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Incorporating Sustainability
         Strategies
             February 16, 2013
             Sustainable Living Fair Workshop



                  Jenine Serviolo
Environmental Leadership Program (ELP) Senior Fellow,
                PMP, SDI® Facilitator
              SMART Management Consulting, LLC          1
Introduction

 ELP Senior Fellow/New England  Other
  Regional Network 2012            • SDI® Facilitator
 Harvard Extension School         • Master’s Certificate in PM,
   •   Masters in Sustainability
                                               GWU
       Management student                    • Performance Measure
 Project Management Institute                 Blueprint with Stacey Barr
  (PMI) Involvement                          • Balanced Scorecard Strategic
   •   PMP
                                               (BSC) Execution with Kaplan
                                               and Norton
   •   Portfolio Management for the PM
   •   Managing Strategic Performance        • LEED Green Associate (in
                                                progress)
   •   Standard for PfM 3rd Edition




Get-SMART.com           SMART Management Consulting, LLC                  2
SMART Management Consulting

 President & CEO
 Federal Government Clients
 Consulting, Training, and
  Workshops
    •   Strategic Planning, Execution,
        and Management
        o   Strategic Planning using
            Balanced Scorecard (BSC)
    •   Sustainable Leadership
    •   Communication
        o   Mentoring and Coaching
        o   Effective Collaboration




                                         Member of US Green Building Council

  Get-SMART.com          SMART Management Consulting, LLC                      3
Agenda

 Levels of Sustainability         Engaging Staff
  Strategy                            • Commitment Level
 Sustainability Story                • Communication Matrix
   • People, Planet, Profit        Questions
   • Balanced Scorecard            Contact Information
     Concepts
                                   References
   • Example Strategy Map




 Get-SMART.com   SMART Management Consulting, LLC              4
Levels of Sustainability



                                                         Stages 4&5
                                                         borrow-use-
                                                         return


                                                    Stages 1-3
                                                    take-make-
                                                    waste




Get-SMART.com    SMART Management Consulting, LLC                 5
People, Planet, Profit

   People
    • Internal - employees
    • External – customers, shareholders, community members
   Planet
    • Environmental impacts
        o    Entire lifecycle for building (offices, plant), vehicles, products, etc.
        o    Supply chain
   Profit
    • Profits, sales, ROI, job creation
    • Budget allocation and donations
    • Fiscal responsibility




Get-SMART.com            SMART Management Consulting, LLC                               6
Terminology Introduction
   Strategic Core
    • Mission
        o   Enduring nature
    • Vision
        o   More ideal future place
    • Values
        o   Attitudes, behaviors, thoughts – organizational way

   Balanced Scorecard (BSC) Kaplan and Norton
    •   Perspectives
        o   The key organizational components used to create value
    • Objectives
        o   The organizational goals - to achieve the strategic core
    • Strategy Map
        o   A visual tool for showing the cause/effect relationship between strategic
            elements
        o   Helps tell the strategy story
Get-SMART.com            SMART Management Consulting, LLC                               7
Value of BSC & Strategy Map

Shows sustainability elements in relation to key
organizational perspectives
   • Financial shows owners, shareholders, donors, and citizens
     profit or financial responsibility
   • Customer shows customers, consumers, and service recipients
     how their needs are being met
   • Internal Processes show how business processes consider
     people, planet, and profit as resources are used to produce
     desired products and services
   • Organizational Capacity shows how business infrastructure,
     information technology, community, culture, knowledge and skills
     provide the foundation to support internal processes




 Get-SMART.com    SMART Management Consulting, LLC                  8
Sample Strategy Map



Each row is a
 perspective




Each oval is an
  objective




     Shows
    cause &
     effect




       Snapshot retrieved from http://f2.washington.edu/ess/content/envionmental-stewardship-sustainability-strategy-map

Get-SMART.com                   SMART Management Consulting, LLC                                                           9
Strategic Core




