Drinking the Kool Aid

Can you state your company’s values? How about it’s mission?

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Did your answer surprise you?

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How does that make you feel as an employee?

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I started playing with this question myself this quarter as I witnessed three very distinct cultures around this difference, and decided to share a few thoughts.

Organization A – very prominent, clearly articulated corporate values. They are printed on the building walls, security badges, and are able to be recited verbatim by every employee (at least that I met). This is pretty phenomenal considering it is a multinational company with thousands of employees. Vision, mission and values are defined from the highest executive level and have remained consistent for many years, even through mergers and rebranding of the company.

Organization B – 50 year history with stated values, but each employee speaks of them differently. The essence is there, and is carried out in practice differently by the individual employees. The vision and mission have changed recently without much overall change or acknowledgement from the employees. They are mostly behind the idea of the vision and value verses the actual words set by the board.

Organization C – newer organization with a highly co-creation focused approach to setting direction and metrics for success. A newly revised mission was created from the Board level, and others engaged felt a lack of engagement that led to mistrust and challenge to the direction of the organization.

One central theme of these is that all 3 organization HAVE a mission statement (and values) that are clearly articulated. The source, history and embodiment of them is all different, but does that matter? This raised the question of how important IS a mission statement. I stumbled across an interesting perspective on the formality of a mission statement on an HBR blog: http://blogs.hbr.org/2011/01/do-you-have-a-mission-statemen/ that looks at the value of a mission statement or being on a mission.

With regards to values, the interesting part of this comparison for me is where the values are defined. Are they better suited to come from the leaders of an organization (like A and B) or should they be co-created as the participates/employees (as C seems to want)?

To answer this, lets step back and reexamine what corporate values are intended to do. Core values are what support the vision, shape the culture and reflect what the organization values.  They are the essence of the company’s identity – the principles, beliefs or philosophy of values. Many companies focus mostly on the technical competencies but often forget what are the underlying competencies that make their companies run smoothly — core values. Establishing strong core values provides both internal and external advantages such as:

• ·      Core values help in the decision-making processes. For example, if one of your core values is to stand behind the quality of your products, any products not reaching the satisfactory standard are automatically eliminated.
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• ·      Core values educate clients and potential customers about what the company is about and clarify the identity of the company. In this increasingly competitive marketplace, having a set of specific core values that clearly articulate to the public can be a competitive advantage.
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• ·      Core values are becoming primary recruiting and retention tools. With the ease of researching companies, job seekers consider the identities of the companies they are applying for and weighing whether or not these companies hold the values that they as individuals consider important.

When looking at these three bullets and reflecting on my personal experience (note: and mental model(s) that lead my personal preferences to favor order and rules) I come to the conclusion that defining mission and values is the responsibility of the leadership of a company, and it is also their responsibility to communicate those decisions to all participants and employees. Lack of communication leads to detachment, resentment, and could lead to disintegration of an organization if people are misaligned in their purpose or direction for doing work.

So I ask, what is your option of how important that EVERY employee or participant (or client/customer for that matter?) can state verbatim the values and mission, or is it enough to have a rough idea and allow individual interpretation? Each of these states have implications for effort required by leadership, and can influence the organization’s culture to be viewed as overbearing or allowing for individual expression. They require different levels of leadership engagement, and possibly higher or lower expenditure of overhead to achieve message adoption. Also, what is the implication for an employee or individual that does not fit these values or mission? Is it their role to move on or speak up to change it?

I would love to hear your thoughts and experiences.

Stakeholder Engagement Primer 2: Engagement Planning

Key Elements of Stakeholder Engagement Plan Development

1. Intent

As introduced in my previous post, this series is an overview of high level best practices for successful stakeholder engagement.

Successful stakeholder engagement planning combines two phases: groundwork and execution. This guidance provides an overview of this second phase: key elements of a stakeholder engagement plan.  This plan should be used to engage with stakeholders identified in pre-engagement preparation, and should mirror the landscape that you are trying to engage with.  

2. Stakeholder Engagement Plan Development

As every engagement is unique, each should have a customized stakeholder engagement plan. The elements below outline the elements that you should consider in preparing an actionable plan. All elements should be addressed (or thought about and set aside if they are not relevant) prior to any stakeholder engagement to ensure a smooth process and desirable outcome for all parties. Poor planning can derail progress and so every effort should be made to develop a comprehensive plan. The stakeholder engagement plan will outline all relevant aspects of the stakeholder engagement process, giving you the tools for a successful execution. Well designed plans should include the following elements:

1.      Engagement Plan Summary

Develop an executive summary of the new venture and anticipated scope of engagement.

