February 6 - European Outdoor Groupeuropeanoutdoorgroup.com/files/1_-_Karin_Ekberg,_Management_Systems.pdf• In 2010 the explosion of the Deepwater Horizon drilling rig in the Gulf

February 6th, 2016 Karin Ekberg

A management approach to making sustainability programs more effective and embedding sustainability and compliance into business processes

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The Purpose of this Presentation

•  Explore the consequences of not applying a management system approach

•  Introduce the structure of Management Systems

•  Discuss how a Management System approach can help implementing your sustainability strategy

•  Initiate a discussion about the need for a systematic approach to sustainability

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In the beginning was…

…Chaos

Disorder, chaos, anarchy: now that's fun!

DAVID J. SCHOW, The Crow

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Mastering complexity

•  Must not come to a disaster…

•  But establishing an efficient approach to managing sustainability initiatives and goals can be challenging

•  A systematic approach is needed to master the complexity

Resour-ces

Climate change

Water manage-

ment

Worker safety

Policy Governance

Goal Workflow

Policy

Project Project

Legal Requirement

Initiative

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Which questions do you ask when you define a program?

For any program, let’s say a climate change program? •  Are you working on the most important aspects (materiality)?

•  Do you have a policy?

•  Do you have an organization?

•  Do you have goals?

•  Do you have a budget?

•  Do you measure progress?

•  What do your stakeholders think about this?

•  Do you follow up to see if you are reaching your goals?

•  Are you evaluating your results and looking for continuous improvement?

•  How can you communicate internally and externally?

•  Do you have KPIs?

•  Do you have management buy-in?

•  Did you assess your risks?

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Consequences if you don’t ask these questions?

•  “We have goals, but no budget” •  “We have goals for climate change, but we should have

focused on wastewater management”

•  “What shall we focus on? Let’s pick circular economy, it’s popular nowadays!”

•  “My health & safety program is run like this” à •  “Stakeholders push us to analyse wastewater

discharges, we never find anything, it only costs money”

•  “Our chemicals program is organised like this” à

•  “We are in a multi-stakeholder partnership and have to report on nearly 100 different indicators for just a few topic areas.”

•  “We have a really great sustainability program, but our CEO never talks about it”

Ah? Oh come on, this will do!

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But what can happen?

One worst case example

•  In 2010 the explosion of the Deepwater Horizon drilling rig in the Gulf of Mexico killed 11 platform workers and injured 17

•  Massive ongoing offshore oil spill

•  Worst environmental disaster in U.S. history

•  British Petroleum (BP) has been criticized and held responsible for the disaster

•  In all, 1,100 miles (1,770 km) of shoreline were polluted.

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Failure of Leadership and Management

•  BP had a sustainability strategy and positioned itself externally as environmental leader

•  The case Deep Water Horizon showed that there had been:

•  No integration of sustainability aspects into the fabric of the

company •  No organizational culture sensitive to potential social and

environmental impacts •  No proper risk assessment appropriate for the scale and

risks of the operation •  Lack of assurance (third party audits)

•  Recurring events raised questions as to whether these were one-time events or systemic?

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What does it tell us?

•  A sustainability strategy is only a minimum enabler

To truly integrate sustainability into the organization, companies must:

•  Support it with appropriate organizational structure

•  Develop systems for measuring and reporting

•  Exercise leadership to reinforce these objectives throughout the organization

•  Build an organizational culture that motivates sustainable decision-making and behaviour

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Conclusions

•  End of pipe vs. integration and management of the actual business and manufacturing processes

•  RSL vs. Detox

•  How do you decide if you should fix the wastewater volume, the load or the sludge?

à Most CEOs acknowledge its importance, but the challenges of implementing sustainability strategies are still quite significant

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Consequences

Consequences

•  BP has lost a “good” reputation.

•  By 2011, the company had lost almost a quarter of its market value and had paid over $40 billion in costs associated with cleanup and recovery.

•  BP has settled for 20 billion US$. •  2015: Shortly after BP released its own five-

year report that concluded the Gulf has largely recovered, the trustees of the Natural Resource Damage Assessment called BP's report "inappropriate as well as premature."

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Management system approach

Management system approach

•  Principles

•  Processes

•  Framework for Continuous Improvement

•  Standardized Structure and Process to all Aspects

•  Unified High Level Structure

•  Document Hierarchy

•  Conclusions

„In all chaos there is a cosmos, in all disorder a secret order“ - Carl Jung -

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Principles The ISO 9001 series builds on seven quality management principles: •  QMP 1 – Customer focus

•  QMP 2 – Leadership •  QMP 3 – Engagement of people

•  QMP 4 – Process approach •  QMP 5 – Improvement •  QMP 6 – Evidence-based decision making •  QMP 7 – Relationship management

ISO 9001:2015 has a strong emphasis on risks and opportunities, planning, change management, organizational knowledge, leadership and continuous improvements, as well as process management.

