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Transcript
CSM - Center for Corporate Sustainability Management – IMD
Strategies to integrate sustainability into core business:
An update on progress
Dr. Aileen Ionescu-Somers
Copyright 2010 © by IMD International, Lausanne, Switzerland
Not be used or reproduced without permission
IMD’s Center for Corporate Sustainability Management (CSM)
CSM’s new mission as a research and learning platform:
Contribute to and propel the successful mainstreaming of social and
environmental issues on the corporate strategic agenda through
•
Relevant and practical research
•
Cross-fertilization of corporate learning
... thus helping companies to “get things done” in
developing and rolling out viable sustainability
strategies
2 File name
IMD’s Center for Corporate Sustainability
Management (CSM)
•
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The CSM platform is open to:
•
Companies that wish to build a business
advantage by building social and environmental
issues into their business strategy
•
Companies that either are or wish to become
sustainability leaders
Companies/organizations we’ve worked with…..
Philip Morris
Tetra Pak
Lombard Odier
Darier Hentsch
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CSM contributes to IMD vision, values and brand
•
Firms have big issues to address relating to their social and
environmental impacts and sustainable development;
•
Firms need to tackle these issues on both a strategic
leadership and implementation level;
•
CSM is a leader in the area of sustainability
innovation/strategy and leadership in corporations
•
CSM aims to be an increasingly trusted advisor in the area of
corporate sustainability strategy design and implementation
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Where can CSM add more value?
Helping companies to overcome barriers and roll
out sustainability strategies internally
•
Ensuring that CSM research is integrated in
programs across IMD business school
•
Liaising with external institutions and acting as a
facilitator/radar allowing companies to access
knowledge in this field (helping with “early
awareness” stakeholder consultation)
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What research?
Research Output
•
Numerous books and articles:
•
•
•
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in peer review journals
Research Projects recently completed or ongoing:
•
The business case for sustainability – a cross-industry approach
•
Quantification of sustainability benefits
•
Inside the mind of stakeholders – based on stakeholder perceptions
•
The effectiveness of corporate sustainability partnerships
Books published with Palgrave Macmillan:
•
Corporate sustainability partnerships (2008)
•
Business logic for sustainability; A food and beverage industry perspective (2008)
•
Inside the mind of the stakeholder (2006)
•
The business of sustainability (2004)
CSM books
Books
Inside the Mind of the Stakeholder
Ulrich Steger (2006) Palgrave
www.palgrave.com
Business Logic for Sustainability
A Food & Beverage Industry Perspective
Aileen Ionescu-Somers & Ulrich Steger (2008) Palgrave MacMillan
The Business of Sustainability
Building industry cases for corporate sustainability
Ulrich Steger (2004) Palgrave MacMillan
Sustainability Partnerships: The Manager’s Handbook
Ulrich Steger, Aileen Ionescu-Somers, Oliver Salzmann & Stephanie Mansourian
(2008) Palgrave MacMillan
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The challenge of sustainability
for business strategy
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The crux of the matter: Market failures
•
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The market economy, left to function on its own, fails to
allocate resources to satisfy the needs and wants of the
individual and society.
•
Increasing environmental degradation and
unsustainable resource depletion is a market
failure
•
Non delivery of the social goal of sustained
economic growth is a market failure
Theory of Externalities
Externalities are present when
A)
The activities of an economic agent like a firm has
external consequences for other agents other than by
affecting prices
B)
These external effects are not compensated for
Examples: Traffic congestion, Dumping of toxic wastes, Emission of
greenhouse gases, Pesticides in food chains, Acid rain, Ozone
depletion
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How externalities are dealt with
•
ADJUST PRICES: The problem is due to incorrect prices so adjust
them by using taxes or subsidies
•
CREATE A MARKET: The problem is due to missing markets so, for
example, create a market for pollution by use of tradable permits
•
ASSIGN PROPERTY RIGHTS: The problem arises from imperfect
property rights which need to be amended
•
Companies INTEGRATE EXTERNALITIES TO THEIR STRATEGIES
when economically relevant
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What’s the problem companies
internalizing externalities?
