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Green Ocean Competitive Strategies
Susan SheehanJune 10, 2010
“ There is no end to the amount of money to be made by doing the right thing.”
Bill Clinton, 2007
o Companies do ‘sustainability’ for competitive advantage
o Blue Ocean Strategy….Green Oceano 2 Green Ocean examples
today
CEOs and sustainability CEOs and sustainability
◦ Improve Brand (54%) ◦ Differentiate Products (50%)
Not compliance, risk or cost
Top two reasons for sustainability strategy
AT Kearny & Institute for Supply Chain Management
o >70% of executives said sustainability contributes to shareholder value
o >70% rank sustainability as very or extremely important to corporate reputation and brand
McKinsey & Company, 2010
Sustainability delivers value5
Competitive strategy?Competitive strategy?
>70% CEOs say sustainability should be STRATEGIC
<20% are doing it
The math looks good!
How to How to create create uncontestuncontested market ed market space space and make and make the the competiticompetition on irrelevantirrelevant……
Create uncontested market space
Make the competition irrelevant
Find ‘non-customers’Pursue differentiation
AND low costSet outrageous goals
and set your people loose!
Red vs. Blue Oceans…
• Focus on core market
• Beat the competition
• Combat ‘commoditization’
• Keep your customers
• Choose low cost or differentiation
• Set realistic goals and micro-manage
• Death by a thousand cuts!
“…do all this, and do it right, and do it first before this decade is out.” J.F.K. 1962
Set outrageous goals
Create uncontested market space
Low cost AND differentiation
Serve non-customers
2000’s Reinvented systems furniture
“be a good corporate neighbor by being a good steward of the environment”
Dirk Jan De Pree (DJ)1955
Herman Miller, Founder
2020 Commitment – crazy goals 2020 Commitment – crazy goals
ZERO
• Minimum LEED Silver
• 100% green energy
• landfill• hazardous waste generation
• air emissions
• water emissions
the mirra®
outrageous goalsnon-customers
In the past year….
23rd year most admired company in its industryFortune Magazine poll of industry executives and analysts
One of world’s 50 Most Innovative Companies Fast Company
One of 50 Best Manufacturing Companies Industry Week
"SAM Sector Leader" and "SAM Sector Mover”SAM Social Investing global ranking
Herman Miller a Green Ocean Winner?Herman Miller a Green Ocean Winner?
Green Ocean
Red Ocean
A few crazy ideas
2nd largest office furniture company in the world; $1.92B sales
“Serve our communities as a committed corporate citizen.”“Serve our communities as a committed corporate citizen.”
26
oCut energy 20% in 5 yearso Empower branch managers
Chairman’s Task Force on Sustainability -2008
Chairman’s Task Force on Sustainability -2008
o World’s largest fleet of fuel efficient vehicles
o Thousands of hybrids and electric vehicleso Fleet as 'petri dish' for fuel and engine
technology
Fleet Alternatives
Sustainable Construction
LOW COST AND DIFFERENTIATION
WeCar Sharing
Non-Customers
o$1.25 per rental, matched by Enterprise Foundation
Carbon Offset Program
50 million, 5 year
Tree Pledge
o $100 M fundo Algae biofuels PHDso Goal – large scale supply of biofuel
Enterprise Institute for Renewable Fuels
Last 12 monthsoBusiness Traveler Innovation Award for outstanding and original environmental efforts in the travel industry;
National Business Travel Ass./Wall Street Journal
oReaders’ Choice Award as their favourite rental car brand
Budget Travel Magazine
Green Ocean ahead?
o Irrational, right brain thinkingo unachievable goalso non-customerso create uncontested green ocean markets
Think Green Ocean
Susan SheehanLeapfrog Sustainability Hub
416-598-7585susansheehan@leapfroghub.com
Susan SheehanLeapfrog Sustainability Hub
416-598-7585susansheehan@leapfroghub.com
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