Engaging SMEs in environmental improvement: a best ...Engaging SMEs in environmental improvement:a best practice guide for business support organisations 1 Small companies are vital

Engaging SMEs in environmentalimprovement: a best practice guidefor business support organisations

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Diana MaslinEnvirowise Manager for Intermediaries

Envirowise - Practical Environmental Advice for Business - is a Government-funded programmewhich assists UK companies to reduce their costs by using resources more efficiently. This is a bigtask, and we cannot do it alone. We, therefore, work with a wide range of organisations withsimilar objectives to reach as many companies as possible and to ensure that our assistance iscomplementary to other help that is available. We invited these organisations to an event inBirmingham on 6 December 2001 and this guide has been produced from the expertise that waspooled at the event.

The event in December 2001 about Engaging SMEs was hosted by Envirowise and WWF-UK’sBusiness Education Unit.

WWF, the global environment network, has a significant track record of working with businessto develop workable solutions to environmental problems.

A key part of WWF’s approach is to learn from its work and identify how these lessons can beused for the widest possible audience. Through its work, WWF identifies best practice,promotes the business case for change through the use of concrete examples and developsprogrammes for use by business of all kinds.

Contents:Small with great potential

SMEs - who are wetalking to?

Getting started

Taking action

Keeping going

Helpful hints

Have your say

How can Envirowisecontinue to help you?

Fax back

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Engaging SMEs in environmental improvement: a best practice guide for business support organisations 1

Small companies are vital to theprosperity of the UK economy.They also have a crucial role to play in improving the country’senvironment.

In doing so, they can help themselves to greaterbusiness benefits - and boost the efficiency andcompetitiveness of ‘UK plc’ as a whole.

The trouble is, not many realise this. Fewunderstand how environmental managementcan enhance their commercial prospects. Inaddition, many think they are too small to makean impact.

The challenge for business support organisationsis to help SMEs (small and medium-sizedenterprises) adopt environmental managementas a core business skill and become drivers for change.

This guide is designed to helpthe helpers.

The aim is to encourage ‘joined up thinking’ byall the public and private organisations outthere.

No one-stop shop can possibly cover all theservices provided by that vast array ofsupporters, advisers, regulators, legislators andauditors. However, the best practice outlined inthis guide should help you engage SMEs withclear and consistent messages about how toachieve sustainable business benefits fromcontinuous environmental improvement.

Small with great potential

This guide has been produced by two leadingenvironmental champions, Envirowise and WWF.It is based on information shared by more than100 environmental specialists from top UKbusiness support organisations at a conferenceheld in December 2001: Engaging SMEs -Learning from Collective Experience. For moredetails of the conference, visit the Envirowiseweb site (www.envirowise.gov.uk). Also visit theweb site to register in the area especially forBusiness Supporters.

■ WWF, the global environment network, hasa significant track record ofworking with business todevelop workable solutionsto environmental problems.

■ Envirowise, a free independent service,offers all UK businesses help in savingmoney by following good environmentalpractice through a combination ofFastTrack visits, publications, events andexpert advice from the Environment andEnergy Helpline. For more informationcontact Envirowise through theEnvironment and Energy Helpline onfreephone 0800 585794.

Practical Environmental Advice for Business

Engaging SMEs in environmental improvement: a best practice guide for business support organisations2

SMEs - who are wetalking to?

Key characteristicsAlthough a large and diverse group, SMEs stillshare certain common features:

■ Companies with more than 100 employeesare likely to have a management structure;those with 20 - 100 staff probably just havea management team; those with fewer than20 usually rely on a few managers each witha number of different responsibilities.

■ The smaller the company, the less likely thereis to be an environmental specialist. Theenvironment will be an area covered bysomeone who wears several other hats.

■ Time available to individuals in a smallbusiness for any single topic is very limited.So, those seeking to engage them must useinformation that is concise and to the point.

■ Their daily concerns are financial, notenvironmental, and focus on meeting orders,generating cashflow and maximising revenue.Very often this boils down to survival.

■ On the plus side, small companies oftenhave simple decision-making processes.Engage the right person and you can seerapid action.

■ SMEs usually have a rolling agenda of onlythree items, including the ‘universals’ such ascost and customers. To promote environmentalbenefits, you must get on the list.

■ Few small companies have a good idea ofwhat all their costs are. They seldommeasure things systematically.

■ Many will be unaware of the businessbenefits that can be achieved throughenvironmental good practice. Those that domay fear high costs or feel they lack thenecessary skills.

