When we speak of success, it invariably means scale because scale brings lower costs and higher profit.
Scalability is about capacity and capability. When a business needs to grow, companies first build internal capacity to handle scale i.e. if you want to increase your retail business, you create more warehousing space, increase the channels of reaching your customers and look at sourcing more products. Next, the company needs to build capability i.e. help your people handle a larger, complex operation by giving them necessary training and tools such as software that can manage inventory and sales and hardware to support it. Technology makes it easier and less expensive to scale a business. You can gain huge economies of scale and more throughput, with less labour, if you invest wisely in technology. Scaling a business means setting the stage to enable and support growth in your company.
- Scaling #ESG isn’t quite as simple.
- ESG isn’t a single process
- ESG isn’t a technology
- ESG isn’t a campaign
So when someone in leadership at a board meeting says, “How do we scale this?” Ask them, “How?”.
While you can certainly scale initiatives like managing waste, building circularity in products and managing water, ESG is much more.
ESG is about transformative change at the core of your company’s products and services, how the business runs, how it interacts with customers, technology and suppliers and how the business accounts for the impacts on the environment. However the two constructs of capacity and capability are still very important, albeit in different ways. For ESG related changes to hold sway the organization needs to have the capacity to change and capable leadership to enable it. These can be enabled through experience journeys.
Companies don’t change because top leadership wants it, they change because people believe that the change will make things better. Hence with the end goal in mind organizations need to create customer journeys, employee journeys and supplier journeys for the #ESG #NetZero Shift.