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What’s the problem?
•
Living in a world of multiple crises in a multi-technical communications world
• Reactions numbed by numbers of headlines that reach our radar screens.
• It takes big crises to draw our attention to sustainability issues:
Some examples that created waves in the public discussion in the ’80s and ’90s:
Union Carbide Bhopal Disaster (1984)
Chernobyl (1986)
Sandoz River Rhine Spill (1986)
Exxon Valdez accident (1989)
Brent Spar debacle (1995)
And now…..more generic:
Climate change (provoked by world weather events, The
Inconvenient Truth, the Stern Review on Climate Change, the
Copenhagen Conference and so on……)
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Issues creating waves
Some examples that created waves in the public discussion in the ’80s
and ’90s:
Union Carbide Bhopal Disaster (1984)
Chernobyl (1986)
Sandoz River Rhine Spill (1986)
Exxon Valdez accident (1989)
Brent Spar debacle (1995)
And now…..also more generic:
Climate change (provoked by unprecedented world
weather events, The Inconvenient Truth, the Stern
Review on Climate Change, the Copenhagen
Conference and so on……)
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The changing state of the world
•
Demography: since the ’50s, well over double the population from 2.5 to 5.9
billion
•
20 per cent of the world population consumes 80 per cent of its resources
•
Higher standards of living in developing countries: Gross national product of
the world has increased by a factor of ten since the ’50s
•
Increasing consumption worldwide
-
•
In a world of some 10 billion by 2050 – will this be socially and politically sustainable?
Increased resource use: Since the ’50s: Quadrupling in use of energy
worldwide – from 2.5 billion tons of coal-equivalent to 11 billion tons –
causing emissions of CO2 to drastically increase
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The changing state of the world
•
Even at today’s levels of agricultural and industrial
production, there are unprecedented social and
environmental problems:
• Ozone depletion
• Climate change
• Deforestation
• Dramatic species loss
• Collapse of major fisheries
• Growing poverty and health problems related to
unsustainable development
• Human rights abuses
17 File name
The corporate sustainability strategic conundrum
If a company sees stress signals in its business
context, should it do nothing?
•
Companies have an obligation to be compliant with regulation
•
But there is intense debate around the social and environmental
responsibilities of companies beyond compliance and within industry
•
Is there a “business case”?
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So how has the debate been evolving?
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First half of 20th century:
•
firms regarded the environment as either
•
a source of free inputs to the economy or
•
a free repository for waste
This perspective led to abuse of commonly shared
global resources. Firms were effectively “free riders”
“THE TRAGEDY OF THE COMMONS” (Hardin, 1968)
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After the 2nd World War:
•
Mounting social pressure
•
A number of factors influenced this:
21 File name
•
Increase in use and abuse of natural resources
•
Intensity of use of human capital
•
Foundation of intergovernmental organizations
•
Increasing prevalence of NGOs (non-governmental
organizations representing civil society during this
period
Fifties and onwards
•
1950s: Scholars launched the modern debate on corporate social
responsibility (CSR)
•
argues that if business adopted more comprehensive social goals in its
decision-making processes, more social and economic benefits would
accrue to society
•
1960s/70s: Questining of relation between “industrial” man and the
environment (Carson’s Silent Spring – 1962, and Club of Rome
“Limits to Growth” – 1971)
•
1987: “Sustainable development is any development which
meets the needs of the present without compromising the ability
of future generations to meet their needs” (Brundtland Report
1987)
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The power of corporations and the conundrum
•
National governments have become weaker and institutions
previously underpinning society (church) have lost influence
•
The public increasingly pressures companies to:
•
•
take over some of the previous responsibilities of church and state
institutions in the broader social context,
•
exercise CSR, or “corporate citizenship”
•
accept accountability for societal welfare
Underlying assumption: Companies are more than their “brands” and
shareholder value (their traditional focus)
So companies are increasingly being held to standards that have
moth moral and financial dimensions
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We’ve moved from a Tri-polar World………
Government
Society
24 File name
Industry
To a view of the company as part of society………..