2.      Purpose and Objectives

Clearly define the intent of the stakeholder engagement for the proposed project. Develop specific objectives for the engagement process. (e.g., manage community expectations, increase support from community stakeholders, or solicit feedback and perspectives). These objectives should be measureable as they will be used to document progress and success of the stakeholder engagement process.

3.      Project Description and Context

Review relevant details about the project/organization’s presence, historical involvement in the area, as well as intent of the stakeholder engagement as it relates to the project, issue or business.

4.      Key Issues and Challenges

Provide details of known challenges and other background data that may play a role in stakeholder engagement. Include relevant findings from any relevant social impact assessments (including ESIAs) as appropriate.

5.      Key Messages

Develop or leverage communications collateral (the materials to share with stakeholders) and key messages to support engagement. Adapt or develop messages to address key issues or challenges specific to the local context. Define these key messages in your plan.

6.      Stakeholder Engagement Guiding Principles

State guiding principles of your company/organization/group as they relate you your specific project. Following these principals will ensure your plan is consistent with the corporate values and reputation your organization intends to uphold throughout this process, and will serve as a reminder and clear tool for communicating your values to involved parties.

7.      Stakeholder Engagement Strategies and Methods

Identify which engagement forums are available and make the most sense for the goal of the engagement. There will likely be a mix of approaches (meetings, open houses, town halls, collaborative committees, etc.) used to reach out to different stakeholder groups within the community and throughout various phases of engagement. Identifying strategies allows for resource planning to ensure resources, skills and personnel required are available for the project execution. The following table provides guidance on appropriate strategies, although there are many more that are not included on this chart.

8.      Engagement Tracking and Communication

Identify appropriate internal and external communication channels (stakeholders, media, event sponsorship, educational material development and delivery). This includes identifying key contacts for responsible for managing communications.

9.      Stakeholder Feedback Process

Define specific channels, timing and personnel to manage stakeholder feedback.

10.   Stakeholder Engagement Resources and Funding

State how the resource and funding needs associated with plan execution will be met. It is possible that this will be covered under existing budgets.

11.   Engagement Phases and Timing

Define timelines and phases for engagement as appropriate.

3. Execute

During execution of the Stakeholder Engagement Plan, refer back to the planning guidance develop, and provide updates as changes occur or additional elements evolve.  As you execute direct engagement elements, consider the following elements and logistics when planning for your stakeholder interactions. These considerations will influence the outcome of your engagement process.

1. Authority: in house vs. third party hosting, # reps vs. # of stakeholders present

2. Formality:  dress code, marketing and display materials, tone of information presented

3. Atmosphere: impact of venue lighting, comfort and ease of access

4. Facilitation: facilitation approach for each audience (engaged, listening, interactive, professional, hands on etc)

5. Participation: dynamics of stakeholders in the room, approach to disputes, logistics affecting participants (time of meetings, location and accessibility). Communicate clear expectations for stakeholder involvement. Develop respectful rules of engagement.

4. Report

Upon completion of the Stakeholder Engagement process, report results about successes and challenges in the process to inform continuous improvement of your Stakeholder Engagement processes. Execute any community communication strategies outlined in the plan and engage with participant feedback.

5. Resources

1.      BSR: http://www.bsr.org/reports/BSR_Five-Step_Guide_to_Stakeholder_Engagement.pdf

2.      Accountability Stakeholder Engagement Standard  http://www.accountability.org/standards/aa1000ses/index.html

3.      IFC: http://www.ifc.org/wps/wcm/connect/938f1a0048855805beacfe6a6515bb18/IFC_StakeholderEngagement.pdf?MOD=AJPERES

Stakeholder Engagement Primer 1: Pre Engagement Preparation

Key Elements of Stakeholder Pre-Engagement Preparation

1. Intent of Stakeholder Engagement

Stakeholder engagement activities are an integral part of sustainable development of new projects, new business ventures, and maintaining relationships with local communities. Strategies to pursue stakeholder engagement vary widely, and follow many frameworks developed by many different organizations. As I embarked on my graduate project focusing on pulling together the high level guidance and best practices, I had the idea of developing a short primer to share some of these learnings with the rest of the BGI community through my blog. I hope you find it useful as a high level summary pulling from the best resources I have identified in my work.

Every stakeholder plan and engagement process will vary according to the nature of the local community, goals for the project, and resources available to complete it. This being said, one common link for all is that a key factor in successful execution of stakeholder engagements is the groundwork and background preparation prior to actually starting.  This groundwork is critical for a successful engagement, and all best practices recommend not rushing or overlooking this important phase. This post (primer part 1) provides an overview of steps and factors to consider as you prepare for engagement, and will provide an introduction to some of the best tools that I have found to dive deeper. The identification of stakeholders and groundwork prior to actually starting a formal engagement process will ensure optimal results of the goal focused engagement itself.

