The planet is everybody’s stakeholder

Sustainability is about creating the kind of world we want for ourselves, our neighbours, and future generations. It challenges us to live our lives and make decisions as individuals, organizations and societies so that we make sure that future generations have access to the same opportunities and quality of life that we do. How do we get there?

Shared Value
In 2013 sustainability plays an increasingly important role. 'Creating Shared Value', that is what it is about these days: "The concept of Shared Value - which focuses on the connections between societal and economic progress - has the power to unleash the next wave of global growth." The thinking is that every business is part of society and therefore has a role to play in societal development. By understanding these developments and examining how a company can make a positive contribution, shared value is created that benefits both the company and society.

Society
The challenge lies in recognizing the stakeholder groups within in the ‘society category’. Focus quickly is put on local communities, local authorities, non-governmental organizations and universities. Still we insufficiently realize that 'our planet', which is threatened by pollution, destruction and overconsumption of raw materials, is an important stakeholder of us all. This is crucial piece of awareness when designing a global durable balance between the interests of companies, people and the environment (people, planet, profit).

Cost reduction
It is a noble aim, but to date, the focus of sustainability in organizations is mainly relating to measures that increase efficiency: less waste, less transport and less resources. These objectives have one thing in common: cost reduction. There is nothing wrong with that, but this is different from taking responsibility for the entire product, from raw materials suppliers to the end consumers.

The Natural Step
Our planet is at the center of The Natural Step (TNS) Framework. TNS is a tool for strategic sustainable development that uses a '5-layer framework'. To prevent that organizations get lost in the details of problems, TNS looks at the causes 'upstream' on planet level. Through the method of 'backcasting from sustainability principles' a sustainability strategy is developed.
Sustainability is a complex issue. To make sure the actions resulting from the sustainability strategy are realised, the TNS Framework is best used in conjunction with other tools. In my next post I will discuss the use of the EFQM model in relation with The Natural Step Framework.

Not using RADAR? Missed opportunity!

‘To measure is to know’, the saying goes. True words, because what is the point of setting up management systems if you do not know how effective they are? Which manager does not want to know how the organization is doing and where improvements are needed? Fortunately the EFQM Excellence Model provides us with this practical tool that every organization can use every day: RADAR!

Question your performance
RADAR stands for Results, Approach, Deployment, Assessment and Refinement. As part of the EFQM Excellence Model, RADAR is used by assessors as the scoring mechanism for the EFQM Excellence Award and other recognition or assessment schemes. However RADAR is a tool that can be used by everyone. The RADAR logic provides any organisation, not just the ones in pursuit of sustainable excellence, with a structured approach to question their performance and enable them to make a robust assessment of their ‘degree of excellence’. In other words: it helps organisations to identify possible improvement opportunities.

Illustratie: Ivo van Leeuwen.

Backbone
On high level RADAR states that an organisation needs to determine the results it is aiming to achieve as part of its strategy. It needs to plan and develop an integrated set of sound approaches to deliver the required results both now and in the future and deploy the approaches in a systematic way to ensure their implementation. And last but not least, based on the analyses of the results achieved and on-going learning activities organisations can assess and refine their approaches and deployment.

Opportunity
Any type of organization can integrate these components into their business management system in order to develop a culture of excellence, to create consistency in their management style, to identify good practices, to boost innovation and to improve business results. The advantages are obvious. Not to use RADAR = a missed opportunity!

Sustainable soft drinks giant?

Sustainability is not just about the fate of the planet, but also about the well-being of the people on it. And then we should not just regard shareholders and employees, but also think about consumers. This raises an interesting question: can a producer of unhealthy products be called a sustainable company? Coca-Cola for example.

Obesity
One of the most powerful brands in the world is Coca-Cola. The range is huge and its consumption too. But this consumption isalso controversial: 100 ml Coca-Cola contains 42 kilo calories and 10.6 grams of sugar.
We live in a world where obesity is a growing problem. In this context, companies like Coca-Cola – where the business model is based on sugar – have come under intense scrutiny. Coca-Cola has responded with making smaller cans, providing better information and producing new, less unhealthy, product varieties (Light, Zero). "We are committed to bring people together to help fight obesity", said Stuart Kronauge, the General Manager for Coke's North America Sparkling Beverages division. But is that enough?