Snapshot retrieved from http://f2.washington.edu/ess/content/envionmental-stewardship-sustainability-strategy-map

                         SMART Management Consulting, LLC                                                           10
Perspectives & Objectives
    Placement of People, Planet, Profit icons for
    discussion purposes only – inserted by
    SMART Management Consulting, LLC




Snapshot retrieved from http://f2.washington.edu/ess/content/envionmental-stewardship-sustainability-strategy-map

                           SMART Management Consulting, LLC                                                         11
Engaging Staff

 Strategic planning is an instance of
  organizational change
 To be successful, key stakeholders must
  not only understand the strategic plan but
  must embrace their role to executing the
  plan




Get-SMART.com   SMART Management Consulting, LLC   12
Individual Strategy Commitment

Conscious        Cognizant        Concur         Champion
of               of               with           for
Knows it’s       Can              Can            Can articulate
there but        articulate the   articulate     the strategy,
can’t            strategy but     the            plays an active
articulate it    doesn’t          strategy       role and
and doesn’t      knowingly        and plays      consistently
knowingly        play an          active role    seeks out
play an active   active role      as directed    opportunities to
role                                             further strategy

                      Contrary
                      to
  Also may be         Is at least conscious or
  important to        cognizant of strategy
  note…               but is opposed to it…

 Get-SMART.com          SMART Management Consulting, LLC            13
Assessing Strategy Commitment

   Current commitment level (O)?
   Target commitment level (X)?


                Commitment Level
                Champion
                Concur                X
                Cognizant
                Conscious             O
                Contrary




Get-SMART.com   SMART Management Consulting, LLC   14
Building Strategy Commitment
Discuss commitment to strategy with subordinates, peers, supervisor
and/or strategy officer
    • Consider influences on
        o   Peers
        o   Managers
        o   Subordinates
        o   Customers
        o   Partners
        o   External agencies
    • What is needed to get to target level?
        o   Training
        o   Awareness sessions
What do folks need to Start, Stop, or Continue doing to live up to their
strategy commitment?
        o   Attitudes
        o   Behaviors
        o   Actions

 Get-SMART.com          SMART Management Consulting, LLC              15
Communication Planning Matrix

The Outreach and Communications Plan
  • Includes outline of stakeholders and
    activities/communications that will be done to
    communicate strategy
  • Use Communication Planning Matrix to help develop
    Outreach and Communications Plan
                      Communication Planning Matrix

     Timing     Audience     Target     Message   Methods   Sender
                           Commitment   Content
                             Level




Get-SMART.com        SMART Management Consulting, LLC                16
Timing

   During what Strategic Planning Phase should
    this communication take place?
    • Planning
    • Development
    • Execution
   Should the communication come before or after
    certain events?
   Will it be recurring?
                              Communication Planning Matrix
                Timing    Audience     Target     Message   Methods   Sender
                                     Commitment   Content
                                       Level




Get-SMART.com    SMART Management Consulting, LLC                       17
Audience

Who are the key stakeholders?
  •   Executive team
  •   Operational managers
  •   Employees
  •   Customers/consumers
  •   Partners
  •   Community members
  •   Regulator/oversight committees

                         Communication Planning Matrix
            Timing   Audience  Target    Message   Methods   Sender
                               Commitment   Content
                                 Level




Get-SMART.com        SMART Management Consulting, LLC                 18
Commitment Level

What commitment level is needed from the
audience and how can you help them get
there?      Champion
                      Concur
                      Cognizant
                      Conscious

  Also consider the current commitment level of the
  Audience - especially if they are contrary

                            Communication Planning Matrix
            Timing     Audience    Target     Message  Methods   Sender
                                               Content
                                Commitment
                                   Level



Get-SMART.com         SMART Management Consulting, LLC                    19
Message Content