2. Pre-Engagement Preparation

1.      Understanding Context

Strategies to fulfill stakeholder engagement will vary according to the nature of the project in each community. In dispersed communities, organizations typically identify key stakeholders and work with them one-on-one. When operations of impact or the project occur near concentrated populations (for example, in a city), the focus tends to be on forums that touch more people at once. Stakeholder engagement liaisons can join or create collaborative forums to connect with multiple stakeholders.​​​ Since every venture is different, is can be helpful to review case studies of engagement successes with similar situations to help plan for your approach.

2.      Defining Vision

Setting a vision clarifies the specific objectives you are trying to achieve by involving stakeholders. As you define your engagement, important considerations include: identifying the top priority(ies) in why engagement is needed, specific and granular scope of engagement, and who is responsible for engagement success.

3.      Setting Expectations

Clear definition of expectations around the level of engagement you anticipate ensures your stakeholders will understand their time commitment, role and level of interaction during the process. The following table details the various levels of engagement, and can help you appropriately determine the level targeted for your situation. Consideration should be taken to ensure appropriate resources to execute selected level are available (time, financial support, expertise, staff support). This table was created from a variety of sources, and is my interpretation of how to clearly communicate the differences of each.

4.      Stakeholder Mapping: Who should be engaged?

With a vision for engagement and expectations for level of engagement anticipated, mapping stakeholders will assist you in understanding who needs to be engaged, and to what extent in the process. Stakeholder mapping is a collaborative process from multiple perspectives to determine a key list of stakeholders representing the entire stakeholder spectrum. The IFC standard referenced in the resources section provided a very clear, and detailed process for this. This is a high level summary of how mapping can be broken down into four phases:

1. Identifying: listing relevant groups, organizations, and individuals

2. Analyzing: understanding stakeholder perspectives and relevance and their key issues or concerns

3. Mapping: visualizing relationships to objectives and other stakeholders

4. Prioritizing: ranking stakeholder relevance and identifying issues

There are many tools and approaches to support stakeholder mapping. Please reference additional recommended resources at the end of this post.

5.      Next step: Engagement

With these initial considerations and background preparation considered, you will have a general understanding that will serves as a strong foundation for the stakeholder engagement process. The next step is to formalize your approach in a stakeholder engagement plan, that will allow you to track success, communicate goals and manage resources for execution. Development of this plan requires rigor similar to that of the stakeholder identification and groundwork completed above. So stay tuned for primer #2 on stakeholder engagement planning!

3. Resources

1.      BSR: http://www.bsr.org/reports/BSR_Five-Step_Guide_to_Stakeholder_Engagement.pdf

2.      Accountability Stakeholder Engagement Standard  http://www.accountability.org/standards/aa1000ses/index.html

3.      IFC: http://www.ifc.org/wps/wcm/connect/938f1a0048855805beacfe6a6515bb18/IFC_StakeholderEngagement.pdf?MOD=AJPERES

Sustainability in the US: Does it = Net Global Sustainability?

As we rode one of Washington’s ferries this weekend, my husband turned to me and asked if I knew how old these boats were. Honestly, I am not sure, but they certainly are not new by any means. As we continued our conversation, it turned to a discussion about infrastructure, and how upgrades in efficiency (new equipment) is a way that organizations, businesses and countries tout their sustainability. Upgrading the fleet of carpool vehicles at your office to hybrids…or 100% electric vehicles. “Our emissions are lower! Our operations are carbon neutral!” is what their annual report reads, and the company shows improvement with a pat on the back.

But what really happens?

Back to the ferry discussion from the weekend.

When US ferries are deemed to be too old, too unsafe, too high emissions for our standards, we retire them. “Retire” in this case really meaning selling them to continue their lives elsewhere. My life in WA recently collided with my experience studying in East Africa when I learned of a ferry tragedy connecting two places I was intimately connected to. In June 2012, a ferry boat, purchased from a retired US fleet, had sunk on its crossing fromZanzibar to Dar es Salaam, killing over 150 onboard. I had been on that very same crossing in 2007, on a similarly overcrowded vessel. Where exactly was this ship from? The same route that we were riding this weekend…West Seattle to Vashon Island. The sinking was caused by weather conditions combined with severe overcrowding and mechanical problems. Regardless of the reason, this ship was one that we had taken off our books as a country, but for the world, it was still polluting, running and endangering lives.

