Introducing a new methodology to help organizations design and implement high-performing sustainability programs.

1. Greening Enterprises
How to Assess and Develop Your Organization's Drive Toward Sustainability
by
Stephen Buchanan
Buchanan_Stephen@bah.com
David Erne
Erne_David@bah.com
Alan Falk
Falk_Alan@bah.com

3. Greening Enterprises
How to Assess and Develop Your Organization's Drive Toward Sustainability
Sustainability is all the rage these days, much to the In recent years, numerous private and governmental
confusion of many organizations. Covers of Business sector organizations have faced tangible impediments
Week, Fortune, the Economist and Vanity Fair, among other to their success as a result of environmental concerns
publications and diverse media channels, have touted the and finite resources. For example, the global beverage
value of transforming staid, run of the mill organizations industry has come under increasing scrutiny from
into “green enterprises.” These enterprises place a premium concerned citizens in sensitive geographies regarding
on protecting the environment in the products they make demands on local water supplies, prompting the
and acquire or the services they provide, in how they need for concerted corporate responses to address
manufacture products, and in how they deliver brands and stakeholder concerns and maintain corporate
services to customers. reptutation. Personal products manufacturers have
seen their market share and brand popularity erode
But for many organizations, the thought of going green,
due to supplier noncompliance with hazardous material
while perhaps desirable on the surface, raises at least
content restrictions. Meanwhile, the Department of
two perplexing questions that are increasingly difficult to
Defense is working with neighboring communities to
navigate. The first is, "Why?" Beyond altruistic reasons,
promote sustainable development around military
many corporate executives and agency chiefs struggle to
bases to increase natural habitats while minimizing
delineate the benefits that a strategy built on sustainability
encroachment that impacts the military's ability to
actually brings to the organization. The other question is
adequately train troops.
a bit more intractable: "How?" Organizations interested in
sustainability face a series of challenges in implementing Sustainability efforts are most effective when
environmentally conscious business initiatives. approached strategically and systematically and are
aligned with the organizational mission. In those
Booz Allen Hamilton has developed a methodology
cases, using resources (air, water, and land) more
to resolve these complex issues. By pairing what we
efficiently:
call the Green Pulse Check and the Sustainable Green
Enterprise Framework, we can diagnose and help improve a) Ensures their continuing availability for current and
an organization’s capabilities to integrate environmental future activities and can deliver cost savings;
considerations for enhanced business value and provide
b) Provides a competitive advantage for responding to
a clear roadmap for improving environmental performance
regulatory change (carbon cap and trade programs
across multiple dimensions at all stages of development
or emerging contaminants);
and execution.
c) Enhances brand reputation to attract new customers
Untangling the Questions and employees and to create a better relationship
The answer to why sustainability should matter to an with the community;
organization goes well beyond merely demonstrating
d) Meets changing supply chain requirements; and
good stewardship of the environment for the sake of
appearances. Instead, sustainability’s true value lies e) Promotes greater levels of innovation, productivity,
in supporting the ability of the enterprise to thrive as and risk management.
environmental conditions and attitudes towards the
environment change—and resource limits are realized.
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4. Another question that the prospect of implementing Green Pulse Check
sustainability raises—How do I do it?—is more An organization’s environmental management maturity
daunting, because it involves taking large steps that can be viewed along a continuum from compliance to
could impact the organizational business model integration and, ultimately, to shaping strategy and
and culture. leadership (see Exhibit 1).
Organizations interested in sustainability often find At the lowest levels of sophistication, an organization
themselves wondering: could be described as reluctantly embracing
• How to establish enterprise-wide environmental environmental compliance. In these stages, the
goals and objectives environment is seen as an inhibitor to accomplishing a
mission and the organization merely follows the letter
• How to identify current sustainability processes of the law typically on a reactive basis—and nothing
in key areas else—in its adoption of green practices.
• How to assess sustainability gaps In the middle of an organization’s evolution is
• What approach to use when developing environmental management. At this point, the
sustainability initiatives environment is considered part of existing operations.
