Take me to your Leader
We ride a time capsule into the future to offer up a
retrospective of the past decade’s leaders—and a pastiche of leadership skills needed for the years ahead. June 2001.
Visionaries
Missionaries and Patrons
Educators and Organizers
Practitioners
Agents Provocateurs and Performers
A Leadership Checklist for the Noughties
Imagine it’s, say, the year 2100. The ‘next
industrial revolution’ has long since happened: the wheels of
commerce now turn without spoiling the environment or driving
wedges between people. A historian sets out to document the
extraordinary transformation. She begins where the story starts off
in earnest, with the last decade of the 20th
Century.
Her first point might well be that these were very early
times in the transformation process. She would probably use words
like ‘germination’ and ‘gestation.’ From
her perspective, the 1990-2001 period would seem almost prehistoric
in terms of the transition to sustainability.
Which is not to deny its importance. Every movement, every
transformation, has to start somewhere; and the world community
started groping for sustainability in the decade of the 1990s.
Such transformation requires a special set of qualities from its
leaders—and the 1990s were no exception. It was a time when
the great majority of people in business didn’t see the need
for significant change. Breaking through the conventional corporate
mindset and communicating a new vision was the first challenge.
This was the role of the decade’s visionary leaders.
People like Paul Hawken, William McDonough and Amory Lovins had the
unique capacity to identify what was wrong with the mainstream view
and propose ingenious ways to redesign it. In his seminal book, The
Ecology of Commerce, published in 1993, Hawken documented the
deterioration of the planet’s ecosystems and called upon
industry to devote itself to what he called a ‘restorative
economy.’
Hawken’s theme was adopted by business strategists Stuart
Hart and CK Prahalad, who argued that multinational corporations
should focus on the 4-5bn poor people at the bottom of the income
pyramid. Likewise by sustainable business consultant Paul Gilding,
who advocated a business trajectory shift from a negative to a
positive footprint—which translated, basically, into serving
the restorative economy.
A new mindset was also at the heart of architect William
McDonough’s vision. In a multitude of forums during the
‘90s, he argued that the way out of our environmental crisis
was by applying our genius for design. “Take the filters out
of the pipes and put them inside your head,” was one of his
pet phrases. Over that first decade he embedded his ecological
design principles in buildings throughout the US and elsewhere.
Amory Lovins, resident innovator at the Rocky Mountain Institute
in Snowmass, Colorado, shared with Hawken and McDonough an
impatience with conventional thinking. He too believed that right
design could reduce our environmental burdens enormously. He
applied his unconventional but effective strategies to areas
ranging from energy efficiency to automobiles and was widely
acknowledged as being the brains behind the gas-electric hybrids
that came to market in the early years of the 21st
century.
"Many early sustainable business achievements were really just cherrypicking: companies showed great success at shooting the slow rabbits, but weren't such hot shots thereafter."
Being a visionary doesn’t accomplish much if people
aren’t ready to listen. And that’s where the next round
of leaders, the missionaries, came in. Eco-evangelist Ray Anderson,
CEO of Interface Flooring Systems, characterized the conversion
experience he had reading Paul Hawken’s The Ecology of
Commerce as a “spear in the chest.” Sir John Browne,
CEO of BP (the company formerly known as British Petroleum, then
Beyond Petroleum), didn’t give eco-sermons the way Anderson
did. His speeches were more measured and less passionate, but in
his groundbreaking 1997 remarks at Stanford University, he publicly
broke ranks with Big Oil and acknowledged the need to take a stance
on climate change, strongly supporting the need for corporations to
respond to public concern. Browne’s style was a far cry from
Anderson’s faith-driven ‘I believe!’ but his
impact on company, peers and industry sector was, if anything, more
powerful.
Most of all, it takes power and position to be an effective
missionary. It is the alphas at the top of the
hierarchy—males, mostly—whose words carry weight.
