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Some of the key features of leadership are changing in a new business-social ecology of disruptive innovation, cross-border integration, and open collaboration.

Editor’s note: This article is from WeChat public number “bottom designer” (ID: Bottom-upDesigner) , text / Lv Jianzhong.

Enterprises still face great challenges and confusion in promoting the implementation and value creation of sustainable development strategies. One of the key reasons is that the leadership of a company with strategic thinking is still not out of the traditional way.

First, sustainable development and disruptive innovation inject new energy into sustainable business leadership

When companies promote sustainable business practices, they find that the existing level of leadership lags behind the level of competence needed to achieve a sustainable business vision and goals, whether at the top or executive level, between vision and reality. There is a gap that needs to be overcome.

Second, key aspects of sustainable business leadership

1, re-evaluation of strategic leadership

2, strengthen the ability of change management

3, systemic full life cycle full value chain execution

4, Risk Management and Crisis Management Capabilities

5. Developing sustainable business discourse systems and communication skills

6. Open social cooperation and innovation

Throughout the evolution of global company history, companies are taking the traditional product-market strategy, seeking the maximization of shareholders’ interests as the first priority, and responsible operation, multi-stakeholder value creation, The sustainable development of the “good business” ecological goal shift. This point can be seen in the “Declaration of Corporate Mission”1 published by the CEOs of 181 top multinational companies in the recent “American Business Forum”.

This is a revolution. The salient features of this revolution are presented and validated in the following areas:

• Rewriting company charters from sporadic companies to more and more companies will use their mission as a guide to create and create multi-stakeholder values.

• From the active participation of different types of enterprises to social welfare to the deepening of social responsibility practices in the field of production and management.

• From corporate social responsibility projects attached to corporate operations to corporate strategic alignment with UN Sustainable Development Goals 2030.

• From the social responsibility of a single company to the whole product life cycle and upstream and downstream value chain linkage and cooperation to promote green production, green consumption, and circular economy in a closed-loop way.

In recent years, in the in-depth exchanges with CEOs and executives of many companies, it has been found that business leaders have gradually reached a consensus that enterprises should be based on the economic-social approach to sustainable development. -Environment (Triple bottom line: In 1997, British scholar John Elkington proposed the concept of triple bottom line, corporate social responsibility can be divided into economic, environmental and social responsibility) three dimensions of vision planning, needs There is a strategy of integrating corporate social responsibility into corporate operations with a focus on sustainable business; a progressively sound social responsibility management system and transparent communication with stakeholders.

However, Enterprises still face great challenges and confusion in advancing the implementation and value creation of sustainable development strategies. One of the key reasons is that the leadership of a company with strategic thinking is still not out of the traditional way. So for many companies, building leadership to adapt to sustainable business is still a shortcoming.

Leadership has always involved management, organization, psychology, behavioral and many other fields. Regardless of the genre, the ultimate measure of the effectiveness of leadership is still to make full use of resources (including manpower) and objective conditions at minimum cost, to achieve desired goals, to create multiple values, and in the process to improve the entire enterprise (and The ability to enforce the efficiency of the group).

In the new space of enterprise survival and development, especially in the three dimensions of economy, society and environment, in the new business-social ecology of subversive innovation, cross-border integration and open cooperation Some key characteristics of leadership are changing, and whether a company has leadership that matches this change and sustainable development in this new ecosystem is becoming a decision to transform and succeed in a sustainable development strategy. The key factor.

This leadership, we define it as sustainable business leadership. This paper discusses the characteristics and construction path of sustainable business leadership from the perspective of corporate sustainable development practices.

Sustainable and disruptive innovation,Sustainable business leadership injects new energy

On the one hand, new disruptive technologies and business model innovations break the linear trending logic from product to market, enabling customers and end users, supply chain, market and competition, and corporate strategy.The factors closely related to the business activities have exceeded the original boundaries of the enterprise. The design, research and development, production, logistics, and consumption after the market is even recycled after the consumption of the integrated products have formed the full value of the network. Chain penetration and integration.

On the other hand, sustainable development has become an increasingly demanding society, requiring companies to rethink their strategies and operations from the three dimensions of economic-social-environment, in order to establish and maintain their rationality and relevance. And find new business opportunities and create new value in solving social and environmental problems.