Regulators
Customers
NGOs
Suppliers
The Public
The Company
Employees
Contractors
25 File name
Shareholders
Power of corporations: The conundrum
“International companies like ours need to be careful that they
don’t pretend to be, or aspire to be, more than they are. We’re in
the business of understanding consumers and providing
consumers with the products they need, the quality they want, at
the price they’re prepared to pay, and doing it in a responsible
way. That’s our job. If we begin to have aspirations to somehow
or other become supranational, powerful good outside the realm
of our own business, we begin to set ourselves up in a way for
which we don’t have a brief, - nor a legitimacy.”
CEO at the beginning of the Millennium
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Power of corporations: The conundrum
Undercurrent:
•
There must be an economic rationale, or BUSINESS LOGIC, for
integrating sustainability
•
To make “sustainability” sustainable, businesses need to go beyond
•
27 File name
•
normative arguments,
•
philanthropy and
•
even eco-efficiency (reducing resources to save money)
Companies will actively look for the BUSINESS CASE for integrating
social and environmental considerations into business strategy.
The ‘Smart Zone’
Economic value generated
Company creates economic
value by improving
environmental and
social performance beyond
compliance
The Smart Zone:
Economic gain is high
Compliance level
of activity under
consideration
28 File name
Activity y
Further improvements of
environmental and social
performance lead to
decreases in economic
performance
ActivityFurther
x
improvements
are associated
with an
economic loss
Level of environmental
and social performance
Power of corporations: The conundrum
Factors
•
Sceptical management with a “what’s in it for us?” approach
•
Demand for as quantified a business case as possible, with
•
Proof that sustainability management positively impacts the bottom line
“The business case is (…………) something that must be carefully honed
to the specific circumstances of individual companies operating in a
unique position within distinct industries. Successes in whole industries
and at other companies are useful examples, but the case still has to be
applied to one company at a time.” (Reed, 2001)
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CSM project conceptual framework: Finding and rolling out
the business case for sustainability
Corporate sustainability management
•
is a strategic and profit-driven response to social and environmental
issues a company is facing
•
has several contingencies, such as: industry and country of operation
•
has several internal and external determinants (drivers/barriers), such
as
30 File name
•
organizational culture
•
tools and processes
•
managers’ mindset
•
Interest/disinterest from key stakeholders (capital markets, customers,
regulators, etc.)
Research objectives: IMD’s business case
research
• To examine
• The economic reasoning for corporate sustainability
• Mismatch of perceptions, attitudes and behavior between
sustainability officers and their counterparts
• Country- and industry-specific differences in values and
restrictions
• Pressures undergone by companies to respond to internal
and external demands
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Methodology
1. Review of existing research
2. Pilot survey in reference companies
3. Extensive survey on 9 different industries in 8
different countries (US, Japan and Europe) through
• More than 400 face-to-face interviews and
• 1068 returned mail/fax/online questionnaires (945
general managers, 123 sustainability officers)
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What is the bottom line?
• “A BUSINESS CASE IS NOT FOUND - IT HAS TO BE BUILT”
Member of CSM Advisory Council
• Corporate sustainability is not the next "big thing" - but there to stay
33 File name
Attitudes towards corporate sustainability
100%
90%
80%
70%
Very Much
60%
Much
More or less
50%
A little
Not at all
40%
30%
20%
10%
3741 GM
NN== 945
0%
1
2
3
4
1. “The business of business is business. So companies should comply with the law, but going beyond the law would only sacrifice profits."
2. “Profit always comes first for companies. There are win-win situations in which companies can achieve financial, environmental and social
goals at the same time. In these situations, it makes sense for companies to go beyond what the law requires.”
3. “Companies should consider social and environmental issues/expectations, and try to actively integrate them into their
strategies because, by doing so, they gain long-term competitive advantage.”
