Mini-workshop: How a sustainability mindset can make your company stand out

Embedding a “Sustainability Mindset”
for best practice, innovation,
performance, and resilience
Robert Steele – Systainability Asia / AtKisson Group
16 October 2014
Sasin Graduate Institute of Business Administration
© AtKisson, Inc. Systainability Asia 2014 / www.systainabilityasia.com

Systainability Asia / AtKisson Group
 Systainability Asia is a Thailand
based multidisciplinary consulting
and training firm with a deep
commitment to helping others to
achieve long-term sustainable
development in an increasingly
challenging global environment.
 AtKisson Group is global
collaborative network of professional
trainers, consultants, researchers,
writers, etc., dedicated to
mainstreaming sustainability into
common practice.
What we do
 Organisation CSR and sustainability
planning
 Sustainability assessment
 Stakeholder engagement
 Indicator Development
 Training and consulting
 Education for Sustainable
Development (ESD) training and
curriculum development
 CSR and Sustainability Reporting
www.systainabilityasia.com www.atkisson.com

A global network dedicated to
sustainability strategy learning, and inspiration
Global Affiliate and Associate Network
Current And Past Clients Include:
Levi Strauss & Co. • Ernst & Young • Nike • Baltic 21 (the 11 nations of Northern Europe) • European Sustainable
Development Network • Brother, Inc. (Japan) • Earth Charter International • Swedish SIDA’s Advanced International
Training Programs • United Nations Division for Sustainable Development Egyptian National Competitiveness Council
• Government of Singapore • Greater New Orleans, Inc. • SEIYU (Japan) • SERDP ‐ Strategic Environmental Research
& Development Program (US Government) • Seliger Forum 2010 (Russia) • Sustainable Fashion Academy • States of
Queensland, Victoria, NSW, and South Australia • Stockholm County • Sustainable Seattle • Heinz Endowments •
Toyota • UNEP • UNDP • Nile Basin Initiative • Bank of Indonesia • Volvo Cars

Contents of the Mini Workshop
 Exploring “embedded sustainability”
 The AtKisson Sustainability Framework and
Approach
 Accelerator “taster” Exercise
 What you can expect in a full Accelerator training
course

Exploring “embedded
sustainability”

Business Reality is being Reshaped
Three emerging market force trends
Declining
Resources
Increasing
Expectation
Business
Value
Radical
Transparency
Adapted from: Zhexembayeva N. and Laszlo C.,
Embedded Sustainability. 2013.

How should business respond to handle
these changes? What is the best
strategy for your business?

Some rules to guide us: A business, organisation,
community, or society will be sustainable if it…
1. … understands its own systems, and the systems in which it is
embedded;
2. …. understands and accounts for limits and system dynamics;
3. … looks for and responds to long-term systemic trends that
affect its ability to achieve its goals;
4. … changes internally to meet and take advantage of external
conditions and trends;
5. … is resilient enough to withstand short-term shocks;
6. … does not undermine the conditions of its own existence;

Balancing the human and the ecological
Source: Dunphy, D., A. Griffiths, and S. Benn, Organisational Change for Corporate Sustainability.
2003, London, UK: Routledge.

Question? Does your company bolt
on sustainability or is it embedded
sustainability?
What is the difference?

Bolt on vs. Embedded Sustainability
Bolt on Sustainability Embedded Sustainability
Goal Pursue shareholder value Pursue sustainable value1
Scope Add symbolic wins in the margins Transform core business activities
Customer Offer green and socially
Embedded sustainability incorporates environmental,
wellbeing, financial responsible products at premium
prices or with diminished governance, quality
and social values into the
company’s core business, while balancing shareholder and
stakeholder value.1 It requires a fundamental shift across
every dimension of the business system
Offer smarter solutions with no
trade‐off in quality and no social
or green premium
Value Chain Mange company’s own activities Manage across the service or
product life cycle value chain
Organisation Create a special department of
sustainability
Make sustainability everyone’s job
Competencies Focus on data analysis, planning,
and project management skills
Add new competencies in design,
inquiry, appreciation and
wholeness
Adapted from: Zhexembayeva N. and Laszlo C., Embedded Sustainability. 2013.

Embedding Sustainability requires
developing a “Sustainability Mindset”
throughout the company’s work force.

“Mindset” (noun) – a set of beliefs or
a way of thinking that determines
one’s behaviour, outlook and mental
attitude.