In the face of challenges and opportunities, let’s take another look at what is happening in leading companies to achieve leadership in sustainable value creation:

Figure 1 Changes in Leadership Factors

Figure 2 Changes in the focus of leadership

In view of the changes presented in the above comparison, we observe that when promoting sustainable business practices, companies find that the existing level of leadership lags behind the level of competence required to achieve a sustainable business vision and goals, whether it is the highest in the enterprise. The layer is still the executive layer. There is a gap between the vision and the reality.

In the near future, Song Xin, chairman of China National Gold Group, pointed out that the extensive development of mining industry has been difficult to adapt to the current form, calling for transformation and upgrading, high-quality development, especially mentioning the emphasis on technological innovation, safety and environmental protection, and social responsibility. The most fundamental goal of high quality development is sustainable development. To achieve this goal, without adapting to the new sustainable business-social ecology leadership, corporate management is difficult to handle this daunting task.

The core of leadership is the ability to lead and guide organizations and individuals, using human and objective conditions to achieve desired goals, create multiple values ​​at minimal cost, and, in the process, improve the efficiency of the entire group’s execution.

Sustainable development concepts and disruptive innovations present new opportunities and challenges for companies to improve leadershipAt the same time, it also injected new vitality.

This vitality is reflected in several important aspects related to the long-term development and value creation of the company, including

• Integrating product-market and non-market strategies and multi-stakeholder and multi-dimensional value chains from a corporate duality perspective, introducing them into a strategic decision-making process and strengthening strategies for sustainable development Decision making power.

• Incorporate social cooperation and social innovation (new technologies, new business models) with organic internal and external integration, cross-border integration, interactive non-linear thinking of the full value chain into enterprise development, and strengthen to create economic-social- The environment is the core of competitiveness and execution.

• Incorporate the sustainability discourse system into corporate discourse, branding, communication, and strengthen the corporate narrative to meet the social expectations of the discourse system and communication skills.

• Connecting the work of each business and functional unit of the enterprise around creating a shared value system, and making the whole cycle, full process, full working hours, full position, and all employees participate in the sustainable development and transformation of the enterprise. The process is coming.

Strengthening leadership in these important areas helps companies effectively implement sustainable business strategies, achieve success, and create value.

Key aspects of sustainable business leadership

Many aspects of traditional leadership continue to play an important role. On this basis, the following aspects are particularly need to be upgraded and strengthened:

Re-evaluation of strategic leadership

In addition to some of the necessary factors and methods, strategic decision-making depends on asking the right questions, having a vision of the pattern, and being brave with change.

The question that companies need to ask when formulating strategies in a business-social sustainable ecology is what decisions, what role, and what value does business play in social progress, rather than superficially staying on what products and services are produced. In what market.

The vision that the company needs is the process of integration and opening up of the existence and development of the economic-social-environment interaction dimension, the whole life cycle and the full value chain, rather than simply Consider the product-market. Companies should plan for a path of profound change that meets the future of social progress and environmental harmony, rather than simply replicating the scale of existing business models.

Over the years, corporate decision-makers have become accustomed to the classic corporate management strategy methodology, inheriting the strategic management of Ansoff founded in the 1960s.System (Ansoff Matrix). The classic strategic management theory focuses on how companies can influence the external market environment and gain competitive advantage through business strategies. In this framework, the corporate strategy is based on the product-market axis, and as the core linear thinking and design strategy.

In fact, corporate behavior is also affected by many factors that transcend products and markets, such as government, regulation, policies, regulations, public awareness and identity, stakeholder appeals, and the media. However, the corporate decision-making layer involved the emergence of Corporate Social Responsibility (CSR), Agenda 21, the Global Compact, and the UN Sustainable Development Goals 2030 formed at the beginning of this century. “Non-market strategy” and the intrinsic and long-term impacts and effects of major issues related to the human environment and society on the sustainable business of enterprises still lack deep understanding (should be said to be understood, but lack of profound research, yet Proactively and systematically incorporate it into the company’s complete strategic decision).

In 1995, David P. Baron stated in “Market and Non-Market Environments” that corporate strategy needs to guide companies to act in both market and non-market environments, ie, simultaneously and organically integrate business operations. , supply chain, customer contract-type mechanism, and social, political, legal and other constraints and non-market adjustment factors outside the transaction; thus systematically, effectively and responsibly respond to non-market influences such as government, society and culture. Challenge the enterprise to ensure that a good competitive strategy, the realization of business goals and the core values ​​of the enterprise are coordinated.

