Miesing Krzykowski Rich

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Strategic Sustainability Systems:Strategic Sustainability Systems:

The G3 Program at the UAlbanyThe G3 Program at the UAlbany

School of BusinessSchool of BusinessPaul Miesing, Linda Krzykowski, Eliot RichUAlbany School of Business

G3: GOING GREENG3: GOING GREEN

GLOBALLYGLOBALLYSchool of Business, University at Albany


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L. Krzykowski et. al. Strategic SustainabilityL. Krzy

kowski et. al. Strategic Sustainability

OutlineOutline

Comments About Sustainability in the MBACurriculum

Introduction to G3 and The G3 Compass

The Players and Expectations The G3 Process and Results

Neo-Classical View of Production vs. The SystemDynamics Model

Counter-Intuitive Results Sustainability Roadmap

Tentative Schedule


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Comments about MBACurricula

Too theoretical and not practical

Too reliant on traditional models and

not reactive to current issues Cant create leader in a classroom

Teach in the silos, not on the

platforms


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Comments AboutComments AboutSustainability UAlbanySustainability UAlbany

CurriculumCurriculum What is Sustainability? Why now? Is there money in it? What business models

are sustainable?

Sustainability problems are big and complex,

hence require cross-discipline solutions (scienceand engineering, computer science, biology, publicadministration and policy, law)

Key Challenge: Very intensive, highly-collaborative,

integrative, and time-consuming twelve-dayactivity that develops a prototype to solve anintractable problem

Pedagogy Principles: Critical thinking, whole

systems thinking, manage compl

exity, experiential


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L. Krzykowski, et al., Strategic SustainabilityL. Krzy

kowski, et al., Strategic Sustainability

The G3 CompassThe G3 Compass

WWorld WithoutWalls (WWW)

NNaturalEnvironment and

Organizations(NEO)

EEthics: Values,Integrity,

Professionalism(VIP)

SStrategicSustainabilitySystems (SSS)

ValuePropositionBusinessModel


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Introduction to G3Introduction to G3

Integrative Cornerstone Group Project isimportant to: MBAs

Curriculum closure and consolidation (skills)Jobs! (resume, experience, internships)

Knowledge about one of the most vital issues of theday

UAlbany School of Business Reputation, research, funding, community outreach

Our clients Value team recommendations to help them with

sustainability

and Going Green Globally initiatives


7/35L. Krzykowski et. al. Strategic SustainabilityL. Krzykowski et. al. Strategic Sustainability

The PlayersThe Players

2 Managing Partners and a Director

6 Consulting MBA Teams

6 Clients

TTeam CCoaches and EExecutive LLife LLines (T-CELLs) Business Coach (one per team)

Science Coaches (Profs. Delano and Haldar; Nano PhDstudents)

Research Coach (Mary VanUllen)

Sustainability Life Line (Dr. Steven Ricci)

Project and Energy Life Line (Dr. Jim Mahoney)

7 School of Business faculty members

13+ Guest Speakers


8/35L. Krzykowski, et al., Strategic SustainabilityL. Krzykowski, et al., Strategic Sustainability

G3 PartneringG3 PartneringOrganizationsOrganizations
http://images.google.com/imgres?imgurl=http://environmentallaw.files.wordpress.com/2009/02/epa-1.jpg&imgrefurl=http://environmentallaw.wordpress.com/2009/02/&usg=__RLrmVYZuuuEg7cPoyQd7oSLLwII=&h=450&w=450&sz=70&hl=en&start=6&um=1&tbnid=R0_70AOwl-UpyM:&tbnh=127&tbnw=127&prev=/images?q=EPA&hl=en&rlz=1T4DMUS_enUS281US281&sa=N&um=1


9/35L. Krzykowski, et al., Strategic SustainabilityL. Krzykowski, et al., Strategic Sustainability

G3 ClientsG3 Clients
http://www.angiodynamics.com/index.asp


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L. Krzykowski, et al., Strategic SustainabilityL. Krzykowski, et al., Strategic Sustainability

G3 Baseline

Survey of student sustainabilityvalues Sustainability issues

Attitudes toward sustainabilitychallenges

Personal habits

Calculate personal carbon footprint

Fishbanks Simulations

MBA A i d T d


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MBA Attitudes TowardMBA Attitudes TowardClimate andClimate and

Environmental IssuesEnvironmental IssuesSurvey Item Mean

(S.D.)Five years from now the nationsweather will probably be more severethan it is now

4.41 (1.12) Born in USA2

Yes=4.1; No=5.0

I believe what Al Gore has to sayabout global warming and climatechange

3.6 (1.26) Intended ConcentrationHRIS=2.9; IA=4.7; ITM=3.7

Even if it turns out people arentcausing global warming, reducingpollution is still worth it for a betterenvironment

4.8 (.70) Intended ConcentrationHRIS=4.9; IA=4.3; ITM=4.9

Americans should increase efforts toreduce pollution regardless of what

other countries do


I believe we can reduce our energyuse and improve the quality of ourlives at the same time