Love on the Factory Floor

Embedded Sustainability… Key points!
 Embedded Sustainability is the
future of business.
 Embedded Sustainability will
ensure new behaviours, new
products & services, new
business models, and new
performance outcomes.
 Embedding Sustainability entails
a whole system approach.
 A whole system approach to
sustainability requires a shift or
change in “mindset” of leaders
and employees.
Events / Outcomes
Patterns of Behaviour
Systems & Structure
World View / Vision
Mindset

The crux of this challenge is the “how”?
The AtKisson Accelerator is an effective
approach and toolkit embedding sustainability
as a whole system (company) approach.

The AtKisson Sustainability Framework
and Approach

Goal of the Accelerator toolkit
To engage more and more people, to make
more change for sustainability, more
effectively, and more quickly.

The Accelerator uses the ISIS Method
Action
Strategy
Then commit to ...
Innovation
STRATEGY: Plan how to succeed
in making change
INNOVATION: Identify what changes
to make for sustainability
Systems Analysis
Indicators and Information
SYSTEMS: Figure out why you are
headed there, and where you can
effectively change direction
Defining Your Sustainability Visions and Goals
Understanding Sustainability
Understanding Systems
Monitoring and
Adaptation
INDICATORS: Assess where you
are, and where you are headed

The Foundational Tool . . The Compass
An Orientation, assessment, planning and collaborative
action tool for sustainability and transformation

ISIS ACCELERATOR
COMPASS is the foundation of the toolkit
Assist organisations to do all of the following…
 Create better understanding of
sustainability
 Create a sustainability vision
 Manage stakeholders in a sustainability
process
 Create or manage a set of sustainability
indicators
 Create an Overall Sustainability Index
 Assess the sustainability profile of a
company
The Sustainability Compass is
designed to accommodate many
kinds of differences: cultural,
sectorial, geographic, etc.
It is also designed to interface well
with other common frameworks (e.g.
GRI, ISO 26000)

Built into the Compass approach is a set of core guiding principles
about sustainability
The Compass Principles
The “Nature” Principle:
The physical and biological limits of
Earth’s ecological systems must be
respected.
Nature
The “Economy” Principle:
Human societies, communities, and
organizations need functioning
economies to provide for their needs
and to support their aspirations.
ISIS ACCELERATOR
The “Wellbeing Principle”:
Human beings have a right to be to be
safe, to have access to healthcare, and
to have the opportunity for self‐expression,
self‐development, and a
good quality of life.
Wellbeing Economy
Society
The “Society Principle”:
Social systems should be organized in ways that
promote equity, fairness, resilience, and
opportunity for all.

The “Integration Principle”:
All four dimensions of the Sustainability Compass are
interconnected in a web of cause‐and‐effect relationships. They
are interdependent on each other.
• The Compass approach is grounded in the science of
system dynamics and in general understanding of how
complex systems behave.
• In recognition of this principle, governance and
management systems should strive to achieve optimal
results across all four Compass Points in an integrated
way.

Accelerator “taster” Exercise

The Pyramid works with the Compass
and ISIS method
AGREEMENTS & ACTIONS
Let’s do it!
STRATEGIES
How do we accomplish those changes?
INNOVATIONS
What changes can we make?
SYSTEMS
Why is it happening?
INDICATORS
What is happening?

Accelerator Exercise Scenario
 The Phuket New Millennium Hotel is a new 5-star hotel that has already
established itself as a trendy, environmentally friendly, and fun hotel for
singles, young couples and families looking for something different from the
traditional hotel package and experience. For these guests, the
environmental and social ethos and practice are both ingredients in their
decision to stay at this property, and also as part of their overall
experience.
 The hotel CEO would now like to go a step further, and have the hotel
differentiate itself as Phuket’s first genuinely Sustainable Hotel, and the
leader and model of integrated sustainability for all hotels, not just from the
environment side, but also in terms of economic practices, social
engagement and responsibility, and guest and employee wellbeing.
 You are a member of the newly formed Sustainability Team of Phuket New
Millennium Hotel.
 The aim for today’s workshop is for the Phuket New Millennium Hotel
Sustainability Team (consisting of 4 Compass Point sub‐teams) to come to
consensus on 2 to 4 key program ideas that will be developed further into an
overall sustainability strategy and program for the hotel.

AtKisson ACCELERATOR
Pyramid Level 0 – Stakeholder Engagement
WHAT ARE OUR MATERIAL ISSUES?
WHO DO WE INVOLVE IN THIS PROCESS?
DEFINITION OF SUSTAINABILITY
Who do we involve in the process?
What do we mean by sustainability?
What are out priorities?
VISION, GOALS, OUTCOMES
PRINCIPLES
“OTHER”

Pyramid Level 0: Compass Framing Material
Issues & Stakeholders
Instructions
1. For the 4 Compass directions, ,
identify 3-4 sustainability
materiality issues / aspects that
we should consider .
2. Record these the appropriate
Coloured Sticky Notes
Nature = Green
Economy = Blue
Society = Yellow
Wellbeing = Pink
Material issues include those topics or
issues that have a direct or indirect
impact on an organization’s ability to
create, preserve or erode economic,
environmental and social value for itself,
its stakeholders and society at large.

