
Why leaders should learn to value the boundary spanners
Entrepreneurial talent who work with other teams often run into trouble with their managers. Here are ways to get the most out of your ‘boundary spanners’...
by Knut Haanaes, James E. Henderson Published July 1, 2021 in Brain Circuits • 3 min read
A sustainable business is one that is able to make positive trade-offs between economic, environmental and social issues. Companies do this by balancing people, profit and the planet, and it’s clearly a requirement of a successful business, but many are still wondering how to make this happen. We have six concrete steps to help:
Make sure your strategy is aligned with the megatrend.
Go beyond simply trying to reduce your carbon footprint, and really make sure your company’s purpose and ESG are at the forefront of your strategy. For example, rather than trying to offset your use of fossil fuels by reducing your footprint elsewhere, figure out how to move away from them entirely.
Make sure you walk the talk.
Financial institutions, investors and customers are more interested in what you do than what you say. So make sure your promises are backed up with credible, measurable actions.
Make the business case for sustainability.
If you fail to make a clear business case for your shift to sustainable strategy, it will be difficult to scale it and you will likely lose out on opportunities, so make sure you actually layout a plan for how sustainability will help drive your success.
Focus on the material issues.
You need to define what is most critical to your business. A materiality assessment can unlock improvement and commitment in large organizations.
Include sustainability in all key functions.
Every function today should have a stake in sustainability. The chief financial officer needs to determine how to best report on ESG and how to respond to investor pressures. The chief marketing officer needs to recognize and address new customer demands. The head of operations needs to reduce waste, create circular solutions and be lean in terms of carbon footprint. The chief human resources officer needs to address how to offer support to employees and local societies where the company operates.
Align sustainability with purpose.
By aligning sustainability with your purpose, you not only reveal the positive societal contributions that you are making, but you also realize how easily you could do more.
Making the paradigm shift to put sustainability at the center of your business shouldn’t be difficult. Remember, it’s not only better for your bottom line, it’s better for everyone.
Lundin Chair Professor of Sustainability at IMD
Knut Haanaes is a former Dean of the Global Leadership Institute at the World Economic Forum. He was previously a Senior Partner at the Boston Consulting Group and founded their first sustainability practice. At IMD he teaches in many of the key programs, including the MBA, and is Co-Director of the Leading Sustainable Business Transformation program (LSBT) and the Driving Sustainability from the Boardroom (DSB) program. His research interests are related to strategy, digital transformation, and sustainability.
Professor of Strategic Management at IMD
James E. Henderson is Professor of Strategic Management at IMD, Program Co-Director of the Leading Sustainable Business Transformation program, and Program Director of the Strategic Partnership course. He helps companies achieve and sustain their competitive advantage either at a business unit, corporate, or global level through directing custom specific executive programs, facilitating strategy workshops, or teaching MBAs and executives.
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