It’s no coincidence that Anderson and Browne were CEOs, just
like Mark Moody-Stuart of Royal Dutch/Shell and Maurice Strong of
Ontario Hydro. They were later joined by Bill Ford, who became the
21st century’s first poster child for high-level
corporate faith in sustainable development.
Close kin to the missionaries are the patrons. One, in
particular, stood out during the 1990s: Swiss billionaire Stephan
Schmidheiny. He underwrote the founding of the influential World
Business Council on Sustainable Development and his 1992 book,
Changing Course, was an early declaration of the need for business
to align itself with the requirements of sustainability. Without
Schmidheiny’s patronage, the entire movement might never have
got off the ground.
Once the visioning, preaching and facilitation are in
place, someone has to roll up their shirtsleeves and actually do
the work—and that someone was usually a committed
environmental specialist inside the corporation. Their role was
absolutely critical: No change agent, no change.
One could list literally hundreds of people who took on this
unglamorous, sometimes thankless assignment, but four names in
particular stood out. Dave Buzzelli of Dow Chemical was the
world’s leading EHS sustainability advocate during the early
and mid-90’s, a position recognized when he was appointed
co-chair of the US President’s Council on Sustainable
Development in 1993. Claude Fussler also came from Dow—Dow
Europe. Fussler made a name for himself by introducing some
then-radical measures based on the concept of eco-efficiency, by
authoring a book, Driving Eco Innovation and through progressive
gestures such as backing the Who Needs It? report from the
prominent UK consultancy SustainAbility—at a time when
tackling consumption was considered an outright business no-no.
Two other names that tracked high on this radar screen were Lise
Kingo of Novo Nordisk and DuPont’s Paul Tebo—like
Fussler, winners of Tomorrow’s Environmental Leadership
Award, in 1998 and 2000 respectively. Kingo was hailed for the
openness and transparency of her approach, while Tebo was commended
for “translating the concept of sustainable development into
a set of tangible business goals DuPont can implement and Wall
Street can understand.”
Yet another group of leaders is the educator-organizers; people
who create conceptual structures that help practitioners apply the
principles of sustainability to their business. Two stood out from
the crowd for their contributions to sustainable business in the
1990s. One was John Elkington, prolific author and chairman of the
ubiquitous SustainAbility. It was Elkington who coined the
catchphrase ‘triple bottom line’—corporate
accountability for environmental and social, as well as economic,
performance. The idea quickly became common currency among leading
companies, a sure sign of success.
Another prominent educator-organizer was Karl-Henrik
Robért. He developed The Natural Step, a framework for
understanding the sustainability of business decisions, which
enjoyed enormous success in Sweden, where it was launched, before
spreading to seven other countries around the world.
Any list of leaders from the nineties would be incomplete
without mentioning two other categories, the
performers—people who by sheer dint of personality advanced
the sustainability cause—and the agents
provocateurs—people who, like banderilleros, goaded the bull
of business into paying attention and, eventually, taking action.
"Take the filters out of the pipes and put them
inside your head."
Anita Roddick, founder of The Body Shop, built momentum for the
sustainable business movement by dint of her position as CEO of a
prominent company, but primarily by sheer force of personality. A
whirlwind of energy, she was a highly visible spokesperson for
sustainability throughout the ‘90s.
The agents provocateurs, meanwhile, must include Joan Bavaria,
the driving force behind CERES, the US NGO that made a big splash
early on with its launch of the Valdez, later CERES, Principles
which called for companies to commit to a set of ten environmental
principles and which was the driving force behind the Global
Reporting Initiative, a worldwide corporate reporting standard for
sustainability. Also Tessa Tennant, head of the Global Care team at
UK insurer Henderson Investors, who was a persistent and invaluable
thorn in the City’s side throughout the ‘90s.
There were a great many other leaders as well, both inside and
outside business. But, pressed for space, our historian would feel
obliged to single out what she might call the ‘leaders’
leaders’ or icons of the movement.
