Lecture9

Question 1

What is ‘Organizational Change’?

Answer 1

• A broad topic involving changes in processes, structures, and employee mindsets.
• Key focus: Initiating and managing change successfully, especially for sustainability.

Question 2

What are the three phases of corporate sustainability?

Answer 2

• First phase: Opposition and non-responsiveness.
• Second phase: Compliance and strategic initiatives.
• Third phase: Proactive support of sustainability.

Question 3

What is the optimal leadership style for moving out of the first phase?

Answer 3

• Transactional leadership: Motivates through self-interest, highlighting rewards of sustainability.

Question 4

What are examples of activities to move out of the first phase?

Answer 4

• Telling a success story of how sustainability avoided reputational risk.
• Inviting experts to raise awareness.
• Targeting key decision-makers vulnerable to reputational risks.

Question 5

What is the optimal leadership style for third phase?

Answer 5

• Transformative leaders that inspire others to go beyond their
  own interest and that of the company.

Question 6

What leadership styles are optimal in the second phase?

Answer 6

• Distributed leadership: Shares responsibility across people.
• Enabling leadership: Creates structures for employee initiatives. Incentivize employees to take initiative and to develop ideas for how the company can
  become more sustainable

Question 7

What activities work well in the second phase?

Answer 7

• Searching for inefficiencies.
• Communicating progress on sustainability projects.
• Celebrating adopters.
• Organizing awareness campaigns and innovation contests.

Question 8

What defines the third phase of corporate sustainability?

Answer 8

• Companies focus on external societal and environmental responsibility. e.g. not only watch within company.
• Companies now begin to feel more broadly responsible for the society and
  environment
• Key activities:
• Bring in more and more diverse stakeholders
• Explore how critical resources are used in your entire value chain (rare earth
  minerals)
• Scout your environment for completely new technologies
• Partner up with peers and possibly competitors to tackle specific important
  sustainability issues (coopetition, e.g. apple buys from samsung)

Question 9

What factors help in using resources effectively for sustainability?

Answer 9

• Timing: Align decisions with the company’s phase.
• Urgency: Leverage external events to create urgency.
• Target receptiveness: Find mutual motivations.
• Position: Use your role to influence change.

Question 10

What are the three critical moments for sustainability transition?

Answer 10

• Moving out of opposition. (1. phase)
• Navigating compliance and strategy (2.).
• Transitioning to proactive sustainability (3.).

Question 11

Example: Timing

Answer 11

Example: Appointing a Chief Sustainability Officer to the board is a good choice for a
company that has navigated the second phase, not for a company that is just moving out of
the first.

Question 12

Example: Urgency

Answer 12

Pay attention to external events (e.g. natural
disasters or public scandals).
External events might create a sense of urgency within the company. The sense of urgency will make it easier to promote your own ideas

Question 13

Example: Target recepetiveness

Answer 13

Find motivations that also serve their interests, not just yours

Question 14

Example: Your position

Answer 14

Different roles have different decision-making power and drive change in different
ways. Middle managers need to work with peers to build consensus and reach critical mass
to support change towards sustainability