Pyramid Level 1: Indicators
Information about critical & long-term trends
INDICATORS
What is happening? What are the trends?
Where are we headed?

Choosing Sustainability Indicators
Instructions:
 Identify 1 good Indicator for each of your priority
materiality issues/aspects
 Make sure to think about who will be engaged with this
information (i.e. which stakeholders will be interested in
this data?)
Remember: Indicators are measurements and sources of
feedback to determine current status and changes in
conditions that are relevant to your goals and objectives.
(e.g. ensuring Sustainability of our company / organisation)

ISIS ACCELERATOR
Replicate on Post-it Notes and build Level 1
10 minutes
Nature
Example
Issue: Water pollution in
surface water sources..
Indicator: Number of
surface water sources that
meet Class 2 Standards
(good water quality).

Comments, Questions?

Pyramid Level 2: Systems
Why is it happening?
What causes what?
What is the most important thing
making our trend happen ?
STEP 2: SYSTEMS
INDICATORS

How we manage information (indictors) doesn’t allow us
to see things as whole systems
One of our biggest sustainability blunders….Traditional
indicators such as GDP, cancer rates, and air quality
measure changes in one part of a community system as if
they were entirely independent of the other parts.
GDP Cancer Rates Air Quality

A sustainability way to understand our
indicators is through a systems approach

Pyramid Level 2: Consider Linkages

What are systems?
Systems are …
… groups of discrete
elements that work together to
make a whole.
Systems are bound together by the laws of cause and effect, and
governed by flows of information, energy and materials.
Note: People give definition to systems based on an idea of what
should happen at a given point in time. Thus, systems have a
purpose or function.

Systems Diagramming Exercise
Step 1:
Identify one or more important feedback loops that can have
implications for long‐term sustainability in your company
Gladstone
Region

Compass Group System
Presentations
 Identify your central
indicator and what is
the goal you want to
achieve there.
 Identify the main
feedback loops and
tell their story
 Identify the key
leverage points for
each loop.

Identifying your Leverage Point
Step 1: Step 2:
Figure out how trends,
decision-making, and
information flows are
linked together in multiple
cause-effect relationships
Gladstone
Region
Leverage Points
Use that analysis to
identify the best leverage
points for introducing
change

Finding the Leverage Points for system
intervention
Leverage points are places in your system map where you
can intervene with an projects, program, technology,
policy, etc. that will change the system relationships
towards the direction that you want and be reflected in
your main Indicator.

How do you find a good leverage point?
1. Look for dense webs of
connection
2. Look for loops
3. Keep asking, “Okay, but
how do we change that?”
4. If you find reasons you
need to add to your
system map … that’s
good!

Places to Intervene in a System
9 Parameters (numbers / indicators)
8 Material Stocks and Flows (stuff moving around)
7 Balancing Feedback Loops (thermostat‐style controls)
6 Reinforcing Feedback Loops (growth and change rates)
5 Information Flows (who knows what)
4 Rules (requirements, policies, incentives ...)
3 The Power of Self‐Organization (adaptive capacity)
2 Goals (hierarchies of purpose)
1 Mindsets and Paradigms (core assumptions)
0 The Ability to Transcend Paradigms (no assumptions)
Source: Donella H. Meadows, “Places to Intervene in a System,” Whole Earth Review, 1997
<< HARDER / MORE IMPACT LESS IMPACT / EASIER
>>

Examples of “Places to Intervene …”
Place to Intervene Example
Parameters Choice of indicator to report progress
Material Stocks and Flows Choice of fuel, paper, etc.
Balancing Feedback Loops Thermostat settings, correction routines
Reinforcing Feedback Loops Awards programs, bonuses
Information Flows Getting the data to a local newspaper
Rules Law & regulation
The Power of Self‐Organization “Green‐bag” lunch discussions
Goals Switch to Renewable Energy!
Mindsets and Paradigms Growth = progress >> Quality = progress
Ability to Transcend Paradigms Philosophical questions without answers

Construction of Pyramid Level 2 Systems

Pyramid Lite Level 3: Innovation
What kinds of change would be most
effective ... for the whole system?
STEP 3: INNOVATIONS
SYSTEMS
INDICATORS

Definition of an Innovation
'Innovation' is the successful exploitation of
new ideas.
It is also the process that carries them through to new
products, new services, new ways of doing things.

