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Successfully Developing Triple Bottom Line Sustainability: #6

November 24, 2010 3 comments

This is the last of six Blogs dealing with TBL Sustainability. All six Blogs have been co-developed with my colleague and TLA Associate Tia Carr Williams.

“Give a man a fish, you have fed him for today.  When a man learns to fish, he will feed himself for a lifetime.” – Author unknown

In earlier Blogs of this series, we noted that both Sustainable Advantage (SA) and Sustainable Competitive Advantage (SCA) are based on achieving superior market position. We also noted that SCA is toxic in that it pits both employees and organizations against one another in a never ending competitive “survival of the fittest”, whereas SA strategy and implementation are based on a much more desirable win-win collaboration of all parties. In other words, SCA tries to push on the rope of change whereas SA pulls change into being. Organizational Sustainable Advantage™ (OSA™) was introduced and defined in Blog #4 of this series, and is an improvement on SA since the OSA™ approach certifies that strategy and implementation plans are based not only on a profitable win-win collaboration of all parties, but that they are ethical, and without negative impact on relevant ecological and sociological systems. In other words, OSA™ is still pulling change into being, but it goes to a new level by adding the essential triple bottom line elements (social, ecological, financial) as a significant component of sense making and decision making.

To ensure and encourage the necessary organizational climate of innovation and TBL focus, monitoring, and reporting, when an organization begins to navigate the transition from SCA or SA to triple bottom line OSA™, The Leadership Alliance Inc. [TLAINC] has led the way in creating an easily understood seamless performance-based process. This process is one that an organization can readily morph into. It reduces the organizational complexity typically involved in such a large scale change; promotes formation of a fractal organization; fosters common TBL OSA™ understanding and values across all organizational levels; nurtures a culture with innovation at its heart; encourages collegial, participative, open business systems; promotes and leverages networks and social interaction; and provides systems to measure and report progress continuously.

In order to easily understand and rapidly adopt TLAINC’s seamless performance-based process to navigate the transition from SCA or SA to triple bottom line OSA™, organizations must cultivate a culture having sustainable business principles, learning and innovation at its heart. There must be a motivational visionary strategy allied with a deep human context structure; workforce integration systems of high efficiency, capability and efficacy; a synergistic co-operative culture that fosters thinking on how everything can be improved and costs reduced; and there must be task agility for optimal productivity.

This is a tall order, but to achieve these ends, TLAINC supports its clients in undertaking two processes concurrently. One process involves creation of an organizational “attractor” – a central core of strategic business concepts, business processes, and social norms to be refined and used by employee networks at all levels to mutually shape the organization in a dynamic manner; the second process is cultural, and involves creation of a socialized environment based on trust, true dialogue, and the lessening of the power struggles that exist in organizations.

These interventions may be optimally achieved based on TLAINC’s transformative approach. This involves forging a unique ‘solidarity network’ that is inclusive of all the important organizational networks. In this approach representatives of all the various key organizational and governance networks, including the CEO, hold dialogs together for the good of all the stakeholders. TLAINC has the proven capabilities to identify the representatives of the key organizational networks, and the real-life organizational experience to assist formation of the solidarity networks.

These solidarity networks re-design and re-develop the systemic organizational structure, business processes, roles, and tools, to specifically develop an environment where learning and adaption will be essential to successfully carrying out the work of every employee. In this pursuit, new structures and ways of working to adjust to, and to continue adjusting for, a changing set of conditions are created by the continuous dynamic process of co-evolution with a changing environment that is underpinned by learning. This approach leverages a distinctive characteristic of complex systems which is their ability to create new order; that is, a different way of working, thinking and relating. OSA™ is this continuous process of co-evolution. It is neither a one-off change which remains static, nor a reversion or adherence to the status quo. This means understanding and working with (not constraining) the characteristics of organizations as complex social systems.

In promoting organizational learning and adaption, TLAINC through its Associates can accommodate the integration of peer and supervisory coaching, where required, with a highly experienced team of coaches with proven track records. This ensures adaption to a specific strategic or tactical behavioral assessment that obviates hierarchical appraisal in favor of self appraisal procedures. Milestones are configured from qualitative and quantitative measurements aggregated from contributions and co-operative peer review.

The corporate-structure model for the decentralized enterprise described in earlier Blogs in this series demands strategic leadership, corporate identity, capabilities distribution and access, low-cost capital access, and enterprise-wide control. Implementation must be based on socialization, knowledge management, and coherence. The measurement, monitoring, and reporting of these pivotal features are critical to success. TLAINC will collaborate with a client to provide a customized version of TLAINC’s Sustainability Scorecard™ to truly reveal the advances that indicate improvements are being realized, and to highlight next steps.

If you are serious about having your organization navigate the transition from SCA or SA to triple bottom line OSA™, TLAINC is the consultancy to help you make it a reality – why not give us a call?

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Successfully Developing Triple Bottom Line Sustainability: #3

November 2, 2010 1 comment

This is the third of six contiguous Blogs dealing with TBL Sustainability to be published over the next few weeks. All these Blogs are being co-developed with my colleague and TLA Associate Tia Carr Williams. In this third Blog further cultural implications of Sustainable Advantage (SA) are explored.

