policy-maker, was given praise for creating
state-wide policy to encourage development of renewable energy projects.

 

Vigilance for the Future

From an organizational change perspective, I noticed how much collaboration
was needed by both business and government in creating these successful
outcomes. Interestingly, several warnings came from individuals in both government
and industry that there are those who want to roll back this progress. We as citizens
and industry experts need to keep the state moving forward toward a stronger economic
future.

 

Quality Information Resource

Finally, I met Scott Clavenna, President of GreenTech Media. Started in 2007,
GreenTech provides informative content on the solar and smart grip industries, as
well as enterprise-level green technology issues. Given the rate at which change is
happening in these industries, it is a great place to stay current. Check this group out
at http://www.greentechmedia.com/.  

 

Talk to you later.

Jean
© 2010

 

 

 

Green Learning Opportunities

November, 2009
Jean Lasee, MAOM

In the past month, I experienced several great learning opportunities by attending
two "green" conferences-- Solar Power International in Anaheim, CA and GreenBuild
in Phoenix, AZ. Even though I spend considerable time reviewing green blogs,
newsletters and magazines to keep up with trends, I find face-to-face discussions
with other people to be most valuable in learning about what is going on in the
industry.

"Buzz" Conferences

Both conference were enormous with over 20,000 people visiting from all over
the country and the world. Each had large exhibit floors and vendors trying
to convince me how their product saves the planet. I admit I find this kind of
networking to be physically and emotionally gruelling. My feet and back protested
from carrying mounds of literature.I used the interaction time with the vendors to
expalin the value that I create helping organizations become more sustainable.
At the end of it all, I discovered some gems of information and some people that
I will follow up on in the near future.

Each conference had considerable "buzz" in the air-- the energy of innovative
thinking was everywhere. When I think back on some of my past corporate
roles where making improvements or thinking outside of the box was discouraged,
I found this new mindset refreshing and motivating.

World Class Speakers

GreenBuild is the first national conference that I ever attended in Phoenix and
it was a world-class event. The evening of Wednesday, November 11th, CEO
and Founding Chairman of the U.S. Green Building Council Rick Fedrizzi, as
well as former Vice President Al Gore spoke about green building issues. Both
men are outstanding speakers and have considerable passion around their beliefs.
Instead of hearing doom and gloom over our economic downturn, I listened to
stories about an industry that is creating jobs, while making a positive difference
in our society and communities.

Finally, an international touch to the evening included short presentations from
representatives of several nations outside of the U.S. They described green
building efforts in their countries. Often their needs and solutions are very
different from what the United States hopes to accomplish through its green
building efforts.

Well, I must get back to processing all my brochures, business cards, and
new ideas. Fortunately, I love to learn!

Talk to you later.

Jean

© 2009

 

 

Sustaining our Lands for Everyone

October, 2009
Jean Lasee, MAOM

I thoroughly enjoyed watching the PBS series "The National Parks" last week.
Each episode contained stories of forward-thinking people who believed in and
had a passion for preserving the beautiful, wild places of this country. Stephen
Mather, the first Director of the National Park Service, came to office in 1916.
He selected Horace Albright as his assistant who eventually became its second
director after Mather suffered an incapacitating stroke in November of 1928. The
two worked very closely together for the next twelve years, building the National
Park Service from a haphazard collection of scenic areas controlled by strong
interests, into an accessible system of parks across the country.

Change Agent Role

It was a radical idea that scenic wonders be made available to all and not just
those of privilege. Mather was an excellent visionary and change agent well
before the term was known. He had extensive public relations experience from
his years in private industry and put it to good use in his new position. He was
a wealthy man and knew many of the “barons” who had considerable power
and influence at this time. Initially, he turned to this group to engender their
support to move his plans forward. I would call this step in his approach to
implementing change as “creating leadership alignment.”

He had many battles with those who thought differently about what a national
park system should be. Diffficult confrontations developed over establishing
parkd in the Grand Tetons, the Smoky Mountains, and the Grand Canyon.
I would call these reactions as "resistance to change." As someone who has
lived in Arizona for a number of years, I will discuss a story in the state's history
in which I was not fully aware— the contentious clash between Stephan Mather,
Horace Albright and Ralph Henry Cameron. 

Making the Case for a Park

Suggestions to make the Grand Canyon a national park went back to the 1880s.
All failed in Congress because of opposition from local miners, settlers and
ranchers. Benjamin Harrison created the Grand Canyon Forest Reserve in 1893,
with Theodore Roosevelt establishing the Grand Canyon National Monument in
1908. The Atchison, Topeka, and Santa Fe Railway built tracks to the South Rim
in 1901. By 1919, thousands of visitors were coming to the Grand Canyon—
equal to the visitation numbers of Yellowstone and Yosemite. However, as a
national monument, cattle grazing and numerous mining claims competed with
those who sought an experience with nature. Mather wanted to change all this
by making the canyon a national park.

One particular individual, Ralph Cameron, controlled many of the canyon’s scenic
views, by establishing mining claims, 13,000 in all. He collected a $1.00 fee for
visitors to descend the Bright Angel Trail, even though it was federal land. At
Indian Garden (halfway down), he charged exorbitant prices for water, as well
as fees for the only outhouses between the rim and the Colorado River. He
even sought financial backing from entrepreneurs in the east to gain control
of the canyon from the federal government.

In 1919, Congress finally passed a bill creating Grand Canyon National Park.
In 1920, the Supreme Court ruled against Cameron to give up his mining claims.
Even though he lost his legal battle, he did not remove his hotel and other ventures
for six more years.

