Green Enterprise Maturity Model
Winners see opportunity. Losers
see only burden. It’s an old story given new meaning in the
emerging landscape of sustainability. How do you get from seeing
opportunity to capturing it?
TRG’s proprietary Green Enterprise Maturity Model provides the framework for winning. It measures maturity, or readiness and capability to capitalize on Green growth and profitability opportunities, presently and over time. Maturity is profiled across the enterprise dimensions driving competitive advantage shown in the model below.
TRG
finds that maturity for each dimension is defined around four levels
of development: Complier, Dabbler, Consistent Improver and
Enterprise Optimizer. Compliers take minimum necessary actions.
Dabblers make limited efforts to develop greener products and/or
save cost through more sustainable supply-side operations but lack
consistent focus and follow through. Consistent improvers have
incremental supply and/or demand-side themes and objectives for what
they want to accomplish, along with systematic plans, processes and
metrics. For example, Pepsi has publicized consistent improvement
in resource usage over several years across bottling and packaging
operations that have resulted in very substantial unit savings of
resources and dollars. These consistent improvements are supported
by appropriate management processes and initiatives.
Enterprise
Optimizers go beyond consistency. They leverage a fierce desire to
win through proactive and committed leadership, innovative ideas,
and structural changes They build community engagement and
collaboration, and focus on integrating green strategy and across
the enterprise. These ongoing actions separate them from the pack,
creating or furthering dominant positions. For example, Lam
Research
created an overwhelming and structural advantage in inventory asset
productivity that increased customer responsiveness and market
share, while also saving resources and dollars (see client
results).
Just as a child may rapidly develop intellectual capability but lag socially (or vice versa), companies do not necessarily develop maturity at the same rate across all dimensions. Companies must understand not only their current pattern of maturity, but also the emerging pattern they must create to win. TRG’s Green Enterprise Maturity Model accelerates developing a more comprehensive and deeper road map to competitive advantage and a solid basis for effective action.