G3: GOING GREEN GLOBALLY

School of Business, University at Albany

Strategic Sustainability Systems: The G3 Program at the UAlbany School of Business

Paul Miesing, Linda Krzykowski, Eliot Rich UAlbany School of Business

Outline
Comments About Sustainability in the MBA Curriculum Introduction to G3 and The G3 Compass
The Players and Expectations The G3 Process and Results

Neo-Classical View of Production vs. The System Dynamics Model

Counter-Intuitive Results

Sustainability Roadmap Tentative Schedule

L. Krzykowski et. al. Strategic Sustainability

Comments about MBA Curricula

Too theoretical and not practical Too reliant on traditional models and not reactive to current issues Cant create leader in a classroom Teach in the silos, not on the platforms

L. Krzykowski et. al. Strategic Sustainability

 What is Sustainability?

Comments About Sustainability UAlbany Curriculum

Why now? Is there money in it? What business models are sustainable?

Sustainability problems are big and complex, hence require cross-discipline solutions (science and engineering, computer science, biology, public administration and policy, law) Key Challenge: Very intensive, highly-collaborative, integrative, and time-consuming twelve-day activity that develops a prototype to solve an intractable problem Pedagogy Principles: Critical thinking, whole systems thinking, manage complexity, experiential L. Krzykowski et. al. Strategic Sustainability
L. Krzykowski et. al. Strategic Sustainability

The G3 Compass
Environment and Organizations (NEO)

Natural

World Without
Walls (WWW)

Value Proposition Business Model

Integrity, Professionalism (VIP)

Ethics: Values,

Sustainability Systems (SSS) L. Krzykowski, et al., Strategic Sustainability

Strategic

Introduction to G3
Integrative Cornerstone Group Project is important to:
MBAs
Curriculum closure and consolidation (skills) Jobs! (resume, experience, internships) Knowledge about one of the most vital issues of the day

UAlbany School of Business

Reputation, research, funding, community outreach

Our clients
Value team recommendations to help them with sustainability and Going Green Globally initiatives
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The Players
2 Managing Partners and a Director 6 Consulting MBA Teams 6 Clients Team Coaches and Executive Life Lines (TCELLs)
Business Coach (one per team) Science Coaches (Profs. Delano and Haldar; Nano PhD students) Research Coach (Mary VanUllen) Sustainability Life Line (Dr. Steven Ricci) Project and Energy Life Line (Dr. Jim Mahoney)

7 School of Business faculty members L. Krzykowski et. SpeakersSustainability 13+ Guest al. Strategic

G3 Partnering Organizations

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G3 Clients

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G3 Baseline
Survey of student sustainability values
Sustainability issues Attitudes toward sustainability challenges Personal habits

Calculate personal carbon footprint Fishbanks Simulations

L. Krzykowski, et al., Strategic Sustainability

Survey Item

Mean (S.D.) Five years from now the nations 4.41 (1.12) Born in USA2 weather will probably be more severe Yes=4.1; No=5.0 than it is now I believe what Al Gore has to say 3.6 (1.26) Intended Concentration about global warming and climate HRIS=2.9; IA=4.7; ITM=3.7 change Even if it turns out people arent 4.8 (.70) Intended Concentration causing global warming, reducing HRIS=4.9; IA=4.3; ITM=4.9 pollution is still worth it for a better environment Americans should increase efforts to 4.7 (.81) Intended Concentration reduce pollution regardless of what HRIS=4.9; IA=3.7; ITM=5.0 other countries do I believe we can reduce our energy 4.4 (1.07) Intended Concentration use and improve the quality of our HRIS=4.8; IA=2.3; ITM=4.2 lives at the same time Scale from 1 (Strongly Disagree) to 5 (Strongly Agree) Global warmingwere born in the USA; 22from in the USA since: mean = 2005.1; SD = 5.69 Experience of 24 could stop me have lived 3.4 (1.43) Full-Time Work doing things I20 haveto do like had full-time work experience: mean = 3.0 years; SD = 2.68 Note3 Yes=3.0; No=4.2
1

MBA Attitudes Toward Climate and Environmental Issues

2
3

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MBA Attitudes (Contd.)

