Strategic Sustainability Systems: The G3 Program at the UAlbany School of Business Paul Miesing, Linda Krzykowski, Eliot Rich UAlbany School of Business

Strategic Sustainability Systems:Strategic Sustainability Systems:The G3 Program at the UAlbany School of The G3 Program at the UAlbany School of

Business Business Paul Miesing, Linda Krzykowski, Eliot Rich

UAlbany School of Business

G3: GOING GREEN G3: GOING GREEN GLOBALLYGLOBALLY

School of Business, University at Albany

L. Krzykowski et. al. “Strategic Sustainability Systems At UA”L. Krzykowski et. al. “Strategic Sustainability Systems At UA”

OutlineOutline

• Comments About “Sustainability” in the MBA Curriculum• Introduction to “G3” and The G3 Compass

– The Players and Expectations– The G3 Process and Results

• Neo-Classical View of Production vs. The System Dynamics Model– Counter-Intuitive Results

• Sustainability Roadmap• Tentative Schedule


Comments about MBA Curricula

• Too theoretical and not practical• Too reliant on traditional models and not

reactive to current issues• “Can’t create leader in a classroom”• Teach in the silos, not on the platforms


Comments About “Sustainability” Comments About “Sustainability” UAlbany CurriculumUAlbany Curriculum

• What is “Sustainability”?– Why now? Is there money in it? What business models are

sustainable?• Sustainability problems are big and complex, hence require

cross-discipline solutions (science and engineering, computer science, biology, public administration and policy, law)

• Key Challenge: Very intensive, highly-collaborative, integrative, and time-consuming twelve-day activity that develops a prototype to solve an intractable problem

• Pedagogy Principles: Critical thinking, whole systems thinking, manage complexity, experiential emphasis

L. Krzykowski, et al., “Strategic Sustainability Systems At UA”L. Krzykowski, et al., “Strategic Sustainability Systems At UA”

The G3 CompassThe G3 Compass

WWorld Without Walls (WWW)

NNatural Environment and Organizations

(NEO)

EEthics: Values, Integrity,

Professionalism (VIP)

SStrategic Sustainability Systems (SSS)

•Value Proposition•Business Model


Introduction to “G3”Introduction to “G3”

• “Integrative Cornerstone Group Project” is important to:– MBAs

• Curriculum closure and consolidation (skills)• Jobs! (resume, experience, internships)• Knowledge about one of the most vital issues of the day

– UAlbany School of Business• Reputation, research, funding, community outreach

– Our clients• Value team recommendations to help them with sustainability and

“Going Green Globally” initiatives


The PlayersThe Players• 2 Managing Partners and a Director• 6 Consulting MBA Teams• 6 Clients• TTeam CCoaches and EExecutive LLife LLines (“T-CELLs”)

– Business Coach (one per team)– Science Coaches (Profs. Delano and Haldar; Nano PhD students)– Research Coach (Mary VanUllen)– Sustainability Life Line (Dr. Steven Ricci)– Project and Energy Life Line (Dr. Jim Mahoney)

• 7 School of Business faculty members• 13+ Guest Speakers


G3 Partnering OrganizationsG3 Partnering Organizations


G3 ClientsG3 Clients


G3 Baseline

• Survey of student sustainability values– Sustainability issues– Attitudes toward sustainability challenges– Personal habits

• Calculate personal carbon footprint• Fishbanks ® Simulations


Student ExpectationsStudent Expectations• From Us:

– Do expect us to be available and on call for you, give feedback on your presentations and papers

– … but Don’t expect us to always agree with each other• From your T-CELLS:

– Do have a designated rep, use e-mail, expect advice and direction, and use them

– … but Don’t expect answers from them• From your Client:

– Do ask for information and expect some availability– … but Don’t expect a lot of time or for them to do your job

for you


Our ExpectationsOur Expectations• From Individuals:

– Do be committed, act professionally, and challenge yourself– … but Don’t let your ego get in the way or kill the messenger

who gives you constructive feedback• From Your Team:

– Do expect you to work hard, put in long hours, teamwork, and use feedback constructively

– … but Don’t expect any free riders• From the Class:

– Do have fun and learn a lot– … but Don’t attack each other or treat this project as another

“classroom exercise”


The G3 ProcessThe G3 Process• Client sustainability projects• Experts and Guest Speakers

– Energy, regulation, science, technology, finance• Case Studies

– UAlbany, NYSERDA, WalMart• Individual coaching sessions

– Team coach, Dr. Ricci, Dr. Mahoney• 4 Presentations + 2 Papers• 100+ Hours Per Person of Work• … all in 12 Days!


G3 Results G3 Results • Client Recommendations:

– Multifaceted and integrated– Strategic management, marketing, finance, public

policy, human resources, information technology, science, communications

• Ability to Deal With:– Pressure … Deadlines … Ambiguity … Clients …

Managers … Team members … Coaches … Multiple deliverables for multiple stakeholders … Incredible amount of work


Resources Production Capital

By-Products

Products

Neo-Classical View of Neo-Classical View of Production (without feedback)Production (without feedback)

