SB Webinar | Embedding Sustainability in Product Development Decisions - Systematically

2© 2014 | STRATEGIC HARMONY® PARTNERS | www.strat-harmony.com
Embedding Sustainability in Product
Development Decisions – Systematically
Steven Cristol
Founder, Managing Partner
April 30, 2014
A webinar exclusively for the SUSTAINABLE BRANDS® Community
Marie Perriard
Director, Global Brand and
Corporate Communications

What We’ll Cover
Complexity/stress can elevate importance of right-brain attributes.
Shareholder value: where alignment of product
development, brand strategy and CSR comes together
3 keys to embedding sustainability in PD decisions
Outputs and outcomes
Example: framework, metrics and analytics tool as a system
Walking the talk: Sustainable Brands® experience with
this approach

Shareholder Value and the Co-dependent Roles
of Product Development, Brand and Sustainability
Shareholder
Value
Revenue Stability
Brand
Equity
Brand
Image
Products
Sustainable
Business
Practices
Service
Profitability

Sustainability as an Organic Element of the
Core Product Development Discussion
What’s the potential of
each product/feature to
drive customer satisfaction
and loyalty?
Which new products
or features should be
accelerated, delayed,
killed, changed?
Which products/features
best differentiate us on
drivers of brand choice
that matter most?
Will the product roadmap
under-deliver on crucial
benefits / over-deliver on
the less crucial?
How will each product or
feature support or detract
from sustainability goals and
related business value?

Embedding Sustainability in Product Development:
3 Common Challenges
How best to ensure development teams
systematically encounter sustainability criteria?
How to do it early enough, before projects
are approved for development?
How to make sustainability assessment less
complex initially?
1
2
3
INTEGRATE
ACCELERATE
SIMPLIFY

Front-End Consideration of Environmental/Social
Impact of Development Choices
INTEGRATE ACCELERATE SIMPLIFY =
Flowchartimage of Stage-GateInnovation Process
©2000-2014, Stage-Gate International
Embedded
Sustainability

Systematic Integration Means Embedding in
Development Processes, Tools and Collaboration
Strategic Harmony® – an
integrated approach that uses
Brand Impact Analysis to
simultaneously optimize
product/service roadmaps for:
customer experience
competitive advantage
resource allocation
efficiency
sustainability
Example:

Three cornerstone portfolio assessments –
and specific ways of combining them to enrich ROI comparisons
Strategic Harmony® and Brand Impact Analysis
helping the brand where it most needs help
with drivers of brand choice (ideal customer experience)
development burden (resources + risks/complexity)
© 2003-2014Strategic Harmony Partners

How efficiently
the development burden
for each project is leveraged
into potential market impact
Assessments are combined and weighted to produce
higher-order metrics and analytics
The most important projects
for market impact and brand strength
regardless of cost and complexity
STRATEGIC
IMPORTANCE
LEVERAGE

SIMPLICITYSOUND
DESIGNCONTENT
Great sound quality
Easy to use
• Easy hardware interface
(knobs/dials/buttons)
• Intuitive navigation/software
• Bug-free software
• Fewest clicks to music
• Easy remote control
• Long battery life
• Clarity (vocals and instruments)
• Deep bass
• No hum/buzz/noise
• Feeling immersed, surrounded
• Can play loud enough
without distortion
Easy setup
• Easy out-of-the-boxsetup
• All necessary hardware included
• Easy to connect iPod/smartphone/tablet
• Interoperable with other brands
High-quality design
• Quality look and feel
• High-quality components
• High-quality casing materials
• High-qualityremote control
Compact
• Small footprint
• Low bulk/spatialvolume
• Lightweight
• Minimal number of pieces
Maximum content access
• Personal digital library access
• Cross-platformlibrary access
(PC, phones, set-top)
• Integrated internet music services
• Radio access (terrestrial/satellite)
• Music purchasing access
Content-enhancing functionality
• Accurate music search
• Easy to discover new music
• Sharing capabilities
• Access to social networks
• Screen-enhancinginformation(lyrics, artist info, etc.)
(Ideal customerexperience as impacted by product developmentdecisions)
Drivers of Brand Choice: Portable Audio Speakers
(Importance Index=100)
(73)
(68)
(89)
(81)
(77)
(56)
Brand choice model framework ©2003-2014 Strategic Harmony Partners

STRATEGIC
IMPORTANCE
LEVERAGE
SUSTAINABLE
LEVERAGE
How efficiently and sustainably
the development burden
for each initiative is leveraged
How sustainably the
investment leverage
is achieved
4th Cornerstone: Integrated Early-Stage Sustainability Assessment

• Alignment Scorecard
• Competitive Impact Scorecard
• Manageability Scorecard
• Strategic Importance Scorecard
• Sustainability Scorecard
• Leverage Scorecard
• Alignment Dashboards
• Competitive Impact Dashboard
• Manageability Dashboard
• Sustainability Dashboard
• Assessments Comparisons Dashboard
• Strategic Importance Quadrant Map
• Leverage Quadrant Map
• Sustainable Leverage Quadrant Map
Screenshot thumbnails from Brand Impact Analysis, powered by Strategic Harmony®,
in Planview Enterprise® software. © 2010-2014Planview, Inc.
Sustainability as an Organic Element of
Product Development Analytics Tools
Brand Impact Analysis, automated in Planview® software for
Product Development Portfolio Management

Better Business Outcomes
Getting to market faster with the things that matter
most (and more sustainably)
More meaningful product/service differentiation
(and more sustainably)
Stronger CSR story, more engaged stakeholders,
sustainability-driven business value and innovation
More efficient financial/human resource allocation
(less waste)
Team alignment, clarity, conviction on development priorities
(with sustainability already factored in)
…all add up to stronger brands, faster growth, greater profitability

Walking the Talk: the Sustainable Brands® Experience

Embedding Sustainability:
Sustainable Brands’ Experience with This Process
Getting brand choice drivers in sharp focus –
and embedding them in brand communication as well
Stakeholder engagement
Adapting “competitive impact” to “best in class” benchmarks
Converting our subjective knowledge to quantitative outputs
Provocative value-added strategic discussions (like how to
weight sustainability vs. other factors)
Clarity and consensus on which initiatives to deprioritize and
which to accelerate to add value to the brand
(knowing sustainability was baked in!)

Strategically Prioritizing Initiatives
Accelerate 2nd Wave De-prioritize
• Initiative B
• Initiative D
• Initiative E
• Initiative K
• Initiative C
• Initiative G
• Initiative J
• Initiative A
• Initiative F
• Initiative H
Achieves 61% of
total portfolio’s
Sustainable Leverage
Achieves 82 % of total portfolio’s
Sustainable Leverage
customer experience
achieving best-in-class
resource allocation
efficiency
AND sustainability
Based on weighted,
aggregated metrics
encompassing:
PORTFOLIO BALANCING

Q & A
Email: cristol@strat-harmony.com
Phone: +1.206.522.1220
www.strat-harmony.com
Thank You
for attending
© 2003-2014 Strategic HarmonyPartners
Method and model protected by U.S. Patent No. 7,711,596 and additional patents pending.
Strategic Harmony® is a registered trademark of Strategic Harmony Partners.

SB Webinar | Embedding Sustainability in Product Development Decisions - Systematically

SB Webinar | Embedding Sustainability in Product Development Decisions - Systematically

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SB Webinar | Embedding Sustainability in Product Development Decisions - Systematically