Reason 5: Environmental drivers shift and approaches that served us previously are no longer effective (6 of 12 Part Series)

Reacting to extreme events, rather than proactively planning, is becoming increasingly stark.

There are increasing drivers that have us responding to environmental shifts. However, it is where we foresee and constructively act, that will define our leadership in this current strategic window.

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“Foresight is the “lead” that the leader has. Once leaders lose this lead, and events start to force their hand, they are leaders in name only.”

Foresight —The Central Ethic of Leadership Machiavelli, written three hundred years ago about how to be a prince, put it this way. “ Thus it happens in matters of state; for knowing afar off (which it is only given a prudent man to do) the evils that are brewing, they are easily cured. But when, for want of such knowledge, they are allowed to grow so that everyone can recognize them, there is no longer any remedy to be found.”

The failure (or refusal) of a leader to foresee may be viewed as an ethical failure, because a serious ethical compromise today (when the usual judgment on ethical inadequacy is made) is sometimes the result of a failure to make the effort at an earlier date, to foresee today’s events and take the right actions when there was freedom for initiative to act. The action which society labels “unethical” in the present moment is often really one of no choice. By this standard, a lot of guilty people are walking around with an air of innocence that they would not have if society were able always to pin the label “unethical” on the failure to foresee and the consequent failure to act constructively when there was freedom to act.

~ Source: The Servant as Leader by Robert K. Greenleaf, first published 1970. Highlighted to me by Gary Ryan, Organisations That Matter.

10 CONSIDERATIONS:

1.???? What are the implications of climate change and extreme weather events for your organisation’s services?

Consider factors such as:

• Supply Chain disruptions – including damage to infrastructure, transport disruptions, delivery delays and crop failures.
• Increased operational costs – including repairs, maintenance, need to invest in resilient infrastructure and technologies
• Reputational risk – consumers, investors and stakeholders are increasingly demanding environmentally responsible practices.
• Market opportunities – many consumers are willing to support companies that prioritise environmental responsibility.
• Risk assessment and adaptation – including diversifying supply chains.
• Insurance and Risk management – including increasing insurance costs, coverage for extreme events, business interruption and supply chain disruption.
• Investor relations – investors can apply pressure to businesses to prioritise and fulfil stated environmental objectives (‘Green washing’).
• Innovation and R&D – investing in environmentally friendly products and services.
• Collaboration and Partnerships – strategic collaborations that provide engagement in large impact initiatives.

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2.???? Where are environmental regulations and policies impacting your industry?

Consider examples such as:

• ?Carbon Pricing Mechanism
• National Greenhouse and Energy Reporting Scheme (NGER)
• Renewable Energy Target (RET)
• Emissions Reduction Fund (ERF)
• Environment Protection and Biodiversity Conservation Act (EPBC Act)
• Plastic Waste Reduction
• Waste Management and Recycling
• Water Management
• Mining and Resource Extraction Regulations
• Bushfire Management
• Environmental Impact Assessments (EIA’s)

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3.???? What impact is shifting natural resource availability and locations having on your industry?

Consider factors such as:

• Supply Chain disruptions
• Resource scarcity and cost fluctuations
• Energy transition – transition from fossil fuels to renewable energy
• Water management challenges – access and changing availability patterns
• Raw Material sourcing – supply challenges requiring shifts in diversifying suppliers, exploring recycling or alternative materials
• Geopolitical risks – operating in regions with resource-related conflict, political and security risks
• Supply Chain Transparency – including tracing resources through to source

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4.???? Where are shifts in consumer environmental consciousness impacting your organisation?

Consider factors such as:

• Changing consumer preferences – consumers increasingly favour products and services that are eco-friendly, sustainable and ethically sourced – preferably also at a competitive price
• Reputation and brand Image
• Consumer education
• Sustainability reporting
• Marketing and advertising that avoids being seen as ‘Greenwashing’
• Circular economy
• Ethical sourcing and Fair Trade
• Public relations and crisis management

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5.???? Where are technological advancements changing the business case for sustainability for your organisation?