What content should your message have to
achieve the desired response?
  • Clarifying strategy, process, procedures
  • Identifying alignment
  • Responses to concerns, especially those surrounding ‘competing
    objectives’
  • What’s in it for me (WIFM)?
  • Measures and reporting
  • Organizational culture
  • Recognition and awards
  • Data, people, task, team themes (Relationship Awareness Theory®)
                                Communication Planning Matrix
                     Timing   Audience   Target  Message Methods   Sender
                                       Commitmen
                                         t Level Content



Get-SMART.com     SMART Management Consulting, LLC                          20
Methods
What methods should be used to achieve the desired
response?
   Company meeting                           Brochures
   Staff meetings                            Pocket cards
   Special training sessions                 Wall posters
   Other educational events                  Company newsletters
   Face to face discussions                  Broadcast emails
                                              Video
                                              Website

                               Communication Planning Matrix
                Timing    Audience   Target   Message   Methods   Sender
                                  Commitment   Content
                                    Level




    Get-SMART.com        SMART Management Consulting, LLC                  21
Sender

Who should deliver the message?
  • Person at the ‘top of                       • Direct supervisor
    the change’                                      o   Daily impact of change
       o   Business issues                           o   What do I need to
       o   Reasons for change                              Start doing
                                                           Stop doing
                                                           Continue doing

                           Communication Planning Matrix
             Timing    Audience     Target     Message     Methods   Sender
                                  Commitment   Content
                                    Level




Get-SMART.com         SMART Management Consulting, LLC                        22
Using the Communication Matrix…

Identify what information needs to be provided to key stakeholders
throughout the strategic planning lifecycle to make strategic planning
successful . Use this information to complete the Outreach &
Communications Plan.

                        Communication Planning Matrix
         Timing    Audience     Target     Message   Methodsis
                                                      This       often an iterative
                                                                     Sender
                              Commitment   Content
                                Level                            process!!


1. Identify the timing, sequencing, and frequency of communication
2. Identify the target audiences (by role or name) that are important for
   successful strategy achievement
3. Identify the commitment needed from each target audience
4. Choose message content appropriate for that timing, target audience
   and commitment level
5. Define best methods to deliver the message
6. Identify who should send the message

Get-SMART.com        SMART Management Consulting, LLC                             23
Questions




Get-SMART.com   SMART Management Consulting, LLC   24
Contact Information

Jenine Serviolo, PMP | SDI Facilitator | ELP SENIOR FELLOW
PRESIDENT & CEO SMART MANAGEMENT CONSULTING Get-SMART.com
757.615.6865 | 1231 Boissevain Ave, Norfolk, VA 23507 | Jenine@Get-SMART.com
   TRAINING AND CONSULTING IN SUSTAINABLE STRATEGIC
   PLANNING, LEADERSHIP, AND COMMUNICATION


                APPLICATIONS FOR 2013 PROGRAMS ARE NOW OPEN
                ELP is one of the only leadership organizations bringing together
                environmental and social change leaders from academia, business,
                government and the non-profit sector.
                     • Take your career to the next level
elpnet.org
                     • Find balance in work and in life
info@elpnet.org      • Expand your network to include some of the most innovative
                        people in the country
   Get-SMART.com        SMART Management Consulting, LLC                       25
References
    Strategic Planning with Balanced Scorecard
      •   Kaplan and Norton Books
      •   Palladium Group
      •   Balanced Scorecard Institute
      •   University of Washington Environmental Stewardship & Sustainability Office
          Strategy Map


    Sustainability in organizations
      • Bob Willard
           o   Website: http://www.sustainabilityadvantage.com/
           o   Quoted Book http://www.amazon.com/New-Sustainability-Advantage-Business-
               Benefits/dp/0865717125/ref=sr_1_1




    Get-SMART.com           SMART Management Consulting, LLC                              26
Backup Slide