The organization may embrace such things as
• Where to start integrating various tactics, advanced recycling and pollution prevention (P2)
in a focused way, to maximize results programs, and may have implemented energy efficiency
Exhibit 1 | Environmental Management Continuum
External and
Mission Focused
u
Integration and
Leadership
u
Internal and
Tactical Focused ` Environmental concerns
Mission
fully integrated with
Alignment
overall mission and
u
business strategy
Environmental ` Business opportunities
u Management integrated with
stakeholder interests
Environmental
u Compliance– ` Environment considered
` Product lifecycle design
Managed as part of existing
operations ` Lifecycle and supply
Environmental ` Corporate Social
Responsibility Planning chain management
Compliance– ` Environment seen as a
Ad Hoc cost to accomplishing ` Green buildings ` Market identification and
mission ` Environmental Mgt. shaping for new products
` Natural infrastructure and services
` Environment seen as System (EMS) management
inhibitor to mission ` Advanced recycling and ` Business operations/
` Letter of the law P2 programs units developed
regulatory compliance ` Energy efficiency for to address unique
` Stopping the bleeding ` Little to no stakeholder cost reduction environmental
` Reactive compliance involvement ` Little to no stakeholder opportunities
involvement ` Regulatory shaping
Mission Enhancement
{
Risk Management Operational Excellence Strategic Shaping
Compliance
Source: Booz Allen Hamilton
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5. mechanisms to reduce costs—but there is little to no including explicit definition of reporting, roles,
stakeholder involvement. Both of these categories fall and authorities? Have adequate resources been
under the umbrella of internal and tactical focused. allocated to the environmental organization,
including a full complement of policy, technical,
The top levels of the continuum are populated by
and management staff? Are environmental
organizations that are focused, first, on mission
considerations formally addressed in routine
alignment. At this stage of maturity, stakeholder
budget and resource planning?
environmental interests drive opportunities to support
and enable the organization’s core mission. Moreover, • Implementation. Are robust programs and action
the organization places a premium on corporate plans in place to translate long-range environmental
and social responsibility planning, including a low strategies into tactical actions? Are environmental
carbon footprint, natural infrastructure management, considerations integrated into all core organizational
and business units developed to address unique processes (planning, acquisition, R&D, etc.)? Have
environmental opportunities. formal communications and training programs
been established to ensure requisite competencies
The most environmentally conscious organizations
and culture? Does the organization proactively
practice environmental integration. In these
engage in environmental alliances with regulators,
organizations, environmental concerns are fully
nongovernmental organizations (NGOs), and
integrated with the overall strategy; the organization
industry groups?
emphasizes sustainability in product lifecycle design
and supply chain management, as well as in shaping • Monitoring and Reporting. Are mature assessments
perceptions for new products and services provided processes (facility, product, supplier) conducted to
to create new value propositions. Organizations at manage risks and promote business opportunities?
the top two rungs of environmental maturity can be Are periodic audits and inspections supplemented
characterized as external and mission focused. by ongoing monitoring and measurement controls?
Is there an ongoing system to monitor progress
The Green Pulse Check uses these possible stages of
against established performance measures?
environmental management maturity as the basis of an
initial diagnostic profile of an organization across five With each of these capability dimensions addressed
critical capability dimensions. (see Exhibit 2 for sample Green Pulse Check capability
descriptions), the results of the diagnostic are
• Strategy and Leadership. How well defined are the
then consolidated into a snapshot report to provide
company’s environmental goals and objectives? How
a baseline for improvement. In this Green Pulse
well does senior management communicate them?
Check report, specific elements of the capability
Are all of the environmental threats to the mission
dimensions are rated from 1 to 5 (1=Ad Hoc; 2=Risk
and the environmental consequences in the product
Avoidance; 3=Risk Management; 4=Mission Alignment;
or service lifecycle clearly measured? For example,
5=Integration and Leadership) to illustrate how
is the availability of land and water resources
far along the organization is in each aspect of its
identified as critical for future operations?
sustainability program.
