Leading the Sustainable Organization This book is the first to combine the much talked about topics of leadership and sustainability, and provides readers with a comprehensive overview and pragmatic approach to leading sustainable organizations. Chapters include discussions, case examples, steps, and useful tools centered on the components of the Leading the Sustainable Organization model. This model provides managers with a pragmatic, end-to-end framework for creating (in the case of new entities) or shifting (in the case of existing firms) their organizations’ workforces to a sustainability focus. Leading the Sustainable Organization is the perfect tool for executives and managers in small, medium, and large companies, and in all industries, to assist with the difficult and confusing topic of leading sustainability efforts. This book will be of great interest to students and academics who want to learn more about corporate sustainability. Timothy J. Galpin is an Assistant Professor at Colorado Mesa University. He has over 20 years’ experience as a management consultant and business manager, working with firms around the world on strategic planning, strategy execution, merger and acquisition integration, restructuring, and organizational change. J. Lee Whittington is Professor of Management at the University of Dallas. He focuses his teaching, research, and consulting in the areas of leadership, organizational behavior, and spiritual leadership. R. Greg Bell is an Assistant Professor at the University of Dallas where he teaches courses in Strategic Management and Business and Society. His research focus is in corporate governance and sustainability. Leading the Sustainable Organization Development, Implementation and Assessment Timothy J. Galpin, J. Lee Whittington, and R. Greg Bell First published 2012 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2012 Timothy J. Galpin, J. Lee Whittington, and R. Greg Bell. The right of Timothy J. Galpin, J. Lee Whittington, and R. Greg Bell to be identified as authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Galpin, Timothy J., 1961- Leading the sustainable organization : development, implementation, and assessment / Tim Galpin, J. Lee Whittington, and Greg Bell. p. cm. 1. Leadership. 2. Strategic planning. 3. Organizational effectiveness. I. Whittington, J. Lee. II. Bell, Greg. III. Title. HD57.7.G346 2012 658.4’092--dc23 ISBN: 978-1-84971-466-2 (hbk) ISBN: 978-0-415-69783-5 (pbk) ISBN: 978-0-203-12844-1 (ebk) Typeset in Times New Roman by Saxon Graphics Ltd, Derby Contents List of figures vii Acknowledgments ix Preface x 1 Introduction 1 PART I Development 21 2 Direction setting – mission, values, goals, and strategy 23 3 Setting the context – the HR value chain 46 PART II Implementation 69 4 Engaging employees through full-range leadership 71 5 Increasing engagement through goal setting and task design 90 6 Enhancing engagement by building high-trust relationships 104 PART III Assessment 123 7 Employees and the micro-level of sustainability performance 125 8 Organizations and the macro-level of sustainability performance 143 vi Contents 9 Summary 168 Glossary of key terms 179 Appendices A – Executive summary of the “Current state of sustainability leadership” survey 181 B – Sustainability raters 184 Index 202 List of Figures 1.1 The ‘Leading the Sustainable Organization’ model 2 1.2 Perceptions of both managers and employees as to why their firm pursues sustainability 9 1.3 Virtuous cycle of sustainability and workforce engagement 11 2.1 Begin leading the sustainable organization by including sustainability as part of the firm’s mission, values, goals, and strategy 24 2.2 Systemic perspective of strategic management 25 2.3 Sustainability is included in my company’s mission 27 2.4 Stages of sustainability 28 2.5 Sustainability is included in my company’s values (totals more than 100% due to rounding) 33 2.6 Sustainability is included in my company’s strategy (totals more than 100% due to rounding) 36 3.1 Set the context for leading the sustainable organization by including sustainability as part of the firm’s HR value chain 47 3.2 My company recruits and selects new hires who value sustainability 53 3.3 My company does a good job of communicating to employees and managers the importance of the company’s sustainability efforts 54 3.4 My company includes sustainability in at least some portion of each employee’s and manager’s training and development 56 3.5 My company requires that sustainability is included within each employee’s and manager’s performance plan and evaluation 58 viii List of figures 3.6 My company attaches at least some portion of each employee’s and manager’s pay and rewards to his or her sustainability performance evaluation 60 3.7 My company does a good job of being ethical and fair when it comes to letting people go from the company due to performance issues or layoffs 61 4.1 Micro-level leadership components 74 4.2 The full range of leadership 76 5.1 Job characteristics model 94 5.2 Job strain model 95 5.3 Guidelines for enriching a job 96 5.4 Assessing your job’s enrichment level 102 Acknowledgments We would like to acknowledge our clients and colleagues, who are too numerous to name here, but who have added much to our understanding of what leading successful sustainability efforts entails. We would also like to thank Lucy Gonzalez at Mission Foods, Tom Kemper at Dolphin Blue, Scott Morrison at City Garage, and Phillip Williams at Montgomery Farm for the generous time they took to provide us with their insights and experiences in leading their sustainable organizations. Preface As sustainability has grown in popularity, the availability of books and articles on the topic has also increased. Whether identified as sustainability, corporate social responsibility (CSR), corporate social performance (CSP), “going green,” or the “triple bottom line” – including financial, environmental and social performance – the public’s interest in the area is far-reaching. Just as sustainability is still ill-defined, the writing thus far on the topic is also scattered and fragmented. What has been written on sustainability falls, for the most part, squarely into the “thou shalt” genre of management books. That is, the authors who address the topic of corporate sustainability (for the purposes of this book, we use the terms corporate sustainability, CSR, CSP, “going green,” and the “triple bottom line” interchangeably) seem to all agree that executives and managers should be doing something about making their organizations more sustainable. However, there is limited, practical guidance regarding how to go about leading and engaging a sustainable organization. While there are numerous anecdotes and case examples of sustainability activities that companies have engaged in, there is no clear end-to-end model to aid executives and managers in leading sustainable organizations. What is needed is a comprehensive and pragmatic framework that addresses sustainability from strategy, through employee engagement, to measurable results. Why this book? This is the first book to combine leadership with sustainability. In view of the scattered nature of information, and more importantly, useful how-to information on the topics of leadership and sustainability, we provide readers with a comprehensive overview and pragmatic approach to leading sustainable organizations. The chapters of this book include discussions, case examples, steps, and useful tools centered on the components of our Leading the Sustainable Organization model. This model provides managers with an evidence-based, pragmatic, end-to-end framework for creating (in the case of new entities) or shifting (in the case of existing firms) their organizations’ workforces to a sustainability focus. This book is divided into three parts. Part I – Development – focuses on the macro-components of leading sustainable organizations taking place at the firm-