David Barron gives new reference coordinates in corporate strategic decision making. This view is based on the logic of using the business environment as the basis for strategy development and corporate strategy as a competitive advantage. The initiative of value creation.

In strategic decision-making, operation management, and market expansion, enterprises must take into account stakeholder demands. These demands are not only necessary considerations for enterprises to undertake social responsibility, but also important resources for establishing sustainable business competitive advantages (such as policies, Public recognition, media views), they are related to the success or failure of the company. The introduction of non-market strategy provides a new working paradigm for corporate strategic decision-making in terms of both economic and social benefits.

After further analysis, another fundamental foundation for sustainable business for enterprises is the inherent economic and social duality of the enterprise. As a for-profit business organization, enterprises must effectively organize resources (people, finance, materials, technology, supply chain, upstream and downstream, etc.) in production and management activities, and create economic wealth through competitive advantages and management advantages.

At the same time, society provides a space for survival and development for enterprises to enable their value creation to be completed and realized; in the process, enterprises have a deep connection with society and the environment (customers, end users, policy making) RegulatorIt is a social, environmental, and other social and environmental resource, and participates in solving major social and environmental issues. Therefore, it is also a contributor, promoter, and leader of social progress and environmental harmony.

The company plays a role, plays its role, and achieves its dynamic balance in both the business and social systems. Today, as technology and business models become more innovative, a business-society sustainable ecosystem is being formed in a more interactive way. Due to the dual nature of enterprises, it is an inevitable survival and development path for enterprises to practice social responsibility, participate in and promote sustainable development.

This is also the fundamental logic why companies must embed social responsibility and sustainability in their strategy and operations. Therefore, a simple public welfare and additional forms of social responsibility projects are used to decorate, patchwork, and patch-fill the methods required to fulfill their social attributes (called “makeup”, “sticky”, “doping”. “And “welded” and other forms), it seems too coping.

Figure 3 From traditional corporate strategy + “welded” corporate social responsibility strategy to sustainable business strategy: strategic leadership model

As shown in the above figure, we will fully consider the duality of the company and build a more comprehensive and systematic enterprise from the product-market strategy and non-market strategy based on the “product-market” classic management strategy. Missions and values, derived from the endogenous development needs of enterprises, and closely related to social progress and environmental harmony, and respond to the multi-stakeholders’ thinking framework, provide new capabilities for corporate strategic decision-making.

Having such a sustainable business strategy, Nestlé (creating a continuous shared value), Dow (footprint-handwriting-blueprint integrated systemic sustainable business path), Unilever (sustainable business is a business) Strategic “Better Business”, Outotec (effective use of natural resources in mineral processing and metal production to provide customers with innovative, environmentally friendly, energy-saving, circular economy solutions), etc., for corporate development and economic-society-environment Multiple value creation provides a clear and actionable strategy that paves the way for sustainable business goals.

Enhance the ability of change management

From traditional strategies, traditional business models, traditional management methods, to sustainable business, there are no shortcuts. It is impossible for companies to enter sustainable business on the basis of traditional methods, and it is impossible to rely on traditional methods in sustainableContinued success in business practice. This point, many companies lack awareness.

Advancing sustainable business practices is actually a must for industry and business. Gaining the ability to lead change is an important prerequisite for the success of transformation. Introducing the methodology of change is a powerful guarantee for the success of the system to promote change.

In the practice of sustainable development, Yili Group has created the Yili model of “standards, systems and practices”, and established a sustainable development management system based on the highest standards of international, industry and national standards. Clearly visualize the vision, lead the enterprise, business unit and all employees, carry out the upgrade and change with specific goals and specific measures, and through the integrated work style of “targeting, empowering and coordinating”, the various departments and businesses of the group will be The unit and the whole staff are mobilized to participate in the change together. “Trinity” refers to standard + system + practice. In terms of standards, Erie is benchmarking the highest standards in the world, the United Nations Sustainable Development Goals (SDGs).

In terms of system, Yili upgraded the “Healthy China Social Responsibility System” to “Sharing a Healthy and Sustainable Development System” and implemented the dream of “sharing the world to share health”. In practice, Yili promoted the upgrade of the Sustainable Development Committee through the industry. The four working groups of chain win-win, quality and innovation, social welfare, nutrition and health continue to advance concrete practices.

