Lead, Lag, Link?

See my interview with Moira Alexander, PMP about her new on-target book, “Lead or Lag

moira

http://www.projectsatwork.com/blog/People-Planet-Profits-and-Projects/23949/

 

 

 

 

 

leadorlag

 

 

 

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Invested in Sustainability as a PM? You should be!

uswho

Many executives embrace the conventional wisdom that mainstream investors care little about an organization’s performance on environmental, social, and governance (ESG) metrics. Few companies make it a priority to communicate their sustainability performance to investors, or even develop a robust story about their sustainability performance. Why should they? Investors won’t shift their investments, the thinking goes, based on a company’s ESG performance. However, a growing number of investors are paying attention to ESG performance, as evidence mounts that sustainability-related activities are material to the financial success of a company over time. Investors care more about sustainability issues than many executives believe.

This is the opening paragraph of the latest MIT/Sloan & Boston Consulting Group report, “Investing for a Sustainable Future”.  Keeping in tune with the last two posts, in which the entire principle of project managers thinking ‘too broadly’ and ‘inflating their jobs’ was raised by some critics, it was meaningful to see this report which says that investors and C-level executives (key stakeholders of projects, programs and portfolios – and often the sponsors of the projects on which project managers work) are increasingly focused on sustainability, not only for altruistic reasons but because a concentration on sustainability has shown to yield financial benefit.

Here’s a little more about the survey, for validation: The input came from over 3,000 respondents from commercial enterprises. Within this commercial sample, 579 survey respondents self-identified as investors: Most were strategic (39%), institutional (24%), or retail (11%) investors. Few identified themselves as mission-oriented or socially responsible investors – so the choice to ‘invest in ESG’ is not (only) driven by a thread of fiery environmentalism or cause, but rather, success of the enterprises in which these investors put their money.

Where’s the project connection?  Well aside from the key connection already mentioned (can anyone say “stakeholder”?), there are initiatives and projects which are themselves focused on sustainability, and they are yielding financial benefits.  Here are three examples from the report, which illustrate why this has the attention of investors – and in our opinion should have the antennae of project managers and PMOs fully up and tuned in:

  • Florida Ice & Farm Company SA, based in Costa Rica, is (an) example. In 2005, the company respondedto Costa Rica’s looming water access crisis by investing in water-saving measures. Within two years, the organization had decreased its use of water in production by an eye-popping 82%. The reduction drove down production costs and helped sustain 20% annual growth between 2010 and 2014.
  • Deerfield, Illinois-based healthcare company Baxter International Inc. estimates it earns $3 for every $1 invested in environmental initiatives.
  • Johnson & Johnson is achieving a 19% internal rate of return on its CO2 projects.

In all three cases, the benefits were realized with projects – projects that look like they were focused on environmental activism, and may indeed have been – – but the line between taking on an ESG initiative and just “taking on an initiative” is blurring, quickly.  This is why project managers need to be aware of ESG principles, and increasingly positive ESG sponsor-stakeholders.

How does an enterprise move forward to gather in more investors, now that there’s evidence that investors increasingly care about ESG?

According to the article, these are key steps:

<> Build awareness of sustainability challenges and programs — both within the company and among stakeholders, including investors.

<>  Identify and analyze material issues and create alignment within the organization to ensure an integrated response.

<> Invest in and focus on tangible and measurable sustainability outcomes instead of positions on ratings lists.

<> Formulate a strategy once tangible sustainability measures are established.

<> Incorporate the sustainability strategy into the overall corporate strategy, including a clear business case or proof of value.

<> Engage investors, and a broad range of stakeholders, to discuss the company’s sustainability strategy and progress.

Look at that list.  For one thing, aren’t most of the items in the list actually projects in and of themselves?  Yes.  As a project manager, shouldn’t your project seek to align to the strategy and higher-level portfolio/program objectives?  Of course.