Survey Item I can find things that are both fun to do and environmentally-friendly I would vote for a presidential candidate who is strongest on stopping global warming Even if it turns out people arent causing global warming, reducing pollution is still worth it for personal health reasons It would not bother me to have a nuclear power plant in my local area The same people who worry about global warming used to worry about global cooling Mean (S.D.) 4.6 (.92) Intended Concentration HRIS=4.6; IA=3.0; ITM=4.8 3.6 (1.32) Born in USA2 Yes=3.4; No=4.6 4.8 (.57) Intended Concentration HRIS=4.9; IA=4.3; ITM=4.9 2.6 (1.63) Gender4 Female=1.3; Male=3.2 3.5 (1.12) Born in USA2 Yes=3.0; No=4.3 Full-Time Work Experience of Note3 Yes=3.8; No=2.9

Global warminghaveharmful to people mean = 3.0 years; SD = 2.68 20 is had full-time work experience: 4.6 (.90) Intended Concentration 14 female, 21 male HRIS=4.5; IA=3.0; ITM=4.9
3 4

24 were born in the USA; 22 have lived in the USA since: mean = 2005.1; SD = 5.69

L. Krzykowski, et al., Strategic Sustainability

Student Expectations
From Us:
Do expect us to be available and on call for you, give feedback on your presentations and papers but Dont expect us to always agree with each other Do have a designated rep, use e-mail, expect advice and direction, and use them but Dont expect answers from them Do ask for information and expect some availability but Dont expect a lot of time or for them to do your job for you

From your T-CELLS:

From your Client:

L. Krzykowski et. al. Strategic Sustainability

Our Expectations
From Individuals:
Do be committed, act professionally, and challenge yourself but Dont let your ego get in the way or kill the messenger who gives you constructive feedback Do expect you to work hard, put in long hours, teamwork, and use feedback constructively but Dont expect any free riders Do have fun and learn a lot but Dont attack each other or treat this project as another classroom exercise

From Your Team:

From the Class:

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The G3 Process
Client sustainability projects Experts and Guest Speakers
Energy, regulation, science, technology, finance

Case Studies
UAlbany, NYSERDA, WalMart

Individual coaching sessions

Team coach, Dr. Ricci, Dr. Mahoney

4 Presentations + 2 Papers 100+ Hours Per Person of Work all in 12 Days!

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G3 Results
Client Recommendations:
Multifaceted and integrated Strategic management, marketing, finance, public policy, human resources, information technology, science, communications

Ability to Deal With:

Pressure Deadlines Ambiguity Clients Managers Team members Coaches Multiple deliverables for multiple stakeholders Incredible

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Neo-Classical View of Production (without feedback)

Input Conversion Infrastructure Output

ByProducts Producti on Capital

Resource s

Products

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Input

Conversion

Output

Internal and External Infrastructure

+
Remarketed Waste

Pressure to Remarket Waste

+ -

Waste Remediation

Bads Market

Effect of Waste on Resource Replenishment Demand for Resource

+
Pressure to Remediate + Effect of Waste Accumulated Waste on Goods + Market Post Production Waste +

By-products

+
Production Waste + Production Output

Waste

Effect of Natural Capital on Replenishment

+
Producti on Capital

Natural Capital

+
+

+/-

+
Resource Use

Production Planning

Inventor y
+

+ Production Operations
Cost

Waste Cost Income

Sales

+ +

Goods Market

Natural Capital Replenishment

+ Resource
Cost Reinvestment in Production + New Investments

+ -

Accumulations of Material Flows of Material Flows of Information

Profit

Market Price

+
Capital Markets

Remediation Cost

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Counter-Intuitive Results
Fallacy of the Infinite Resource:
Superior returns based on nonrenewable or slowly-renewing resources draws in capital Misleading signals to the market increases extraction and exploitation If extraction grows faster than replacement/ renewal, market fluctuates and can collapse
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Counter-Intuitive Results
(Contd.)

Productivity Speeds Decline:

Improved extraction technology for declining resources speeds failure Less productive extraction technology preserves declining resources and protects from market disruption and side-effects until replacements are available Jevons Paradox Technological progress that increases the efficiency with which a resource is used tends to increase (rather than decrease) the rate of consumption of that resource
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Counter-Intuitive Results
(Contd.)

Change Occurs Precipitously and Non-Linearly:

Ability to absorb waste are uncertain Threshold effects upon reaching capacity can be dramatic

Market can send invalid signals must understand the underlying system
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Counter-Intuitive Results
(Contd.)

Erroneous Forecasts:
Long delays for information
Effects of waste take time to appear

Uncertain and non-linear effects go unnoticed

Oceans as carbon reservoirs Landfills as waste reservoirs

Overshoots from market momentum

Hard to reduce consumption and industry patterns once they are established
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Counter-Intuitive Results
(Contd.)