4. “As part of their role in the “global society,” companies should engage in social and environmental initiatives, even if long-term competitive
advantage cannot be proven.”
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Sustainability issues
• are multiple, extremely fragmented, often
controversial and uncertain
• what is regarded as an issue also differs
widely (different languages used)
• add to the complexity of an already complex
business environment
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Stakeholders: "Transmission Belts“ vary
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•
Regulators still more important than NGOs that
nevertheless provide an important "early awareness"
function
•
Customers and capital markets are the “deterrers”
Value drivers
Helps us to manage our
risks better
17%
Leads to innovation of
products and services
8%
Improves brand value and
reputation
23%
Other
2%
Attracts Talent and
increases employee
satisfaction
16%
Improves our access to
capital
2%
Leads to cost reductions
14%
Is essential to maintaining
our 'license to operate'
18%
N = 123 SO
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Sustainability issues affecting
strategic risks and opportunities
Systemization of sustainability issues, value
drivers and the relevant corporate activities
Energy divide
Climate change
Radical innovation for new products
and markets
Sustainability issues affecting operational risks
and opportunities
• Local air pollution
• Biodiversity
• Health
• Safety
• Human rights
• Monetary flows
Incremental improvements in
Environmental
performance
H&S
performance
Social
performance
• Brand value and reputation
• License to operate
• Attract and retain talent
Net cost decreases through
incremental innovation
Net revenue increases
through radical innovation
Economic value
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Business functions
Promoting role
Finance/Control
4%
Marketing/Sales
14%
Deterrent role
Top Management
1%
Other
2%
EHS/Sustainability
1%
R&D
25%
NR or N/A or Do not
Know
20%
No Opposition
7%
Other
5%
HR & Corp Staff
30%
Manufacturing
23%
R&D
4%
Manufacturing
13%
HR & Corp Staff
10%
Marketing/Sales
13%
Finance/Control
28%
N = 2068
N = 2068
39 File name
N = 1128 GM
Barriers to corporate sustainability strategic roll out
Lack of interest from
customers
16%
Opposition or lack of interest
from investors
8%
Organizational culture
20%
Other
4%
Managers' mindset
19%
Managers' lack of
knowledge/expertise
14%
Regulation (e.g. subsidies &
low environmental/social
standards)
7%
Absence of appropriate tools
and processes
12%
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N = 945 GM
THE BARRIERS: Results of our stakeholder review
Reported pain points of embedding sustainability strategies
Engagement, change, reward
Knowledge
•
Middle management buy-in
•
Short-term mindsets
•
Difficulties to integrate into
business model
•
Organization silos
•
Difficulties to make the
business case across
departments and BUs
•
CSM targets are not
• Lack of quantification tools
integrated within rewards and of specific business cases
evaluation systems
and emerging risks
Resource leverage
•
Lack of systematic
• Poor cost effectiveness of
sustainable procurement
performance measurement
and benchmarking
• Difficulties to push
• Difficulties to build effective
energy/resource savings
to the next level
networks to support
innovation
• High cost of innovation
• Barriers to transforming
• Low impact on brand
markets/educating
leverage
customers
•
Lack of adequate KPIs
Responses from 22 global organizations participating in CSM workshop in April 2009
41 File name
2. CSM Research and Learning Initiatives: SAI Platform
•
CSM/IMD is working with the SAI-Sustainable Agriculture Initiative
(a partnership of 22 major food & beverage companies) to promote
sharing of knowledge/guidelines/standards about managing the food
and beverage industry’s single biggest sustainability issue: Protection
of the industry’s raw material bases long-term.
