Corporate sustainability

We have an implementation problem! – 13 questions to an AI

Dr Claudia Kemfert, Head of the Energy, Transport and Environment Department at the German Institute for Economic Research (DIW), put it first: “We don’t have a knowledge problem, we have an implementation problem!” By this she means that the implementation of the Paris climate goals is going far too slowly. Rightly so, in my opinion. How can we change that? Where do we start? How do we get faster implementation?

As is almost customary in these times, I turned to an AI to help me approach these questions – ChatGPT. Below is my “interview” with ChatGPT – I have checked the answers for gross nonsense, minimally edited and shortened where duplication occurred.

The “interview” is based on the following assumptions: From my professional practice, I know that both sociocracy and lean management offer very good instruments for quickly and effectively achieving sustainable action in the sense of the climate goals: sociocracy in terms of organisational structure, decision-making and participation, and lean management in terms of resource-efficient and cycle-oriented action. Consequently, it was obvious for me to start with the following question:

Sociocracy, lean management and the development of a sustainability strategy

Question 1: Do sociocracy and lean management have common approaches and/or ideas?

ChatGPT: Both sociocracy and lean management are approaches to the organisation of enterprises and communities that aim to create effective and efficient decision-making processes.

A common approach is the pursuit of continuous improvement. Sociocracy is about continuously reviewing and adjusting decisions to ensure that they always meet the needs of the people involved and the organisation. Similarly, lean management takes a continuous improvement approach, where processes and procedures are constantly improved to minimise waste and maximise efficiency.

Another common focus is the emphasis on employee participation and teamwork. In sociocracy, decisions are made by consensus, with all people involved having equal rights and having their opinions heard. In lean management, great emphasis is placed on involving all employees in the organisation and allowing them to contribute their skills and ideas to improve processes and outcomes.

Overall, we can say that sociocracy and lean management have in common that they have a participative and iterative approach to the organisation and decision-making and emphasise employee participation and continuous improvement.

Ok, so the AI confirms my subjective assessment that sociocracy and lean management have things in common and could therefore be thought of as complementary.

Question 2: Let’s assume the following situation: A manufacturing company with 150 employees wants to develop a sustainability strategy that includes the areas of economy, ecology and society. This should be done with the participation of all stakeholders. Which decision-making process would you consider the most effective and efficient?

ChatGPT: For a sustainability strategy that takes into account all three dimensions – economy, ecology and society – and involves all employees, a participatory approach such as sociocracy could be an appropriate decision-making method.

A possible decision-making process could look as follows:

1. Initiating the process: the company’s management introduces the goal of developing a sustainability strategy that includes the areas of economy, ecology and society, and explains the reason and importance of this undertaking.
2. Formation of a circle: A circle is formed to work on the topic. The circle consists of employees from different departments and hierarchical levels. The members of the circle are selected to ensure that all perspectives and areas of expertise are covered.
3. Clarification of decision-making powers: Decision-making powers are clarified to ensure that all members of the circle are equal and that all decisions are made by consensus.
4. Analysis of the current situation: The circle analyses the current situation of the company with regard to sustainability and identifies strengths and weaknesses as well as potentials and risks.
5. Development of goals: The circle jointly develops goals and measures for the sustainability strategy in the areas of economy, ecology and society.
   Discussion and decision: The circle discusses the proposed goals and measures and makes decisions by consensus. If necessary, the decisions can be supported by further analyses or expert knowledge.
6. Implementation and review: The selected measures are implemented and regularly reviewed to ensure that they deliver the desired results.
7. Continuous improvement: The process is continuously reviewed and improved to ensure that the sustainability strategy always meets the current needs and challenges of the company.

This participatory process ensures that all employees are involved, that all perspectives are considered and that decisions are made by consensus to promote acceptance and implementation of the sustainability strategy in the company.

Question 3: The process described above may take several months or years. How could the process be accelerated?

ChatGPT: There are several ways to speed up the process of developing a sustainability strategy described above:

1. Set clear goals: It is important to define clear goals and set priorities to focus on the most important areas. In this way, unnecessary discussions can be avoided and decision-making can be accelerated.
2. Use of data and information: The use of data and information can help speed up the process by facilitating informed decision-making. If the company already has data and information on economics, ecology and society, these can be used to speed up the analysis phase.
3. Involve expert knowledge: If certain issues or areas are complex, involving expert knowledge can help to speed up the process and make high-quality decisions.
4. Focused discussions: It is important to focus discussions and ensure that all participants contribute equally. Effective facilitation can help speed up the process and ensure that discussions remain focused.
5. Agile ways of working: Agile methods can help speed up the process by enabling a faster and more iterative way of working. By using agile methods, decisions can be made quickly and actions can be implemented quickly.

