INFORM Opinion
Peter McManners
‘
It is time to think about strategy to
T
’
exploit the green shoots of recovery
he term sustainability is sustainable revolution. It is the
much better understood unusual and non-obvious oppor-
now than just a few years tunities where the greatest profit
ago. But we are very slow to potential lies. Identify the oppor-
understand the full implications tunity and invest seed capital in
for business and society. As com- developing the key technology
panies grapple with surviving the and/or processes. Once you have
recession, anything on the periph- the know-how (and patent appli-
ery of the business is not attract- cations submitted) campaign hard
ing management time or invest- for tighter regulations.
ment. All too often, sustainability Normally it is frowned upon to
is in the category of nice-to-have. lobby for regulations that will
A friend of mine was, until recent- The sustainable revolution will prove lucrative to those ahead of the game give the company a clear commer-
ly, working as a sustainability cial advantage. When it comes to
manager for a large company. The might be in the sustainable busi- may get disillusioned or bored. sensible regulation to protect the
company had decided to shed ness sector in the years ahead. It These are the people who will environment, it will be easy to
jobs and his job was in the corpo- was clear to me that the coming draw a salary while times are hard face down accusations of manipu-
rate affairs area which had been changes in society were going to but might be the first to move on lating legislation. Competitors
selected for downsizing. His job be so great that that there were to to new opportunities as the econ- that complain will be seen to be
was cut, and with it a dedicated be huge opportunities to exploit. omy recovers. Keep them inter- opposing necessary reform and
management resource to think Waiting for government regula- ested and motivated, with these governments will find support in
about how to respond to the tion would mean waiting to tag on three questions: ignoring their complaints.
opportunities of the sustainable the back of the herd of companies ■ Identify an environmental prob- One business strategy that I
revolution. responding to an evolving regula- lem or social issue that the gov- particularly like is to offer to share
I hope that we are not returning tory framework. The best oppor- ernment is likely to tackle over core technical expertise with com-
to the levels of ignorance about tunities arise through second- the next four to eight years and petitors under licence. All compa-
sustainability that were common guessing the next ratcheting up of ask yourself what would be the nies can then share in the increas-
at the beginning of this decade. I the regulations and moving ahead sensible changes to make in ing turnover in the sector but the
attended a seminar in 2001 about of competitors. Rather than for- society company that moved early has a
sustainability. The delegate sitting ever playing catch-up with the ■ Has the company got unsustain- small share in all deals with a
beside me whispered in my ear: newest government target or reg- able processes or practices that secure sustainable profit margin.
“Why is there all this talk about ulatory constraint, it is better to will put certain lines of business The delegate who sat beside
the environment and social equi- be ahead of the game. at risk when the government me at the seminar in 2001
ty?” It transpired that he had Recession is the right time to takes action? would have liked the sound of
come to the seminar expecting to think about strategy to exploit the ■ With reference to the challenge my proposal: sustainable profits
hear about sustained profit green shoots of recovery. indentified in question 1, what from leading the sustainability
growth. This was an inauspicious Immediate action might be defen- business opportunities can be agenda. This is what we should
start to the seminar. The conclu- sive, of course, to increase the sur- indentified that fit the compa- be aiming for. Instead of putting
sion that this particular group of vivability of the business in the ny’s expertise and/or customer sustainability on the back burner
business people reached was that short-term such as reducing costs base? through the recession, plan now
they would like to run their com- through off-loading poorly per- to move beyond compliance with
panies more sustainably but forming staff. It is also the time to Some issues are now well known, regulations to exploiting the
would await government regula- retain the best staff even if they such as taking efforts to reduce opportunities.
tion to set a level playing field are currently under utilised. These carbon dioxide emissions. Every
before taking action. The delegate are the people needed to pull the company should be measuring Peter McManners is a visiting
beside me departed muttering company out of the downturn. their carbon footprint (or plan- executive fellow of Henley
that, for him, the seminar had For now, these staff can be given ning to do so), and using the data Business School of Reading
largely been a waste of time. the task of working on strategic to make savings. But carbon emis- University. His book, Adapt
The seminar was, for me, very options for the future. Not only sions are a just one part of the and Thrive: The Sustainable
valuable. It showed just how little will this be good for identifying total challenge of building a sus- Revolution is published by
ambition many companies had novel business strategies but will tainable society. The changes in Susta Press
and how little competition there also help retention of staff that society will be nothing less than a w www.petermcmanners.com
Sustainable Business ❘ June 2009 13
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