■ SMEs do not lack support. In fact, theopposite is probably the case: there are somany organisations competing for theirattention, they may be bewildered aboutwhere to turn or whom to trust.

What’s in a name?This guide defines SMEs (small and medium-sized enterprises) asany company with fewer than 250 employees. In 2000, there wereabout 3.6 million such organisations in the UK. Of these, 150 000were involved in manufacturing and 110 000 had fewer than 10employees - known as ‘micro’ companies.

The term ‘SME’ is useful for funding bodies indeciding who qualifies for aid. It also helpsbusiness support organisations target relevantgroups. However, to the companies themselvesit is jargon with little relevance or commercialvalue.

They define themselves by what they do, not bytheir size. Many set great store by theirbackground and culture - their difference - andoften sell the virtues of being family-owned,unconstrained by corporate structures, flexibleand independent.


Getting started

Understand theirneedsThe first step is to understand a company’sneeds so you can tie their agenda into yours.Finding out how companies see themselveswill prepare you for a wide range of attitudesto environmental change. Then you can tailoryour support package accordingly. Get toknow their management structure andwhether they already have any systemscertification or awards.

Try differentapproachesThere is no single solution in marketing toSMEs. A combination of approaches should betried, including telephone, e-mail and post,backed up whenever possible with personalcontact. Although information overloadshould be avoided, repetition is often requiredbefore a message is seen. Be prepared for a lotof effort and plug away with patience,perseverance and good humour.

Find the right personSenior buy-in is crucial for success, so it paysto aim high. In micro companies you shouldconsider trying the managing director, inlarger companies approach any manager witha suitable sphere of influence. Don’t ignorethe sales team - often the most dynamicpeople in any organisation. Above all, if youhave a name use it, regardless of job title. Inlarger companies, don’t be afraid to targettwo or three people.

Face-to-face orremote control? Face-to-face meetings are time-consumingand difficult to arrange but they get you onsite and show you are concerned. Be aware,though, that time-wasters are not tolerated.So be co-operative and make your messagedirect and to the point. A tried and testedstrategy is to go for personal contact at first,followed by remote methods once a goodcommunication channel has been established.Then keep in touch at all costs.

To pay or not to pay?Does offering an up-front payment forenvironmental advice tie companies in or is ita barrier to engagement? If advice is freecompanies may feel it has low value and,generally, businesses will be prepared to payas long as they can see a genuine businessadvantage. It is good practice to be versatile:make initial visits, interviews or clubmembership free and ask for payment laterwhen value is demonstrated. A ‘no win - nofee’ arrangement can also be effective.


Taking actionEmpathy and contactBuild up empathy with companies to win theirconfidence and establish credibility. Regulartwo-way contact will make sure you keep upto date as the goalposts move.

Sell benefitsConcentrate on selling benefits, not threats.Focus on cost savings and practical advice.Show them no-cost or low-cost improvements.There’s nothing like a quick win to kick-start acompany’s environmental progress.

Tell them what to doLacking time and resources, SMEs like to betold what to do and how to do it. A free one-day environmental consultation - possibly anEnvirowise FastTrack visit - can identify themain issues. A walkabout means you can gaininitial impressions, talk to staff and set upeffective communication lines.

Help them put together a simple action planidentifying two or three things to start onstraight away. Don’t ask them to do too muchat once.

Explain how to measure and monitor theircosts so they can identify potential savingswithout too much trouble.

Case studies and other examples may help toconvince them they can save money throughsound environmental practice. Provide localcase studies of successes and failures. Identifykey local publications and drip-feed casestudies and other examples into these media.

Handholding worksNo matter how good your business supportpackage, there is no substitute for personalcontact. Handholding really works. But takecare. Small firms don’t necessarily likeoutsiders and there’s a fine line betweenhandholding and nagging. Be sensitive andshow awareness of their needs.

Try as many handholding activities aspracticable, including site visits, helplines,newsletters, web-based forums, clubs andseminars.

Work in partnerships to increase resources andcredibility. SMEs often listen more readily totheir peers than to outsiders. Ask someonethey trust - bankers, accountants, othercompanies - to show them how environmentalmanagement pays off.

Use clubs and other networks to stimulateaction. Members grouped by sector, size,location or another common interest can learnfrom and inspire one another. Work throughtrade associations to increase credibility andimprove environmental knowledge.

Seminars are a good systematic approach.Small-scale, locally focused seminars sharecommon knowledge and problems.

