executive challenge academy - corporate sustainabilitybiggest challenge is the interior challenge...

Executive Challenge, May 24 & 25

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Executive Challenge Academy - Corporate Sustainability

Professor Dexter Dunphy

May 24 & 25, 2010

DAY 1 May 24

Purpose – to discuss the issues of sustainability and organizational change

(Dexter‟s experience is mostly within the private sector however he believes that

both the private and public sectors are merging)

Environmental challenges – global meltdown; rethink fundamental

assumptions regarding economic frameworks; environmental (natural and

social);

Change begins with a realistic assessment of where we are now!

How ready are we to face these challenges-> A PERFECT STORM CHANGE

(ecological and social forces)

Financial Crisis -> more government control of corporations and influence

of markets; blurring of boundaries between government and private

enterprise; massive growth in some market sectors and the collapse of

others (new markets are in non carbon industries); increasing

unpredictability and more extreme political differences; demand for more

demand for action and transformational change in the face of increasing

uncertainty

Ecological Crisis -> planetary overheating; growing weather volatility;

damaged terrestrial and marine eco systems; increasing world population;

dwindling oil reserves (Richard Branson – 5 years „real oil crisis‟);

fragmented and divided communities (less centralised communities however

when is the tipping point)

CENTRAL DILEMA – how can we deal with this?

Organizations need to build capacity for transformation NOW!

What is sustainability – actions -> extend the socially useful life of

organizations; enhance the planet‟s ability to maintain and renew the


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viability of the biosphere and protect all living species; enhance abilty to

maintain itself; maintain a decent level of welfare

Ecological and Sustainable World => move to zero net CO2emissions to

alternative energy sources from coal/oil; reduced material intensity – entire

production, transformation, distribution, consumption cycle; zero waste;

reduced demand for and use of materials; am major shift in organizational –

requires mobilization

THE NEW WORLD – ecologically and socially sustainable – Key Elements

o Sustaining cities

o Sustaining organizations (core of modern economy)

o New and transforming governance

Rethink sustainability – provide a credible blueprint on how to get there!

Corporate Revolution is happening and we need to be part of it!!!

Quote – I can choose either to be a victim of the world or an adventurer in

search of treasure. It is a question of how I view my life. (Paul Cohle)

How to Achieve Ecological Sustainability? – reducing negative

environmental impacts; supporting the resilience in nature; building and

rebuilding natural capacity

How to Achieve Human Sustainability? – identifying opportunities within

the workforce and society; building capability and resilience in individuals,

organizations and communities; fostering human health, equity and social

justice

BOOK - ORGANISATIONAL CHANGE FOR CORPORATE SUSTAINABILITY (2nd

Ed)

o Sustainability is a process

o Organizations advance by stages

o Each stage presents new opportunities

Sustainability Phase Model

o Phase 1 – REJECTION (freeloaders & stealthy saboteurs)

o Phase 2 – NON-REPSONSIVENESS (bunker wombats)


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o Phase 3 – COMPLIANCE (reactive minimalists)

o Phase 4 – EFFICIENCY (industrious stewards)

o Phase 5 – STRATEGIC PROACTIVITY (proactive strategists)

o Phase 6 – SUSTAINING CORPORATION (transformative futurists)

#3 COMPLIANCE – create effective risk management systems”AVOID RISK”

Value added: risk minimization; easier finance positive reputation, improved

relationships with regulators

#4 EFFICIENCY – Eliminate waste and increase process and materials efficiencies

– increase efficiencies by waste reduction and organization “DO MORE WITH

LESS”

Reduce resource waster; design/redesign buildings ->dramatically reduce

footprint; move to front of pipe solutions to eliminate waste;

recycle/remanufacture; redesign products; meet International Global

Reporting Initiative (IGRI) guidelines

Value Added – cost reduction; increased employee involvement and

engagement; better teamwork and lateral communication

#5 STRATEGIC PROACTIVITY – Pursue the strategic opportunities in

sustainability – become a market leader through pursuing the strategic potential of

sustainability

Examples of businesses – Lend Lease (physical and social sustainability

If you wait for government to legislate you won‟t have a competitive edge!

“LEAD IN VALUE ADDED & INNOVATION”

#6 SUSTAINING CORPORATION

“TRANFORM OURSELVES AND LEAD FORM THE FRONT TOWARD A

SUSTAINABLE WORLD”

„Making The Change‟ Matrix – Where is your organization?

Start asking different questions and start making different assumptions


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Biggest challenge is the interior challenge not the exterior!!!!!!!!!!!!!!!

Economy like a Coral Reef – intense competition within certain niches –

competition only exists due to the collaboration of other species.

Competition is important but for success in the 21st century we need to shift

our attention to COLLABORATION!

Market is a social construct however it has, in the past, been dominated

by Wall Street. It is time for governments to assist in reshaping markets!

