Summary : When the world and the economy are transforming, the existing frames of references on which be base our thinking and decision making become obsolete. To adapat to their current and future context, organizations not only should have the vision of what they want to become but also implement it in their employees’ day do day work. Not superposing two opposite models in order to let change happen without daring changing the existing but replacing the one with the other. It only makes sense when employees are provided with tools and indicators that favor and reward actions that are aligned with the new model and not with the old one anymore. It also helps to measure the impact of change and measure how far they’ve been. That seldom happens in enterprise 2.0 projects because of a lack of reflexion on new frames of references. Fortunately, examples coming from other fields shows that when one really want to do things well and deep, change is possible and measurable.
A couple of weeks ago I was invited by Danone to talk about their social responsibility program, what made me learn a lot, believe it nor not, in terms of organizational transformation and had many things in common with enterprises 2.0 approaches. How possible is that ? Read what’s coming in the following lines.
Like many enterprises, Danone has understood that the environmental question will be key in its business. It’s already a cultural fact that is not new at all (remember that Antoine Riboud, Danone’s former CEO, used to say that the responsibility of the enterprise did not end at the facilities’ doors…30 years ago) and new an economic fact. There are many chances that, in a near future, carbon will be monetized, so managing it efficiently leads to a competitive advantage.
How did danone do ? First by stating it in its corporate values and project, long before it becomes a trendy topic. Anyone who has a few contacts with Danone knows that concepts such as double project ou triple bottom line are known by everyone and are a share concern. Such an approach need to be embodied and the discourse has to be turned into action. So Danone established a “Nature VP” so the environmental concern has currency at the very top of the organization. But, since Danone is a business and that there is an economic reality behind all that, that people need to change the way they understand and feel what added value means in such a context, they even established a Nature CFO. The logic is obvious : we’re entering a world when things that used to be secondary are becomming essential. So they need to be integrated into the value calculation system so what was a cost in the previous vision becomes an investment and an opportunity in 2012.
So they invented “green Capex”, some very concretes things to implement to translate this vision and awareness into business. Looking for ROI on a 3 or 5 years scale to take time to learn and not give up too early. But there were no relevant indicators to do that. So they could have come to the conclusion that it was not measurable, what could have lead to the consequence we all know : the project would have become a dead body because no one would have been able to see its impact or one’s personal contribution through one’s decisions, not even the interest of changing one’s thinking and decision making model.
So Danone worked on designing new models allowing to measure the impact of their business in terms of carbon and its short and long term financial consequences. They experimented it on the field, tried to make the most of new data, made an empirical job then tried to model. The organization tried to measure what matters, since it matters. That’s as simple as that.
It also helped to make something else possible : reducing the carbon footprint is now a part of executive’s evaluation and reward system. So everyone, at his own level, in his business unit, in his field is concerned.
But they still were trying to make sense of it for more and more employees. It means that anyone should understand his own role, impact, contribution to the project. It also means that, when facing two possible choices, one making sense in the old paradigm and the other making sense in the new one, they people should make the right one without fearing to put their performance at risk and sacrifice their bonuses.
So Danone co-innovated with SAP to integrate this new model in their business tools, in their production management system. It was all about putting the new model at work in employees’ day to day lives, in the flow of work and avoid schizophrenia. No contradiction here anymore : there’s a single model, a single vision and not an ideal one set on the top of an old operation model that has nothing in common. All indicators, measurement tools, tools supporting processes takes it into account. SAP brought the technology and Danone its knowledge and IP.
Anything in common with enterprise 2.0 projects ?
You can find the "original" french version of this blog here