In 2017, Yili officially upgraded its corporate social responsibility management system to a future-oriented “shared healthy sustainable development system” (WISH system, meaning “good life”).

After March 2019, the chairman of the group, Pan Gang, signed the industry’s first “Erie Group Sustainable Development Action Plan (10)” in the plenary meeting of the Yili Group Sustainability Committee, including sustainable development. The purpose and concept, as well as the nine of the 17 UN Sustainable Development Goals, as the content of deep benchmarking and implementation, have a clearer direction and requirements for future work. For Erie on the road to sustainable business change, further guidance on the success of the change is given.

The arduous nature of change is to consciously move out of the habitual business model, operating system and management style. It needs to “make” a sense of urgency, build a leadership team, point out the vision and articulate value; it needs to make all members fully aware of the meaning, strategy, path and goals of change, and empower departments and employees to create Positive progress. It requires sustained momentum, in-depth participation, effective promotion, and meticulous communication. It also needs to continuously expand the results, scale replication, and solidify the results based on the progress of the phase. Good practice implants new workflows, management systems and culture and behavior.

In the change management, there is a famous J curve (“J-Curve”, see “Dynamic Management of Change”, Managing the dynamics of chaNge, Jerald M. Jellison). It describes that when companies introduce changes in their original state, they often encounter opposition, resistance and doubts. In addition, most people’s psychological expectations are a leap from the starting point to the new performance normal.

However, before the change is successful, there is often a bumpy and tortuous path, and even in the process, it is often accompanied by a decline in performance. At this point, going back to the old road and returning to the original state will shake the heart. Morale and confidence were able to return until some local successes of early changes occurred.

The ability to not resist resistance, dispel the fog, persevere, continue to expand, and encourage more people to join the camp for change is an arduous test of leadership change in corporate leadership. Curing results in a variety of ways (renewing and solidifying standard operating procedures, improving and deepening corporate culture, adequate communication, etc.) is a key step in completing the closed loop of change.

In the process of change, special attention should be paid to the use of the J-curve model, which will present various emotional forces in several important stages: “starting change to emotional dilemma, early progress, performance recovery, and performance new normal” ( Suspicion, confusion, pessimism, wait-and-see, cynicism, positive, optimistic, curiosity, eagerness, excitement, conviction, pride, etc.) Management is good, always maintains a certain belief, eliminates resistance, and leads progress.

Enterprises need to introduce a methodology for change management to guide the transition to sustainable business practices. Often, a clear and accurate vision needs to be established to establish core information so that all employees can understand why change, change, how to implement and complete change, and the impact of change (both positive and negative, both internal and external).

Secondly, it is necessary to identify the departments and personnel involved in the different stages and processes of change; it is necessary to form a strong change leadership group and effective abbreviations and coordination mechanisms. On this basis, a clear and visualized road map and phased objectives are developed to establish a quantifiable plan process table. Manage the emotional changes that accompany the change and strengthen the communication of different strategies in different stages of the change process.

The corporate leadership needs to be fully aware of the eight pitfalls that led to the failure of change:

• Organizations that don’t think about change and are comfortable with the status

• Failed to form a strong mentoring team

• There is no simple and concise vision statement

• Failed to build trust with executives and employees, and failed to fully communicate the vision of change to the full staff

• Failed to eliminate resistance factors that hinder the realization of the vision

• Lack of short-term achievable results

• Prematurely announced that you’re done and ignored the long-term and arduous nature of the transition

• Failed to solidify the results of the change and fail to integrate the post-reform behavior into the corporate culture.

• Systematic full lifecycle full value chain execution

Since the multi-dimensional integration of economy-society-environment constitutes the ecological basis of business activities; and the enterprise has the duality of economy-society in essence, the enterprise should assume social responsibility and practice sustainable business, it should be within the enterprise. Raw needs should not be considered as external elements that have to be introduced.

Cognition is crucial. It will change the current “additional, additive, and imported” CSR practices of many companies, so that sustainable business is the core issue of the enterprise. At the same time, it is also Companies have increased their execution requirements for completing this core issue.