Input Conversion Output

Infrastructure


Input Conversion Output

Internal and External Infrastructure

Accumulations of MaterialFlows of MaterialFlows of Information

Resource Use

Natural Capital

+

Profit

Resource Cost

+

-

Operations Cost

+

-

Production Capital

Reinvestment in Production

+

+

Capital Markets

New Investments

++

+

Production Output +

+Inventory

+

Income+

Sales

-

Goods Market+

Production Planning +

+

Production Waste

+

+

Production Waste Cost

-

+

Market Price

+

Post Production

Waste +

+

Waste

-

Effect of Accumulated

Waste on Goods Market

+

+

Pressure to Remediate

Waste

+

+

Waste Remediation

-

Remediation Cost

+-

+

By-products

+

+

Demand for Resource

+ +

+

Remarketed Waste+

Effect of Natural Capital

on Replenishmen

t

Natural Capital Replenishment

Effect of Waste on Resource

Replenishment

-

+ -+/-

+

“Bads” Market

+

+

+Pressure to Remarket

Waste

+


Counter-Intuitive ResultsCounter-Intuitive Results

• Fallacy of the Infinite Resource:– Superior returns based on non-renewable or

slowly-renewing resources draws in capital– Misleading signals to the market increases

extraction and exploitation– If extraction grows faster than replacement/

renewal, market fluctuates and can collapse


Counter-Intuitive Results Counter-Intuitive Results (Cont’d.)(Cont’d.)

• Productivity Speeds Decline:– Improved extraction technology for declining

resources speeds failure– Less productive extraction technology preserves

declining resources and protects from market disruption and side-effects until replacements are available

– Jevons Paradox – Technological progress that increases the efficiency with which a resource is used tends to increase (rather than decrease) the rate of consumption of that resource



• Change Occurs Precipitously and Non-Linearly:– Ability to absorb waste are uncertain– Threshold effects upon reaching capacity can be

dramatic• Market can send invalid signals – must

understand the underlying system



• Erroneous Forecasts:– Long delays for information

• Effects of waste take time to appear– Uncertain and non-linear effects go unnoticed

• Oceans as carbon reservoirs• Landfills as waste reservoirs

– Overshoots from market momentum• Hard to reduce consumption and industry patterns

once they are established



• Correct investments in correct places ripples throughout the entire system:– Abundant opportunities to reduce resources for

production processes, energy, by-products, transportation … all of which are avoidable costs!

– Waste is an investment without customer value


“Triple Bottom Line”Stockholders, Sustainability, Social Responsibility

Compliance

BaselinePositions/Planning

Efficiency Gains

Continuous Improvement

Leverage Innovations and Market Advantages

Leadership in Business Viability

Business Sustainability Business Sustainability RoadmapRoadmap

Source: Adapted from http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf


Tentative ScheduleTentative Schedule

• Pre-G3:– January – Manage Expectations: Clients receive

information packet and questionnaire; begin gathering information their team will need; begin conversations about what an appropriate project might look like

– March – Questionnaire due from the client; project broadly defined and scoped out

– Early April – Teams Formed: Assigned clients and given completed client questionnaire, forms, information


Tentative Schedule Tentative Schedule (Cont’d.)(Cont’d.)

• G3:– Friday am – Kick-Off: Science and Motivation;

Discussion about what consultants do– 12-1:30 – Student panel (last year’s group)– 2:00-4:30 – System Dynamics exercise– 4:30-6:00 – Teams meet clients and coaches– Weekend – Work - Work - Work on very specific,

directive deliverables; build the research component of final report



• G3 (cont’d.):– Monday: Energy

• Morning – Panel discussion; Speed dating• Lunch – With coaches• Afternoon – Work time; Skype with J. Mahoney

– Tuesday: Policy and Regulation• Morning – Panel discussion; Speed dating• Lunch – With clients or tour of facilities• Afternoon – Work time; Skype with S. Ricci



• G3 (cont’d.):– Wednesday

• Morning – Student presentations to faculty• Noon – Conference calls with coaches• Afternoon – Field Trips: Members go to different site• Evening – Teams brief each other

– Thursday• Morning – Water and consumption/packaging panel;

Speed dating• Afternoon – Sustainability panel; Speed dating



• G3 (cont’d.):– Friday

• Morning – Work time• Afternoon – Presentations with coaches and clients

– Weekend – Work - Work - Work– Monday

• Morning – Presentations to faculty on client recommendations and 2 minute executive summary of white “research” papers (3-5 pages each)



• G3 (cont’d.):– Tuesday – Work Day

• Teams meet with Ricci, Mahoney, Coach, Client– Wednesday

• Final presentations; Lunch; Group photos


Our Own Continuous Improvement and Learning Loop

• Students move onto summer internships– Growing success of G3

• We de-brief with T-Cells, Clients, faculty• Make adjustment to the G3 system• Plan for growth• Begin planning for next iteration


On-going Challenges to G3• Evaluation of the program

– Success in the market as indicated by clients– Success in the market as indicated by outgoing student placement– Success in the market as indicated by incoming students

• Evaluation of student learning• Resources

– Very resource intensive– Resources change with G3 iterations

• Integration – we live in silos, not on the platform• Faculty and administrative commitment• Reinforcement in curriculum vs. learning in a standalone

project


Take Aways• Graduate MBAs who embrace holistic thinking and

feedback• Give students experience recognizing feedback

structures • Give students a template for identifying investments

which are sustainable AND profitable • Provide a business-realistic, challenging, experiential

and academic program• Recognize leadership also has long range vision• Develop leaders who respond to Triple Bottom Line


Questions?Questions?

Documents

Strategic Sustainability Systems: The G3 Program at the UAlbany School of Business Paul Miesing, Linda Krzykowski, Eliot Rich UAlbany School of Business