                Organizational Strategy Elements

    MISSION: explains why an organization exists
      •   Communicates the organization’s enduring nature, its grand purpose - to people
          both inside and outside the organization
    CORE VALUES: a set of guiding principles
      •   Reflects the organization’s collective attitudes, behaviors, decisions and actions
    VALUE PROPOSITION: underscores the organization’s unique blend of
     products, services, relationships, and image.
      •   Differentiates the organization from competitors
    VISION: describes a more ideal future place
      •   Captures where we will be once we achieve our current strategy. It answers the
          question, where are we going? Why are we changing? Sometimes captured in
          a BHAG (Big Hairy Audacious Goal) or strategic themes
    GOALS, OBJECTIVES, MEASURES, AND TARGETS: typically the first
     major step to operationalizing strategy
      •   Goals & objectives are made up of initiatives, programs, projects, and activities
      •   They should be SMART…


    Get-SMART.com          SMART Management Consulting, LLC                                   27

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Incorporating Sustainability Strategies

  • 1. Incorporating Sustainability Strategies February 16, 2013 Sustainable Living Fair Workshop Jenine Serviolo Environmental Leadership Program (ELP) Senior Fellow, PMP, SDI® Facilitator SMART Management Consulting, LLC 1
  • 2. Introduction  ELP Senior Fellow/New England  Other Regional Network 2012 • SDI® Facilitator  Harvard Extension School • Master’s Certificate in PM, • Masters in Sustainability GWU Management student • Performance Measure  Project Management Institute Blueprint with Stacey Barr (PMI) Involvement • Balanced Scorecard Strategic • PMP (BSC) Execution with Kaplan and Norton • Portfolio Management for the PM • Managing Strategic Performance • LEED Green Associate (in progress) • Standard for PfM 3rd Edition Get-SMART.com SMART Management Consulting, LLC 2
  • 3. SMART Management Consulting  President & CEO  Federal Government Clients  Consulting, Training, and Workshops • Strategic Planning, Execution, and Management o Strategic Planning using Balanced Scorecard (BSC) • Sustainable Leadership • Communication o Mentoring and Coaching o Effective Collaboration Member of US Green Building Council Get-SMART.com SMART Management Consulting, LLC 3
  • 4. Agenda  Levels of Sustainability  Engaging Staff Strategy • Commitment Level  Sustainability Story • Communication Matrix • People, Planet, Profit  Questions • Balanced Scorecard  Contact Information Concepts  References • Example Strategy Map Get-SMART.com SMART Management Consulting, LLC 4
  • 5. Levels of Sustainability Stages 4&5 borrow-use- return Stages 1-3 take-make- waste Get-SMART.com SMART Management Consulting, LLC 5
  • 6. People, Planet, Profit  People • Internal - employees • External – customers, shareholders, community members  Planet • Environmental impacts o Entire lifecycle for building (offices, plant), vehicles, products, etc. o Supply chain  Profit • Profits, sales, ROI, job creation • Budget allocation and donations • Fiscal responsibility Get-SMART.com SMART Management Consulting, LLC 6
  • 7. Terminology Introduction  Strategic Core • Mission o Enduring nature • Vision o More ideal future place • Values o Attitudes, behaviors, thoughts – organizational way  Balanced Scorecard (BSC) Kaplan and Norton • Perspectives o The key organizational components used to create value • Objectives o The organizational goals - to achieve the strategic core • Strategy Map o A visual tool for showing the cause/effect relationship between strategic elements o Helps tell the strategy story Get-SMART.com SMART Management Consulting, LLC 7
  • 8. Value of BSC & Strategy Map Shows sustainability elements in relation to key organizational perspectives • Financial shows owners, shareholders, donors, and citizens profit or financial responsibility • Customer shows customers, consumers, and service recipients how their needs are being met • Internal Processes show how business processes consider people, planet, and profit as resources are used to produce desired products and services • Organizational Capacity shows how business infrastructure, information technology, community, culture, knowledge and skills provide the foundation to support internal processes Get-SMART.com SMART Management Consulting, LLC 8