Markets are servants NOT masters!!!

Yarra Valley Water Sustainability Journey - Leadership in a Changing

Environment (Pat McCafferty – GM Strategy and Communication)

Changing environment in the Water Sector (Yarra Valley Water – Melbourne‟s

Water Industry)

„The future ain‟t what it used to be‟ -> making decisions based on the past -

> need to look to the future for effective decision making

„Whiskey is for drinking and water is for fighting over‟ Mark Twain

Water environmental footprint is dominated by…river extractions greenhouse

emissions, nutrient discharge

First Steps – engage staff, stakeholders & learning from experts; use of

mural that illustrates history and purpose; developed tools; thinking deeply –

environmental cost statement (good way to engage stakeholders); developed

energy maps; shower head exchange programs, water efficiency on bills

(educating community)

Insight into the future – development in Calcallay, Hume Highway

(water sector historically very conservative)

What we‟ve learned about sustainability – organizational alignment and

commitment is essential; don‟t have all the answers; links between energy

and water;

Strategy Development Process – most strategies fail to be properly

properly (Yarra – about 75 people co-created strategic vision)


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Organisation is a network of conversations – 3 types (short – individual level-

inspired and fired up, medium – projects and implementation & long – the

future 2013)

Fundamental foundations –

o INTEGRITY,

o RELATIONASHIP,

o ENROLMENT,

o EXISTENCE

Our Strategy – clearly sets out priorities and ambitions; all encompassing

and integrated; total alignment of the organisation

Measuring initiatives via our Balanced Scorecard

„Culture Eats Strategy for Breakfast‟ Peter Drucker

Framework for Achievement – CONSTRUCTIVE BEHAVIOURS – work on

developing culture first –

3 Important Culture Drivers Vision – Leadership – People Systems/Processes

Organizational Cultural Inventory (measuring tool) + suite of tools which

address personal deficiencies

Lesson learnt – THE MAINTENANCE IMPERATIVE – other factors – stressors

(no water/drought) – ministerial review (due to price hikes) – leaders said

keep this challenge to us and staff you keep doing what you do!

Leadership Programs -> understanding self; service leadership programs;

We take the work seriously…but not ourselves!

CONSTRUCTIVE RELATIONSHIPS – Root cause of ineffective communication

is ourselves; Focuses on – deep personal reflections, breakthrough

performance, alignment and enrolment; moving issues forward; integrity

and being your word

The “rackets” – as human beings we are running rackets all the time – once

you are aware that you are running a racket - it frees you!

CONSTRUCTIVE LEADERSHIP – “Requisite Organisation” ( Elliot Jacques) –

theory to develop managerial skills – dysfunction can be traced to poor

structure


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4 Questions – All employees should be able to answer these questions!

o Where are we going?

o What‟s my job?

o How am I performing?

o What‟s my future?

Task Assignment (useful tool)

Triangle – profile of capability - Values/Knowledge & skills/Level of Work

Ability

Lessons Learnt – Change requires long term authentic leadership

THE RECIPE => Culture before Strategy ->Strategy ->Managerial Leadership -

>Measurement Feedback

What was the toughest thing for you personally during the journey?

o Landmark was the most challenging (elephants in the room) just

get it out in the open – stop skirting around the issue

Do not underestimate the importance of the interconnection between cultural

transformation and opening the organisation to facilitate new ideas.

ROLE PLAYING – PACE CONSULTING – Interaction between Manager of

technical services and staff member from computing services

Ensuing discussion -

Manage systems and not attribute blame

Beware of off-track feedback

Changing the system by intervening in some meaningful way

Timeliness in the 21st century is QUALITY

Use what you know (prior management position) that‟s rubbish!

We have to continually learn how to do this job

Accept that we are flawed and work with it!


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Real issue is locking the transformation in place over time! (that‟s the

challenge)

This work is LIFE CHANGING!

TWILIGHT REFLECTIONS (Dexter)

Sustainability and the need for Transformation -> rethink what our

civilization is about ->examples of organizations that have gone down that

path -> everything comes down to behaviours within the social context

Never assume what‟s in my head is in your head!

DAY 2 May 25

MORNING REFLECTIONS (Participants)

Shift the organizational structure

Workforce alignment

Monitoring culture through growth

Shift from charity to human rights model

Quality of service delivery

Leadership for the executive team

Creating

Organizations are living systems (Dexter)

Feedback re Role Play

Constructive behaviour is respectful behavior (not nice – avoid tip toeing

around the issue)

As managers we are always working within 2 dimensions

1. solve problems and

2. build relationships

Look around you and observe what people use to build and rebuild

relationships

Who has ownership of the problem?

