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Title Text to Go Here
The Secret Advantage of
Authentic Sustainability
Presented by Bob Ferguson
Symposium on Deep Green Business
Maharishi University of Management
July 6, 2013
Employee vs Energy Math
% total costs non-process energy - 3-4%
% total costs employees – 50-60%
What if, by engaging employee’s hearts and minds, a workforce
became 10% more productive?
That would nearly double the financial impact of completely
eliminating non-process energy costs.
But, the story is even more interesting.
3
Energy Conservation – Cryotech Deicing Technology
Plug-load survey goes viral!
―we were able to reduce our non-production electrical usage by
50%. Reduction came from operational (behavior) changes
alone‖
John Moles, Plant Engineer and Green Team leader
The Challenge
Gallup State of the American Workplace - 2013
―While the state of the U.S. economy has changed substantially
since 2000, the state of the American workplace has not.
Currently, 30% of the U.S. workforce is engaged in their work, and
the ratio of engaged to actively disengaged employees is roughly 2-
to-1, meaning that the vast majority of U.S. workers (70%) are not
reaching their full potential — a problem that has significant
implications for the economy‖
ACTIVELY DISENGAGED NOT ENGAGED ENGAGED
State of the American Workplace – Employee Engagement Insights for U.S. Business Leaders Gallup
2013
0% 100%
Employee Engagement Among the U.S. Working Population
18 52 30
19 52 29
19 53 28
18 54 28
20 51 29
20 50 30
15 55 30
15 59 26
17 54 29
17 55 28
17 53 30
16 54 30
18 56 26
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Engagement Shifts Perception
0%
10%
20%
30%
40%
50%
43
34
21
“ORGANIZATION ISHIRING”
0%
10%
20%
30%
40%
50%
“ORGANIZATION ISLETTINGGO”
ENGAGED NOT ENGAGED ACTIVELY DISENGAGED
30
20
13
State of the American Workplace – Employee Engagement Insights for U.S. Business Leaders Gallup 2013
How are things going in this outfit?
―Gallup found that engaged employees are twice as likely to
report that their organization is hiring new workers as those who
are actively disengaged. In contrast, those who are actively
disengaged are nearly three times more likely than those who
are engaged to report that their organization is shedding jobs.
This is regardless of overall U.S. job creation holding steady
during the survey period.‖
State of the American Workplace – Employee Engagement Insights for U.S. Business Leaders Gallup 2013
Be Sustainable – Really
or cede the best talent to competitors
Why are Job Seekers Attracted by Corporate Social
Performance? Experimental and Field Tests of Three Signal-
Based Mechanisms
ACAD MANAGE J amj.2011.0848; published ahead of print February
21, 2013,
Employees Want to Work for
Sustainable Companies
3 Reasons Sustainability Attracts Job Seekers
• Mechanism #1: Sustainability draws job seekers because it’s
a source of employee pride
• Mechanism #2: Sustainability draws job seekers because it
implies the company cares about its employees
• Mechanism #3: Sustainability draws job seekers because it
helps them connect specific organizational values to their own
personal values
The Opportunity
Ray Anderson and Interface Carpet climb Mt Sustainability
When do we engage?
One of my favorite books
Punished by Rewards
The Trouble with Gold Stars, Incentive Plans, A's, Praise, and Other Bribes
Drawing from hundreds of studies, Kohn demonstrates that people actually do
inferior work when they are enticed with money, grades, or other incentives.
Programs that use rewards to change people's behavior are similarly ineffective
over the long run. Promising goodies to children for good behavior can never
produce anything more than temporary obedience. In fact, the more we use
artificial inducements to motivate people, the more they lose interest in what
we're bribing them to do. Rewards turn play into work, and work into drudgery.
The Answer?
• Content
• Collaboration
• Control
• How much do you need to pay people? Enough
The Final Word
Why is a genuine commitment to true sustainability of the kind
practiced by Interface Carpet, Marks and Spencer, and others so
powerful?
It can only be done by setting up a situation where people feel
they are:
• working on something very big, and very important – content
• working across the entire organization cross-functionally – collaboration
• working on something that is profoundly meaningful that has become their
idea and their responsibility - control
Hope Haven Area Development Corp
Burlington, Iowa
Our sustainability definition…
Hope Haven's goal is to afford sustainable growth that provides improvement in the lives of persons
with disabilities by managing resources to minimize cost and maintain conditions where future
generations will continue to have the resources needed to succeed.
Tammy Dietsch - WS Manager/Production Coordinator and participant in a TMS Sustainability Circle
Our sustainability definition........
Hope Haven's goal is to afford sustainable growth that provides improvement in the
lives of persons with disabilities by managing resources to minimize cost and maintain
conditions where future generations will continue to have the resources needed to
succeed.

