Sustainability is a topic that is of massive focus and something which businesses need to rethink. Sustainability has become a strategic priority, with a huge demand for businesses to take a stand instead of only talking about doing so.
A modern sustainability organization should be set up in such a way that it reshapes a company’s fundamental approach to business. There are four main principles that are used to help hold the business accountable, meet stakeholders’ expectations as well as manage risks while helping businesses explore new opportunities.
- Design according to sustainability issues, not sustainability overall
- Allow your internal sustainability team to implement change
- Find the best structure to coincide with your sustainability agenda, as well as your business as a whole
- Make the design process a priority and account for sustainability’s complexity and dynamic nature
Let’s take a closer look at the first two principles:
Design according to sustainability issues, not sustainability overall
Sustainability is a very broad topic. When businesses focus on and prioritize one specific issue within the topic of sustainability, they are more likely to effectively address certain issues. Focusing on one specific issue, such as pollution or waste management, will allow businesses to successfully align their strategies and implement them accordingly. This will allow for one universal and clear goal which will allow for better distribution of resources.
Using a modular organization design work better than adopting one holistic approach. This design has multiple centres of excellence that are focused on different issues or opportunities around sustainability. This would allow for businesses to be adaptable and address various emerging situations in an agile manner.
Allow your internal sustainability team to implement change
A central team within a business is essential to shape the overall sustainability strategy, set realistic goals, and correctly allocate resources where needed. This central team should have the power and decision rights to execute change and hold various departments accountable for their responsibilities and keeping to discussed timelines. The team should be able to accurately track their progress, while at the same time still being able to maintain an enterprise-wide overall view of the business’s performance.
With that being said, these teams should assign single functions to leaders or other teams who are more aware and involved with those units. The central team needs to involve the board and executive management team, as they are the ultimate decision-makers when it comes to the company’s strategic direction.
For a business to accurately tackle sustainability issues, it needs a well-designed team who are up for the challenge. The team should be dedicated and able to make important decisions to help the business reach its goals.
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This article was originally published on:
https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-organization-blog/unleashing-sustainability-success-starts-with-your-team