So again, we feel ‘charged up’ by this report, we feel that the comments about job inflation and overstepping our bounds as project managers to be just plain wrong-minded and out-of-step with the way business is changing.  At a minimum we recommend that those who assert that the PM should stay tucked away in isolation from the value chain is not only under-utilizing the talent and capability of the PM, it is actually breaking a ‘golden thread’ all the way from investors to end-customers.  As PMs we need to be conveyors of organizational strategy and objectives, not blockers.  As I final message I suggest you read the recent post by Cornelius Fichtner, “Benefits Realisation for Project Managers”, which coincidentally came out just around the time of our two posts on job inflation.

(This post originally entered on our regular channel, People, Planet, Profits, and Projects, on projectsatwork.com – we suggest you follow that stream as we don’t blog as regularly here anymore).

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Green Cars, Pink Flamingos and Yellow Journalism

flabinglos

While Volkswagen has been in the press for the emissions-cheating scandal, and while there continues to be linkage between vehicle emissions and climate change, the last thing we need is publicity around ecologically-friendly cars that falsely blames them for other ecological problems.

It’s not that we want to be blind to those problems – of course we want the facts.

But today, people “read” the news by scanning the headlines.  Come 0n, admit it.  You do it.

Recently I saw such a headline.  A cute, eye-catching headline along with pictures of cute flamingos.  It read: “Green Cars Causing Problems for Pink Flamingos“.  Sexy, huh?

But when one reads the article, it is not about cars at all (other than the fact that green cars – and not even all of them) use lithium batteries, and in turn, this has increased the demand for lithium, which has increased the mining of lithium, which has induced some miners to use poor practices, which (still with me?) can cause damage to the habitat of flamingos.

So is the problem the miners or the cars?  Lithium is used in many batteries, even those in old-fashioned fossil-fuel cars, laptops, flashlights, smartphones, you name it.  It’s a pretty disconnected assertion.  In fact, the article itself states that the miners won’t say if their product is sent to any particular auto manufacturer.

Add to this the idea that the car manufacturers are looking at other totally lithium-free technologies and you have a near total disconnect between green cars and falling flamingo populations.

I wrote the letter below to the Cape Cod Times, which, to their credit, published it, however I believe that it was Bloomberg which published the source article which is more responsible for trying to package the message in an irresponsible way, sending the typically distracted reader away thinking that they should go buy a gas-powered car to save the birds (when indeed that car will ALSO have lithium batteries).

Judge for yourself.

Here is a link to the article:

http://www.bloomberg.com/news/articles/2016-07-04/spare-a-thought-for-the-flamingos-as-you-save-the-world

And below is the letter to the editor.

capecodetimes-letter

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Make your voice heard – PMBOK(R) Guide 6th Edition

Woman holding megaphone against isolated blue background

You CAN make your voice heard!  Comment on the PMBOK(R) Guide 6th Edition Exposure Draft!

The PMBOK(R) Guide is up for “Exposure Draft” review.  There are many chances in this document where sustainability could be ‘threaded’ properly into our discipline.

I implore you to take this chance to advance our profession.

If you are a PMI member, you have only until 26-July to make comments.  Please join me in this effort, within this window of time.

 

An example:

I suggested that they make this change:

From this:

Operations management is an area that is outside the scope of formal project management as described in this guide.

To this:

Operations management is an area that is outside the scope of formal project management as described in this guide.  However, to yield a truly successful project, operations must be considered in its planning.

I’m sure you can think of many others like that.

Go here: and GO NOW while you think of it.

http://www.pmi.org/pmbok-guide-standards/foundational-standards-exposure-draft

Once there, go to the right side under the Get Started section.

 

 

 

 

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Park it here!

ystone

 

What’s the connection between Tom Hanks, Yellowstone National Park, and exactly 1/2 of the Earth?

Read the full post here:

http://www.projectsatwork.com/blog/People-Planet-Profits-and-Projects/20222/

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