• Policy and Guidance. Are the environmental policy
roles and responsibilities clear? Are they—and the Sustainable Green Enterprise Framework
policy itself—tied to the organization’s mission and The Green Pulse Check, although critical, is
strategic objectives? only the first step to formulating a sustainability
strategy. Armed with this assessment—showing an
• Organizational Capacity. Has a formal
organization’s strengths and gaps, opportunities and
environmental organization been established,
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6. successes, the next step involves the very difficult level risks and opportunities are evaluated for
job of determining precisely what to focus on and how closely they dovetail with the business’s
how to implement it. That’s where the Sustainable mission. Those that appear to appropriately align
Green Enterprise Framework comes in. Put simply, the with mission requirements and key organizational
diagnostic (Pulse Check) pinpoints vulnerability and priorities are categorized by whether they would
the treatment plan (Framework) offers the actionable be enterprise-wide efforts or focused on specific
roadmap for improvement. organizations, products, processes, or media. From
that, an integrated project team can be formed
Each phase of the Framework—Strategic Planning,
and a work plan of improvement recommendations
Options Analysis, Implementation, and Monitoring
(project duration, resources, and scheduling) can
and Improvement—defines and integrates discrete
be developed. The common denominator among
work activities to build holistic solutions key to high
leading government and private sector sustainability
performing green organizations (see Exhibit 3).
programs is a carefully forged plan supported by
• Strategic Planning. In this initial stage, a top management that is effectively communicated
determination is made about which sustainability throughout the organization—in all, to provide the
improvement opportunities the organization will strategic vision and imperative for positive change
initially pursue, as informed by internal and external and responsible behaviors.
benchmarking and gap analysis. To do this, high-
Exhibit 2 | Green Pulse Check Sample
Dimensions Environmental Compliance Environmental Mission Alignment Integration and
Management Leadership
• Environmental function focuses on • Environmental management is an • Environment viewed as contributing • Environment seen as enhancing
1. Strategy and reacting to operational needs and integral part of operations to the organizational mission mission value
Leadership meeting the letter of the law • Environmental goals and objectives
exceed compliance obligations
• Media-specific, compliance- • Enterprise-level policy and guidance • Enterprise-level policy and guidance • Strategic enterprise-level policy
2. Policy and oriented policy that promotes environmental that reflect mission priorities and and guidance that enables mission
Guidance performance and risk management strategic objectives and strategic objects through
value creation
• Dedicated organizational unit • Dedicated organizational unit with • Dedicated, enterprise-wide • Dedicated, enterprise-wide
with mid-level positioning and access to senior management environmental structure with environmental organization
limited visibility • Adequate levels of environmental senior positioning reporting to Secretariat or
3. Organizational • Limited, compliance-focused management staff • Full complement of strategy, policy, Administrator office
Capacity technical staff technical, and management staff • Self-sustaining internal
environmental resource pool
(leveraging Centers of Excellence,
Shared Services)
• Limited action planning • Formal action planning • Action planning reflects • Formal action planning integrated
• Interactions with planning and organizational strategic objective into overall business planning
• Marginal interactions with planning
and operating groups operating groups • Routine interactions with all • Planned and scheduled interactions
• Environmental performance relevant internal groups with relevant internal groups and
4. Implementation • Limited, technical-focused training focused training • Formal training external stakeholders
and communications and communications and communications • Strategic internal/external training
• Involved with regulator only for • Coordinates with regulator on • Works with regulator to achieve and communications embedded
compliance reporting and reviews regular basis to address mission while exceeding into core business processes
adequacy of permits regulatory requirements • Proactively collaborates with
regulatory agencies to ensure
mission growth can occur
• Compliance-oriented inspections • Environmental systems and • Tiered assessments (material, • Business case evaluations
and audits Ops risk assessments supplier, facility, fleet, Ops) • Continuous monitoring
5. Monitoring and
• Regulatory-imposed reporting • Regular monitoring • Ongoing monitoring and measurement
Reporting and measurement and measurement • Internal and external
• Performance reporting • Management reporting stakeholder reporting
Source: Booz Allen Hamilton
4

7. Exhibit 3 | Process Phases of the Green Pulse Check
1 2 3 4 Monitoring
Green Pulse Strategic Options Implementation and
Check Planning Analysis Improvement
ƒ Objectives Formulation ƒ Options Identification ƒ Action Planning ƒ Audits and Performance
and Profiling Assessments
ƒ Scoping ƒ Development and
− Technical Feasibility Deployment Roadmap ƒ PMO/Project
ƒ Baselining Analysis Management
ƒ Policy and Process
ƒ Work Plan and − Stakeholder Analysis Design and Engineering ƒ Lessons Learned and
Scheduling Coordination After-Action Reviews
− Economic Analysis ƒ Performance
ƒ Benchmarking Management Framework ƒ Internal and
ƒ Best Fit Selection External Reporting
ƒ In-depth Gap Analysis (including key − Key Indicators
ƒ Risk Assessment performance measures) ƒ Management
− Performance Recalibration
and Prioritization ƒ Business Case Analysis Plans/Systems
ƒ Draft Improvement for Transformation
− Resource Management
Recommendations
ƒ Training and Competence
ƒ Outreach and
Communication
Source: Booz Allen Hamilton
• Options Analysis. This is the feasibility and technical metrics compared to previous year;
suitability phase, when the projects identified compliance data; and actual end of year spending
as potentially valuable in the Strategic Planning versus planned spending. Finally, there should
analysis are rigorously tested against feasibility be a section with short descriptions of major
factors to determine whether they have a sustainability initiatives for the upcoming fiscal year.