In 1921, Cameron became a U.S. Senator for the State of Arizona and used his
influence for revenge against Mather and Albright. For example, he tried to eliminate
the park’s budget, build two large hydroelectric dams and open platinum mining in
the park, all of which were defeated because of public outcry. He eventually faced
charges of political corruption and personal impropriety. Having alienated members
of the Senate, as well as his constituents, he lost his bid for re-election in 1926.
He was finally forced to remove all his buildings and the toll gate.

Dealing With the Bully

This story was of great interest to me for many reasons. I too have faced “the bully”
on most of my change projects, however, not in such an extreme way. These people
causedconsiderable havoc and ground what I was trying to accomplish to a halt.
Many times, I took their behavior personally, instead of seeing them for their lack
of emotional intelligence and maturity. Second, I realized even more that change
requires courage and patience. Mather and Albright fought Cameron for ten years.
Of course, not every change is this difficult or worth fighting for. In our own lives
and organizations, we must decide what deserves our attention, courage, and
patience. What is worth changing?

Sources
http://www.pbs.org/nationalparks/people
http://www.pbs.org/nationalparks/parks/grand-canyon
http://pbs.org/nationalparks/history/ep4
Lamb, Blaine (1977), A Many Checkered Toga: Arizona Senator Ralph H. Cameron,
Arizona and the West, Vol. 19, No. 1, Spring, pp.47-64.
Strong, Douglas (1978), Ralph H. Cameron and the Grand Canyon (Part 1), Arizona and the West,
Vol. 20, No. 1, Spring, pp. 41-64.  

Talk to you later.

 

Jean
© 2009

When Change Stagnates

August, 2009
Jean Lasee, MAOM

I admit to taking a bit of a break in writing this latest blog. July of this
year was the hottest July in the Phoenix area on record. It was beastly
and affected even my beasts: my easy-going cat hissed and tried to bite
me several times while I worked on my computer. I would come home
after running errands panting and feeling a bit nauseous. Many aspects
of my life slowed down or came to a halt. E-mails and calls were not
returned. Meetings were cancelled and brainstorming sessions went
nowhere. Whatever I tried to accomplish would not move forward, even
in baby steps. For someone who enjoys improving things and making
change happen, it was a very frustrating time.

Interestingly, other friends and colleagues I spoke to or met with were
having similar experiences. Interacting with them made me realize that
the funk I was in wasn’t all about me. I was part of a process in which
I didn’t have control and that many others were also experiencing. I
decided to not take life quite so personally and be kinder to myself.  
My spouse and I took a five-day break to visit friends on a beautiful,
small island in the San Juan’s of Washington. The fresh Rainier cherries
and oysters were delightful. On an overcast day, I took a three-hour nap
as my body was so used to constant, bright sunshine to keep me alert.
Back home, I did a few fun things such as going to art museums, cooking
with new recipes and exercising more. I found that just getting “away from
it all,” even for a few hours helped improve my mindset.

The month of August appeared and with it new energy. Doors that had
been closed began to open again. For example, I attended some excellent
meetings where I met new colleagues doing interesting work with solar
technology, green building and sustainable economic development. I’m
building relationships with these people and am looking forward to positive
outcomes in the future. I also coached colleagues who were feeling
overwhelmed with the stagnation in their lives. I was able to present a
more positive face to them than I could in July. For the most part, they
are making excellent progress.

In conclusion, sometimes life stagnates. It is very easy to dwell on the
“stuckness” when things are not going the way in which you want them.
As I mentioned earlier, I found it helpful to give myself small chunks of
time to do something completely different and enjoyable. It gave my
mind a chance to briefly forget my challenges, come back more refreshed
and see possible solutions in a different light.

Let me know what you have done to move beyond being stuck in your life.

Talk to you later.

 

Jean
© 2009

Green Change is Coming

June, 2009
Jean Lasee, MAOM

Some of you may not know that I live in Scottsdale, Arizona and have for a number of years.
The last two weeks we entered our summer monsoon season, which can be difficult for desert
dwellers. Moisture comes up from the Gulf of California; the intense summer heat takes
this moisture and creates enormous clouds that build throughout the day. If conditions are
right, we receive brief and often violent rain showers. These showers sometimes cool our
temperatures and provide much-needed precipitation.

Precipitation is not an abundant resource in the desert, but sunshine certainly is. At a recent
networking function on solar development, I was reminded that sunshine, when converted to
solar energy, is a vast and important resource here in the Southwest. Interestingly, the person
who reminded all of us of our resource was from cloudy Germany, where many solar programs
are being implemented. Solar technology is now being developed more abundantly in Arizona
than in the past. It's estimated that the state could generate over 10,000 jobs in the coming
years.

Since that discussion this past Spring, I have been doing considerable research on the topic
of sustainability, which is a large and growing field. The focus of my research is to learn how
green business practices generate value for organizations. For example, most companies
would certainly benefit from being more efficient with energy use, but what about building
a more positive brand image or improving a reputation because the public sees them as
"green."

In the article of the journal OD Practitioner (Vol. 40 No. 2, 2008) entitled Green Organization
Development, the authors Bauback Yeganeh and Ante Glavas mention a study done by
McKinsey & Company, a global management consulting company, in 2006. The study
interviewed 4238 business executives in 116 countries. The findings showed that "84% of
those executives felt that business should contribute to the public good; however, only 3%
believe that their companies are currently doing a good job (pg. 7)."

How can an Organizational Change Consultant such as myself help organizations on their
journey towards becoming greener-- by getting conversations going and helping leaders and
teams to specifically discuss ways to implement green strategies in the areas of energy use,
product design, as well as the organization's value-added activities.

Many large organizations are jumping on the sustainability bandwagon with interesting results.
Stay tuned to this blog for more information about the field of sustainability as I continue my
journey to discover and talk about green organizations.

Talk with you later.

Jean
© 2009