Don‟t be afraid to name the elephant in the room – articulate the emotional

impact – „I am feeling ambushed!‟


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Power of the 3rd party – the neutral/benign/detached participant

Important to put the reality on the table (taking the temperature)

Clearly articulate and agree how the organisation is going to operate (remove

the „nice‟ belief)

Don‟t be afraid – change it or leave – ask the question - How much do you

enjoy being at work?

You need to create a buzzing work environment! A healthy work

environment!

HOW CAN WE CHANGE THE PREVAILING CULTURE IN OUR

ORGANISATIONS?

We are facing global change of unprecedented proportions!

Key characteristics of the Enterprise of the Future

o Hungry for change

o Disruptive by nature

o Innovative beyond customer imagination

Is personal and organizational change possible?

Book – In Great Company (Dexter Dunphy)

So how do you get people on board? (Transition team – doesn‟t usually

work)

What IS NOT constructive behaviour?

What is CB?

o Sets challenging but realistic goals

o Gains enjoyment for job and produces high quality work

o Is supportive when dealing with others

o Friendly and sensitive to the satisfaction of the work group

5 most Transformative Organisations – ADSHEL; MASTERCARD

AUSTRALIA;BLAMAIN LEAGUES CLUB;LION NATHAN; YARRA VALLEY

AUSTRALIA

Study Results – Metacapability Model for Cultural Transformation (Dexter

Dunphy)


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o Leading – making the case for transformation (burning platform for

change) – exemplary modeling by the CEO and the executive Team –

form a leadership alliance of change agent (We must first be the

change we want to bring about in others –Ghandi)

o Engaging – listening that leads to constructive dialogue and increased

personal involvement – telling, particularly developing a shared

vocabulary involving stories, metaphor and imagery – developing

advanced skills for relating to others and engaging in constructive

dialogue (The problem with communication … is the illusion that it has

been accomplished – GB Shaw)

o Redesigning – developing a suite of interventions to work on levers of

change – tailor making to fit needs of specific organisation – ensure

that these are a natural outcome of collaborative dialogue

o Reflexivity – building self awareness through feedback –creatin a

reality check through appreciating others viewpoints – organisation

itself monitors progress toward the preferred culture (the power of the

asking people their opinion should not be underestimated – Malcolm

Broomhead, ex CEO, Orica)

Did transforming the culture improve performance?

o Yes – every performance indicator showed improvement over the

period of transformation

o True whether the organisation has been a high or low performer

o Some performance measures showed dramatic improvement

Building a High Performance Culture ….Ingredients of Success

o Proactive Business Strategy

o Constructive Behaviours

What is Performance?

o Cost+Value+Innovation/Agility

o Closer you are to the innovative edge ->more profitable you become

(this is new, this is different, this is vital)


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The Strategic Target

Cost + Value + Innovation/Agility = High Performance Organisation

OUR ROLE -> BECOME AN ACTIVE CHANGE CHAMPION

ALPHA METAL EXERCISE – AIMS

o Explore the nature of effective communication in a complex

organizational situation

o To learn how to gather information to allow an accurate diagnosis for

essential problem solving

o To learn how to move from effective diagnosis of problems and

opportunities and to initiate change that will resolve the problems and

develop the opportunities

Comments and Observations

o Power Play – work with kindness but not be a pushover

o Magic can open via role playing – carry out/ act out the behaviours of

the ones that are most difficult – be sure you leave space for others to

contribute

o New situations – presenting issue / presenting symptoms may not be

the real issue (what‟s the no behind the yes?)

Change Champion!

Making Change Work – The ability to manage change must be a core competence

and yet, as change accelerates, many companies are struggling to keep up.

o WHAT ARE THE MAJOR CHALLENGES WHEN IMPLEMENTING CHANGE?

–Corporate Culture; Changing mindsets and attitudes; complexity is

underestimated

o Central problem for leaders working to create a sustainable world (I

used to have a handle on life but then it fell off!)


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Creating the Cadre of Leaders (findings from a study of those organisations rated

as outstanding in producing future leaders)

o Leadership development is made a strategic priority by the board and

senior managers who are personally involved with the potential leaders

o Integrated set of human resource strategies from selection through

development, coaching etc to project assignments

Toward New wave Leadership – Objectives

o Add value to stakeholders

o Produce valued goods

o Sustain those who work for the organisations

o Sustain our world

Our leadership is nothing less than sustaining everyday reality. By

discovering and living the future in the present.

o How confident do you feel that you have the capacity and skills to lead

change processes?

o What is the most critical skill you need to develop to be an effective

change champion?

o Does your organisation have an adequate supply of effective change

leaders?

o If yes, is the supply sustainable? Do you have plans to grow/recruit

replacements?

As a Leader you need to know yourself! (Prepared Adult – Montessori)

3 dimensions that are related to human interactions Power => dominance,

achievement, submission


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executive challenge academy - corporate sustainabilitybiggest challenge is the interior challenge...

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