•
SAI’s greatest challenge? :
Breaking down mindsets of managers and filling knowledge gaps
about the significant industry threats and business risks of
unsustainable agriculture and need to integrate sustainability in
supply chains and marketing and sales strategies
42 File name
2. CSM Research and Learning initiatives: SAI
Platform companies
 Active Members:












Unilever
Danone
Nestlé
Coca-Cola
Kelloggs
General Mills
Kraft
MacDonalds
Sara Lee
Tchibo
Pepsico
Novus










 Affiliate Members:
 CIAA - EISA Dairy Platform
43 File name
Global
Lamb Weston
McCain
Kemin
Farm frites
Fonterra
Friesland Campina
CIO
Agrarfrost
Agroterra
Mayuga
WWF Climate Savers
http://cleaneconomy.panda.org/csvideo/index.html
44 File name
2. CSM Research and Learning initiatives:
WWF Climate Savers Business Alliance
 Active Members:












45 File name
Johnson & Johnson
Nike
Lafarge
The Collins Companies
Xanterra
Catalyst
Novo Nordisk
Tetra Pak
Sony
Nokia
Hewlett Packard
Nokia Siemens Networks








Johnson Diversey
Nike
Lafarge
The Coca-Cola Company
Sofidel
Fairmont Hotels and Resorts
Elopak
National Geographic
Competitive landscape of Climate Savers
Source: IMD Research.
46 File name
2. CSM Research and Learning initiatives: WWF
Climate Savers business alliance
•
2008 Ran workshop on Climate Savers strategic challenges and identified
strategic options
•
2008 Created a learning tool (integrative case) as a result, running it at
OWP in 2009 and currently developing it into a day-long session for the
EMBA in 2010
•
2009 Created Climate Change Strategy Tool for companies
47 File name
2. CSM Research and Learning initiatives
2009 CSM wrote a series of 13 case studies on climate
change innovation by the Climate Savers: Johnson &
Johnson, Tetra Pak, Novo Nordisk, Xanterra Parks &
Resorts, Fairmount Hotels, Elopak, Nokia Siemens
Networks, Sony, Hewlett Packard, Sagawa
Transportation
All cases were loaded on the WWF Climate Savers
website in the lead up to Copenhagen Climate
conference in Dec. 2009
www.letthecleaneconomybegin.org and published in
brochure (with IMD logo) distributed to thousands of
executives in Copenhagen
48 File name
CSM’s case series on WWF Climate Savers
Innovations
IMD-2-0146: WHAT DOES IT TAKE TO GET PROJECTS OFF THE
GROUND? JOHNSON & JOHNSON’S CAPITAL RELIEF FUNDING
FOR CO2 REDUCTION PROJECTS
Johnson & Johnson’s capital relief funding for CO2 reduction projects
have attracted the interest of managers in many companies in different
industries, eager to learn how the corporation have eliminated budgeting
barriers and allowed 61 climate friendly energy projects to take off in less
than 4 years.
IMD-2-0147: BREAKING DOWN ALIGNMENT BARRIERS: TETRA
PAK PULLS TOGETHER ALLIES TO REACH CLIMATE GOALS
Tetra Pak efforts to align market companies, manufacturing sites and
suppliers with its climate goals required significant organizational
change. By empowering shop floor teams to initiate and explore new
approaches to energy efficiency along the supply chain, the company
created a structure that allows organic innovation to take place.
49 File name
CSM’s case series on WWF Climate Savers
Innovations
IMD-2-0148: DEVELOPING AN INNOVATIVE BUSINESS MODEL:
NOVO NORDISK AND DONG ENERGY DRIVING THE MARKET FOR
RENEWABLE ENERGY IN DENMARK
Novo Nordisk’s search for cost-effective solutions to reduce CO2
emissions drove the development of a new business model which
expanded the commercial basis of renewable energy in Denmark.
IMD-2-0149: REMOVING BARRIERS TO INNOVATION: XANTERRA
PARKS AND RESORTS GAINING SCALE IN ON-SITE SOLAR POWER
GENERATION
Xanterra Parks & Resorts’ focused strategy of bringing on-site renewable
energy generation to the next level required not only significant dedicated
resources, but also singular efforts to break down skeptical mindsets and
risk-related barriers to innovation. By active learning from an almost
terminated project, the company was able to build one of the largest
privately-owned solar photovoltaic systems in the US.