This is not the only example of infrastructure that we write off in favor of our local sustainability. Fleets of city busses, and school busses, are routinely sold to developing countries once they are too unsafe, do not meet emissions standards, or are too aged to run here. These aged, less safe and more polluting vehicles are sent overseas where they are run for years beyond their first life in the US.

As we explore measurement of sustainability, and defining metrics around what and how to track it, it is critical that we do not just push the problem elsewhere. A popular acronym used in environmental issues is NIMBY…not in my backyard. Waste water treatment, factories, refineries, landfills, highways…all of these large, infrastructure projects are typically located in less affluent areas, leading to social justice and environmental justice issues. Even as a company evolves towards their internal sustainability goals, how often are they asking about how their actions impact these indirectly related issues.

The world is a complicated network of challenges as we discuss sustainability. My call to you, is to consider all the impacts of your actions, both upstream and downstream. What may look like sustainability gains to you, may just mean compounded negative implications to someone somewhere else. 

Crowdfunding Against Coal

It has been a while since I have shared any thoughts on the coal export/coal train debate that is looming over our PNW communities. As I wrote about last fall, one of these proposed coal export terminals is intended to replace my family’s current summer crabbing beach, and would impact train traffic all along our beautiful Washington coastline.

With our recent finance class discussions about raising capital, it seems the opportune time to have a relevant capital related event in the world of coal. On Thursday, May 9^th, a University of Washington professor’s goal to crowd source $18,000 for an investigation on air-quality related to coal trains, was reached. This is a perfect example of how people have the power to influence business, or causes they believe in, through non-traditional capital raising channels.

Professor Jaffe had previously found difficulty in getting his research proposal funded through typical channels. As we talk more about the importance of social factors in business, specifically stakeholder engagement, this is a prime example of how the “traditional” system leaves them out of the decision making process. If public option and concern had been criteria for funding, would Jaffe have received funding at his first request? Clearly there are other issues at play regarding funds for research, but it is an important angle to consider.

According to the press release in Friday’s Seattle Times, Jaffe plans to set up air monitors along the tracks, possibly north of Seattle, starting in July. The goal is to see if trains affect air quality, to help inform how building a new coal terminal might affect people up and down the tracks.

Example of crowdfunding are popping up all over, for every cause you can imagine. This trend speaks to the power that people have to shape the future of business, both for good and bad. Crowdsourcing, particularly with the ease of internet communication, allows for vast swaths of people to connect around an issue and put their dollars to work. Here is a great example: over 1 Million dollars raised to purchase the historic Tesla research site in New York for a future museum site. Who initiated it? An online cartoonist in Seattle, fondly known as The Oatmeal.

We see examples of crowdsourcing gone array as well. With recent political campaign donation caps removed, power and influence has been transferred to those with dollars to spare.

In addition to the strictly donation based capital fundraising, I have been inspired to see new forms of loans pop up, and two great examples are from BGI Alumni: Slice Finance and Community Sourced Capital. Both are helping to reshape the options business owners have when searching for capital, and bring the community stakeholders back to the table. My younger brother is searching for capital investors through a similar channel: Upstart.com. It is wonderful to see so many options beyond taking a bank loan or pursuing traditional routes to raise money for ideas. 

Does anyone have experience working with any alternative community sourced funding for their business ventures?

Beyond the Balance Sheets: The Other Side of an MBA

As the halfway point of my MBA rapidly approaches, I have been very reflective of how influential this experience has already been. Yes, there are the usual suspects: I know my way across a balance sheet and can understand how it relates to an income statement. I know how to apply tools and read information that have in the past just been part of the “noise” in life. I can read a business article or hear a report on NPR and truly understand the finer points of the conversation. These are all immensely valuable and why I thought I should get my MBA.

So it got me asking, when I started this journey, what did I expect from an MBA? I realized that I did not know. I just knew it was something I needed! (side note, now that we are analyzing risk, I realize that maybe committing to an MBA program without more concrete expectations was a pretty big risk! I wonder how Bert would calculate that!)

In a quest to retrospectively unpack my expectations for an MBA, I stumbled upon a very interesting article in Forbes: The 10 Most Under-Rated Reasons Why You Should Get an MBA. The article was exactly what I needed. As coursework unfolded over the first few quarters, I was frustrated, struggling, still hanging on to a different set of expectations carried over from a rigorous undergraduate program. I was challenged by the lack of “material” in my MBA, and questioned if I was getting enough out of it. Reading this list helped me to appreciate how much more there was to this education, and how much I truly was gaining from the experience. Here is the list, but the article is worth a read too.