Correct investments in correct places ripples throughout the entire system:

Abundant opportunities to reduce resources for production processes, energy, by-products, transportation all of which are avoidable costs! Waste is an investment without customer value

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Sustainable Competitive Advantage

Supply Chain
Supplier Supplier power power Rivalry Rivalry Buyer Buyer power power CompleComplementors mentors Strategy, Structure, and Intensity of Rivalry National Competitive Advantage
Inputs
Inbound Logistics Operations Outbound Logistics Marketing & Sales

Potential Potential competito competito rs rs

Strategy Tripod
Support Activities

Human Resource Management Technological Development Procurement

Firm Infrastructure

M A R G IN

Service

Disrupt. Disrupt. techs Substitute techs Substitute ss

5 (+2) Forces
Factor Conditions

Primary Activities

Value Chain (RBV)

Local Demand Conditions

Competitiveness of Related/Supporti ng Industries

Source: Peng, Global Strategy (Thomson SouthWestern: 2009) L. Krzykowski, et al., Strategic Sustainability

Institutions (Diamond and Clusters)

M A R G IN
Outputs

Business Sustainability Roadmap

Leadership in Business Leverage Viability Innovations and ContinuousAdvantages Market Improvement Efficiency Gains Baseline Positions/ Planning Compliance

Triple Bottom Line Stockholders, Sustainability, Social Responsibility

Source: Adapted from http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf

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Tentative Schedule
Pre-G3:
January Manage Expectations: Clients receive information packet and questionnaire; begin gathering information their team will need; begin conversations about what an appropriate project might look like March Questionnaire due from the client; project broadly defined and scoped out Early April Teams Formed: Assigned clients and given completed client questionnaire, forms, information
L. Krzykowski et. al. Strategic Sustainability

Tentative Schedule
(Contd.) G3:
Friday am Kick-Off: Science and Motivation; Discussion about what consultants do 12-1:30 Student panel (last years group) 2:00-4:30 System Dynamics exercise 4:30-6:00 Teams meet clients and coaches Weekend Work - Work - Work on very L. Krzykowski et. al. Strategic Sustainability specific, directive deliverables; build the

Tentative Schedule
(Contd.) G3 (contd.):
Monday: Energy
Morning Panel discussion; Speed dating Lunch With coaches Afternoon Work time; Skype with J. Mahoney

Tuesday: Policy and Regulation

Morning Panel discussion; Speed dating Lunch With clients or tour of facilities Afternoon Work time; Skype with S. Ricci
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Tentative Schedule
(Contd.) G3 (contd.):
Wednesday
Morning Student presentations to faculty Noon Conference calls with coaches Afternoon Field Trips: Members go to different site Evening Teams brief each other

Thursday
Morning Water and consumption/packaging panel; Speed dating Afternoon Sustainability panel; Speed L. Krzykowski et. al. Strategic Sustainability dating

Tentative Schedule
(Contd.) G3 (contd.):
Friday
Morning Work time Afternoon Presentations with coaches and clients

Weekend Work - Work - Work Monday

Morning Presentations to faculty on client recommendations and 2 minute executive summary of white research papers (3-5 pages each)

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Tentative Schedule
(Contd.) G3 (contd.):
Tuesday Work Day
Teams meet with Ricci, Mahoney, Coach, Client

Wednesday
Final presentations; Lunch; Group photos

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Our Own Continuous Improvement and Learning Loop

Students move onto summer internships
Growing success of G3

We de-brief with T-Cells, Clients, faculty Make adjustment to the G3 system Plan for growth Begin planning for next iteration
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On-going Challenges to G3
Evaluation of the program
Success in the market as indicated by clients Success in the market as indicated by outgoing student placement Success in the market as indicated by incoming students

Evaluation of student learning Resources

Very resource intensive Resources change with G3 iterations

Integration we live in silos, not on the platform Faculty and administrative commitment Reinforcement in curriculum vs. learning in a standalone project
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Take Aways
Graduate MBAs who embrace holistic thinking and feedback Give students experience recognizing feedback structures Give students a template for identifying investments which are sustainable AND profitable Provide a business-realistic, challenging, experiential and academic program Recognize leadership also has long range vision L. Krzykowski et. al. Strategicwho respond to Triple Develop leaders Sustainability

Questions?

L. Krzykowski, et al., Strategic Sustainability