SB Webinar | Embedding Sustainability in Product Development Decisions - Systematically

www.SustainableBrands.com

Embedding Sustainability in Product

Development Decisions – Systematically

Steven Cristol, Strategic Harmony

Partners

Marie Perriard, Sustainable Brands

2© 2014 | STRATEGIC HARMONY® PARTNERS | www.strat-harmony.com

Embedding Sustainability in Product Development Decisions – Systematically

Steven CristolFounder, Managing Partner

April 30, 2014

A webinar exclusively for the SUSTAINABLE BRANDS® Community

Marie PerriardDirector, Global Brand andCorporate Communications


What We’ll Cover

Complexity/stress can elevate importance of right-brain attributes.

Shareholder value: where alignment of product development, brand strategy and CSR comes together

3 keys to embedding sustainability in PD decisions

Outputs and outcomes

Example: framework, metrics and analytics tool as a system

Walking the talk: Sustainable Brands® experience withthis approach


Shareholder Value and the Co-dependent Roles

of Product Development, Brand and Sustainability

ShareholderValue

Revenue Stability

Brand Equity

Brand Image

Products

Sustainable Business Practices

Service

Profitability


Sustainability as an Organic Element of theCore Product Development Discussion

What’s the potential ofeach product/feature to

drive customer satisfaction and loyalty?

Which new products or features should be accelerated, delayed,

killed, changed?

Which products/featuresbest differentiate us on drivers of brand choice

that matter most?

Will the product roadmap under-deliver on crucial

benefits / over-deliver on the less crucial?

How will each product or feature support or detract

from sustainability goals and related business value?


Embedding Sustainability in Product Development:3 Common Challenges

How best to ensure development teams systematically encounter sustainability criteria?

How to do it early enough, before projects are approved for development?

How to make sustainability assessment lesscomplex initially?

1

2

3

INTEGRATE

ACCELERATE

SIMPLIFY


Front-End Consideration of Environmental/Social Impact of Development Choices

INTEGRATE ACCELERATE SIMPLIFY =

Flowchart image of Stage-Gate Innovation Process©2000-2014, Stage-Gate International

EmbeddedSustainability


Systematic Integration Means Embedding in Development Processes, Tools and Collaboration

Strategic Harmony® – an integrated approach that uses Brand Impact Analysis to simultaneously optimize product/service roadmaps for:

customer experience

competitive advantage

resource allocation

efficiency

sustainability

Example:


Three cornerstone portfolio assessments –and specific ways of combining them to enrich ROI comparisons

Strategic Harmony® and Brand Impact Analysis

helping the brand where it most needs help

with drivers of brand choice (ideal customer experience)

development burden (resources + risks/complexity)

© 2003-2014 Strategic Harmony Partners


How efficiently the development burden

for each project is leveragedinto potential market impact

Assessments are combined and weighted to produce higher-order metrics and analytics

The most important projectsfor market impact and brand strength

regardless of cost and complexity

STRATEGICIMPORTANCE

LEVERAGE




SIMPLICITYSOUND

DESIGNCONTENT

Great sound quality

Easy to use• Easy hardware interface(knobs/dials/buttons)• Intuitive navigation/software• Bug-free software• Fewest clicks to music• Easy remote control• Long battery life

• Clarity (vocals and instruments)• Deep bass• No hum/buzz/noise• Feeling immersed, surrounded• Can play loud enough

without distortion

Easy setup• Easy out-of-the-box setup• All necessary hardware included• Easy to connect iPod/smartphone/tablet• Interoperable with other brands

High-quality design• Quality look and feel• High-quality components• High-quality casing materials• High-quality remote control

Compact• Small footprint• Low bulk/spatial volume• Lightweight• Minimal number of pieces

Maximum content access• Personal digital library access• Cross-platform library access(PC, phones, set-top)• Integrated internet music services• Radio access (terrestrial/satellite)• Music purchasing access

Content-enhancing functionality• Accurate music search• Easy to discover new music• Sharing capabilities• Access to social networks• Screen-enhancing information (lyrics, artist info, etc.)

(Ideal customer experience as impacted by product development decisions)Drivers of Brand Choice: Portable Audio Speakers

(Importance Index=100)

(73)

(68)

(89)

(81)

(77)(56)

Brand choice model framework ©2003-2014 Strategic Harmony Partners


STRATEGICIMPORTANCE

LEVERAGE

SUSTAINABLELEVERAGE

How efficiently and sustainably the development burden

for each initiative is leveraged

How sustainably theinvestment leverage

is achieved


4th Cornerstone: Integrated Early-Stage Sustainability Assessment



• Alignment Scorecard

• Competitive Impact Scorecard

• Manageability Scorecard

• Strategic Importance Scorecard

• Sustainability Scorecard

• Leverage Scorecard

• Alignment Dashboards

• Competitive Impact Dashboard

• Manageability Dashboard

• Sustainability Dashboard

• Assessments Comparisons Dashboard

• Strategic Importance Quadrant Map

• Leverage Quadrant Map

• Sustainable Leverage Quadrant Map

Screenshot thumbnails from Brand Impact Analysis, powered by Strategic Harmony®,in Planview Enterprise® software. © 2010-2014 Planview, Inc.

Sustainability as an Organic Element of Product Development Analytics Tools

Brand Impact Analysis, automated in Planview® software for Product Development Portfolio Management


Better Business Outcomes

Getting to market faster with the things that matter most (and more sustainably)

More meaningful product/service differentiation (and more sustainably)

Stronger CSR story, more engaged stakeholders, sustainability-driven business value and innovation

More efficient financial/human resource allocation(less waste)

Team alignment, clarity, conviction on development priorities(with sustainability already factored in)

…all add up to stronger brands, faster growth, greater profitability


Walking the Talk: the Sustainable Brands® Experience


Embedding Sustainability:Sustainable Brands’ Experience with This Process

Getting brand choice drivers in sharp focus –and embedding them in brand communication as well

Stakeholder engagement

Adapting “competitive impact” to “best in class” benchmarks

Converting our subjective knowledge to quantitative outputs

Provocative value-added strategic discussions (like how to weight sustainability vs. other factors)

Clarity and consensus on which initiatives to deprioritize and which to accelerate to add value to the brand(knowing sustainability was baked in!)


Strategically Prioritizing Initiatives

Accelerate 2nd Wave De-prioritize

• Initiative B• Initiative D• Initiative E• Initiative K

• Initiative C• Initiative G• Initiative J

• Initiative A• Initiative F• Initiative H

Achieves 61% of total portfolio’s

Sustainable Leverage

Achieves 82 % of total portfolio’sSustainable Leverage

customer experience

achieving best-in-class

resource allocation

efficiency

AND sustainability

Based on weighted,aggregated metricsencompassing:

PORTFOLIO BALANCING


Q & A

Email: [email protected] Phone: +1.206.522.1220www.strat-harmony.com

Thank Youfor attending


Method and model protected by U.S. Patent No. 7,711,596 and additional patents pending.Strategic Harmony® is a registered trademark of Strategic Harmony Partners.

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