  • 9. Sample Strategy Map Each row is a perspective Each oval is an objective Shows cause & effect Snapshot retrieved from http://f2.washington.edu/ess/content/envionmental-stewardship-sustainability-strategy-map Get-SMART.com SMART Management Consulting, LLC 9
  • 10. Strategic Core Snapshot retrieved from http://f2.washington.edu/ess/content/envionmental-stewardship-sustainability-strategy-map SMART Management Consulting, LLC 10
  • 11. Perspectives & Objectives Placement of People, Planet, Profit icons for discussion purposes only – inserted by SMART Management Consulting, LLC Snapshot retrieved from http://f2.washington.edu/ess/content/envionmental-stewardship-sustainability-strategy-map SMART Management Consulting, LLC 11
  • 12. Engaging Staff  Strategic planning is an instance of organizational change  To be successful, key stakeholders must not only understand the strategic plan but must embrace their role to executing the plan Get-SMART.com SMART Management Consulting, LLC 12
  • 13. Individual Strategy Commitment Conscious Cognizant Concur Champion of of with for Knows it’s Can Can Can articulate there but articulate the articulate the strategy, can’t strategy but the plays an active articulate it doesn’t strategy role and and doesn’t knowingly and plays consistently knowingly play an active role seeks out play an active active role as directed opportunities to role further strategy Contrary to Also may be Is at least conscious or important to cognizant of strategy note… but is opposed to it… Get-SMART.com SMART Management Consulting, LLC 13
  • 14. Assessing Strategy Commitment  Current commitment level (O)?  Target commitment level (X)? Commitment Level Champion Concur X Cognizant Conscious O Contrary Get-SMART.com SMART Management Consulting, LLC 14
  • 15. Building Strategy Commitment Discuss commitment to strategy with subordinates, peers, supervisor and/or strategy officer • Consider influences on o Peers o Managers o Subordinates o Customers o Partners o External agencies • What is needed to get to target level? o Training o Awareness sessions What do folks need to Start, Stop, or Continue doing to live up to their strategy commitment? o Attitudes o Behaviors o Actions Get-SMART.com SMART Management Consulting, LLC 15
  • 16. Communication Planning Matrix The Outreach and Communications Plan • Includes outline of stakeholders and activities/communications that will be done to communicate strategy • Use Communication Planning Matrix to help develop Outreach and Communications Plan Communication Planning Matrix Timing Audience Target Message Methods Sender Commitment Content Level Get-SMART.com SMART Management Consulting, LLC 16
  • 17. Timing  During what Strategic Planning Phase should this communication take place? • Planning • Development • Execution  Should the communication come before or after certain events?  Will it be recurring? Communication Planning Matrix Timing Audience Target Message Methods Sender Commitment Content Level Get-SMART.com SMART Management Consulting, LLC 17
  • 18. Audience Who are the key stakeholders? • Executive team • Operational managers • Employees • Customers/consumers • Partners • Community members • Regulator/oversight committees Communication Planning Matrix Timing Audience Target Message Methods Sender Commitment Content Level Get-SMART.com SMART Management Consulting, LLC 18
  • 19. Commitment Level What commitment level is needed from the audience and how can you help them get there? Champion Concur Cognizant Conscious Also consider the current commitment level of the Audience - especially if they are contrary Communication Planning Matrix Timing Audience Target Message Methods Sender Content Commitment Level Get-SMART.com SMART Management Consulting, LLC 19
  • 20. Message Content What content should your message have to achieve the desired response? • Clarifying strategy, process, procedures • Identifying alignment • Responses to concerns, especially those surrounding ‘competing objectives’ • What’s in it for me (WIFM)? • Measures and reporting • Organizational culture • Recognition and awards • Data, people, task, team themes (Relationship Awareness Theory®) Communication Planning Matrix Timing Audience Target Message Methods Sender Commitmen t Level Content Get-SMART.com SMART Management Consulting, LLC 20
