Linking sustainability management to business strategy Overview Introduction Formulating a balanced scorecard for sustainability Examples Conclusions In the current times capital investment is not the only source of competitive advantages anymore. Companies now must be flexible, responsive and with high quality deliveries.
“Soft” factors become increasingly important: 0 Intellectual capital 0 Knowledge creation 0 Excellent customer orientation 0 Sustainability What pushes companies towards sustainability?Environmental pressure Resource scarcities Rising costs for resources and materials Increasing demand for safe and natural products Increased levels of transparency Increasing demands for accountability and governance. Room and Montgomery, 2000 Problems with sustainability and corporate strategy Traditionally management only reacts to perceived financial scarcities: O The financial model measures past performance, not investments for the future. Lack of focus in the competitive strategy.Changes in the soft factors are not clearly depicted. Social and environmental performance considered Just as “add-on”.
A strategy for integration is needed. Balanced Scorecard (BBS) Customer satisfaction, retention, new acquisitions and profitability. Processes that enable customer and shareholder satisfaction. There might even be new processes found Describes the soft infrastructure for achieving the objectives of the other perspectives (people, systems and procedures).