A Model for Implementing a Successful Sustainability Strategy

David F. Brauer, MBA, CPCUDavid B. Brauer, DBA Candidate

October, 2011

“Strategy without tactics is the slowest route to victory. Tactics

without strategy is the noise before the defeat”

Sun Tzu

Media Impact

• Media changes the way events are viewed.• Business can’t avoid “bumping into

sustainability.• Successful business will be ahead of the curve

and not bump into it.

March 24, 1989

• Exxon Valdez oil spill• 1,300 square miles of coastline• 11,000 square miles of ocean• Stock dropped 3.9% and rebounded in a

month• Exxon slipped from largest to 3rd largest oil

company• Cost to Exxon over $4 Billion

April 20, 2010

• Deepwater Horizon oil spill aka BP oil disaster.• 2,500 square miles & visible from outer space.• Reported on continuously for months.• Stock went from $62 to $26 (-58%).

March 11, 2011

• Fukushima Daiichi Disaster• 132 Square kilometers no go zone• Cost in the multi Billions• Stock dropped 95% and has only recovered a

few points

CEO/ COOCommitment toSustainability

Statement ofSustainability

SustainabilityLeadership Committee

(Internal, CrossFunctional, Horizontal

and Vertical)

Creation andIntegration of CoreValues Relating to

Sustainability

Assimilation ofResources (People

& Money) intoSub-committees

Strategy TrainingProgramMetrics

Monitor Progress, Assess Buy-in of Internal and ExternalStakeholders, Field Evaluation, Actual Results, External

Feedback, Internal Feedback, Independent Surveys, ContinuedEvaluation of Metrics

External

Role of Leadership Committee

1. Create awareness of the impact of sustainability on the organization of today and tomorrow.

2. Build agreement within the organization on the intent of sustainability.

3. Develop and implement the plan that will create organizational alignment and follow through.

4. Create and implement leadership development programs.

5. Find and develop talent management.

Role of Leadership Committee

6. Monitor and make changes in culture change and other programs.

7. Foster an atmosphere of cooperation and teamwork.

8. Develop and monitor appropriate metrics.9. Engage all stakeholders.10. Communicate to all levels.

Critical Attributes of a Successful Strategy

• Acceptance, support, and passion of senior management

“You can’t do it for a day, a month, you can’t do it for year – you have to really believe in it”

There must be a senior statement on sustainability

• Sustainability must be a core strategic value for the organization

It must be the DNA of the company

• Processes and procedures must be aligned around sustainability throughout the organization and be integrated across all functions

There must be, as P&G calls it, an enabling strategy

• Communication.

Critical Attributes of a Successful Strategy

• These processes and procedures must be associated with measurable targets that are measured regularly.

• Employees require communication, training, and encouragement.

• All stakeholders should be engaged• Sustainability should become second nature

to everyone associated with the organization.

Conclusion

• Learn from the success and hardships of others: Have top management buy-in

– Be explicit– Sustainability is not added work but its’ the only way we work.– No trade offs– Have a clear strategy.– Make sustainability part of the DNA.– Stay the course.