  • 21. Methods What methods should be used to achieve the desired response?  Company meeting  Brochures  Staff meetings  Pocket cards  Special training sessions  Wall posters  Other educational events  Company newsletters  Face to face discussions  Broadcast emails  Video  Website Communication Planning Matrix Timing Audience Target Message Methods Sender Commitment Content Level Get-SMART.com SMART Management Consulting, LLC 21
  • 22. Sender Who should deliver the message? • Person at the ‘top of • Direct supervisor the change’ o Daily impact of change o Business issues o What do I need to o Reasons for change  Start doing  Stop doing  Continue doing Communication Planning Matrix Timing Audience Target Message Methods Sender Commitment Content Level Get-SMART.com SMART Management Consulting, LLC 22
  • 23. Using the Communication Matrix… Identify what information needs to be provided to key stakeholders throughout the strategic planning lifecycle to make strategic planning successful . Use this information to complete the Outreach & Communications Plan. Communication Planning Matrix Timing Audience Target Message Methodsis This often an iterative Sender Commitment Content Level process!! 1. Identify the timing, sequencing, and frequency of communication 2. Identify the target audiences (by role or name) that are important for successful strategy achievement 3. Identify the commitment needed from each target audience 4. Choose message content appropriate for that timing, target audience and commitment level 5. Define best methods to deliver the message 6. Identify who should send the message Get-SMART.com SMART Management Consulting, LLC 23
  • 24. Questions Get-SMART.com SMART Management Consulting, LLC 24
  • 25. Contact Information Jenine Serviolo, PMP | SDI Facilitator | ELP SENIOR FELLOW PRESIDENT & CEO SMART MANAGEMENT CONSULTING Get-SMART.com 757.615.6865 | 1231 Boissevain Ave, Norfolk, VA 23507 | Jenine@Get-SMART.com TRAINING AND CONSULTING IN SUSTAINABLE STRATEGIC PLANNING, LEADERSHIP, AND COMMUNICATION APPLICATIONS FOR 2013 PROGRAMS ARE NOW OPEN ELP is one of the only leadership organizations bringing together environmental and social change leaders from academia, business, government and the non-profit sector. • Take your career to the next level elpnet.org • Find balance in work and in life info@elpnet.org • Expand your network to include some of the most innovative people in the country Get-SMART.com SMART Management Consulting, LLC 25
  • 26. References  Strategic Planning with Balanced Scorecard • Kaplan and Norton Books • Palladium Group • Balanced Scorecard Institute • University of Washington Environmental Stewardship & Sustainability Office Strategy Map  Sustainability in organizations • Bob Willard o Website: http://www.sustainabilityadvantage.com/ o Quoted Book http://www.amazon.com/New-Sustainability-Advantage-Business- Benefits/dp/0865717125/ref=sr_1_1 Get-SMART.com SMART Management Consulting, LLC 26
  • 27. Backup Slide Organizational Strategy Elements  MISSION: explains why an organization exists • Communicates the organization’s enduring nature, its grand purpose - to people both inside and outside the organization  CORE VALUES: a set of guiding principles • Reflects the organization’s collective attitudes, behaviors, decisions and actions  VALUE PROPOSITION: underscores the organization’s unique blend of products, services, relationships, and image. • Differentiates the organization from competitors  VISION: describes a more ideal future place • Captures where we will be once we achieve our current strategy. It answers the question, where are we going? Why are we changing? Sometimes captured in a BHAG (Big Hairy Audacious Goal) or strategic themes  GOALS, OBJECTIVES, MEASURES, AND TARGETS: typically the first major step to operationalizing strategy • Goals & objectives are made up of initiatives, programs, projects, and activities • They should be SMART… Get-SMART.com SMART Management Consulting, LLC 27