However, it is important to note that speeding up the process should not be done at the expense of quality or the involvement of all stakeholders. A balanced approach that allows for quick and effective decision-making while considering all perspectives is best.

Question 4: That means we are back to the tools of sociocracy?

ChatGPT: Yes, that’s right. The tools of sociocracy, such as the consensus method or the circle structure, can help to support an effective and efficient decision-making process that involves all stakeholders and leads to a shared vision. Using these tools can ensure that discussions remain focused, decisions are made quickly and all perspectives are taken into account without the process losing momentum.

With a vision towards sustainability

Question 5: What could be a shared vision in this context?

ChatGPT: For example, a shared vision for a manufacturing company with 150 employees that wants to develop a sustainability strategy could be as follows:

“We strive to be a sustainable and responsible company that has a positive impact on the environment, society and the economy. We want to design our business processes to conserve resources and minimise waste in order to be successful in the long term. We want to work for a fairer society and make our contribution by treating our employees, suppliers and customers fairly and with respect. Our goal is to be perceived as a pioneer in our industry and to inspire our customers with sustainable products and services.”

Such a vision could serve as a starting point for developing a sustainability strategy by guiding decision-making and action implementation. However, it is important to stress that the vision should be developed in collaboration with all stakeholders to ensure that it is shared and supported by all.

Question 6: Let’s assume that the company mentioned above has decided on this vision together with all employees. What specific actions would you consider to be the most effective in contributing to this vision?

ChatGPT: There are a variety of actions that a company can take to pay towards a vision that is focused on sustainability and responsibility. Here are some concrete examples:

• Energy and resource efficiency: the company could take steps to reduce energy and resource consumption, for example by investing in renewable energy, using energy-efficient technologies or optimising the use of materials and resources.
• Sustainable procurement: The company could ensure that raw materials and supplies are procured sustainably by selecting suppliers that comply with strict environmental and social standards or by seeking alternative procurement channels itself.
• Social responsibility: The company could promote a fair and respectful workplace culture, for example by offering flexible working conditions, pursuing a diversity-oriented HR policy or supporting social initiatives.
• Circular economy: The company could take measures to reduce waste and promote a circular economy, for example by designing products for reuse or recycling or by introducing take-back systems for products.
• Sustainable innovation: The company could invest in sustainable innovation, for example by developing new products and services that make a positive contribution to sustainability.

These measures are just examples and there are many other ways to pay towards a vision that is focused on sustainability and responsibility. It is important that the measures are tailored to the specific needs and circumstances of the company and that they are in line with the values and goals of the vision. In addition, it makes sense to regularly check whether the measures are having the desired impact and to adjust them if necessary.

Note: For all 5 points above, lean management lends itself to combination with a CSR strategy.

Behavioural change of stakeholders in the company

Question 7: Do the above measures require a change in the behavior of managers and employees?

ChatGPT: Yes, the implementation of the above measures usually requires a change in behaviour of managers and employees. Sustainability and responsibility cannot simply be added as an “add-on” to existing processes and structures.

Overall, the implementation of a sustainability strategy requires a change in behaviour from all stakeholders in the company. However, this can also be an opportunity to increase awareness and commitment to sustainability and responsibility in the company and to achieve a positive impact on the environment and society in the long term.

Question 8: Leading by example is a key word here: What does this mean specifically for managers? What exactly should they do?

“Leading by example” means that managers set a good example and themselves embody the values and principles that are important in the company. In the context of the sustainability strategy, this means that leaders align their behavior and decisions with the goals and measures of the strategy and actively exemplify them.

Specifically, leaders could take the following actions:

1. Transparent communication: Managers should communicate the vision and goals of the sustainability strategy transparently and actively involve their employees in the process.
2. Training and awareness-raising: Managers should regularly train themselves and their staff on sustainability issues and practices.
3. Changing work processes: Managers should ensure that workflows and processes in the company are designed to be sustainable. For example, energy and resource efficiency measures could be implemented.
4. Exemplary behaviour: Leaders should act sustainably themselves and, for example, be environmentally conscious and resource-efficient on business trips, at meetings and in daily office life.
5. Community engagement: Managers can also get involved in sustainability outside the company and support local environmental initiatives, for example.

Measures of a sustainability strategy for economic success

Question 9: What concrete measures in the context of the sustainability strategy do you suggest if processes in production are not optimised, material is lying around unused, there is too much fossil energy consumption and waste is not recycled?