Now forward-wind again to 2100. Phase One in the sustainable
business saga, our historian may conclude, was a period
characterized by early believers and early adopters, working mostly
against the current. Phase two, from 2001 to around 2011, called
for a somewhat different set of leadership skills, founded more on
implementation and innovation.
Vision, she might conclude, continued to be important, although
this was now less about critiquing conventional thinking than about
refining our emerging understanding of the new industrial
revolution. The basic principles of the sustainable economy were by
now increasingly clear and involved such things as closed loops,
biomimicry and reducing materials intensity while increasing human
employment. Actually implementing this vision was the chief
business challenge of the decade.
Higher level, breakthrough strategizing also came of age.
Sustainability efforts during the 1990s had been piecemeal and
chaotic; projects were often duplicated and energies wasted. Phase
Two focused on creating synergies and promoting systemic
approaches.
But it was at the level of visionary practice that the new
business skill-set really came into its own. For instance, the
late-90s notion that companies should develop products for the
bottom two-thirds of the income pyramid was attracting increasing
attention, but there was continuing uncertainty about how to get it
done. What intellectual capital did one draw on to design these
products? What innovative financing strategies might be developed?
These—and other sustainable business areas—were begging
for strategic innovation.
Many early sustainable business achievements were really just
cherrypicking: companies showed great success at shooting the slow
rabbits, but weren’t such hot shots thereafter. Proof of
concept was required—across the whole range of sustainability
challenges.
There was also an ongoing need for technological innovation.
Disruptive technologies were the wildcard in humanity’s race
against time. Society needed dramatic solutions to environmental
challenges and, while new technologies almost always bring a fresh
set of problems in their train, it was clear humanity needed some
startling technological breakthroughs to ward off dramatic decline
in ecosystem health and cater for burgeoning populations.
One such wildcard appeared to be alternative energy, a
development that promised to drive its costs below that of even
subsidized oil. Another was nanotechnology, the manufacture of
atom-sized machines for environmental remediation and other tasks.
While it was impossible to predict what the decisive breakthrough
would be—as late as the 1970s, few people had forecast the
advent of the personal computer—it seemed a safe bet that
something dramatically new and disruptive would come
society’s way.
"Once the visioning, preaching and facilitation are in place, someone has to roll up their shirtsleeves and actually do the work."
Last but not least, there was communication—as
intimidating a challenge as any. A great many in the business and
financial communities still didn’t grasp the need to embrace
sustainable development: sustainability continued to be a largely
uphill sell. Powerful communication strategies were required,
including formulating a language the wider business community could
relate to and building a genuinely persuasive business case.
And it wasn’t only business that needed to be persuaded.
Government frameworks and consumers had been the missing link
throughout the 1990’s. ‘Green consumers’ had
failed to vote with their wallets. Governments, for the main part,
had failed to lead with their policies. Stirring these groups into
action became one of the core leadership challenges of the
noughties.
Finally, too, there was Bush senior’s famous ‘vision
thing.’ As humanity turned the page on the old millennium,
the question of empowerment, of enabling ordinary people to
envision where humanity is headed and choose to act in favor of the
future they desire, had barely begun to dawn on society.
Encouraging followers to lead—that was the next big
question.
A Leadership Checklist for the Noughties
Vision
- Critiquing and improving the emerging vision of the sustainable economy.
Strategizing
- Doing higher-level strategizing for the sustainable-business movement as a whole.
- Devising effective Bottom of Pyramid strategies.
Innovation
- Developing breakthrough technologies that will leapfrog us toward sustainability.
Implementation
- Providing proof of concept.
Communication
- Formulating an effective language for communicating to business.
- Building the business case and persuading business to take the lead.
- Figuring out how to engage consumers-especially in the US.
- Bridging the vision gap-nurturing vision in those who don’t naturally have it.
