You are the CEO and founder of Spectrum Sunglass Company. While you...

You are the CEO and founder of Spectrum Sunglass Company.

While you generally feel good about the state of the business, you are beginning to think about your legacy. You are reading more and more professional articles emphasizing the importance of sustainable development for business and linking the themes of sustainability and innovation, such as "Why Sustainability Is Now the Key Driver of Innovation." You are frustrated that you don't have any new sunglass products to offer to the vocal customers who increasingly express concerns about Spectrum's environmental impact. Not only does sustainable development make sense to you personally, from both a moral and an economic standpoint, you also see this as an opportunity to differentiate Spectrum's products and company from your competitors, which focus primarily on price and design. You have a potential new product design that has received positive focus group feedback as well as some exciting branding deals with Hollywood celebrities in the works. Even still, you are preoccupied with sustainability.

At Spectrum's annual executive strategy retreat, you decide to ask for a special, unplanned session to discuss the conversations you recently had with a vice president at Spectrum Sunglass Company's largest retail customer, BigMart, which comprises 30% of Spectrum's annual revenues. The VP explained he was now in charge of national sunglass procurement for BigMart, and that they had recently made a policy to promote all products which bear a Green Stamp manufacturing certification for environmental friendliness. He added that, notably, BigMart's market research revealed that even its most price-sensitive consumers were starting to prefer green products within their price range. The VP explained that BigMart was now considering recommending that all of its suppliers go through the Green Stamp certification process.

Paul Diaz (CFO): What exactly are BigMart's terms? You: They want us to reduce petrochemical raw materials, such as polycarbonate plastics, in the manufacturing process from 90 percent to 50 percent within two years. The VP not-so-subtly threatened that, if we don't respond within three months with a detailed implementation plan, then BigMart will consider canceling all our contracts with them and shift to a competitor who will. While this is unexpected, this could be an opportunity to develop a unique product line for a mass market base, and I think we're up to the challenge! Leslie Harris (VP of sales and marketing): A sustainability feature will help distinguish us in the long term and this

marketing angle may open up new consumer markets, such as exporting to more environmentally conscious

countries in Europe. Paul Diaz (CFO): We can't afford to start a sustainability project just because BigMart demands it! Green material

substitutes for petroleum are probably expensive. We're highly levered as it is, so a drop in profitability might put

our ability to meet our debt covenants at risk. Daisha Farook (VP of operations): We just spent 12 months undergoing a grueling Six Sigma quality certification

process. Our plant managers will absolutely refuse another major change in material inputs. Louise Orysh (benefits administrator): Spectrum is still recovering, and has only recently begun rehiring workers;

isn't a dramatic shift in focus to sustainability premature? Mary Gopinath (VP of human resources): But we need to give this serious thought, there's a lot at stake at ignoring

this. Why don't you head a cross-functional task force to come up with a compromise solution?

You agree, suggesting the following plan for the team's work:

1) The four additional members come from marketing, R&D, finance, and production.

2) They devote at least 75 percent of their time to developing a proposal for BigMart that is acceptable to

all four departments.

3) You will devote 50 percent of your time to the task force while juggling your responsibilities as CEO.

4) The task force will present Spectrum's senior management team with a financially acceptable plan to use

petrochemical alternatives within three months.

The management team concurs with your task force proposal. As the retreat ends and everyone heads to dinner, you start pondering the numerous issues and obstacles to overcome in developing an acceptable plan for BigMart within three months. Your central challenge is to convince your team that a dramatic change in the organization's strategy and products is necessary and that environmental sustainability is critical to the company's future?no small task in a relatively short period of time. However, when BigMart tells Spectrum to jump, the usual response is to ask, "How high?" Fortunately, you also have the formal authority and widespread respect throughout the organization to tackle this challenge in a meaningful way.

