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8-1
Implementing Organizational Change:
Theory and Practice
Bert Spector
Chapter 8
Going Green
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-2
Learning Objectives
 Present the key concepts of sustainability and the
triple bottom line.
 Examine going green as an organizational
transformation.
 Present the key concepts of sustainability and the
triple bottom line.
 Examine going green as an organizational
transformation.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-3
Building a Vocabulary
 Sustainability: voluntary actions taken by
organizations designed to meet the needs of the
present generation without compromising the needs
of future generations
 Compliance: actions of an organization designed
to meet requirements imposed by law
“Corporate sustainability involves voluntary efforts on the part of
organizations.”
“There is still much that is controversial about going green.”
“The Bhopal chemical leak of 1984 proved to be a major trigger event in
looking at the social and ecological responsibilities of companies.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-4
Building a Vocabulary
 Triple bottom line: an approach to defining performance that
takes into account social, economic, and ecological dimensions
and assumes that the three are mutually reinforcing
 Greenwashing: public relations efforts aimed to claim
environmental virtue without making any substantive
organizational change
“Although there is a great deal of controversy about the triple bottom line,
it is an important step toward aligning business with sustainability
concerns.”
“‘Greenwashing’ is a public relations effort that does not involve
organizational transformation.”
“Government regulations are the main motivation for going green in the
United States; in Europe, the major factor is customer preferences.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Five stages of responsiveness to issues
of sustainability
 Defensive stage: company denies claims that they are
responsibility for negative outcomes.
 Compliance stage: company accepts responsibility and costs of
following rules and legislation as “the cost of doing business.”
 Managerial stage: company integrates sustainability objectives
into the management goals at multiple levels of the organization.
 Strategic stage: sustainability issues become fully integrated into a
company’s business strategy.
 Civil stage: company representatives promote wider efforts on
behalf of sustainability.
8-5
“When it comes to going green, most organizations follow a
predictable path, starting with denial and compliance before becoming
managerial, strategic, and civil.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Performance Advantages of Going
Green.
8-6
Advantage Gained: By:
Lowered cost of operating Elimination of waste
Reduced exposure to risk Inoculating against future law suits
Increased innovation Impetus for new products/services
Improved recruitment Enhanced image of green company
makes it more attractive to potential
employees
Enhanced employee motivation Creates sense of excitement and
purpose for employees
Market differentiation Appealing to sustainability-
conscious consumers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
“In addition to cost savings and image building, going green offers an
incredible fountainhead for innovation.”
The Process of Going Green
 Once the trigger event motivates a reevaluation of values,
goals, and strategies, companies seeking to go green undergo
a transformation that follows a set of sequential interventions:
 Set the vision
 Diagnose the status quo
 Alter first informal and then formal design elements
8-7
“Going green starts with a visionary statement from top leadership.”
“To be effective, green visions embed and connect the firm’s commitment to
sustainability with its business mission; that way, going green is seen as
strategic, not peripheral.”
“Early diagnostic efforts will need to include not just the company itself, but also
its supply chain partners.”
“Informal design changes associated with going green start with building high
levels of collaboration”.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-8
Measuring Success
 Balanced scorecard (BSC): a tool for measuring
multiple outcomes—financial performance, customer
satisfaction, internal process excellence, and employee
learning and growth—and the connection of those
outcomes to the vision and strategy of the organization
 Green metrics: specific objective measurements of a
firm’s social and environmental impact
“The BSC is a tool for measuring the effectiveness of change efforts on
multiple dimensions.”
“A sustainability balanced scorecard can help an organization measure its
performance on the triple bottom line.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-9
Sustainability Balanced Scorecard
Objectives
Measures
Targets
Financial Performance
Internal Business Processes
Sustainability
Reputation with Customers
Vision &
Strategy
Initiatives
Learning and Growth
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-10
The Vocabulary of Shaping a
Green Culture
 Organizational culture: the common and shared values
and assumptions that help shape employee behavior and is
typically passed down from current to future employees.
 Sustainability mindset: a positive openness to the
complexities and opportunities of aligning people, profits,
and the planet.
 Espoused values: the set of values called upon by
individuals to explain or justify their course of action or
pattern of behavior.
 Enacted values: the set of values that are implicit in that
course of action or pattern of behavior.
“Organizational culture can help embed a green mindset and
shape employee behaviors”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Leader Behaviors That Shape a
Green Culture
8-11
“The values and behaviors of leaders shape an
organization’s culture.”
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
 Leaders elect to measure and reward green
activities.
 Leaders react to critical green incidents and
crises.
 Leaders allocate scarce resources toward green
endeavors.