strong business case and will be supported by To support optimal implementation, training and
stakeholders. For private companies, such things awareness programs, outreach, and guidance serve
as lifecycle cost, return on investment (ROI), as important enablers for program traction and
internal rate of return (IRR), cash flow analysis, and ultimate success.
net present value are measured. For government
• Monitoring and Improvement. This phase
agencies and non-profits, simple payback and cost-
entails several interrelated activities to assess
benefit ratios or cost-effectiveness analyses are
sustainability performance, identify lessons learned
also computed.
for future application, report to stakeholders to
• Implementation. With the feasibility study promote accountability and transparency, and
completed, the sustainability program can be put conduct management reviews to determine the
into motion. To do this, organizations can build appropriateness, relevance, and suitability of
off of the options analysis to create a Greening sustainability initiatives for ongoing improvement
Business Action Plan that defines the mission, and value creation.
goals, objectives, and organizational structure of
a) Audits and Performance Assessments. Routine,
the campaign. In subsequent years, this document
systematic assessments of sustainability
should be updated with a review that shows:
accomplishments and progress towards
progress against established management and
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8. established objectives and targets provide
essential input on the effectiveness of program Examples of Notable Public and
performance. Organizations employ a combination Private Sector Sustainability
of leading and lagging indicators to assess Implementation Efforts
tactical accomplishments as well as overall
management effectiveness in minimizing The State of North Carolina and the Military
negative impacts. The State of North Carolina has cooperated
b) Lessons Learned and After-Action Reviews. with the military bases at Fort Bragg and
Building on the outputs of audits and performance Camp Lejeune to protect 37,000 acres of land.
assessments, lessons learned and after-action This land helps the military bases by providing
reviews provide valuable information about lands to be used during training exercises
positive and negative performance. Frequently, but also acts as protected habitat for the
these activities yield insights into internal best local wildlife.1
management practices and successful operating
models that can be further leveraged across Walmart
the enterprise. Walmart has implemented several efficiency
programs in their stores, including elimination
c) Internal and External Reporting. Internal of unnecessary lighting in store vending
reporting of sustainability successes and machines—saving the company an estimated
performance stimulates accountability, promotes US$1.2 million per year. Further, through
healthy competition among peer organizations, improved green technologies and logistics,
and feeds program momentum. Best-in-class Walmart’s vehicle fleet has been able to
reporting processes emphasize transparency, reduce its greenhouse gas emissions by
timely data capture and dissemination to internal 38 percent domestically between 2005
organizations, and the use of technology tools and 2008. Walmart believes that their
to ensure efficient and accurate information greening efforts saved the company
exchange. With growing stakeholder scrutiny almost US$200 million last year.2
of environmental responsibility in fulfilling legal
and regulatory mandates, organizations must Baxter International
complement internal reporting with formal Baxter International, a medical products
external reports and outreach communications. and services company, reported in their
For example, in mid-2008, the US Air Force and 2008 Sustainability Report that their waste
the US Army issued separate comprehensive management and water management
sustainability reports that followed Global efforts saved the company an estimated
Reporting Initiative (GRI) guidelines, which US$11.9 million in 2008.3
is considered a standard for environmental
performance disclosure. These efforts
represented the first publication by the Air Force
d) Management Review and Recalibration. While
and Army of enterprise-wide performance reports
many organizations collect performance data,
covering Triple Bottom Line (environmental,
those that excel translate these inputs into
social, economic) sustainability factors; it
discrete actions to build institutional capability,
clearly illustrates the governmental trend
instill corrective or preventive actions, and
towards increasing levels of transparency and
promote continual improvement. Formal
accountability in environmental issues.
