Leadership and Operations have complementary accountabilities in rolling out Sustainability
‘The conversation is always about cost, not about impact!’ And: ‘Employees just don’t get moving!’ Do these statements remind you of your company’s challenges? Your not alone! Leadership and Operations Teams have complementary sustainability implementation accountabilities and responsibilities. But instead of leveraging that fact, more often than not the blame game is played. What to do about it? Implement Fair Process Leadership governance processes - and train all teams through Serious Games.
When the rubber hits the road
This time around I want to make it explicit: If a company is not performing in sustainability terms, it as good as always down to senior leadership. Both, executive leadership – CEO, COO, CFO, CMO, CSO etc. - as well as non-executive leadership at board level. For one, arguably simplistic, reason: sustainability deliverables are oversteered by ‘higher priority’ KPIs. And what does mean? Fundamentally, it is down to decisions where the ball stops at the top leadership level. Do you recognise these scenarios?
Illustrated definition of: Joining the Bandwagon.
Most recently I read Ed Gillespie' blog post about the 'Omerta of Consulting' - specifically aimed at sustainability consultants like myself. He makes a very valid point in what he says, and he gives a compelling example of how Scope 3 ('impact of products sold') should be be the one and only KPI that we would be measured against. He's right. At least in principle. But what about all those companies - many of which are SMEs - that are still struggling to even get on the bandwagon of understanding proper sustainability KPIs and their measurement? What is the better - for the climate and society - approach: trying to get them on the bandwagon, or just let them be?
Measurement Data
You can’t manage what you can’t measure. This common sense platitude holds true for a lot of things: Salary, punctuality in trains, inflation. And – of course – sustainability/ESG data. Measuring alone can be complex enough. But there are also incentive systems. And the impact they have on aspirations to deliver results. Where sales targets for instance are as good as always understood as ‘invitation to be exceeded’ (with financial and other bonuses resulting from overachievement) the near opposite holds true for ESG/sustainability related KPIs. And that absolutely must change. For every single person in every single company. KPI priorities must be flipped on their heads.
CSR Metric report by industry
Reporting on ESG / sustainability dimensions is an issue. One for the executives in a company across all levels of responsibility. And one for the board. For the board indeed even on two accounts, namely: The metric they require to be reported to; and the metric that eventually find their way into publicly disclosed information of some shape or other. Unsurprisingly: How seriously a company takes the ESG issue can be inferred from the extent, poignancy, and quality of their reporting. That again – equally unsurprisingly – says is all about how ESG-savvy their board most likely is. Or, indeed, is not.