4.4 (1.07) Intended ConcentrationHRIS=4.8; IA=2.3; ITM=4.2

Global warming could stop me fromdoing things I like to do

3.4 (1.43) Full-Time Work Experience ofNote3

Yes=3.0; No=4.2

1Scale from 1 (Strongly Disagree) to 5 (Strongly Agree)224 were born in the USA; 22 have lived in the USA since: mean = 2005.1; SD = 5.69320 have had full-time work experience: mean = 3.0 years; SD = 2.68


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MBA AttitudesMBA Attitudes (Contd.)(Contd.)Survey Item Mean

(S.D.)I can find things that are both fun todo and environmentally-friendly


I would vote for a presidentialcandidate who is strongest onstopping global warming

3.6 (1.32) Born in USA2

Yes=3.4; No=4.6

Even if it turns out people arentcausing global warming, reducingpollution is still worth it for personalhealth reasons


It would not bother me to have anuclear power plant in my local area

2.6 (1.63) Gender4

Female=1.3; Male=3.2

The same people who worry aboutglobal warming used to worry aboutglobal cooling

3.5 (1.12) Born in USA2

Yes=3.0; No=4.3Full-Time Work Experience ofNote3

Yes=3.8; No=2.9

Global warming is harmful to people 4.6 (.90) Intended ConcentrationHRIS=4.5; IA=3.0; ITM=4.9

224 were born in the USA; 22 have lived in the USA since: mean = 2005.1; SD = 5.69320 have had full-time work experience: mean = 3.0 years; SD = 2.68414 female, 21 male


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L. Krzykowski et. al. Strategic SustainabilityL. Krzykowski et. al. Strategic Sustainability

Student ExpectationsStudent Expectations

From Us: Do expect us to be available and on call for you,

give feedback on your presentations and papers but Dontexpect us to always agree with

each other From your T-CELLS: Do have a designated rep, use e-mail, expect

advice and direction, and use them but Dontexpect answers from them

From your Client: Do ask for information and expect some

availability but Dontexpect a lot of time or for them to

do your job for you


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Our ExpectationsOur Expectations

From Individuals: Do be committed, act professionally, and challenge

yourself but Dontlet your ego get in the way or kill the

messenger who gives you constructive feedback

From Your Team: Do expect you to work hard, put in long hours,

teamwork, and use feedback constructively but Dontexpect any free riders

From the Class: Do have fun and learn a lot but Dontattack each other or treat this project

as another classroom exercise


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The G3 ProcessThe G3 Process

Client sustainability projects

Experts and Guest Speakers Energy, regulation, science, technology, finance

Case Studies UAlbany, NYSERDA, WalMart

Individual coaching sessions Team coach, Dr. Ricci, Dr. Mahoney

4 Presentations + 2 Papers 100+ Hours Per Person of Work

all in 12 Days!


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G3 ResultsG3 Results

Client Recommendations: Multifaceted and integrated

Strategic management, marketing,

finance, public policy, human resources,information technology, science,communications

Ability to Deal With: Pressure Deadlines Ambiguity

Clients Managers Team members Coaches Multiple deliverables for

multiple stakeholders Incredible

N Cl i l Vi fN Cl i l Vi f


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Resources

Production

Capital

By-Products

Products

Neo-Classical View ofNeo-Classical View ofProduction (withoutProduction (without

feedback)feedback)Input Conversion Output

Infrastructure


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Input Conversion Output

Internal and External Infrastructure

Accumulations of MaterialFlows of MaterialFlows of Information

Resource

Use

NaturalCapital

+

Profit

Resource

Cost+

-

Operations

Cost

+

-

Production

Capital

Reinvestment

in Production+

+

CapitalMarkets

New Investments

++

+

Production

Output +

+ Inventory

+

Income+

Sales

-

GoodsMarket+

Production

Planning +

+

Production

Waste

+

+

Production

Waste Cost

-

+

Market

Price

+

PostProduction

Waste +

+

Waste

-

Effect of

Accumulated

Waste on Goods

Market

+

+

Pressure to

Remediate

Waste

+

+

Waste

Remediation

-

Remediation

Cost

+-

+

By-products

+

+

Demand for

Resource+ +

+

Remarketed Waste +

Effect ofNatural Capital

on

Replenishment

Natural Capital

Replenishment

Effect of Waste

on Resource

Replenishment

-

+ -+/-

+

BadsMarket

+

+

+Pressure to Remarket

Waste

+


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Counter-IntuitiveCounter-IntuitiveResultsResults

Fallacy of the Infinite Resource:

Superior returns based on non-renewable or slowly-renewing resources

draws in capital Misleading signals to the market

increases extraction and exploitation

If extraction grows faster thanreplacement/ renewal, market fluctuatesand can collapse


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Counter-Intuitive ResultsCounter-Intuitive Results(Contd.)(Contd.)

