Embrace change - it leads to success

Nike has made huge leaps forward in addressing the social and environmental impacts of its business. Not so long ago, the company was mired in controversy over allegations of human rights abuses in the factories making its shoes and clothing around the world – there were large protests, boycotts and widespread criticism from the media. Today, it's considered a sustainability leader.

The company’s vision is to deliver innovation and inspiration to every athlete and sustainability is central to how they do that. Hannah Jones, VP of Sustainable Business and Innovation at Nike Inc., summed up the approach in a recent tweet:

The key word is ‘innovation’ and ‘opportunity’. In order to become more sustainable, businesses need to see it as an opportunity and it means change, not a few tweaks here and there, but real change. The good news, to steal Hannah Jones’s tweet style, is that change = profit.

A recent report by MIT Sloane Management Review and the Boston Consulting Group, The Innovation Bottom Line, demonstrates the link between business model change and profiting from sustainability. 50% of survey respondents (executives and managers from commercial enterprises) who had changed 3 or 4 elements of their business strategy said that they had profited from sustainability activities:

And more change = more likely profit because, as you can see, only 37% of the respondents who had changed one element of the business model said that sustainability adds profits.

The change doesn't end with the business model, as report outlines, to “hit the sustainability bull’s-eye”, there needs to be:

• Support from the top and full integration across the business
• Clear goals and effective measurement - get the numbers that people can’t ignore
• Understand what your customers think and want in terms of sustainability
• Collaborate with individuals, customers, businesses and groups outside the business

Check out the report for more details - there are some interesting statistics. 

In the words of Charles Darwin “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” 

Management consultants - it's time to be proactive!

I participated in a webinar given by Verdantix this morning. It was entitled Secrets of Success for Sustainability Consulting and was focused around the current and future challenges facing sustainability consultancies and what is required for them to continue providing successful services to existing and future clients. Included in the presentation was data from their Global Sustainability Leaders Survey, which has been well publicized in recent weeks, showing that the Big Four accountancy firms - KPMG, Ernst & Young, Deloitte and PwC - "have the strongest brand preference in both the sustainability consulting and sustainability assurance markets, according to...heads of sustainability".

It's not hugely surprising that the Big Four scored so highly; they're well-known brands and have been advising businesses for a number of years - when faced with a choice, it's easy to understand why companies would opt for names that are familiar and/or that they've worked with before. There are of course other reasons but that's for another blog; what I want to explore is the potential for large management consultancy firms to use their experience, influence and brand recognition to accelerate the move towards a more sustainable way of doing business.

None of the big management consultancies are ignoring the importance of sustainability - both social and environmental - on the business world. McKinsey & Company advises clients on 'Sustainability and Resource Productivity', The Boston Consulting Group produces research and commentary around issues and challenges related to sustainable business, PwC lists sustainability as one of the key issues affecting the business community; this is all positive, except could it be more pro-active?

At the moment, it still feels as though 'sustainability' is somewhat sidelined by these firms - if a company asks for advice about sustainability, it's provided; if a company is looking for the latest research on sustainable business, they'll probably be able to find it; but how often are principles of sustainable business present in cases where the client doesn't ask for it?

Don't get me wrong, we're talking about consultants here and not activists, and, ultimately, management consultancies are there to help their clients with specific problems. But, having said that, wouldn't it be more 'helpful' for them to encourage their clients to think about the long term implications of their activities; to help them adapt their business models to withstand future challenges; and to persuade them to think beyond the next quick win? By adapting their approach in this way, the high profile management consultancy firms could play a very positive role in creating a more sustainable commercial sector.

And don't worry (just to preempt the inevitable backlash from management consultants that I know), you don't have to hug any trees! If it helps, don't even think about it as 'sustainability'; just think of it as good business.