“It is not who is influential that counts but who acts as a catalyst for conversation” – Keith O’Brien

Sustainable Advantage (SA) has been discussed in Blogs #1 & 2 of this series dealing with TBL Sustainability. It is clear that change is fundamental to SA, and change is a constant continuum – a flowing circadian dynamic that yearns to be harnessed. The ability to purpose the momentum of change is colored by an organization’s prior experience of change. When starting to contemplate SA as an organizational change opportunity, and how it might be managed, it is useful initially to spend time reviewing and learning from previous change-related experience, and re-assessing the organization’s culture and design.

Change takes root best in a culture of innovation that incorporates an inclusive collaborative mindset, and that embraces change as an organic evolutionary process of co-production. As emphasized in Blog #1 of this series, a decentralized organization has distinct market advantages over a wholly centralized organization. In particular, the sense of incorporation from many perspectives in a decentralized organization creates a balance and an harmonious relationship with change, rarely the case in current or previous models of ‘change management’.

How well or badly churn has been integrated into the daily work flow is also an indicator of sustainability potential. Churn is typically viewed as deleterious from an organizational harmony viewpoint, but for a decentralized organization focusing on SA, churn is integral to its change momentum, and new and existing incumbents can champion innovation from a place of congruence, comprehensively cognizant of choices and challenges.

An organization seeking SA must cultivate a culture enfranchising sustainable principles and innovation at its foundation. There must be a synergistic co-operative culture that fosters thinking on how everything can be improved. Management must seek a balance between financial viability and strategies to gain and maintain market uniqueness through environmentally sustainable practices, including product and process innovation, as well as the development of sustainable supply chain management. There must be a motivational visionary strategy allied with a deep human context structure, and workforce integration systems of high efficiency, capability and efficacy. Costs must be reduced, and there must be task agility for optimal productivity. Leadership is at the heart of a healthy organization, but it must beat with the ring of authenticity – people will follow where their heart is engaged.

This kind of strong organizational culture confers a fundamental and unique advantage. If building and sustaining an innovation culture focused on commitment to the organization’s goals remains central to all activities, the potential for sustainable success is increased immeasurably. To promote creativity the organization’s leaders must pull the culture into being by giving the right incentives to key people, encouraging them to think creatively, and with every achievement, giving them the confidence to think ‘out of the box”. This can only be accomplished where the environment supports such activities. ‘Soft spaces’ within the formality of the corporate environment nurture such engagement to great effect; it is no surprise that the factors that most strongly predict rapid change, adaptation, and innovation introduction, are related to collegial, participative and open organizational systems, and cultures that permit joint problem solving without boundary interference. These are the kinds of decentralized organizations where individuals have the freedom to take risks and develop new ideas, be creative, and challenge existing organizational norms.

In the upcoming fourth Blog of this series, the implications a Triple Bottom Line approach to SA will be explored.

Change Proofing

November 21, 2009 Leave a comment

In 1995 I co-authored a paper [1] about “Change Proofing” – the ability of a commercial organization to manage change stimulated by largely unanticipated, hard-to-predict events and shocks. Examples up to that time included trauma due to third world debt in the 1970s, the energy industry in the 1980s, and commercial real estate and corporate buy-outs in the 1990s.

History shows that the consequences of failing to recognize and interpret harbingers of change can be devastating. It is said that the ancient Peruvian Indians were unable to “see” the sails of the invading Spanish fleet, and dismissed them as mirages. More recent historical (hysterical?) examples of myopia include US automobile manufacturers who were blinkered to Pacific-Rim competitors, and even IBM, which was long unprepared for opportunities presented by the explosive growth of personal computing.

Clearly-identified business trends, such as globalization, technology, demographics and new social orders, had often been cited up to 1995 as drivers of change. However, little attention had been given to management of change stimulated by largely unanticipated, hard-to-predict events and shocks, such as rapid oil price changes or the sudden collapse of centrally-planned economies. Few models of such change, or techniques to plan or cope with it had been presented in the literature in 1995 or since for that matter, although even in 1993 according to such an authority as Ed Schein [2]: “…the problem is not management of change but the management of surprise”.

Change Proofing was not intended as a means to resist or avoid change, but rather a process for becoming more flexible and responsive in order to cope with it. The Change Proofing paper proposed that environmental shocks and surprises could best be managed by increasing the ability of the organization itself to anticipate, recognize and respond to them – surprise surprise – before hand! The paper set out theoretical reasoning, but more importantly it detailed a straightforward practical Change Audit that would help organizations of all types and sizes frame and address critical factors for Change Proofing; form more realistic and objective views of radical environmental change; and develop better means of coping with surprise. The paper also recommended that the Change Audit should cover organizational learning processes and their impact on strategic focus, motivation and core capabilities.

So what can one say about current events? Too bad so many of today’s organizations haven’t read the paper or didn’t heed its message?! Well, it’s not too late to plan for next time – and there will be a next time – so I invite you to have a look at the paper now …

[1] Drew, S.A.W. & Smith, P., The Learning Organization: Change Proofing and Strategy, The Learning Organization, Vol. 2, No. 1, 1995

[2] Schein, E.H., How can organizations learn faster? The challenge of the green room, Sloan Management Review, Winter, 1992; pp. 85 – 92