Quality management
Individual offices of Coca-Cola implement their own quality management systems. Like the Coca-Cola Ýçecek factory in Ankara, the fifth largest plant of Coca-Cola in Turkey. It was built in 1973 as the first large-scale production facility in Turkey. The factory has a good reputation in the field of quality management: it is continuously strives to improve. Over the yearsmany quality tools have been implemented, such as Lean 6 Sigma, Maintenance Excellence and Kobetsu Kaizen. The factory,equippedwith a number of ISO certificates, has received several prizes ánd won the Turkish National Quality Award. The implementation of the EFQM Excellence Model in the plant attributed to winning this National Quality Award.

More than efficiency & effectiveness
In 2012, the trophy cabinet of the Coca-Cola plant in Ankara filled up further with winning the EFQM prize for Taking Responsibility for a Sustainable Future.* However the fact that a plant of Coca-Cola would receive this particular prize of EFQM I find odd. The expectation of this fundamental concept is that an organization has a positive impact on the world around them, in economic, environmental and social terms. But facilitating obesity does not fit this description for me.

* In the 2010 version of the EFQM Excellence Model the Fundamental Concept (FC) was called Taking Responsibility for a Sustainable Future, but meanwhile, in the current model, the EFQM Model 2013, the FC is called Creating a Sustainable Future.

Are you a global role model for the New World of Work?

To decide how, when and where you work, that's the New World of Work in a nutshell. Technological innovations make flexible working possible, but the actual realization lags behind. A missed opportunity, so this year EFQM organizes its Good Practice Competition around this theme. Any organization with inspiring examples around the implementation of the New World of Work is welcome to join. The winner can count on international recognition.

Less cost, more productivity 
 The New World of Work is becoming more widely known and that is not without reason: when implemented correctly, it leads to lower costs. Employees get more responsibility and feel more involved, which ensures higher productivity. Moreover, employees are more satisfied because they are provided with the freedom to organize to their own work-life balance.

The New World of Work can lead to less
traffic jams (Mariorda, Wikimedia Commons).

Game and glide
One of the pioneers in the New World of Work is Google. Google wants its employees to feel comfortable and ensures there is room for relaxation, there is a TV room, you can play games and various departments are linked by means of a slide (!). The office is always open and not without reason: people are always there. You can devote 20% of your working time to your 'own' projects, but you need to come up with the ideas for that yourself.

Advantages and pitfalls
Awareness with regards to flexible working will take flight the coming years. In the United States alone the number of ‘virtual employees’ is estimated to rise to 63 million Americans (now: 34 million) by 2016. The benefits are obvious, but there are also pitfalls: communications could be disrupted, the social cohesion of staff could diminish and inspired home workers run the risk of getting a burnout. This is all the more reason to learn from each other and work together to find the answers.

Join!
The EFQM Good Practice Competition is designed to recognize leading organisations in the New World of Work and share what works through our network. It is open to any organisation – global or local, private or public sector, large or small. So if you have innovative initiatives that have delivered tangible benefits for your organisation and stakeholders, then join he EFQM Good Practice Competition and inspire over 400 international business leaders.

What can we learn from the most sustainable company in the world?

‘Sustainability’ is a buzzword. More and more companies are integrating it into their business plan. This seems to be a good development, but it does not say anything about whether the sustainability ambitions are actually realized. Words are not always translated into action. However, there are inspiring examples of companies that do well. Meet 'the most sustainable company in the world': Umicore!

Clean capitalism
At Corporate Knights Inc they must have thought: ‘to measure is to know’. Since 2005, each year they execute a comprehensive 'sustainability assessment'. Following this in-depth analysis it becomes clear which companies in the world can claim the title ‘clean capitalism’. During the World Economic Forum in Davos on 23 January last the latest sustainability champion was announced: the company Umicore with headquarters in Belgium, was honoured. Umicore was named most sustainable company in the world in the Global 100 Most Sustainable Corporations index.

The Umicar Imagine during the World Solar Challenge 2011 

in Australia (Wikimedia Commons).

Well-timed action
Umicore is a materials technology company, which produces highly efficient solar cells for instance. The biggest plant of Umicore in Hoboken, Belgium, is a leading member of EFQM community and uses the EFQM Excellence Model to manage the plant. Sustainability is an integrated part of their business model and not an artificial add-on. The rationale: early anticipation of the expected shortage in precious metals. Already some years ago, based on a comprehensive analysis of the commodity market the Umicore Vision 2015 was designed. At the core of this vision lies taking responsibility towards people, the planet and society at large. Some attention points are:
• Provide a safe and healthy working environment for employees;
• Implement ethical and safe production methods in developing countries;
• Monitor harmful side effects of production;
• Involve employees, neighbours, customers and authorities in business activities.