50 File name
CSM’s case series on WWF’s Climate Savers
innovations
IMD-2-0150: FAIRMONT HOTELS & RESORTS STRETCHING THE
TARGETS FOR CLIMATE ACTION AT LANDMARK HOTELS
The Fairmont Hotels & Resorts case focuses on actions taken by Fairmont
during the full restoration of The Savoy in London and the building of the
new Fairmont Pittsburgh in the United States. It shows the feasibility of
stretching targets for lowering CO2 emissions from hotel operations.
IMD-2-0151: REACHING A TURNING POINT WITH NO TURNING BACK:
HOW ELOPAK ROLLS OUT CO2 REDUCTION INITIATIVES
Elopak committed to reduce its CO2 emissions by 15% within a tight time
frame of 3 years. This ambitious target pushed the company to adopt an
innovative roll out approach, including active participation of Elopak’s CEO
in efforts to build internal buy in, incorporation of a carbon strategy as part of
the marketing mix and integration of climate targets into normal
management cycle and reporting systems.
51 File name
CSM’s case series on WWF Climate Savers
Innovations
IMD-2-0152: DEVELOPING IT SOLUTIONS FOR REDUCING TRAVELRELATED CO2 EMISSIONS: THE HEWLETT-PACKARD’S HALO
HP’s search for IT solutions to reduce travel-related CO2 emissions has driven
the development of innovative telepresence collaboration solutions. By
developing solutions that create a lifelike virtual meeting experience the
company is contributing to the removal of technological and mindset barriers to
the substitution of business travelling by virtual collaboration.
IMD-2-0153: LAFARGE’S C-C-TOOL: SUPPORTING CO2 MITIGATION
DECISION MAKING THROUGH IMPROVEMENT MONITORING, ANALYSIS
AND SIMULATION
By improving internal CO2 data management and putting in place a user-friendly
tool for monitoring, analysis and simulation of mitigation alternatives, Lafarge
facilitated decision-making processes and strengthened the autonomy of
operational managers in implementing CO2 reduction projects.
And others……..
IMD-2-0154 – Sony
IMD-2-0155 –Nokia Siemens Networks
52 File name
IMD Climate Change
Corporate Strategy Tool
Following a procedure of four
major steps, the tool helps to:
Assess
Car bon
Footpr int
Set
Tar gets &
Incentives
Climate
Change
Strategy
Evaluate
Str ategic
Options
53 File name
Analyze
Risks &
Oppor tunities
 Assess a company’s carbon
footprint
 Reveal climate change-related
risks and opportunities
 Identify strategic options and
evaluate financial attractiveness
 Derive emission reduction targets
and incentives
Engaging networks
to take action
54 File name
Why do you need to engage internal networks in
sustainability initiatives?
Effectively convincing and selling key
stakeholders to take action
•
Why me?
•
Why now?
55 File name
How will you reach these key stakeholders?
56 File name
What are you trying to achieve?
Think of one initiative that you plan to
achieve over the coming year
57 File name
What are the different types of networks?
•
Work networks – exchanging information to get business-as-usual
done
•
Expert advice networks – solving problems and providing technical
information
•
Strategy – developing and building a consensus about strategy
•
Innovation – launching new products or services or improving
business processes
•
Decision making – people who play a part in key decisions
•
Trust or social networks – sharing political information and backing
each other during a crisis
Most
powerful
58 File name
Networks for different purposes have fundamentally
different topologies
Expertise
to...
Decision Making
…Work
59 File name
Strategy...
Who are the key stakeholders that you need to
convince to get your initiative executed?
•
Which strategy makers?
•
Which key decision makers?
•
Which experts?
•
Which people involved in innovation?
•
Which people will you need to actually do the work?
60 File name
What do you want from them?
Awareness
61 File name
Interest
building
Evaluation &
trial
Adoption
Are these key stakeholders for or against your
initiative?
