purposely profitable: embedding sustainability into the
TRANSCRIPT
Delivered By: Brett Wills, President GEM Inc.May 30, 2017
AFPA
Purposely Profitable: Embedding Sustainability
into the DNA of Food Processors
Realizing the Benefits of Sustainability
Setting the Stage:An Integrated Approach
Integration, Focus & Alignment: The Strategic Framework
Before After
Strategy Development:A Proven Process
1. Purpose Beyond Profit
A purpose driven organization aims to maximize benefit over profit.
• Defines why the organization exists. • Answers why the organization’s work is important. • Not what the organization does, but why it does it. • Inspiration for innovative product and service offerings.• The impetus that drives all strategies, decisions and activities.
“When business leaders convey a strong sense of purpose behind their strategy, they help propel the organization toward multiple, positive revenue-influencing, cost reducing outcomes.” Deloitte
Purpose Driven Organizations
Making Food Simple Again.
Redesign cleaning products.
Organize the world’s information and make it universally accessible and useful.
Save the Potato. Feed the world, better.
Make People Happy.
2. Vision of the Future
An vision defines the organizations’ future desired state.
• High level, longer term aspiration for the organization. • Defines what success looks like at a particular time in the future.• Acts as organizational compass, pointing everyone in right direction.• Point of alignment for all goals, projects, initiatives and activities.• Achieving the Vision fulfills the Purpose.
Vision Examples
To be Alberta’s preferred choice for premium pork products
To be recognized as the premier ice cream brand in Western Canada.
3. Strategic PillarsKey areas the organization must focus on to be successful.
• Replaces traditional “mission statement(s)”.• Describes how the company will achieve the vision.• Provides a clear focus and direction for the organization.• Provides the mechanism for embedding Sustainability.• Provides the foundation for developing KPI’s.
Visualizing the Pillars
The Wheel The House The Puzzle
PRODUCTS
CUSTOMERS
ANIMAL WELL BEING
COMMUNITYOPERATIONS
PEOPLE
Pillars Example
=
Pillar Example
Since 2010, Pepsico
has generated $375
Million in Cost Savings
Directly from
Sustainability Initiatives
PeopleA team of engaged people
committed to safely achieving
the company vision.
GrowersFostering grower
success through
collaborative
relationships that
support our vision.
OperationsEffectively
delivering safe,
quality products
with an
environmentally
sustainable
attitude.
CommunitySupporting the success of
our neighbors, customers
and partners.
To be the most
trusted provider of
quality, innovative
food solutions
Economic
Social
Social
Environment
Social
Economic
4. Financial Objectives
The organization’s financial performance indicators.
• Revenue, Gross Margin, Overhead. (updated regularly) • Guides development of goals (later in the process).• Focus should be on the profit drivers vs the profit.
Description Current Goal Gap
Revenue $6,776, 500 $6,932,500 $156,000
Gross Margin 298,384 (4.4%) (5.5%) $375,925 $77,541
Overhead 5.7% $394,900 5.2% 380,900 $14,000
Profit $(76,516) $8,976 $85,492
5. Key Performance Indicators
Measures Organizational Health and Performance
• High level indictors that measure performance for each pillar.• Tend to stay static over time.• Outcome or “lagging” based.• Aligned to financial objectives.• The mechanism for setting goals.
6. Goals
Commitments to improve KPI’s for each Pillar.
• Sets the level of expectation for performance.• Critical mechanism for creating accountability.• Aligned to Financial Objectives.• Can be “soft” or “hard”.• The impetus for action.
Dashboard
Pillar KPI Description KPI Number Current Goal Variance
Social Impact Meals Provided 1297 1400 103
Environmental Impact LCA Score 17 19 2
Innovative Products % of Sales < 2 Years 6.5% 8% 1.5%
Quality Products Defects / Products Shipped 1.2% 0.8% 0.4%
Efficiency Units Produced / Max Output 78% 82% 4%
Quality # of Defects / Units Produced 2.1% 1.7% 0.4%
Employee Safety TRIR Rate 18.3% 16.5% 1.8%
Employee Engagement Q 12 Score 3.3% 3.8% 0.5%
Resilience
KPI Dashboard
Customers
Products
Operational Excellence
People
Customer Loyalty Sales vs Previous Period (%) 0% 5% 5%
Response to Business
Disruptions$'s lost to Business Disruptions $100,000 $95,000 $5,000
7. Programs & Initiatives
Actions to achieve the goals.
• Specifically designed to achieve goals for each KPI.• Alignment to goals ensures everybody is working on the right stuff.• Drives Action• Leverages Tools, Processes, Best Practices etc.
7. Programs & InitiativesExamples of Actions to achieve the goals.
• Integrate Sustainability into Food Safety Programs• Shutdown Procedures, Equipment Retrofit, Material Substitution• Employee Wellness Program• Strategic Philanthropy – Creating Shared Value Program• Zero Waste to Landfill Initiative• Development of Innovation Process• Living Wage
Action Plan Template
Program # Program Description Metric Current Goal Due Date Responsibility Status
1 Garner Approval for Additional Distribution CentersComplete/Not
CompleteComplete Complete 12-Mar-16 Sally
2 Develop Action Plan to Roll Out to Assigned DC'sComplete/Not
CompleteComplete Complete 15-Apr-16 John
3 Get Approval on PlanComplete/Not
CompleteNot Complete Complete 12-May-16 Joe
4 Test Roll Out on 1 DC & Assess Before ProceedingComplete/Not
CompleteNot Complete Complete 30-Jun-16 Rick
5 Roll Out to Other DC'sComplete/Not
CompleteNot Complete Complete 15-Aug-16 Scott
Initiatives & Programs to Achieve the Goal
Key InitiativeOwner: Joe Smith
Pillar: Partners
KPI: # of Units
Current: 3 Million
Goal: 6.5 Million
Action Plan Template
Strategic Roadmap
Pillar Key Initiatives January February March April May June July August September October November DecemberEnagement
Safety
Well Being
Other
Other
Other
Quality
Price
Delivery
Agility
Other
Other
Other
Quality
Energy
Water
Waste
Productivity
Other
Innovation
Quality
Safety
Other
Other
Other
Donations
Volunteering
In Kind
Other
Other
Other
Strategic Roadmap
People
Partners
Operational
Excellence
Product
Community
Strategy Development:A Proven Process
Integration, Focus & Alignment: The Strategic Framework
Before After
Tactical Execution
Managing and Driving the Strategy
• Arguably the most critical component to the overall strategy.• Focuses on both hard and soft aspects.• Driven by Executives and Senior Management or Team Lead.
Elements of Successful
Strategy Execution
Communicating the Strategic Plan Building Accountability Managing Strategy Execution Building the Right Team Locking in the Gains Discipline!
Some Final Thoughts
Sustainability needs to be part of Strategy Leverage a Proven Process Learn from Others - Collaborate Engage Your Stakeholders Celebrate and Share Your Results
?’s To Think About &
Possible Next Steps
• Is Sustainability important to your future Success?• Do you have a Strategic Plan? Does it Include Sustainability?• Are you successfully executing your strategy?• When is the timing right to integrate if you have not already?• Contact AFPA for Support• What financial support programs are available?• Tools and Resources available…
Questions?
Brett Wills
President: GEM Inc.
416-481-2014
: @greenintentions
www.greenenterprise.ca
Coordinates