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Thursday, July 12, 2012

The Change Leadership Sustainability Demands


I believe we all agree that sustainability goes beyond and encompasses a much broader area than just environmental aspects, and change in all of these areas are necessary to sustain business growth and the economy. As I understand it we are putting environmental sustainability on the forefront for the purpose of this module and course, as a major part of it is driven by other areas of business.

 “The Change Leadership Sustainability Demands” refers to three distinct stages”. (MITSloan Management Review, Summer 2010, Vol. 51 No. 4, by Chrisoph Luenburger and Daniel Goleman)

Phase 1 – Making the Case for Change

I would refer to this as how to prepare to bring about change. One of the most important parts to get buy in is to get wins on the board quickly. This cannot always be done easily. Most people associate sustainability with huge costs without any direct payback. The introduction of the carbon tax in Australia since July 1st will certainly change this mindset somewhat.

If we break down Phase 1 into several steps we may look at something like this:

•             Be convinced that change and sustainability is necessary
•             Consider the present and future and analyse change accordingly
•             May the change be resisted and why
•             If so, how can fears be addressed and dealt with
•             Work on a detailed plan
•             Benchmark against competitors
•             Ensure others are involved

Now, I agree with Ralph (fellow student), that all this has to be driven by senior management, and fully supported to succeed. However, often, senior management are scared to make these decisions, and if they are seen to be hesitant, the change mechanism is most likely doomed.

Phase 2 – Translating Vision into Action

Basically we are now discussing implementing the change, if we have been successful in establishing our case. One comment of the article is that “executives who are effective in Phase 2 tend to be comfortable with the distinction between the ideology of sustainability and the sustainability goals that the organisation seeks to achieve”. What do we need to be successful in Phase 2.

Again, I’d like to break down Phase 2 into several steps:

•         Always remember the basics of good change management (people will go with the       flow or if change is really required, people are more likely to change if they are actively involved, people generally resist orders or surprises, people like to feel secure, people cannot be treated as objects, change can sometimes take time)
•         Therefore as in Phase 1 ensure people are involved in the whole
           change process
•         Ensure that people understand as much as possible about
           sustainability
•         Making sure that staff are fully aware und understand as to why we are implementing these particular changes
            Highlight, Promote & Sell the Benefits
•         As a leader you want to be seen as fully enthusiastic and driving the change, failing to do so will most likely result in the staff not believing in it either
•         Ensure that the staff are armed with resources and tools, and offer plenty of support throughout the change period and beyond
•         Deal with one project at a time, and celebrate wins, therefore building a positive track record
•         Empower everyone to have continuous input by regularly discussing new ideas and initiatives

Wow, it all sounds so easy, but is it? If you are entrenched in a company which has employees that have been there for many years, these individuals can be your greatest supporters or your greatest opponents. It is important in my eyes, to involve them, as the “newer” employees are more likely to join the bandwagon. These individuals will come up with excuses like, “I’m about to retire, what do I get out of it”, or “why change now” and many more. The true challenge for the leaders is to harness these employees to make them supporters. And I strongly believe that herein lays one of the greatest challenges.

Phase 3- Expanding Boundaries

We are now talking about a strong strategic orientation and competitive advantage, however we often find that the competitive advantage may not crystallise for many years, as the rest of the market or world play catch up. Regulatory changes will help drive the changes, but we also know that politicians are supported by large corporations, so change will still be slow. Even with the carbon tax introduction in Australia, the opposition still promises to abolish it as soon as it is in power. The opposition is also backed by some major corporates. Therefore if the support from our “main leaders” isn’t there, how can we expect our staff to fall in line? At the end they are generally confused and unsure. So a leader changing direction and working against the direction the company had previously taken will be even more so difficult.

I have also thought about Phase 3 in regards to some more elementary points:

•         We need to look to the future and stop holding on to the past
•         We don’t see issues as problems, rather as opportunities
•         Our strategy needs to encompass us being able to cope with the change (be aware of the four phases of the change cycle – denial – resistance – exploration – commitment)
•         Understand the change is continuous and nothing is permanent

Understanding the principles of change will help implement any new strategy including sustainability. But let’s not kid ourselves, it is a difficult and long journey, and not for the faint hearted.

The focus needs to be on environmental sustainability to ensure there will be a world as we know it for generations to come. Technological advances will play a key role in these as well as the smarts of our leaders.

The key question for this module is the change leadership that sustainability demands. We have discussed leadership in detail, and I think it's great to combine it now with the sustainability part, as they work hand in hand. Without strong leadership basics and understanding, a leader is ultimately going to fail, especially when embarking on the sustainability journey.

It is a fine balance between a business being profitable and sustainable in all areas, or it failing.
The following link is for an article titled "Mining and the environment: the future of Australia’s brand". It discusses the questions raised over environmental impact versus the environment and business areas that are directly and indirectly affected. It is a great independent view and read, and once again shows the dilemma politicians, corporations and individuals face when trying to create a sustainable future.


I would agree that sustainability is not a destination, but would call it a journey rather than direction, although direction works as well.


I love “the learning to work in systems diagram” (Zeri system), looks simple enough once you understand it, but there are many players involved, and they all need to be individually driven towards the better outcome and goal. They all have to embark on the journey.

This is also where “lean” crosses with “sustainability” Lean is all about reducing waste, sustainability takes it to the next level. The first principals of lean are the 5 S’s (you can read more about this on my posting: http://leanimprovement.blogspot.com.au/2012/04/what-is-5s.html)

The article for me proves that it is great long journey with continuous improvement required.

Our Professor asked: “Can we hold our leaders accountable for sustainability?”

Absolutely, they are the ones that need to drive it, without being driven from the top down, change will never happen. CEO’s are financially accountable, and in this new age environmental accountability falls in the same category for me.