Sustainable Development and Corporate TransformationThought Piece

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Complex challenges Do we know what needs to be done?

• We may have less than a generation to solve the world’s most pressing problems, such as:

o climate change/clean energyo bottom of the pyramid

development

• Need to master complexity

• Need for increased collaboration and development

o unsustainable consumption and resource depletion etc

• Corporations have an huge role to play

• Current leadership approaches do not seem sufficient to mobilize people and action effectively across large scale, complex and diverse realities

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collaboration and effective delivery

• Need a new paradigm of sustainability thinking and behaviour

The change challengeWill we do it?

Paradox - there is an urgent need for change but the rate of organisational change isusually slow and littered with failed attempts…. WHY?

The deck is stacked against change

• generative complexity – unfolding situations• social complexity – multi-stakeholders• dynamic complexity – cause and effect far apart

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Piecemeal approach • poor leadership and articulation of the Reason why• dictate of new Rules in the absence of Consciousness

Focus on process over person or froth over

substance • Need an integral approach driven by inspired leadership

Complex challenges An integrated approach

Translating sustainability

into strategy and long term value Driving results

Developing the leader as awhole person

and transformingthe culture of

the organisation

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long term value Driving resultsin large, complex

organisations

Grow business and societal

value

Leadership beyond the norm

Leadership that is:

• sensitive and responsive to global and local realities

• comfortable in diverse cultures

• builds multi-stakeholder relationships relationships

• uses insights to inspire and innovate and set strategic direction

• manages inner complexity as well as global market complexity

• breaks silos, joins up and aligns the organisation to new ways

• drives lasting change to a new culture for the organisation

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‘Integral model’ of change – Ken Wilber

Exterior

• Observable behaviours• Leadership skills• Competencies

• Attitudes• Beliefs • Values• Motivation

Individual

Cultures majorly based on consciousness:

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Inte

rior

Exterior• Observable behaviours

• Governance• Commitments• Policies and standards• Management systems• Procedures, tools

• Culture• Values, business

principles • Assumptions• Norms

Organisation

consciousness:

-Disillusioned-Loose accountability

Cultures majorly based on reason and rules:

-Avoidance-Compliance

Paradox : What comes first, the chicken or the egg? Where to start when you need to do it all?

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INTEGRAL MODEL OF CHANGE

It is an interactive process whereby a small minority of Innovators begin to set the new norm:

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Typical population under going change

Innovators and Early adopters mobilise the early ma jority

Step 1:Connect and

Step 2:Early engagement –Change agents

Step 3:Intense engagement and creation of Early majority

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Connect and Empower –Change initiators

Integral model of change

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Innovators

• see the need for a new paradigm

• articulate the reason• set the new rules • drive implementation - often

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vip.vyas1 • drive implementation - often ahead of wide spread understanding and deeper consciousness

• Create a network of Early Adopters� identify� enlist, equip� instill with a new

consciousness

Integral model of change

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Early Adopters

• become change agents• engage the early majority

Early majority • apply the new thoughts and

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vip.vyas1 • apply the new thoughts and actions

• become a critical mass of people sharing a new consciousness

• reach the tipping point for lasting change

A new way to embed lasting change

Paradox: rules are necessary but they cannot cover everything in a dynamic world

Step 1:

Develop wide spread

consciousness

Step 2:

Equip people to innovate and deal with new

realitiescover everything in a dynamic world

What happens when circumstances go beyond even new rules?

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realities

Step 3:

Harvest and disseminatethe emerging

best practice

Step 4:

Generate an effective ,

system wide new rule

Essential conditions for developing consciousness

Out of comfort zone ‘Deep Impact’ learning environment

• Experience of a new country/culture

• Working in multicultural teams

• Solving real business problems

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• Tight time frames

• Working at the interface of public/private sector

• Leading edge technology and practical business skills

• U-process, assessments, stakeholder analysis and engagement

Essential approach to effective solutions - The U process approach

Sensing: participants visit other sitesand organisations and develop freshinsights into those organisations –and begin to question some of theirown assumptions

Presencing: participants integrate allof their ‘sensing’ and together reach a

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of their ‘sensing’ and together reach ashared sense of the possible wayforward and their own, deep personalcommitment to this

Realising: together, participantscreate plans for prototyping andaction which represent new,innovative thinking.Developed by Joseph Jaworski & Otto Sharmer

Embedding sustainable developmentAn effective solution

Strategy and Portfolio Targets, systems and tools

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Stakeholder panels

Reporting and assurancePolicies, Standards and Governance

People skills and behaviours

Embedding sustainable developmentDetailed solution

• Scenarios• New products• New services

Strategy and Portfolio

Targets, systems and tools

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• Existing operations: i.e. ESHIA, SD in VAR Process, Carbon cost guidelines, SD in Bus Proposals• New projects: i.e. KPIs & targets, SD major site reviews, SD at retail sites, Scorecards

• HSE Policy – standards around environment, biodiversity, health, security ,diversity etc.• External Review Panel• SD Committee• Internal assurance