Excellent practice
The EFQM Excellence Model is deeply rooted at Umicore in Hoboken. By responding to future developments in time and using the EFQM Model as their management model, they have shown that users of the EFQM Model are indeed able to achieve sustainable excellence. As I believe that truly excellent organisations will make the world a better place, I am Umicore very grateful for this!

6 smart social media strategies

Last week the pitfalls of social media and this week the opportunities: how can social media add value to any possible organisation?

Opportunity 1: reach a large audience
Social media is easily accessible and an ideal way to quickly reach many people. The most effective way is cross-linking media like Facebook, LinkedIn, Twitter and Pinterest with the corporate website and other regular communication channels. Each tool has its own options and audience; together they form a powerful whole.

Opportunity 2: respond to current trends
News spreads quickly through social media. Twitter in particular is a rich source of information that spreads with great speed. Not only use Twitter to quickly detect trends, but also to anticipate to them in a timely manner.

Illustration: Ivo van Leeuwen.

Opportunity 3: build your relationships
For every organization to have a good relationship with the various stakeholder groups is crucial. This requires more than just transmitting information: you must also listen. Take advantage of all the opportunities that social media offer to interact with your audiences.

Opportunity 4: enlarge your persuasion powers
People are sensitive to what other people do. When many ‘like’ a product or service, its attraction increases. With the proper use of social media this will lead to 'social proof' and therefore enlarge your persuasion powers.

Opportunity 5: collect data
Social media are an inexhaustible source of information. Users continuously leave information behind. This information can easily be collected and analyzed. So take a look at these 'big data', because this brings many opportunities.

Opportunity 6: improve your image with corporate personalities 
A company is more than just its Chief Executive Officer. Employees also exert influence on their environment. Through tactically deploying social media you can use corporate personalities to improve your image. This means communicating from different levels and angles what will benefit the organisation’s overall appearance.

For those who think that social media is nothing more than hype: forget it. Certain forms of social media will undoubtedly lose influence (e.g. ‘Hyves’ in the Netherlands), but only to make room for others. Increasingly social media will penetrate deeper into our lives, both private and business. Companies that understand and embrace this, will crease their competitiveness, whether you like this or not...

6 pitfalls of social media

The role and importance of social media keeps increasing. Social media can be an effective means to increase brand awareness, reach your target audience and increase online visibility. Social media offers many opportunities, but there are also risks. Watch out for these 6 pitfalls.

Pitfall 1: social obligation
Many organizations start with social media because they feel it is 'something' they should be involved in. It is then regarded as a liability instead of a new opportunity, not having a clear purpose and the resulting effect often being disappointing.

Sofiaperesoa, Wikimedia Commons. 

Pitfall 2: underestimation
Social media is often seen as an easy, inexpensive tool for which little time is needed. Social media is indeed easy to use, but must be approached very seriously. Without a clear policy and / or a clear strategy the intended results will not be achieved.

Pitfall 3: short term thinking
It is often difficult to capture the Return On Investment (ROI) of social media: followers, fans, likes and retweets do not deliver direct conversion. However the use of social media can lead to significant positive effects, but this requires a long-term vision. The purpose of social media is to build a relationship with your target audience. This takes time, just like in real life.

Pitfall 4: no guidelines

Mentionablehonor, Wikimedia Commons.

Whether you are communicating through the company website or through Facebook: it always has an affect on the appearance of your organisation. To avoid miscommunication, it is wise to establish guidelines. You can lose your good reputation only once.

Pitfall 5: not listen
Social media is about interaction, to talk and to listen. The latter is sometimes forgotten. People want to be heard and really appreciate it when they can come into contact with a company in an easy way.

Pitfall 6: no added value

Finally, the most common pitfall: using social media as a commercial sales channel. Nobody wants to see nothing but advertising on it. However everybody is looking for valuable content that adds value. So communicate information that is interesting and relevant.

For those who are aware of the risks, social media can achieve excellent results. Curious how? Next week’s post contains six smart social media strategies for 2013.