Notes de l'éditeur

  1. As companies progress to become sustainable enterprises, we can position them on the five-stage sustainability continuum shown in Figure 1.15. Their business framework evolves from an unsustainable take-make-waste model in Stages 1, 2, and 3 to a sustainable borrow-use-return model in Stages 4 or 5. Executive mindsets, which in the early stages see initiatives labeled “green,” “environmental,” and “sustainable” as expensive and bureaucratic impediments to success, also evolve to recognize these initiatives as catalytic investments for competitive advantage. •  Stage 1: Pre-Compliance. The company cuts corners and tries not to get caught if it breaks the law or uses exploitative practices that cheat the system. It flouts environmental, health, and safety regulations. This stage is the norm in corrupt jurisdictions. Elsewhere, intelligent companies move quickly to Stage 2 in order to avoid fines, prosecution, and public embarrassment. •  Stage 2: Compliance. The business manages its liabilities by obeying labor, environmental, health, and safety regulations in the jurisdictions in which it operates. It has an environmental management system and company policies on environmental protection and human rights. It reactively does what it is legally bound to do while happily externalizing its ecological and social collateral damage. It installs pollution abatement equipment as end-of-pipe retrofits.Stage 2 is the baseline. •  Stage 3: Beyond compliance. A company voluntarily moves to Stage 3 when it realizes that it can save money with proactive operational eco-efficiencies, or at least avoid a public relations crisis and discourage new regulations. It reaps incremental “low-hanging fruit” by saving energy while reducing its associated carbon footprint; saving water; saving materials in its products and packaging; and saving waste costs. Stage 3 companies focus efforts where they can generate big results, fast. In Stage 3, sustainability initiatives are usually marginalized within specialized departments. They are tacked on as green housekeeping, rather than being institutionalized in the company’s governance systems. Companies in Stage 3 are not sustainable; they are just less unsustainable. Many Stage 3 companies have annual targets for further waste and electricity reduction and for the further elimination of toxic substances used in manufacturing, but the goals are increasingly difficult to meet. The law of diminishing returns inhibits further savings from eco-efficiency programs. A new phase must be entered. That is why companies aspire to Stage 4.Stages 4 and 5: Similar Behaviors, Different Motivations About 90% of the behaviors of Stage 4 and Stage 5 companies look the same. Companies in both stages adopt a cyclical, borrow-use-return model of sustainable capitalism. They inject sustainability principles into their cultural DNA. Companies in both stages deploy business strategies that respect the environment, the community, and the ongoing business health of the firm. They unleash the untapped creative energies of all employees and managers, empowering them to suggest and implement sustainability-oriented expense-saving and revenue-growing opportunities. Sustainability expectations are aligned within the organization and across the entire value chain. Instead of seeing green costs and risks, companies in both stages see investments and opportunities. They make cleaner, greener products, and they embrace eco-effectiveness and life-cycle stewardship. They are sustainable enterprises doing no harm, doing good, and making more profit. It is the motivations of companies in these two stages that differ, as represented by the dotted line between Stage 4 and Stage 5 in Figure 1.16. The means and the ends — the benefits and the co-benefits — of companies in the two stages are flipped. Think of Stage 4 companies as publicly traded companies that are chartered to put their shareholders’ interests first and ensure they reap competitive advantages from their sustainability initiatives. Think of Stage 5 companies asfounder-owned companies with a priority on values-based corporate citizenship. Many Stage 5 companies do not go through the first four stages. They start and end in Stage 5. Many of them are in the 98% to 99% of companies in the world that are small or medium-sized businesses. Some become famous (see Figure 1.17). Their company values mirror the values of their founders. If you were to congratulate CEOs of small Stage 5 companies for being sustainable enterprises, many would have no idea what you were talking about. They do not frame their strategies and behaviors in those terms. They just do it. Publicly traded companies may evolve to Stage 5 once the legitimacy of social and environmental purposes is embraced in the business community. Benefit Corporations (B Corps) embody this trend.8 Does it matter whether a company is in Stage 4 or Stage 5? We would all like companies to do the right things for the right reasons, but Earth does not care. Our priority is to quickly reach the tipping point of a critical mass of sustainable firms to ensure a sustainable planet. Whatever convinces Stage 3 companies to aspire to Stage 4 will do. At Stage 4, they can see the wisdom of transforming to Stage 5 later.Willard, Bob (2012-04-10). The New Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line (Kindle Locations 698-747). New Society Publishers. Kindle Edition.