Yes
Doom
Merchants
Level of
influence on
outcome and
willingness to
use that
influence
Supporters
Bystanders
Nuisance
Resistors
Quiet
Enthusiasts
No
Actively
Against
62 File name
Neutral
Strongly
Supportive
Typically we start an initiative like this
Yes
Doom
Merchants
Level of
influence on
outcome and
willingness to
use that
influence
No
Project
Engines
15%
5%
Bystanders
Nuisance
Resistors
70%
Quiet
Enthusiasts
5%
Actively
Against
5%
Neutral
Typically 5-20% of stakeholders are key
63 File name
Strongly
Supportive
How do you use your networks to pull everyone over
the right hand side?
Yes
Doom
Merchants
Level of
influence on
outcome and
willingness to
use that
influence
Project
Engines
Convert
Bystanders
Nuisance
Resistors
Collaborate
Quiet
Enthusiasts
No
Actively
Against
64 File name
Neutral
Strongly
Supportive
How do you use your networks to pull everyone over
the right hand side?
Yes
Doom
Merchants
Level of
influence on
outcome and
willingness to
use that
influence
Project
Engines
Bystanders
Nuisance
Resistors
Divide &
conquer
Collaborate
Quiet
Enthusiasts
Encourage
No
Actively
Against
65 File name
Neutral
Strongly
Supportive
How do you use your networks to pull everyone over
the right hand side?
Yes
Doom
Merchants
Level of
influence on
outcome and
willingness to
use that
influence
Project
Engines
Bystanders
Nuisance
Resistors
Build momentum
Quiet
Enthusiasts
No
Actively
Against
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Neutral
Strongly
Supportive
How do you use your networks to pull everyone over
the right hand side?
Yes
Doom
Merchants
Level of
influence on
outcome and
willingness to
use that
influence
No
Isolate
Bystanders
Nuisance
Resistors
Quiet
Enthusiasts
Persuade
Actively
Against
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Project
Engines
Neutral
Strongly
Supportive
Use your networks to find the right people to go to
stakeholders
• How can we leverage our
supporters?
• Who do the stakeholders
respect?
Project
team
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• Who will be most effective?
Feed the network hubs
•
Huge amounts of information pass through here
•
These people are central within the network
•
Often have “weak ties” into other strong networks
•
May or may not be influential
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Get around the gatekeepers
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•
Some people only absorb information
•
They create structural holes
•
Work out how to get around them by adding links
Informal networks allow us to understand the
“organizational terrain”
•
Hierarchical relations are important for decision-making authority and accountability
• However, hierarchical
relationships:
– Do not get information where it
is needed, when it is needed
– Do not provide all the context
for understanding the
implications of information (i.e.,
do not reduce real ambiguity)
– Do not facilitate high levels of
flexibility in conditions of
interdependence and
multiplicity
– Can be slow
*Adopted and adapted from Prof. J.F. Manzoni, IMD
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Understand and use the distribution of attitudes
•
There always are some innovators/early adopters
•
Target “innovators” early for momentum
•
There are multiple “helpers”: Hierarchy + opinion leaders + network
leaders
•
Watch out for resistors (do not exclude them) and gatekeepers
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s
R
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is
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aj
or
it
e
La
t
rly
M
aj
or
it
y
rs
Ea
Ad
op
to
rly
Ea
In
no
va
to
rs
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Building your influence networks
•
Do something to get your strategic network started
•
Remember its less a matter of skill than of will…so allocate time
20%?
•
It’s a skill that takes practice
•
Set goals and move through them one by one
•
Map progress and celebrate success
What are your next networking steps?
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For more information about CSM:
Dr. Aileen Ionescu-Somers
Director
Center for Corporate Sustainability Management (CSM)
Tel: +41 21 618 03 89 Fax: +41 21 618 06 41
[email protected]
IMD
Ch. de Bellerive 23, P.O. Box 915
CH - 1001 Lausanne, Switzerland
www.imd.ch
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