 Leaders choose to emphasize green criteria in
their recruitment, selection, and promotion of
employees and future leaders.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
8-12

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LS 607 Managing Organizational Change chapter 8

  • 1. 8-1 Implementing Organizational Change: Theory and Practice Bert Spector Chapter 8 Going Green Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 2. 8-2 Learning Objectives  Present the key concepts of sustainability and the triple bottom line.  Examine going green as an organizational transformation.  Present the key concepts of sustainability and the triple bottom line.  Examine going green as an organizational transformation. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 3. 8-3 Building a Vocabulary  Sustainability: voluntary actions taken by organizations designed to meet the needs of the present generation without compromising the needs of future generations  Compliance: actions of an organization designed to meet requirements imposed by law “Corporate sustainability involves voluntary efforts on the part of organizations.” “There is still much that is controversial about going green.” “The Bhopal chemical leak of 1984 proved to be a major trigger event in looking at the social and ecological responsibilities of companies.” Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 4. 8-4 Building a Vocabulary  Triple bottom line: an approach to defining performance that takes into account social, economic, and ecological dimensions and assumes that the three are mutually reinforcing  Greenwashing: public relations efforts aimed to claim environmental virtue without making any substantive organizational change “Although there is a great deal of controversy about the triple bottom line, it is an important step toward aligning business with sustainability concerns.” “‘Greenwashing’ is a public relations effort that does not involve organizational transformation.” “Government regulations are the main motivation for going green in the United States; in Europe, the major factor is customer preferences.” Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 5. Five stages of responsiveness to issues of sustainability  Defensive stage: company denies claims that they are responsibility for negative outcomes.  Compliance stage: company accepts responsibility and costs of following rules and legislation as “the cost of doing business.”  Managerial stage: company integrates sustainability objectives into the management goals at multiple levels of the organization.  Strategic stage: sustainability issues become fully integrated into a company’s business strategy.  Civil stage: company representatives promote wider efforts on behalf of sustainability. 8-5 “When it comes to going green, most organizations follow a predictable path, starting with denial and compliance before becoming managerial, strategic, and civil.” Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 6. Performance Advantages of Going Green. 8-6 Advantage Gained: By: Lowered cost of operating Elimination of waste Reduced exposure to risk Inoculating against future law suits Increased innovation Impetus for new products/services Improved recruitment Enhanced image of green company makes it more attractive to potential employees Enhanced employee motivation Creates sense of excitement and purpose for employees Market differentiation Appealing to sustainability- conscious consumers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall “In addition to cost savings and image building, going green offers an incredible fountainhead for innovation.”
  • 7. The Process of Going Green  Once the trigger event motivates a reevaluation of values, goals, and strategies, companies seeking to go green undergo a transformation that follows a set of sequential interventions:  Set the vision  Diagnose the status quo  Alter first informal and then formal design elements 8-7 “Going green starts with a visionary statement from top leadership.” “To be effective, green visions embed and connect the firm’s commitment to sustainability with its business mission; that way, going green is seen as strategic, not peripheral.” “Early diagnostic efforts will need to include not just the company itself, but also its supply chain partners.” “Informal design changes associated with going green start with building high levels of collaboration”. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 8. 8-8 Measuring Success  Balanced scorecard (BSC): a tool for measuring multiple outcomes—financial performance, customer satisfaction, internal process excellence, and employee learning and growth—and the connection of those outcomes to the vision and strategy of the organization  Green metrics: specific objective measurements of a firm’s social and environmental impact “The BSC is a tool for measuring the effectiveness of change efforts on multiple dimensions.” “A sustainability balanced scorecard can help an organization measure its performance on the triple bottom line.” Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 9. 8-9 Sustainability Balanced Scorecard Objectives Measures Targets Financial Performance Internal Business Processes Sustainability Reputation with Customers Vision & Strategy Initiatives Learning and Growth Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 10. 8-10 The Vocabulary of Shaping a Green Culture  Organizational culture: the common and shared values and assumptions that help shape employee behavior and is typically passed down from current to future employees.  Sustainability mindset: a positive openness to the complexities and opportunities of aligning people, profits, and the planet.  Espoused values: the set of values called upon by individuals to explain or justify their course of action or pattern of behavior.  Enacted values: the set of values that are implicit in that course of action or pattern of behavior. “Organizational culture can help embed a green mindset and shape employee behaviors” Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
  • 11. Leader Behaviors That Shape a Green Culture 8-11 “The values and behaviors of leaders shape an organization’s culture.” Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall  Leaders elect to measure and reward green activities.  Leaders react to critical green incidents and crises.  Leaders allocate scarce resources toward green endeavors.  Leaders choose to emphasize green criteria in their recruitment, selection, and promotion of employees and future leaders.
  • 12. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 8-12