The sustainability survey by McKinsey presents the following approaches to creating sustainability organization:
1) Leader supported: Employees at all levels of the organization (including the CEO) engage with sustainability issues and activities, there is a strong focus on impact and on the employee’s role in sustainability, and the vision and strategy for the program are clear. This category accounts for 14 percent of overall sustainability leaders.
Top five organizational practices:
- leaders inspiring employees with encouragement and recognition
- appealing to employees’ values around sustainability
- enabling collaboration on sustainability activities
- leaders involving and empowering employees on sustainability work
- translating the sustainability vision into clear strategy and goals.
Companies pursue sustainability so they can
- identify and address an issue on which the business can have a tangible, positive impact
Organizational processes where sustainability is more integrated:
- strategic planning, internal communications, human resources, corporate culture
2) Execution focused: Sustainability programs focus heavily on corporate reputation and competitive positioning. Of all employees, middle managers engage the most with sustainability issues, while CEOs are the least engaged among the four approaches. This category accounts for 13 percentof overall sustainability leaders.
Top five organizational practices:
- including sustainability in performance assessments
- providing clear structure, roles, and responsibilities for efforts
- using key indicators and targets to manage performance
- including sustainability in skill-building methods and tools
- translating the sustainability vision into clear strategy and goals
Companies pursue sustainability so they can
- align with company’s business goals, mission,or values
Organizational processes where sustainability is more integrated:
- business units, supply-chain management, external communications
3) Externally oriented: Top leaders and middle managers engage most on sustainability issues, and they are most concerned with consumer expectations, stakeholder demands, and their overall competitive positioning. These companies are the most likely to have a separate sustainability advisory council. This category accounts for 20 percent of overall sustainability leaders.
Top five organizational practices:
- capturing ideas and best practices from external parties
- using competitive insights to inform a sustainability strategy
- maintaining a network of external partners to drive sustainability
- using customer insights to respond to customers’ needs
- developing strong relationships with local communities and governments
Companies pursue sustainability so they can
- strengthen competitive positioning (for example, securing essential inputs to production, responding to competitive pressure)
Organizational processes where sustainability is more integrated:
- R&D, sales and marketing, external communications
4) Deeply integrated: Sustainability is embedded most intensively across all processes, and the organization’s senior and middle managers are the most involved in sustainability activities. They pursue growth opportunities, respond to regulatory issues, and focus on broader impact. This category accounts for 36 percentof overall sustainability leaders.
Top five organizational practices:
- offering career opportunities to top sustainability performers
- using the sustainability program as an opportunity for talent development
- including sustainability in performance assessments
- including sustainability in skill-building methods and tools
- monitoring performance standards for sustainability
Companies pursue sustainability so they can
- develop new growth opportunities (for example, new markets, products)
Organizational processes where sustainability is more integrated:
- employee engagement, performance management, data and analytics
Source: McKinsey Global Survey Results: Sustainability’s strategic worth