Visionaries
|
Paul Hawken |
Achievements: His works, The Ecology of Commerce
and the co-authored Natural Capitalism, are laying out
the contours of a sustainable economy. Soundbite: “We’re
in the process of reinventing our entire system of
making things, its relationship to living systems, our
whole concept of waste and, in turn, turning
neoclassical economics on its head, reversing a
100-year process of emphasizing human productivity.” |
|
Amory Lovins |
Achievements:Inventor of the hypercar and many
other eco-engineering innovations. Soundbite: “Listening
to Amory is like trying to drink water out of a fire
hose.” |
|
William McDonough |
Achievements:A masterful public speaker with a
portfolio of high-profile green design projects.
Soundbite: “Take the filters out of the pipes and
put them inside your head.” |
|
missionaries and Patrons
| Ray Anderson |
Achievements: An early CEO evangelist for
sustainability. Soundbite: “I
am a plunderer of the Earth. Someday people like me
may be put in jail.” |
|
John Browne |
Achievements: Herded BP out of the Big Oil corral.
Soundbite: “At
the moment there’s still a caricature view of who we
are and what we do. In that caricature, the industry
is dirty, old-fashioned, arrogant and unprincipled.
For many people we’re no more than a necessary evil.” |
|
William Ford |
Achievements: An eco-believer born inside business
ranks. Soundbite: “We can lead the next industrial
revolution.” |
|
Mark Moody-Stuart |
Achievements: Led Shell’s turnaround from
sustainability villain to green leader. Soundbite: “The
real key to change is communicating and listening.” |
|
Maurice Strong |
Achievements: Ex-secretary-general of the Earth
Summit. Ex-CEO of Ontario Hydro. A man who moves in
high places. Soundbite: “If
we don't change, our species will not survive...
Frankly, we may get to the point where the only way of
saving the world will be for industrial civilization
to collapse.” |
|
Stephan Schmidheiny |
Achievements: A well-heeled patron of
sustainability causes. An early backer of the WBCSD.
Soundbite: “From the beginning, I have seen this not
as a philanthropic effort, but rather as an investment
in my own education and in the future of my children’s
business.” |
|
Practitioners
|
David Buzzelli |
Achievements: An early EHS activist at Dow
Chemical. Co-chair of the President’s Council on
Sustainable Development. Soundbite: “Air, water and
land are not the free goods our society once believed.
They must be redefined as assets, so that they can be
efficiently and appropriately allocated.” |
|
Claude Fussler |
Achievements: Consistently on the cutting-edge from
his time at Dow Europe to his current position with
the WBCSD. Soundbite: “The seas ahead will be rough
… The best skippers win when the wind gets
difficult.” |
|
Lise Kingo |
Achievements: Her dedication to stakeholder
dialogue created a standard of openness in
environmental reporting. Soundbite: “If you want
credibility in this business, you have to deal with
the issues that the public want to hear about-whether
you like it or not.” |
|
Paul Tebo |
Achievements: The low-key architect of Dupont’s
shift toward sustainability. Soundbite: “Just get
out and do it.” |
|
Educators and Organizers
|
John Elkington |
Achievements: For years, Europe’s leading gadfly
on the subject of integrating sustainability into
business operations. Soundbite: “We’re all on a
learning curve, environmentalists just as much as
business people and regulators.” |
|
Karl-Henrik Robért |
Achievements: The man behind The Natural Step.
Soundbite: “Look at the roots, not the leaves on the
trees.” |
|
Agents, Provocateurs and Performers
|
Anita Roddick |
Achievements: Founder
and co-chair of The Body Shop. Put environmental and
social issues firmly on the company’s agenda. Soundbite:
“I am essentially an activist and an agitator.” |
|
Joan Bavaria |
Achievements: Founder of CERES, promoter of
inter-sectoral dialogue. Soundbite: “We
aim for constructive tension, not just consensus, by
working with companies to keep principled behavior on
the agenda.” |
|
Tessa Tennant |
Achievements: Co-founded the first environmental
investment fund in the UK. Soundbite: “It’s where
altruism actually coincides with investment logic.” |
|
By Carl Frankel
Reprinted with kind permission from Tomorrow Magazine. Originally published June 2001 as the Cover Story for the magazine’s 10th anniversary.