1. The chance to stop and reflect on some big business issues.

2. The chance to make some lifelong friends who will accomplish great things over their careers in business.

3. The chance to realize how little you understand about the world.

4. The chance to learn about how to get a bunch of high-strung, Type-A personalities to work together as a team.

5. The chance to think about the global economy and not just your little world where you used to work.

6. The chance to interact with Professors who will really challenge you.

7. The chance to go listen to as many accomplished executives when they come to talk at your school.

8. The chance to refocus yourself.

9. The chance to learn about managing people.

10. The chance to learn how to get up and string a few sentences together.

But there is so much more.

BGI is a truly unique community, and the foundational structure that this institution brings to the world of business is truly striking. A classmate Emily wrote about it beautifully last week. As work and life and school collide, the path to going back to school has rocked each member of our cohort differently, but many of us have found solace in the fact that we are not in it alone. We are supported by an amazing network of people trying to make the world a better place through business.

The value of my MBA has come out in obvious and not so obvious places in daily life. I find myself surrounded with opportunity to take academic lessons and apply them directly work or personal life, but have also found a new sense of myself as I tackle decisions. My personal sense of responsibility and commitment to values in my work has been endorsed by BGI. I feel that the examples of real world thought leaders has legitimized my personal drive for doing things the right way, and gives me confidence, and now a language, to stand up for my beliefs. When I talk to clients or discuss business or sustainability or the future with friends, I feel confident in defending my perspective.

Now that is a bonus that I never expected from an MBA.

OlyKraut Kaizen

Kaizen: Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, and business management.

Sauerkraut: directly translated: "sour cabbage", is finely cut cabbage that has been fermented by various lactic acid bacteria

OlyKraut: Awesome, locally owned sauerkraut business in Olympia, Washington owned by one of my BGI classmates

This was the extent of my kaizen and sauerkraut knowledge at the BGI benefit auction last fall. However, it did not stop me from joining forces with two other classmates and bidding on a “training day” to learn how kaizen works when applied to a real world business. After our day long analysis at OlyKraut, I can now confidently say I know much more than I did at the auction.

Before ever setting foot in the OlyKraut kitchen, we heard an in-depth presentation where the owner explained her process and workflow, and how she viewed the critical tasks. It was great to get her perspective on what the challenges and opportunities were, and also develop a mental picture of what we might find. By going into the operation with a rough understanding of the process, it was much easier to plug in and observe.

And boy did we observe! Our awesome coach Megan gave us some tips and best practices of how to effectively observe so that we would actually be able to derive value from our observations. Initially, we all walked the facility, drawing out the physical layout of equipment, people, storage, and well, EVERYTHING. We drew out things that were not even part of the OlyKraut process/materials, but since they were in the space, they indirectly impact the process that OlyKraut can use.

Our observations started when the sauerkraut process started. With 5-7 people working in the warehouse, we had our hands full with observation opportunities, so Megan split us up to divide and conquer. There were two main tasks associated with observation of the first full batch being made. First was movement tracking (where does a worker physically move in the space and when), and second was timing. Armed with stopwatches and sketches, we were ready to go. However, as we watched the workers, it became apparent that it would be impossible to individually time each movement and how long it took (time to weigh a box of cabbage, time to move the box from the cart to the scale etc), so Megan threw us a tip: just start the watch and record the time a new action takes place. This way the time runs for the entire process, and recording becomes your main priority. It also takes away the chance you will forget to start/stop the watch.

So off we went. As we timed and mapped movement, Megan circulated around asking us for observations. We discussed a few items here and there, during the observation, but then really worked through change suggestions after we all came back together. Our main focus was identifying waste.

Waste: Any action, process, or product that adds cost without adding value, as perceived by the customer.

Using this definition, few major recommendations were obvious:

·        Workers worked incredibly hard and non-stop, but the cabbage was just sitting there

·        A piece of critical equipment was being used for two jobs, one which was not adding any value to the process

·        Lots of movement, walking in the process (35 minutes of our hours long observation of one worker was walking!)

·        Inefficient use of space

·        Opportunity for batching

·        Timing all of these actions gave us concrete numbers to justify previously held design assumptions driving the timing and current process were incorrect

Observing the sitting cabbage was a great place to start our conversation with OlyKraut. It is also a great topic for company implementers to frame our feedback to workers to minimize discomfort that we are out to call out their inefficiency. By focusing on observable waste, and process oriented recommendations, it is clear that it was the workspace configuration and flow of work creating waste, not a lack of their hard work.

We left OlyKraut a short list of recommendations for implementation, and it will be exciting to see how they play out over the next few months, and if the team of workers on staff will come up with more efficiencies of their own.

In the end, we hope our help can give extra efficiency to OlyKraut and extra boost its profitability!