Consider factors such as:

• Energy efficiency – including smart sensors, Internet of Things (IoT) devices, data analytics
• Renewable energy
• Green building technologies
• Electric vehicles
• Product lifecycle tracing tools
• Digital agriculture – including using drones, sensors and data analytics
• Sustainable packaging – including biodegradable and reusable options
• Carbon Capture and Storage (CCS)
• Environmental monitoring – including remote sensing and satellite imagery

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?6.???? Where are your exposures to environmental activism and public pressure?

Consider factors such as:

• Major environmental events – including bushfires, cyclones, floods
• Media coverage – potential adverse headlines
• Scientific report and studies
• Activists related to your organisation’s services
• Government Policies and agreements – for example, the Paris Agreement, climate summits
• Social media and viral campaign exposures
• Local environment stories
• Celebrity endorsement – pros and cons
• Documentaries and films
• Educational initiatives
• Corporate sustainability reports

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7.???? What implications does changing biodiversity have on your organisation and its ecosystem?

?Consider factors such as:

• Supply Chain disruptions – including declines in fisheries, forestry, bees, crop yields, crop pollination, pest control
• Regulatory compliance – including laws that restrict land use, resource extraction and habitat protection
• Reputation and brand image
• Access to genetic resources – industries such as pharmaceuticals and biotechnology rely on biodiversity to discover new compounds and genetic resources
• Location – declines in biodiversity reduces appeal of certain locations
• Financial risks – including exposure to lawsuits, fines and potential liability for ecological damage
• Water quality and availability

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8.???? What implications do pollution levels and the adoption of clean energy have on how and where you operate?

Consider factors such as:

• Air and water quality regulations
• Clean energy availability
• Consumer and employee preferences
• Incentives and subsidies
• Access to skilled workforce
• Regulatory stability
• Cost savings

9.???? What are the implications of heatwaves on employee conditions?

Consider factors such as:

• Health and wellbeing
• Productivity
• Absenteeism
• Reduced morale
• Workplace safety
• Increased healthcare costs
• Adverse effects on vulnerable workers
• Legal obligations
• Upgrading of facilities

10.? What are the implications of your environmental strategies being seen as ‘greenwashing’ rather than genuine??

Consider factors such as:

• Loss of consumer trust
• Legal risks
• Reputational damage
• Loss of competitive advantage
• Employee disengagement
• Stakeholder distrust
• Missed business opportunities
• Financial consequences

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Each consideration is a potential Strategic Opportunity or Risk.

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I am not wanting to nerd out here, but I have to admit that I find playing these exercises is a lot of fun with smart teams bouncing off each other. There are always striking epiphanies! So often they are the seeds that later become industry or organisational breakthroughs.

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Play along with these Fitness for Business Transformation Perspective Expansion Exercises.

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Is your Organisation (really) Ready for this period?

Are You (really) Ready for this period??

Bernie

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Are you a Bright Spark, bright with a spark for today and the future, seeking reconnection with what matters and the capability to lead with intention without being limited by your past, even if the world around you is constantly disrupting?

Are you a Bold Executive Leader seeking shifts in yourself and your organisation’s outcomes without compromising relationships, self-care, and meaning in work, even if the conundrums are mounting and deep down you doubt this is possible across your team?

Are you a Board Director seeking to maintain or achieve industry leadership through periods of disruption, without disrupting shareholder confidence or Executive commitment, even if others in your industry say it is not possible?

Where do you need to elevate and integrate?

Bernie is known for building capability and confidence in leaders who need to transform organisations that are continually reshaping to survive and thrive.

His career began in whole of enterprise and cross-organisation shifts, followed by 10 years in Business Transformation Diagnostics, Training, and Mentoring across Australia and SE Asia.?He currently works with leaders who are focused on accelerated development and re-imagination of industry value systems. He loves working with the Bright, the Bold and the Board to successfully transition to the next phase, creating a positive ripple effect.

In 2020 Bernie authored Traction: Building Change-fit Leadership Teams.

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