Productivity Speeds Decline: Improved extraction technology for

declining resources speeds failure

Less productive extraction technologypreserves declining resources and protectsfrom market disruption and side-effectsuntil replacements are available

Jevons Paradox Technological progressthat increases the efficiency with which aresource is used tends to increase (ratherthan decrease) the rate of consumption ofthat resource


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Change Occurs Precipitously andNon-Linearly: Ability to absorb waste are uncertain

Threshold effects upon reachingcapacity can be dramatic

Market can send invalid signals

must understand the underlyingsystem


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Erroneous Forecasts:

Long delays for information Effects of waste take time to appear

Uncertain and non-linear effects gounnoticed Oceans as carbon reservoirs

Landfills as waste reservoirs Overshoots from market momentum

Hard to reduce consumption and industrypatterns once they are established


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Correct investments in correct placesripples throughout the entire system: Abundant opportunities to reduce

resources for production processes,energy, by-products, transportation all of which are avoidable costs!

Waste is an investment withoutcustomer value


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Sustainable CompetitiveSustainable Competitive

AdvantageAdvantageFirm Infrastructure

MARG

IN

MAR

GIN

MARG

IN

MARG

IN

InboundLogistics

Human ResourceManagement

TechnologicalDevelopment

Procurement

Operations OutboundLogisticsMarketing& Sales

Service

SupportActivities

Primary ActivitiesInputs Outputs

Value Chain (RBV)

Factor

Conditions

Strategy,Structure, and

Intensity ofRivalry

Local DemandConditions

Competitivenessof

Related/Supporting Industries

NationalCompetitive

Advantage

Institutions(Diamond

andClusters)

RivalryRivalryRivalryRivalry

PotentialPotential

competitocompetito

rsrs

PotentialPotential

competitocompetito

rsrs

SubstituteSubstitute

ss

SubstituteSubstitute

ss

SupplierSupplier

powerpower

SupplierSupplier

powerpowerBuyerBuyer

powerpower

BuyerBuyer

powerpower

(+2) Forces

Disrupt.Disrupt.

techstechs

Disrupt.Disrupt.techstechs Comple-Comple-

mentorsmentors

Comple-Comple-

mentorsmentors

Supply Chain

Strategy Tripod

Source: Peng, Global Strategy(Thomson South-

Western: 2009)


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Triple Bottom LineStockholders, Sustainability, Social Responsibility

Compliance

BaselinePositions/Planning

Efficiency Gains

Continuous

Improvement

LeverageInnovations andMarket Advantages

Leadership inBusinessViability

Business SustainabilityBusiness SustainabilityRoadmapRoadmap

Source: Adapted fromhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf
http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf


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Tentative ScheduleTentative Schedule

Pre-G3:January Manage Expectations: Clients receive

information packet and questionnaire; begingathering information their team will need;begin conversations about what an appropriateproject might look like

March Questionnaire due from the client;project broadly defined and scoped out

Early April Teams Formed: Assigned clientsand given completed client questionnaire,forms, information
http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf


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Tentative ScheduleTentative Schedule(Contd.)(Contd.)

G3:

Friday am Kick-Off: Science andMotivation; Discussion about what

consultants do 12-1:30 Student panel (last years

group)

2:00-4:30 System Dynamics exercise 4:30-6:00 Teams meet clients and

coaches

Weekend Work - Work - Work on veryspecific, directive deliverables; build the
http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf


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G3 (contd.):

Monday: Energy Morning Panel discussion; Speed dating

Lunch With coaches

Afternoon Work time; Skype with J. Mahoney

Tuesday: Policy and Regulation

Morning Panel discussion; Speed dating Lunch With clients or tour of facilities

Afternoon Work time; Skype with S. Ricci
http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdfhttp://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf


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G3 (contd.):

Wednesday Morning Student presentations to faculty

Noon Conference calls with coaches

Afternoon Field Trips: Members go todifferent site

Evening Teams brief each other

Thursday Morning Water and consumption/packaging

panel; Speed dating

Afternoon Sustainability panel; Speeddatin
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G3 (contd.):

Friday Morning Work time

Afternoon Presentations with coaches andclients

Weekend Work - Work - Work

Monday Morning Presentations to faculty on clientrecommendations and 2 minute executivesummary of white research papers (3-5pages each)
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G3 (contd.):

Tuesday Work DayTeams meet with Ricci, Mahoney, Coach,

Client Wednesday

Final presentations; Lunch; Group photos

Our Own Continuous
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Our Own ContinuousImprovement and Learning

Loop Students move onto summer

internships

Growing success of G3 We de-brief with T-Cells, Clients,

faculty

Make adjustment to the G3 system Plan for growth

Begin planning for next iteration
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On-going Challengesto G3

Evaluation of the program Success in the market as indicated by clients

Success in the market as indicated by outgoing studentplacement

Success in the market as indicated by incoming students

Evaluation of student learning

Resources Very resource intensive

Resources change with G3 iterations

Integration we live in silos, not on the platform Faculty and administrative commitment

Reinforcement in curriculum vs. learning in astandalone project
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Take Aways

Graduate MBAs who embrace holisticthinking and feedback

Give students experience recognizing

feedback structures Give students a template for identifyinginvestments which are sustainable ANDprofitable

Provide a business-realistic, challenging,experiential and academic program

Recognize leadership also has long rangevision

Develop leaders who respond to Triple
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L Krzykowski et al Strategic SustainabilityL Krzykowski et al Strategic Sustainability

Questions?Questions?
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Miesing Krzykowski Rich

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