Universities are a valuable resource. Graduatestudent placements are a good way forcompanies to get specialist, dedicatedenvironmental support without excessive cost.Validated training qualifications also bringkudos to their environmental efforts.

Larger companies can help smaller businessesachieve better environmental performancethrough supply chain initiatives. Investigate ifthe supply chain of a company’s largercustomers is a possible driver.


Keeping going

Reasons for losing interest in group activities mayinclude pressure of work, inconvenient meetings,personality clashes or sheer boredom. Find outthe reasons and leave the door open so they canreturn without penalty.

Any club must offer a payback for the members’cost in terms of money, time, effort andcommitment. One way is to ask them at the endof every meeting what they want to do next.Every session must have stimulating content,relevance, good communications, handy venuesand a mutually acceptable timetable.

Give them a gongAwards are particularly helpful in sustainingeffort over a long period. They are a great boostto staff morale and motivation through externalrecognition and local publicity.

Top-level commitment will ensure continuedactivity even if a particular individual leaves. Offera presentation to the board to secure seniormanagement buy-in. Encourage businesses toopt for effective environmental managementsystems as these work through procedures ratherthan personalities.

Educate all employees about the true nature ofwaste so that environmental performancebecomes part of a company’s mainstream activity.

Be flexibleSMEs change and may be committed to aspecific issue for a short period only. Once theyhave solved one problem, ask if they can sharethat success with others.

If stressing the business benefits ofenvironmental improvement doesn’t work, tryanother tack. Concentrate on other pluses, suchas better public relations, opportunities to enternew markets and safeguarding a company’slicence to operate.

Avoid confusionSignpost companies to other sources of helpand funding but don’t give them long lists - tellthem only what they need to know. In manySMEs there is a cycle of inaction from fear ofreprisal, through mixed messages andconflicting pressures to genuine disinterest.

It is incumbent on all support organisations tointeract so that they deliver consistentinformation and do not increase theadministrative burden on small businesses.

Stay in touchEffective communication is the key to keeping environmentalmanagement high on a company’s agenda. Make sure you’remeeting their needs all the time.


Helpful hints

DO recognise each company’s viewpoint.

DO remember their main concerns are time,effort and expense.

DO tailor your advice to their needs.

DO deliver support in a convenient package -breakfast-time seminars, for example, arevalued because they are ‘short, focusedand just around the corner’.

DO make companies feel they are receivingindividual attention.

DO help small companies to move up thewaste hierarchy, from recycling and re-usetowards reduction and elimination.

DO emphasise material waste savings in thefirst instance - it is an easy way tomeasure achievement.

DO encourage networks - small companies takemore notice of their peers than outsiders.

DO try to help a company find money by, say,a review of its utility bills to fundadditional environmental initiatives.

DO stay flexible.

DON’T make appeals to altruism.

DON’T wield a big stick.

DON’T try to do too much.

DON’T over-emphasise legislation - surprisinglyfew SMEs are directly regulated andmost of those that are regulated docomply.

DON’T adopt a patronising attitude.

DON’T carry out overly detailed audits andproduce long reports.

DON’T explain at length about the environment.

DON’T get bogged down in jargon and TLAs(three-letter abbreviations).

DON’T send out mailshots unless you’re goingto follow them up.

DON’T give up.

For all their diversity and sheer abundance, SMEs can be successfullyengaged at every stage of environmental activity if intermediaryorganisations follow some basic tenets of best practice:

Here are some other tips and tricks, as tried and testedby many of the leading practitioners in the UK businesssupport community:

■ It’s hard work but it pays.

■ Understand and address company needs.

■ Win top-level commitment.

■ Establish good two-way communication.

■ Give them simple messages and supportsystems.

■ Stress bottom-line benefits.

■ Use awards to motivate.

■ Handholding and networking work.


Have your say

No guide to engaging SMEs for environmental successcan hope to be exhaustive. In some ways, this summaryaccount of the findings from the Envirowise - WWFconference is only a start. More details can be found onthe Envirowise web site. Log on there for furtherinformation - or to make your own contribution to thediscussion forum set up specially for everyoneconcerned with motivating the UK’s small businessestowards more sustainable - and profitable -environmental performance.

Visit the Envirowise web site:www.envirowise.gov.uk

and see the area for Business Supporters. Set this up asone of your list of web site ‘favourites’ so that you cancheck frequently for news and developments.

How can Envirowisecontinue to help you?