ChatGPT: In order to improve sustainability in production and solve the problems mentioned, I suggest the following concrete measures:

1. Analysis of the current situation: Before concrete measures can be taken, the current situation in production must be analysed. For this purpose, an energy audit and waste analyses can be carried out, for example. Based on this analysis, concrete measures can be identified and prioritised.
2. Process optimisation: By optimising production processes, material losses can be minimised and energy consumption reduced. For this purpose, lean management methods can be used, for example, to make processes more efficient and resource-saving.
3. Resource efficiency: To avoid wasting resources, resource efficiency measures should be taken in production. Measures such as the use of renewable energy sources, the implementation of circular economy principles and the use of recycling technologies can contribute to this.
4. Employee training: In order to successfully implement sustainability measures in production, employees should receive regular training. This can focus on topics such as energy efficiency, waste reduction and recycling.
5. Goals and metrics: In order to achieve the sustainability goals in production, clear goals and metrics should be defined. These can concern, for example, energy consumption, the amount of waste produced or the reduction of material losses.

By taking measures to improve sustainability in production, the company can not only reduce costs, but also make a positive contribution to environmental protection and achieve its own sustainability goals.

Question 10: What could be complementary training topics for employees?

ChatGPT: In addition to the training topics already mentioned, such as energy efficiency, waste reduction and recycling, the following complementary training topics may be relevant for employees:

1. Sustainable procurement: Staff can be trained on how to make sustainable procurement decisions. This can include, for example, selecting suppliers with sustainable supply chains, considering environmental criteria when procuring products and supporting suppliers in implementing sustainability measures.
2. Environmental management: Employees can also be trained on how to use environmental management systems in production. This includes, for example, the implementation of environmental management standards such as ISO 14001, the identification of environmental impacts and the implementation of measures to reduce environmental impacts.
3. Climate protection: Employees can be trained on how to contribute to climate protection. This may involve reducing greenhouse gas emissions, for example, by using renewable energy sources or energy-efficient technologies.
4. Corporate Social Responsibility (CSR): Employees can also be trained on how to implement CSR principles in the company. This includes, for example, taking social and environmental aspects into account when making decisions, respecting labour and human rights and working with local communities.

Question 11: What do you think: Does a sustainability strategy make a company more economically successful?

ChatGPT: There are studies that suggest that a sustainability strategy can make a company more economically successful. Some reasons for this are:

1. Cost savings: An effective sustainability strategy can help to use resources more efficiently and reduce waste. This can lead to cost savings and increase the profitability of the company.
2. Customer retention: An increasing number of consumers prefer companies that are committed to social and environmental issues. A strong sustainability strategy can improve a company’s image and increase customer retention.
3. Risk management: Companies that implement a sustainability strategy are better prepared for future regulatory requirements and environmental or social risks. This can help reduce the risk of reputational or financial loss.

However, it is important to note that a sustainability strategy alone does not guarantee economic success. Successful implementation requires a comprehensive strategy that is aligned with the specific needs and goals of the company and supported by all stakeholders.

Question 12: Which studies are we talking about here exactly?

ChatGPT: There are a large number of studies that deal with the connection between sustainability and economic success of companies. Some of them are:

1. A study by Harvard Business School and the London School of Economics that looked at the link between ESG (environment, social, governance) factors and corporate financial performance. The study found that companies that pay attention to sustainability issues tend to have better financial performance than those that do not.
2. A study by McKinsey & Company that looked at the relationship between sustainability and corporate financial performance. The study found that companies that integrate sustainability into their business strategy tend to have higher value creation and returns.
3. A study from the University of Hamburg that looked at the connection between sustainability and companies’ ability to innovate. The study found that companies that pay attention to sustainability aspects tend to be more innovative and thus gain a competitive advantage.

These studies are only a few examples of many that deal with the connection between sustainability and economic success of companies. However, it is important to note that there are also studies that come to different conclusions or do not find a significant connection.

Question 13: Let’s assume you are the CEO of the company described above and you have to start implementing the goals of the sustainability strategy tomorrow. What would you do first after drinking the first coffee?

ChatGPT: As the CEO of the company, the first thing I would do is to take stock of the situation in order to get an accurate picture of the current situation and the starting points for implementing the sustainability strategy. To do this, I would sit down with the department heads and other relevant contacts and gather information on different aspects of the company, such as:

• Energy consumption and CO2 emissions
• Resource consumption and waste management
• Supplier relations and criteria
• Employee engagement and training

Based on this information, I could draw up an environmental balance sheet for the company.

Thank you for your answers.

ChatGPT: You’re very welcome, it was a pleasure to help you. If you have any further questions, please do not hesitate to contact me.

Notes:

If you like the post or want to discuss it, feel free to share it in your network.

Another approach to achieving social and environmental goals with a focus on sustainability and creativity is the so-called Dragon Dreaming Method.

Many companies want to retain customers for their products or services in the long term. One way of achieving this is the so-called Lock-in Effect.

Daniela Roecker has published more articles in the t2informatik Blog:

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