Triggering Innovation Through Sustainability
Twenty years ago, new technologies were the keys to innovation. In today's business world, many see sustainability as the catalyst for innovation. Many of today's leading businesses have figured out that sustainability and innovation should coexist. They complement each other nicely.
A Short Case Study
One of the leading companies in the area of innovative thinking is Seventh Generation. This firm makes natural and organic household products. Their mantra is taken from the Native American Iroquois concept that, "everything must be decided by thinking ahead to the seventh generation". The company decided to use no chemicals in their products. Their wares are packaged in recycled containers. Cleaning ingredients are derived from plant-based substances and are equivalent or superior to common market brands. Using this business model Seventh Generation has grown its revenues from $15 million in 2000 to way over $100 million today. The company's goal is not to grow revenue though. It's to be a leader in bringing positive change to our planet. Seventh Generation envisions a sustainable world and is constantly working toward that end.
Is Sustainability Workable?
Many executive across various industries think sustainability is quite doable. In a 2012 study from MIT, almost half of the company leaders surveyed said they altered their business models to account for sustainability. Of these, three-fourths said they had broken even or made a profit and a little less than half said sustainability had allowed them to make a profit.
An article in the Harvard Business Review noted, "sustainability is a mother lode of organizational and technological innovations that yield both bottom-line and top-line returns." Incorporating sustainability in your organization should help generate more revenues and more profits. The easy answer to the question, “Is sustainability workable?” is a resounding yes. In every facet of business, innovation based on sustainable practices will work. These areas include:
- New applications for existing products and services
- Changing current business practices
- Developing new products and services
- Creating and using new technologies
- Altering management techniques
These workable solutions will result in environmental and social benefits while impacting the company's bottom line positively. Any firm can position itself to be at the forefront of innovative change without seriously affecting their profitability.
Facilitating Changes
There will be a few ingredients that go into making things change. These follow:
- Support from the top - Key executives have to embrace the changes and do more than just pay lip service to the them. Top level bosses have to act on the innovations. Any changes must be a part of the overall company plan and become part of a new direction for each department.
- Communication - There will be changes to the company and action will have to be taken. Communicating all of this will be vital to have any change occur. Innovation means change and everyone will have to think differently. Most people don't like to change. Getting reluctant employees to buy-in to the new deal will require a lot of communication.
- Other interests - Some people on the outside will have to sign-off on the deal to have it work. Customers and vendors will be impacted along with investors, stockholders and others who have a vested interest in the firm. Getting some of the external entities in the fold will make the transition much smoother. If some interests try to be divisive then any type of innovation will be much harder to sustain.
- Make it happen - At some point all the talking and planning will have to end and the new program will have to be implemented. One thing is to have fun with it. Don't make it a chore to have everyone work to get things going in the right direction. The company will have to think of ways to get the staff's creative juices flowing. Playing some type of games with rewards for forward thinking might be in order. Just have fun with it all and changes will happen much quicker and much smoother.
Sustainability can spur innovation. As a matter of fact, this should probably be on a company's agenda going forward. It has been shown a company can be innovative and still have positive financial results. This innovation will also show a firm is taking the initiative in building a better tomorrow for the entire planet. Being at the forefront in this movement will showcase a company's commitment to excellence and their concern for their fellow man. Innovation while using sustainable practices will work quite well for any company. Look at the example Seventh Generation provides for us. Be diligent about sustainability and help all of mankind with better products that are better for our world!
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