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The Secret Advantage of Authentic Sustainability

  • 1. Title Text to Go Here The Secret Advantage of Authentic Sustainability Presented by Bob Ferguson Symposium on Deep Green Business Maharishi University of Management July 6, 2013
  • 2. Employee vs Energy Math % total costs non-process energy - 3-4% % total costs employees – 50-60% What if, by engaging employee’s hearts and minds, a workforce became 10% more productive? That would nearly double the financial impact of completely eliminating non-process energy costs. But, the story is even more interesting.
  • 3. 3 Energy Conservation – Cryotech Deicing Technology Plug-load survey goes viral! ―we were able to reduce our non-production electrical usage by 50%. Reduction came from operational (behavior) changes alone‖ John Moles, Plant Engineer and Green Team leader
  • 4. The Challenge Gallup State of the American Workplace - 2013 ―While the state of the U.S. economy has changed substantially since 2000, the state of the American workplace has not. Currently, 30% of the U.S. workforce is engaged in their work, and the ratio of engaged to actively disengaged employees is roughly 2- to-1, meaning that the vast majority of U.S. workers (70%) are not reaching their full potential — a problem that has significant implications for the economy‖
  • 5. ACTIVELY DISENGAGED NOT ENGAGED ENGAGED State of the American Workplace – Employee Engagement Insights for U.S. Business Leaders Gallup 2013 0% 100% Employee Engagement Among the U.S. Working Population 18 52 30 19 52 29 19 53 28 18 54 28 20 51 29 20 50 30 15 55 30 15 59 26 17 54 29 17 55 28 17 53 30 16 54 30 18 56 26 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
  • 6. Engagement Shifts Perception 0% 10% 20% 30% 40% 50% 43 34 21 “ORGANIZATION ISHIRING” 0% 10% 20% 30% 40% 50% “ORGANIZATION ISLETTINGGO” ENGAGED NOT ENGAGED ACTIVELY DISENGAGED 30 20 13 State of the American Workplace – Employee Engagement Insights for U.S. Business Leaders Gallup 2013
  • 7. How are things going in this outfit? ―Gallup found that engaged employees are twice as likely to report that their organization is hiring new workers as those who are actively disengaged. In contrast, those who are actively disengaged are nearly three times more likely than those who are engaged to report that their organization is shedding jobs. This is regardless of overall U.S. job creation holding steady during the survey period.‖ State of the American Workplace – Employee Engagement Insights for U.S. Business Leaders Gallup 2013
  • 8. Be Sustainable – Really or cede the best talent to competitors Why are Job Seekers Attracted by Corporate Social Performance? Experimental and Field Tests of Three Signal- Based Mechanisms ACAD MANAGE J amj.2011.0848; published ahead of print February 21, 2013,
  • 9. Employees Want to Work for Sustainable Companies 3 Reasons Sustainability Attracts Job Seekers • Mechanism #1: Sustainability draws job seekers because it’s a source of employee pride • Mechanism #2: Sustainability draws job seekers because it implies the company cares about its employees • Mechanism #3: Sustainability draws job seekers because it helps them connect specific organizational values to their own personal values
  • 10. The Opportunity Ray Anderson and Interface Carpet climb Mt Sustainability
  • 11. When do we engage? One of my favorite books Punished by Rewards The Trouble with Gold Stars, Incentive Plans, A's, Praise, and Other Bribes Drawing from hundreds of studies, Kohn demonstrates that people actually do inferior work when they are enticed with money, grades, or other incentives. Programs that use rewards to change people's behavior are similarly ineffective over the long run. Promising goodies to children for good behavior can never produce anything more than temporary obedience. In fact, the more we use artificial inducements to motivate people, the more they lose interest in what we're bribing them to do. Rewards turn play into work, and work into drudgery.
  • 12. The Answer? • Content • Collaboration • Control • How much do you need to pay people? Enough
  • 13. The Final Word Why is a genuine commitment to true sustainability of the kind practiced by Interface Carpet, Marks and Spencer, and others so powerful? It can only be done by setting up a situation where people feel they are: • working on something very big, and very important – content • working across the entire organization cross-functionally – collaboration • working on something that is profoundly meaningful that has become their idea and their responsibility - control
  • 14. Hope Haven Area Development Corp Burlington, Iowa Our sustainability definition… Hope Haven's goal is to afford sustainable growth that provides improvement in the lives of persons with disabilities by managing resources to minimize cost and maintain conditions where future generations will continue to have the resources needed to succeed. Tammy Dietsch - WS Manager/Production Coordinator and participant in a TMS Sustainability Circle
  • 15. Our sustainability definition........ Hope Haven's goal is to afford sustainable growth that provides improvement in the lives of persons with disabilities by managing resources to minimize cost and maintain conditions where future generations will continue to have the resources needed to succeed.