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Of the many challenges that we wrestle each day, one certain truth is: the future will not look like the present. Global competition, technology, and innovation will define the future. Yet many leaders continue to lead, manage, and operate as they have in the past.

 

We try harder doing the same things, when instead we need to do different things. We must break the shackles of conformity, challenge the routine, and break out of existing paradigms. At the core of succeeding in today's competitive environment is the ability to constantly improve and reinvent the way we do business. The key to working smarter is to know the difference between motion and direction, between activity and focused action.

 

Creating a successful and sustainable business is not always easy; however, the rewards often out weigh the challenges. I hope you find value in the insights to leadership and sustainability in the following articles.



David Hildreth
BOOST Associates

 

Defining Sustainability

A recent survey published by Boston Consulting Group and MIT revealed that there is no single, established definition for sustainability. Some companies engaged in sustainability focus solely on environmental issues while others include economic, stakeholder, and governmental issues. The study also revealed that although companies differ in their definition, sustainability is a force to be reckoned with and is a concept that is here to stay.
(The Business of Sustainability, 2009, Boston Consulting Group)

In our research, sustainability emerged out of the concept of "going green." Because of outside pressure from the community and special interest groups and in an effort to meet new regulatory requirements, some industries were forced to change how their processes and products impacted the environment and people. Even through the last 18 months of economic challenges, sustainability has not gone away. Companies have been forced to remain in compliance while figuring out how to make progress with less capital and resources. Therefore, we can assume sustainability is more than just going green ... although being green is a big part of it.

To senior management, the question is, what does sustainability mean to your business? Leadership teams often lack a full understanding of how to apply the concepts of sustainability to the context of their strategic plan, their operating processes, their employees' attitudes and skills, and their stakeholders concerns. In our experience, the successful implementation of sustainability will have a measurable and positive impact on the planet, through their people, and the result is improved profitability. Therefore, it is highly likely that sustainability will be defined conceptually as a megatrend, which applies equally to all types of organizations. Organizations that have defined what sustainability means to their business and who have a successful implementation model are seeing significant benefits. Based on the success of early adaptors, sustainability has proven to provide a sound business case of creating value through innovation and employee involvement.

Most organizations need to be presented with measurable reasons why embracing or incorporating a new strategy like sustainability makes sense. Early adaptors like WalMart, IBM, Nike, and GE are measuring value in key business areas. It is our experience that similar outcomes are just as possible in the small and mid-size markets.

The benefits have been shown to include:
  • A Stronger Brand
  • Greater Pricing Power
  • Greater Operational Efficiencies
  • More Efficient Use of Resources
  • Supply Chain Optimization
  • Enhanced Ability to Enter New Markets
  • Enhanced Ability to Attract, Retain, and Motivate Employees
  • Increased Customer Loyalty
  • Reduced Environmental Impact
  • Improved Innovation
In our experience, an organization should not tackle sustainability overnight without first understanding its strategic intent and developing a sustainability implementation plan. It's not difficult, but an organization needs to understand what it is doing, why it's doing it, and how it's going to measure it. Most importantly what sustainability requires is, first and foremost, commitment from the leadership of the organization. "You cannot implement these kinds of programs bottom-up, it's impossible. It's always top-down, always. Because it is a cultural change, you cannot do it organically." Georges Kern, CEO, IWC

After commitment is established, sustainability needs to be defined for your organization. What outcomes do you want to accomplish in what time frame? How will you measure the outcomes? How will you communicate your plan and establish buy-in with your employees and other stakeholders? These questions are important and need to be addressed before implementation begins. The answers to these questions need to be laid over the existing strategic plan. Do these new objectives require any course corrections? If your organization does not have an existing strategic plan, it will be critical to develop one that includes sustainability, as sustainability is not a strategic plan in of itself. Another often over-looked requirement is structure. Since many of the sustainability initiatives require interdepartmental cooperation there needs to be a systems linkage in both innovation and tactical implementation.

As evidenced by the research, sustainability is not going away. If your organization recognizes this fact and positions itself as a sustainable organization you will have a sizeable competitive advantage while also improving our planet.
The Leader as a Mentor and a Director

As a leader you must be many things to many people.

We have discussed in previous articles the need for a leader to be a visionary because involving people in realizing a compelling vision provides a beacon for the future and a standard of excellence. In April's newsletter also talked about the leader's role as a coach. A leader as a coach reinforces the results they believe people are capable of achieving as winning depends on execution.

In addition to the roles of visionary and coach there are two additional roles that round out an exceptional leader: The role of mentor and the role of director.

Mentors share the benefit of their experience and knowledge.The Leader as a Mentor

While many aspects of the mentoring role are similar to coaching, the significant differences lie in the mentor's advisory or teaching role. A mentor is a trusted advisor and tutor. Mentors share the benefit of their experience and knowledge. It is a critical role in developing individuals who will collectively be responsible for the success of the organization. As a mentor you should seek innovation, encourage experimentation, reward appropriate risk taking, drive out fear, and create an environment where everyone communicates freely, honestly, and positively.

Establish an environment that encourages and rewards people to develop their skills, improve their results, and learn new skills. Actively seek to help people learn from your experiences and knowledge. Develop a culture where people feel responsible for their own results and are supportive of others, as well as provide the model, knowledge, training, and freedom to achieve their goals. Today's leaders must foster a culture where continuous learning and continuous improvement are the norm not the exception.

The Leader as a Director

In the director's role, the leader is like a symphony orchestra conductor. Everyone knows their part, comes in on cue, and maintains the tempo that had been established. The conductor does not play the instruments, that is the role of the musicians. Each musician does not decide when to play, that is the role of the conductor. The role of the conductor is to elicit the best possible individual performance in concert with the entire orchestra to create a symphony of sound. The leader/director establishes the direction for the organization and for the people. This does not mean the leader is the authoritarian expert who knows all of the answers. Rather, it means that the leader, as director, gathers the input and ideas from everyone in the organization, establishes goals, and aligns the resources to achieve those goals. The director creates conditions under which peak performers can thrive. The director continuously evaluates whether the direction serves both the organization's best interest and the best interest of all individuals involved.

All leadership behavior must create an environment in which people are encouraged to seek out innovative ways of doing things which will ultimately lead to more revenues or lower costs. Excellent leaders use their complimentary skills as a visionary, a coach, a mentor, and a director to accomplish just that. In the words of former President Dwight D. Eisenhower, "Leadership is the art of getting someone else to do something you want done because he/she wants to do it."     

Articles written by: Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching, and youth leadership.

I hope you have enjoyed what you've read! Please feel free to with a colleague or friend. We value your feedback, so please send any suggestions or comments to [email protected]. See you next month with special invitations to events, motivational quotes, and more useful articles and tips to help you on your path to success!

 

Sincerely,

 

David Hildreth
BOOST Associates
In This Issue
Defining Sustainability
The Leader as a Mentor and a Director.
David Hildreth
David Hildreth

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"We believe it's

in business's interest to become more sustainable  

... this will become a must-have  

rather than a nice-to-have issue, going forward."

John Duggan,
CEO, Gazeley