Policies, standards and Governance

• Stakeholder panels

Reporting and Assurance

Embedding Sustainable DevelopmentPeople Skills and Behaviours

Objective Activity Medium Agent

Communication

Training/learning

SD e-PortalNewsletters/e-lettersCompany ReportResource library

SD e-learning

Key messagesLatest updatesBest practice examples

Corporate CentreBusinessesFunctions

Self directed

Awareness & understanding

Working

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SD networksCross-postingsCompetencesCareer planning

BusinessesHR PlannersSD Advisors SD practitioners

Beyond training

SD e-learningSD workshopsSD master classesLeadership assessment& developmentTraining & coaching

SD presentation packsSD case studiesSD best practice guidesSD modules and eventsSD e-learning tools

Active learning Experienced peopleFunctional leadershipCompetency profiling

Self directed SD advisorsSubject expertsProgramme managersSD change agents

Skilled

Mastery & advocacy

Working Knowledge

Sample sustainable development roadmap

SD Learning Basic awareness & understanding

Communications

• Clear, simple, consistent

• In the language of the company

• Combination of

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� moral/values case based on company values

� business case based on real company examples

• Championed by top leadership

• Continuously updated and repeated

• Using all media

• Corporate SD e-Portal hub

SD Learning approach

Features

• Business relevant

• Tailored to priority audiences

• Based on ‘self-discovered’ and ‘accelerated learning’ techniques highly engaging, learning’ techniques highly engaging, experiential, mixed media

• Short, cost-effective and flexible

• Delivers personal reflection and action-planning

• Built around 'train-the-trainer’ concept

• Integrated throughout the talent pipeline

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Co-created with the Businesses

SD Learning

Training and leadership development

• E-learning

• All-comers SD primer workshops for individuals and networks

� Specialist SD workshops� Specialist SD workshops

� Line managers

� Project engineers

• External affairs, HSE, SD, Finance managers

• Country Chair on-boarding – SD and engagement

• Master classes for senior leadership

• SD modules

Integrated throughout leadership talent pipeline

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SD Learning – mastery and advocacy

Beyond training

• Networks

• Active learning

• Placing/cross-posting experienced people

• Use of champions

• Competency profiling

• Assessment and development

• Career planning

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Beyond Leadership programme - ‘U’ process in actiona new pedagogy for deep impact learning

Field workPreparation Business Projects

Closing Conference

PostProgramme

Phase 1 (2 months) Phase 3 (1 year)Phase 2 (4 months)

• Field projects: Brazil, India, Mexico of real stakeholder importance

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importance

• Business projects: in new product development, new market entry etc of real business importance

• Mentored throughout in teams

• Coaching pairs

• Growing alumni of like-minded leaders sharing new approach

Done in association with LEAD International

‘U’ process integrated throughout

Driving individual team accountabilityWorking across cultures

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Planning projects and co-ordinating action

Deep dive: prototyping ideas

Visioning presencing

Understanding stakeholder perspectives

Dialogue: advocacy and inquiry

Leadership consciousness, competencies behaviours consolidated in business practice

Giving and receiving assessment

Driving action and performance in real business projects

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Giving and receiving assessment

Building a personal leadership brand

Creating critical mass of Change Agents

Tipping point reached where new culture becomes the norm

Learning

• World needs new sustainability paradigm of thinking and behaviour• Complex challenges need integral solutions• Requires Leadership beyond the norm – values based, masters of complexity - to

drive• Integral approach to change – Wilber model• Innovators and early adopters:o articulate the reason and set the new rules – hard wiringo articulate the reason and set the new rules – hard wiring

� governance, policies & standards, systems & processes, reporting, KPIs, targets, verification & assurance etc

o engage the early majority to instil consciousness – soft wiring by targetingo high leverage change agents with deep impact learning program based on ‘U’

� Grow critical mass of transformed individuals to achieve tipping point in � Cultural transformation to set lasting change around new paradigm

• Be systematic, allow innovation to flourish, consolidate best practice as new rules

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Sustainable development – corporate transformation• Gain top level commitment and mandate for change

� engage top leaders individually, then collectively� relate to individual and company priorities - show how change proposition will add value

• Be systematic� set-up governance structure with company-wide representation� manage change as any other project - objectives, roles, responsibilities, timeframe, KPIs, reviews

etc• Set common language in simple words with clear definitions resonant with company culture and

values� be rigorous in the consistent use of terms – include values case and business case� be rigorous in the consistent use of terms – include values case and business case

• Communicate widely - raise basic awareness & understanding, prepare the way for the change to follow

• Address ‘hard wiring’ and ‘soft wiring’ at the same time using the integral approach� develop reason, rules and consciousness

• Work through existing systems and processes as far as possible – bolt-on, infuse align • Grow a network of Innovators and Early adopters to influence the Early majority • Allow a ‘thousand flowers to bloom’ - encourage challenge to old ways of doing things, be

supportive of experimentation• Recognise, reward and communicate emerging best practice – consolidate into new standards• Continuously maintain and refresh communications• Celebrate success• Enjoy the ride – how you travel is as important as the journey

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Sustainable developmentcorporate transformation

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corporate transformation

Mark Wade

mark@markwade.co.uk+44(0)1580 714968+44(0)7957579550