Read the blog by Örjan Anderberg.

Quality and sustainability are two concepts that have in common that they imply a holistic perspective and are strategic, important tools for managing an organization in today's changing and complex world. It is natural that both concepts play a central role in the fifth wave of quality - Quality 5.0 - where traditional customer focus is broadened to stakeholder analysis that addresses the question "Why do we exist as an organization or company?".

Quality and sustainability also have in common that they are about approaches that need to permeate the whole organization to be truly effective.

Quality and sustainability also have in common that they are about approaches that need to permeate the entire organization to be truly effective. The business value increases, the credibility towards the outside world is strengthened and the risks of setbacks are reduced if all employees, regardless of role, have adopted and work every day with quality and sustainability in mind. That quality and sustainability are integrated into structures, systems and culture.

Future leaders are flexible and have the courage to make decisions

And it places great demands on leadership, where managers are expected to navigate an uncertain and changing landscape through decision-making and management of conflicting objectives. In the book "The Good Struggle", Professor J.L. Badaracco shows that it is the abilities to be flexible, reflect and dare to make and reconsider decisions that make a successful leader today, rather than the ability to make long-term plans based on extensive analysis. (1)

Let me start by defining sustainability from a company's perspective. My starting point is that sustainability means ensuring the long-term survival of a company in a world where the conditions for life still exist. To be more concrete, the four scientific principles of sustainability (or system conditions as they were called by The Natural Step which launched them in the early 1990s) work very well.(2) The sustainability principles point to the root causes of environmental and societal problems, providing operational guidance for SWOT analysis and strategic planning for the sustainability journey. They are an excellent complement to the established objectives formulated through the 17 UN Sustainable Development Goals (SDGs).

We often talk about three perspectives of sustainability: environmental, social and economic. Let me clarify that there is a hierarchy between them (see picture below)(3). Environmental, social and economic sustainability are not three spheres that partially overlap, but we need to understand that the environment is the prerequisite for the other two. Functioning ecosystems (environment) enable human life and enterprise (social and economic), and decent human conditions are a prerequisite for, and the purpose of, economic development.

With these starting points, what does 'sustainability work' mean in a company, and what is the role of a 'sustainability manager'? Based on my experience, I find that there are many functions in a company that are affected when you want to drive a business in a sustainable direction.

Strategy and management: At the end of the 20th century, environmental work in companies was associated with the question "how do we affect the environment?", and focused on permits, emissions and compliance with legal requirements. Today, keeping track of such things is a hygiene factor, i.e. a prerequisite for conducting business, and not a competitive advantage. For a couple of decades, the relevant question has been "how are we affected when the world changes and needs to switch to sustainable development?". This question allows for a proactive approach, where risks and opportunities can be identified. Industry shifts, technological developments and customer behavior are changing, affecting how the company will be shaped in the future. As the questions ultimately relate to the company's vision, mission and strategy, it is the company management, together with the owners and board of directors, who need to be committed and courageous and face both threats and completely new directions and collaborations that it entails.

Business development and innovation must realize the business strategy and meet current and future customers' expectations and needs in concrete offers. In particular, business models based on increased unit sales need to be reconsidered and value-based business models developed.

Quality: PDCA systematics and process orientation are at the heart of sustainability work, as they provide a structure for driving change and ensuring that you are moving in the right direction, managing the environment and creating customer value.

Economics: Financing, investment and asset management are key aspects of a sustainable business. Which aspects are included in our investment calculations? How is the value of our assets affected in a changing world, how can we secure returns? What assets do we need to take the steps towards sustainable business? An increasing number of owners and investors are already asking such questions to company management. When reporting on the company's performance, sustainability aspects will naturally become an integral part of the reporting if this is how the company is run.

Sales and customer experience, communication: Marketing communication, customer dialog and internal communication are affected by the growing concern for sustainable development. How do we tell the company's story, how do we convey a feeling to our customers that makes them choose and engage with us as a company? Dialogue and so-called co-creation, creating value together with the customer, is a success factor for increased customer experience and being able to meet people's real needs. It helps to answer the question of why we exist as a company or organization.

Digitalization can be divided into three parts, all important for the long-term survival of the company: digitization, where (manual) paperwork is made digital such as invoicing; automation/robotization, where machines and computers replace human work; and digital business development, where the company's offerings are refined using data analytics and digital tools. The first two aspects contribute mainly to resource efficiency, the latter to increasing revenues and margins for the company and enhancing the customer experience.

HR helps to identify the skills and leadership needed for the future. My experience is that more and more people are choosing to work in a company that is serious about working proactively for sustainability. Key concepts such as people's working conditions, non-discrimination and gender equality are largely regulated in Swedish legislation and collective agreements, but also need to be included in routines and characterize the culture and leadership of the organization.

Procurement broadens the opportunities to make demands, influence and cooperate with actors in the value chain to drive development in a sustainable direction. This involves, for example, asking for solutions, showing that you are willing to wait for a better one, and being consistent in following up on the requirements you have set.

Who has the overview?

There are more examples, but I hope to show that sustainability work seriously involves all managers and employees raising their sustainability skills. The "sustainability manager" function should probably be the person who has an overview of all the different parts and is responsible for driving the organization in a sustainable direction.

My conclusion is therefore that the sustainability manager of the future needs to have considerable authority to lead the business as a whole. In addition, he or she must have the strategic overview, be the bearer of a common vision and direction, have excellent business understanding, be able to ask the right questions of talented employees, be intellectually honest and reflective, and dare to take responsibility for difficult decisions. So it seems that the title of the future head of sustainability is... CEO?!

Kind regards,
Helena Wolf Tillborg
helena@tillborgwolf.com

References

1. Joseph L. Badaracco, "The good struggle", Harvard Business School Publ. 2013
2. http://www.alliance-ssd.org/framework-for-strategic-sustainable-development-fssd/
3. Inspired by https://www.thenaturalstep.de/approach/