Innovation: What we do at the leverage points
Gladstone
Region

 New targets and standards
 New materials and technologies
 New controls and feedback
mechanisms
 New information flows to new
people
 New rules, policies, incentives
 New forms of organization,
cooperation, collaboration
 New models, frameworks,
environments
 New overarching goals and
visions
 New knowledge, skills and
capacities
 New mindsets and paradigms
 A NEW WILLINGESS TO TRY
NEW THINGS
Adapted from “Leverage Points: Ways to Intervene in a System,” by Donella H. Meadows. Available from www.sustainer.org

Embedded Sustainability, Innovation and
Performance/ Resilience

Step 1: Review …
Review your system diagram again, looking at your
identified leverage points and the various key linkages
and feedback loops
• What is your goal at
your key indicator?
• What is it that needs
to change that can
change everything/
• What could you do at
your leverage points
to make that
change?

Step 2: Review Best Practice
Discuss and share your knowledge and experience of
“best practice” innovations that you know about at your
leverage point.
Brainstorm ideas for initiatives that could be done at
your leverage point to improve company’s sustainability
based on your system dynamics.
Share, combine and consolidate ½ ideas into a new
‘best” idea for achieving your goals.

PYRAMID LEVEL 4 – STRATEGY
How do we get buy in for the idea?
How do we effectively implement our ideas?
STEP 4: STRATEGIES
INNOVATIONS
SYSTEMS
INDICATORS

Innovation Diffusion Strategy …
Involves looking at the Innovation itself …

Innovation Diffusion Strategy …
Involves looking at the Innovation itself …
… but also at the Cultural Context around it.

The Three “Avenues for Action”
The Gilman’s Equation for Innovation Adoption
N - O > CC, or ...
In other words, for change to occur, the
new way has to be so much better than
Perceived
Value of the
NEW Idea
Perceived
Value of the
OLD Way
Perceived
COST of the
CHANGE
the old way that it overcomes the
perceived cost of making the switch.

Pyramid Level 5 - The Capstone Agreement
Making the Connection to the Real World

Level 5: Compass Group Capstone Proposals
Stage 1: Compass Group Capstone Proposals
Step 1: Each team will discuss amongst themselves how they propose to
move their initiative forward in relation to the other three Compass
Teams’ own initiatives.
Step 2: Each Compass Stream team will develop a Capstone Proposal
stating how they can implement their initiative and where and how it
can support the initiatives of the other three groups.
Remember to Include the following points:
– What actions they will take
– How their initiative will support the company’s long‐term sustainability
– Who they will work with (partners and target groups)
– How their initiative will support the other Compass initiatives
– How they will monitor and track progress.

Example Capstone Proposals
Economy Initiative Ideas/ strategies
• Relationship with Gov/tourism
board – communication
 Cross sectoral benefits
 Agro‐tourism coffee plantation, help
gov to promote tourism in Indonesia
 Uses multi stakehollder approach
 Nature – increase conservation
 Wellbeing – customer satisfaction
 Society – increase pride/self‐esteem
in the community
Nature Initiative Ideas/ strategies
➤ 3R Reduce, Reuse, Recycle
➤ Cultivate Waste mgmt systems
➤ Ultimate waste mgmt system
➤ Involve community to increase
quality of life and livelihoods
➤ More clean and health in env
➤ Improve company image
➤ Nature – improve habitat
➤ Economy – reduce cost of material
and resource use / image
➤ Wellbeing – increase quality of life
and livelihood
➤ Society – no pollution / waste /
increase involvewment w/ company

Final Capstone Agreement
Wellbeing Initiative Ideas/ strategies
• Good first impression services
Services and design
 Will increase quality of service and better
working condition
 Increase customer experience and
satisfaction
 Increase customer wellbeing
 Economy – create good reputation, guest
loyalty, create potential new guest and
increase revenue
 Nature – create better environment and
harmony with nature
 Society ‐ create and increase
environmental awareness
Society Initiative Ideas/ strategies
➤ Training for local community to
deliver eco‐toursim services in line
with the resort’s programmes
➤ Provide memorable experience that is fun
and safe
➤ Generate income for hotel and local
community by adding value to guest
experience (buy from local market food
and crafts)
➤ Add value to other company training or
meeting experience
➤ Nature – by doing eco‐tourism we are also
protecting nature
➤ Wellbeing – increase awareness and
wellbeing of employee and community
➤ Economy – increase revenue

Level 5: Compass Group Capstone Proposals
Stage 2: Pyramid Capstone Agreement
All 4 Compass Groups develop “one’ single Capstone
Agreement that integrates the four Compass Capstone
Proposals that all can support.
The agreement should motivate, inspire and be relevant to
all so that something concrete will follow from this
workshop.