Scenario 2 Lever Details Walk the talk Scope of impact: entire org. Weeks to implement: 2 Weeks before reuse: 3 When the change agent's actions are aligned with the change initiative, trust is built and effective change is much more likely. If properly executed, pulling this lever can increase the change agent's credibility as well as positively influence targets in any stage if the change is first oommunicated. Got consultant's support Scope of impact: entire org. Weeks to implement: 3 Weeks before reuse: 4 Sometimes outside experts can gain the attention of organizational members andjolt them out of their complacency better than internal authorities can. If properly executed, pulling this lever can increase the change agent's credibility as 1.Ivell as positively influence change targets before the trial stage. Conduct private interviews Scope of impact: 4 Weeks to implement: 1 Weeks before reuse: 1 Private conversations can reveal important information about the change target, such as who is in their social network and hovv the target feels about the proposed change initiative. If properly executed, pulling this lever can positively influence targets before the trial stage, as well as their friends. lSSLlE' E-lT'lEili I'lDtICE' Scope ofimpact: entire org. Weeks to implement: 1 Weeks before reuse: 4 Organization-wide emails help convey the change vision and indicate progress. It properly executed, pulling this lever can positively influence targets before the trial stage. Hold town hall meetings Scope of impact: entire org. Weeks to implement: 3 Weeks before reuse: 5 Town hall meetings can communicate the change vision and provide an opportunity for twpway dialogue about it. Attendance at these meetings is usually voluntary. If properly executed. pulling this lever can positively inuence employees before the trial stage. Organizational values are often unconscious guides to organizational behavior. By making these values more explicit better alignment can be created. If properly executed, pulling this lever can directly influence targets in the Interest or trial stage. Build a coalition of support Scope of impact: 3 Weeks to implement: 4 Weeks before reuse: 4 Negotiations to create political alliances can be crucial for obtaining commitment to a change initiative. If properly executed, pulling this lever can positively influence adoption of the sustainability initiative by any targets in the Interest or trial stage, along with their friend network. Recognize an adapter Scope of impact: 1 Weeks to implement: 3 Weeks before reuse: 10 Political power accrues to those who are formally recognized within organizations, and recognizing an advocate sends a signal to others as to where the power is flowing. If properly executed, pulling this lever can positively inuence adoption of the initiative by the advocate's coworkers. Privately confront resister Scope of impact: 1 Weeks to implement: 1 Weeks before reuse: 4 Resistance to change is to be expected in ail change initiatives, but sometimes the resistance is irrational and politicallyr corrosive. If properly executed With an actual resister, pulling this lever can positively influence adoption of the initiative by the resister and their friends. announce goals Ea. deadlines Scope of impact: entire org. Weeks to implement: 4 Weeks before reuse: in Organizational goals and deadlines provide targets to aim for. Organizational attention and focus are precious resources. If properlyr executed, pulling this lever can positively influence adoption of the sustainability initiative throughout the organization. Revise reward systerri Scope of impact: entire org. Weeks to implement: 12 Weeks before reuse: 2E! Provide internal skill-building Scope of impact: 3 Weeks to implement: 2 Weeks before reuse: 10 Some associates want to adopt a change but they do not know how. By providing in-house training, you expand a trainee's capacity to adopt the change. If properly executed, pulling this lever can positively influence three individuals to adopt the sustainability initiative, as well as their friends. Provide external skill-building Scope of impact: 3 Weeks to implement: 4 Weeks before reuse: 12 External training can expand a trainee's capacity to adopt the change. If properly executed, pulling this lever can positively influence three individuals to adopt the sustainability initiative, as well as their friends. Conduct pilot project. Scope of impact: 3 Weeks to implement: 4 Weeks before reuse: 12 Pilot projects are relatively fast and inexpensive ways of learning by doing amongst coworkers. If properly executed, pulling this lever can positively influence the coworkers engaged with the project. Post progress reports Scope of impact: entire org. Weeks to implement: 2 Weeks before reuse: 2 Posting progress reports is a common means of using visible cultural artifacts and symbols to redirect invisible cultural norms. If properly executed, pulling this lever can positively influence adoption of the initiative by those in the aware or interest stages. Tell a 'success' story Scope of impact: 3 Weeks to implement: 1 Weeks before reuse: 1 Organizational storytelling is a relatively slow but effective way to challenge and redirect the norms and values of the organizational culture. If properly executed, pulling this lever can positively influence the listeners as well as their friends to adopt the initiative if any of them are in the aware or interest stages. Clarify organizational values Scope of impact: entire org. Weeks to implement: 8 Weeks before reuse: 20Organizational storytelling is a relatively slow but effective way to challenge and redirect the norms and values of the organizational culture. If properly executed, pulling this lever can positively influence the listeners as well as their friends to adopt the initiative if any of them are in the aware or interest stages. Clarify organizational values Scope of impact: entire org. Weeks to implement: 8 Weeks before reuse: 20 Organizational values are often unconscious guides to organizational behavior. By making these values more explicit, better alignment can be created. If properly executed, pulling this lever can directly influence targets in the Interest or trial stage. Build a coalition of support Scope of impact: 3 Weeks to implement: 4 Weeks before reuse: 4 Negotiations to create political alliances can be crucial for obtaining commitment to a change initiative. If properly executed, pulling this lever can positively influence adoption of the sustainability initiative by any targets in the Interest or trial stage, along with their friend network. Recognize an adopter Scope of impact: 1 Weeks to implement: 3 Weeks before reuse: 10 Political power accrues to those who are formally recognized within organizations, and recognizing an advocate sends a signal to others as to where the power is flowing. If properly executed, pulling this lever can positively influence adoption of the initiative by the advocate's coworkers. Privately confront resister Scope of impact: 1 Weeks to implement: 1 Weeks before reuse: 4 Resistance to change is to be expected in all change initiatives, but sometimes the resistance is irrational and politically corrosive. If properly executed with an actual resister, pulling this lever can positively influence adoption of the initiative by the resister and their friends. Announce goals & deadlines Scope of impact: entire org. Weeks to implement: 4 Weeks before reuse: 10