In particular, please let Envirowise know how you, as a support to SMEs, would welcome help andsupport yourself. Would you welcome further events like the one this guide came from? Would youlike more support material to use that Envirowise could produce for you? Please let us hear fromyou. You can contact us:

■ through the Environment and Energy Helpline on freephone 0800 585794

■ by visiting the Envirowise web site: www.envirowise.gov.uk

■ by e-mailing the Environment and Energy Helpline: [email protected]

■ by using the fax back form opposite

■ by calling the Intermediaries Manager and team on 01235 432888

Please keep on talking to Envirowise so that we canknow what you need from us.



Fax backMaking your work easierWhy not plan to use Envirowise in your support of SMEs over the next six months

If you need any of the above over the next six months, oryou have some other requests, please let us know NOW viathe Environment and Energy Helpline or by using this faxback form.

Would you like us to...

Talk to you about running an event/training session for you? ●●Provide a speaker for an event/training sessionyou are running? (Please contact us at leasttwo months prior to the event.) ●●Talk to you about providing other resources and help? (Please give a brief outline of what you have in mind.) ........................................................

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Please send me a free copy of:

Seven Practical Workshops: Helping companies to profit from reducing waste CD-ROM (IT341) ●●Waste Minimisation Clubs: Setting them up for success (GG122) ●●A current list of Envirowise publications ●●

Name:

Position:

Organisation name:

Nature of organisation:

Address:

Postcode:

e-mail:

Tel:

Fax:

Please note: we may share your name and address with other sourcesof free Government help. Please do not enter your e-mail address ifyou do not wish to be contacted by e-mail.

While there is no single solution to marketing to SMEs, business support organisations may find that there are anumber of resources from Envirowise that can help to meet individual company needs. For example:

■ Would you like help in setting up a waste minimisation club?

■ Would you welcome training in how to run Envirowise workshops?

■ Do you need speakers for your events?

■ Can we put you in touch with other environmental business support groups?

■ Would you like any of our free publications - for your staff or for your clients?

Complete, photocopy and fax back this form to tell us about your needs.Fax back form (for intermediaries GG346)

Please fax this page to 01235 433961

For further informationplease contact the

Environmentand EnergyHelpline0800 585794

Envirowise - Practical Environmental Advice for Business - is a Government programmethat offers free, independent and practical advice to UK businesses to reduce waste atsource and increase profits. It is managed by AEA Technology Environment and NPLManagement Limited.

Envirowise offers a range of free services including:

Free advice from Envirowise experts through the Environment and EnergyHelpline.

A variety of publications that provide up-to-date information on wasteminimisation issues, methods and successes.

Free, on-site waste reviews from Envirowise consultants, called FastTrack visits,that help businesses identify and realise savings.

Guidance on Waste Minimisation Clubs across the UK that provide a chance forlocal companies to meet regularly and share best practices in waste minimisation.

Best practice seminars and practical workshops that offer an ideal way toexamine waste minimisation issues and discuss opportunities and methodologies.

WWF, the global environment network, has a significant track record of working withbusiness to develop practical solutions to environmental problems. In 1997 WWF-UKpublished the Better Business Pack, a joint initiative with the NatWest Group, providingsmall and medium-sized enterprises (SMEs) with practical help to save money andreduce environmental impact.

To understand the success and influence of the Pack, WWF-UK’s Business Education Unitconducted a two-year, in-depth evaluation of the project with Bristol University’sManagement Research Centre and Oxford Brookes University Business School.

In order to build upon the key findings of its evaluation and experience, WWF-UK waspleased to work jointly with Envirowise to run the conference ‘Engaging SMEs: Learningfrom Collective Experience’. The conference drew together practitioners from a widerange of organisations to share experience and best practice. This document draws keylearning from that conference. WWF-UK hopes that it will provide valuable assistancefor professionals working to improve the environmental performance of small business.

© Crown copyright. First printed March 2002. Printed on paper containing a minimum of 75% post-consumer waste.This material may be freely reproduced in its original form except for sale or advertising purposes.

Harwell International Business Centre | 156 Curie Avenue | Didcot | Oxfordshire | OX11 0QJE-mail: [email protected] Internet: www.envirowise.gov.uk

WWF-UK Registered charity number 1081247. A company limited by guarantee number 4016725. Panda Symbol © 1986 ® WWF registered trademark.

Practical Environmental Advice for Business

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Engaging SMEs in environmental improvement: a best ...Engaging SMEs in environmental improvement:a best practice guide for business support organisations 1 Small companies are vital