WHAT YOU CAN EXPECT IN A FULL
ACCELERATOR TRAINING COURSE

AtKisson ISIS Sustainability ACCELERATOR
Tools, Methods and Processes
to Support CSR and Sustainable Development

The Accelerator Tools: Applying the ISIS Method
COMPASS PYRAMID
Indicators
Assessment
Stakeholders
Training
Planning
Teambuilding
AMOEBA STRATESPHERE
Change
Innovation
Cultural Shift
Strategic Plan
Implementation
Monitor Progress

The Accelerator Tools: Applying the ISIS Method
COMPASS PYRAMID
Indicators
Assessment
Stakeholders
Training
Planning
Teambuilding
AMOEBA STRATESPHERE
Change
Innovation
Cultural Shift
Strategic Plan
Implementation
Monitor Progress
... can be used as stand‐alone applications, or in sequence, as
part of a comprehensive program for sustainability

The ISIS Method ...
can be adapted to a very broad range of situations and levels,
from Beginner (all ages) to Advanced (use of math, models,
etc.)
Indicators
Systems
Innovation
Beginning Intermediate Advanced
Strategy $

AIStIKS iAsCsCEoLnER AATCOCRE LTEOROALT IONR P CRaAsCeT SItCuEd y
Corporate Sustainability with Indonesia Business
Sectors
• GOAL: promote sustainability scheme to
business community and assist the
companies to have long term commitment
toward sustainability, measurable progress,
and more accountable sustainability report.
 PT ANTMA tbk (mining industry)
 INCO Mining tbk
 Losari Eco-Resort & Spa
 Indah Kiat Pulp & Paper
 Indonesia Power
 Bank Negara Indonesia (BNI)
 Result: All companies were able to develop
their own specifically tailored Sustainability
indicators and plans/blueprints to support their
sustainability performance.

AtKisson ACCELERATOR Case Study
Sustainable Phuket Initiative
Sustainability Indicator Framework & Report
Phuket Sustainability Indicator Report was
endorsed by the Phuket Governor on 22
November 2013….
Nature Aspect 1 Coastal Management / Sustainable Beach Program
Why this issue important for Phuket’s Sustainability?
Tourism is one of two mainstays of the Phuket economy,
and almost all tourists come to Phuket for its famous
white sand beaches and clean, aqua blue marine waters.
These natural treasures are directly influenced by coastal
development planning, pollution, construction, zoning
law enforcement, business licensing, density of vendors,
and litter management, to name but a few. If Phuket’s
beaches are consumed by litter, extensions of restaurants
and bungalows, lounge chairs and umbrellas, vendors and
jet skis, the accumulative effect will soon overwhelm
nature’s resilience mechanisms. It will not be too long
before Phuket will lose the very attributes that its success
has been built upon. Not to say that tourism will stop, but
most likely the outdoor activity and nature related
tourism will be replaced by another type of tourism that
we all do not want.
What is the Trend?
The Phuket Marine Biological Center has implemented
a coastal environment monitoring program for 23
stations along the coastline of Phuket. Some principal
parameters collected for every 2 months include salinity,
temperature, pH, dissolve oxygen, suspended sediment,
nutrients and total coliform bacteria. The result found
that Marine water quality was generally found in good
condition, except in some stations and during certain
period of time that the quality was in fair or poor
conditions.
Possible Sources of Data
Department of Marine and Coastal Resources: Phuket
Marine Biological Center, Ministry of Natural
Resources and Environment: Pollution Control
Department
The Challenge:
Phuket’s coastal marine environment,
particularly its famous beaches and
water quality are in a state of
degradation and decline.
Our Goal:
Phuket’s coastal environment enjoys
continuous excellent water quality, with
clean beaches that exhibit a natural
condition to a large extent.
Proposed Strategy:
Empower and enable community
volunteer groups to take ownership and
responsibility for beach conditions and
water quality monitoring, and
education for fishing fleet on waste
proper management.
Sustainability Indicators:
Marine Water Quality Index (BOD,
PH, Fecal Coliform)
Beach Quality Index (5 star system)

Reflections, Comments,
Questions?

SYSTAINABILITY ASIA / ATKISSON GROUP
www.atkisson.com
www.systainabilityasia.com
robert@atkisson.com

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