Stakeholder focus:

Company

Owners

Employees

Partners – Suppliers

Customers

Consumers

Government

Society

NGOs

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Innovation Marketing Design Concept Product Development Sourcing

Manufacturing Supply Chain Management Distribution Sales Use

(external) End of Life

Materiality – Value Chain Approach

Management Processes

Human Resources Communication IT Finance

Business processes

Support Processes

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Framework for Continuous Improvement

•  Support project management to maintain control over projects

•  Integrate the change management process within the day-to-day organizational activity

•  Identify the means to reduce the deviation

between existing state and desired state

•  Drive continuous improvement through its repetition

PLAN

DO

CHECK

ACT

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QUALITY 9001

ENERGY 50001 H&S

45001

ENVIRON- MENT 14001

Standardized Structure and Process to all Aspects

PLAN DO CHECK ACT

1. Scope

2. Normative References

3. Terms and Definitions

4. Context of the Organization

5. Leadership

6. Planning

7. Support

8. Operation

9. Performance and Evaluation

10. Continual Improvement

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Systematic approach of Management Systems

•  In 2012 ISO decided that all Management System standards shall use the Unified High Level Structure (HLS)

•  Individual management systems standard will add additional

“discipline-specific” requirements as required

Main advantages: •  Enhanced compatibility of standards •  Easier to integrate and add additional standards into an

existing management system •  Increased effectiveness in standard implementation and

use

1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



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Unified High Level Structure

1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



Specific to the discipline



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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  Understanding the needs and expectations of interested parties

•  Supports the organization in identifying and managing aspects that matter to relevant internal as well as external stakeholders

•  Supports the organization in identifying risks and opportunities that matter

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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  To ensure a systematic approach and true business integration of sustainability strategies, leadership involvement is required

- to initiate change - to inspire a shared vision - to drive organizational culture •  The standard states that top management must

take accountability for the “effectiveness of the management system”

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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  Brings risk-based thinking to the front

•  Once the organization has highlighted risks and opportunities in 4., it needs to stipulate how these will be addressed through planning

•  The organization needs to showcase how it will prevent, or reduce, undesired effects and

•  How the organization will ensure that it can achieve its intended outcomes and continual improvement

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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  Covers all management system resource needs

•  Provides the required competences and trainings of people to enable the fulfilment of their roles

•  Ensures that all people doing work under the organization’s control are aware of their policies and

•  Provides guidance for ‘documented information’

and supports to establish a certain standard procedure to managing data

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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  Requires the organization to describe clear instructions to control their processes

•  And requires documented proof that the processes have been carried out as planned

•  Drives transparency and risk management of

outsourced processes

•  E.g. encourage better environmental performance of suppliers by integrating them into the organization’s business systems

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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  Process compliance required and management systems are target oriented

•  Gives the organization the freedom to determine what, how and when should be monitored, measured, analysed and evaluated

•  But required internal audits and management reviews are making sure that results are being checked against plans

•  External audits provide an independent assurance service to teams and top management

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1. Scope




5. Leadership

6. Planning

7. Support

8. Operation



•  Results oriented helps to focus on improvement

•  Drives continual improvement of the overall performance of an organization

•  The requirement to demonstrate and proof continuous improvement creates a management framework

•  Provides the tools to drive continuous

improvement: Plan-Do-Check-Act

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Hierarchy of Documents

Policy

Procedure

Work Instructions

Records

Manual

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Bring it all together Manual

Policy

Procedure

Work Instructions

Records

PLAN

DO

CHECK

ACT QUALITY

9001

ENERGY 50001 H&S

45001

ENVIRON- MENT 14001

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Good example 32

Benefits

Benefits Applying a Management System approach to managing sustainability: •  Provides a standardized structure and process that can be applied to any aspect •  Enables to add aspects when they become relevant in a more efficient manner •  Helps to identify aspects that matter to relevant stakeholders •  Supports the organization in identifying and managing risks and opportunities that matter •  Makes top management accountable •  Drives an organization to provide the required competences and trainings of people •  Helps to understand and communicate how the organization is performing in sustainability •  Encourages suppliers & service providers by integrating them into organization’s business systems •  Provides an independent assurance service to stakeholders (through external audits of a certified

system) •  Will continually improve the organisation’s effectiveness •  Provides a set of principles to follow that make business sense •  Saves costs and increases sales

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Discussion & Questions

Wrapping up

About Leadership & Sustainability

“Sustainable Innovation for Industries, Corporations and Organizations”

We promote

•  Sustainability as Corporate Strategy

•  Sustainability as Business Model

•  Sustainability as Leadership quality

Leadership & Sustainability combines sustainability expertise with leadership capabilities – to support you in becoming a true Leader in Sustainability.

•  Our platform of solutions covers Consulting, Empowerment, Sustainable Business Models and Software & Tools.

•  Our Expertise, Outreach and Partnerships are global.

•  Our mission is transformation and embedding of sustainability into business processes over the entire value chain.

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Consulting Sustainable Business Models

Empowerment Software & Tools

Leadership & Sustainability - Overview of Solutions 38

Contact

Website: www.leadership-sustainability.com E-mail: [email protected] LinkedIn Profile: https://de.linkedin.com/in/karinekbergleadership Twitter: https://twitter.com/KarinEkberg10

THANK YOUr e s p o n s i b i l i t y @ e u r o p e a n o u t d o o r g r o u p . c o m

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