Executive power is the ability to deliver results and fulfill commitments. By transforming ideas, outcomes, commitments, rigorous and scientifically connected ways and behaviors, the pre-set goals are transformed into actionable action plans, and through teamwork and social cooperation, they become value and influence.

Practicing sustainable business strategies and making them successful requires excellent execution to advance implementation. There is no outstanding execution ability. Even if it is a big strategic goal, it will not be able to take root for a long time, and it will not form a competitive advantage and will not produce long-term benefits.

This requires both the corporate decision-making and executive levels to have a full and consistent recognition of the company’s mission and values, and translate into everyday conscious behavior (ie, through the internalization of values, to form an internal, self-controlled code of conduct) In order to guide and control the business management activities and standardize and constrain all employees and the whole process, and form a synergy; it also needs a complete responsibility management and inspection system with sustainable business as the core; it also needs to be open-ended. The mentality and systemic approach is monitored and promoted by multiple stakeholders.

We will put the image of executive power a little bit, in fact, it is “saying – doing – doing it”. “Speak” means establishing a task; “Doing” means completing the task (you can make a difference); “Doing it” means not only accomplishing the task efficiently and with high quality, but also improving the team and fulfilling the commitment. The ability of the enterprise creates the foundation and long-term influence of continuous value-added.

Excellent execution is done to thoroughly manage the gap between “saying” and “doing” to “doing it” (g1, g2 in the figure).

The excellent execution of Figure 4 is to manage the gap from “speaking” to “doing” to “doing it”

From “saying” to “doing” relying on the traditional execution mode, relying on instructions, skills, processes, performance appraisal can be achieved; from “doing” to “doing it”, you need skills. Sustained business mentality, need to have a responsible commitment based on a deep understanding of stakeholder claims, need to have a life cycle, a full process, a full post, all staff empowerment and collaboration, and need to have a sustainable business as the core Established corporate organization and corporate culture.

In this regard, the State Grid’s comprehensive corporate social responsibility management system has carried out admirable explorations in enhancing corporate sustainable business execution. This system includes:

• Management target module drives social responsibility management to achieve “full participation, full process coverage, all-round integration”

• Management mechanism module, which involves responsible leadership, corporate governance structure, social responsibility promotion management, optimization decision management, optimization process management, perfect system construction, and improvement of performance management.

• Manage content modules, including optimizing business operations, optimizing function management, optimizing operational mechanisms, corporate public interest management, corporate culture building, stakeholder management, and social communication management.

• Management of the Power Module, including the full play of the stakeholder-driven role and the full play of the social environment driving role. In actual implementation, the State Grid has also introduced the PDCA (Plan-Do-Check-Action) cycle methodology in the field of continuous improvement. Through continuous improvement of the cycle, it manages, monitors and enhances the practical capabilities of sustainable business in a closed-loop manner. Value creation effect.

The National Grid regards the social responsibility environment and the stakeholder environment endogenous in the operation of the company as an unremitting drive to continuously promote CSR management. This system maps out the implementation system of the “endogenous” power, “systematic” and “integrated” management of the national grid in sustainable business.

In the implementation of sustainable business strategy, execution will also transform from traditional linear, graphical, and linear delivery and linear execution to network-type nonlinear intensification of plates, units, and departmental collaboration. ability.

In this network, every piece of material, every process, every post, every employee must break the “do” mentality based on the standard, and create endogenous multiple value creation from each node. Integrate with the opportunities of extension.

Using the strategic and SDG2030 benchmarks, United Technologies has identified nine sustainable business objectives for its own development, and proposed a full value chain throughout product design and development, product manufacturing and supply, and product use and service. In Design, In Factories, In Air (Executive-Manufacturing-Investment) execution mode ensures that the management of the full cycle and full value chain from design to delivery and use is in place.

This is also rooted in the concept of sustainable development (Rooted-in, an endogenous drive centered on sustainable development, not simply superimposed on the corporate strategy or nominally imported from the outside) An excellent example of the survival and development of an enterprise.

The execution of this system has enabled United Technologies to achieve a 16% increase in fuel efficiency, a 50% reduction in carbon emissions, a 75% reduction in noise, a 44% reduction in energy consumption, and 3% of raw materials produced by the plant from renewable resources, clear water resources. The use of a reduction of 68% and other comprehensive benefits.

The article is not finished, to be continued…

The cover image is from pexxels