1 http://eedontmiss.blogspot.com/2009/02/ncs-environmental-success-stories.html
2 http://walmartstores.com/Sustainability/7951.aspx
3 http://sustainability.baxter.com
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9. Wolf Trap Goes Green
Recently, Booz Allen partnered with the Wolf Trap integrated planning and performance management
Foundation to translate goals for being carbon capabilities—coupled with subject matter expertise
neutral, generating zero waste, and inspiring enduring in renewable energy and energy efficiency, green
environmental practices within the performing arts procurement, waste management, and green
into tangible strategies to position itself as a leading buildings, Booz Allen supported the development
model for sustainability amongst the performing of a comprehensive action plan with near- and
arts community. long-term objectives, initiatives to achieve those
objectives, resources, project benefits, and metrics
Booz Allen initially developed the foundation’s
to measure progress.
baseline and strategic vision for its greening
initiatives in collaboration with Wolf Trap’s senior A communications plan was prepared in parallel
leaders and volunteer greening team, and the with planning efforts to create a culture of
National Park Service (NPS). These efforts provided responsibility throughout the organization and
the foundation for structured sessions to help to engage the greater Wolf Trap community in
the foundation and NPS develop a strategic plan sustainability initiatives.
to support desired sustainability goals. Using
management reviews have become commonplace implementing a successful, long-term sustainability
as many government organizations respond to program is frequently a wide one that many
Executive Order requirements for implementing organizations struggle in vain to close. With the Green
Environmental Management Systems (EMSs) Pulse Check and the Sustainable Green Enterprise
to address environmental requirements. Framework, Booz Allen offers a straightforward, step-
However, the value of this activity is not simply by-step approach to aid in this effort. The ultimate aim
in the individual management review—typically is simply to diagnose and improve an organization’s
conducted annually, but instead in management’s ability to integrate environmental considerations for
engagement and the institution’s commitment to enhanced business value. When that’s achieved,
create a culture of excellence using these reviews environmental awareness truly has the potential to
as a starting point. By leveraging past successes become a lucrative strategy.
and overcoming performance deficiencies through
periodic review and recalibration of sustainability Ready For What’s Next
policy and strategic goals, organizations can more At Booz Allen Hamilton, we take pride in helping
effectively promote and routinize sustainability to the federal government prepare fully for upcoming
ensure ongoing mission value. challenges. With deep expertise in the complexities
of today’s fast-changing energy markets and decades
Conclusion of experience helping governments optimize their use
With so much riding on sustainability and “going” of facilities, installations, and other infrastructure, we
green, in most organizations the confusion about how are uniquely positioned to look ahead and collaborate
and why dissipates relatively quickly; the gains become with our clients on energy efficiency, green IT, and
obvious and the necessity becomes paramount. opportunities and challenges related to climate
But the gap between understanding the need and change legislation.
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10. 8

11. About Booz Allen
Booz Allen Hamilton has been at the forefront of information technology, systems engineering, and
strategy and technology consulting for 95 years. Every program management, Booz Allen is committed to
day, government agencies, institutions, corporations, delivering results that endure.
and infrastructure organizations rely on the firm’s
With more than 22,000 people and $4.5 billion in
expertise and objectivity, and on the combined
annual revenue, Booz Allen is continually recognized
capabilities and dedication of our exceptional people
for its quality work and corporate culture. In 2009, for
to find solutions and seize opportunities. We combine
the fifth consecutive year, Fortune magazine named
a consultant’s unique problem-solving orientation
Booz Allen one of “The 100 Best Companies to Work
with deep technical knowledge and strong execution
For,” and Working Mother magazine has ranked the
to help clients achieve success in their most critical
firm among its “100 Best Companies for Working
missions. Providing a broad range of services in
Mothers” annually since 1999.
strategy, operations, organization and change,
To learn more about the firm and to download digital versions of this article and other Booz Allen Hamilton
publications, visit www.boozallen.com.
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