Final susansheehan-greenocean-oceta - pdf

Green Ocean Competitive Strategies

Susan SheehanJune 10, 2010

“ There is no end to the amount of money to be made by doing the right thing.”

Bill Clinton, 2007

o Companies do ‘sustainability’ for competitive advantage

o Blue Ocean Strategy….Green Oceano 2 Green Ocean examples

today

CEOs and sustainability CEOs and sustainability

◦ Improve Brand (54%) ◦ Differentiate Products (50%)

Not compliance, risk or cost

Top two reasons for sustainability strategy

AT Kearny & Institute for Supply Chain Management

o >70% of executives said sustainability contributes to shareholder value

o >70% rank sustainability as very or extremely important to corporate reputation and brand

McKinsey & Company, 2010

Sustainability delivers value5

Competitive strategy?Competitive strategy?

>70% CEOs say sustainability should be STRATEGIC

<20% are doing it

The math looks good!

How to How to create create uncontestuncontested market ed market space space and make and make the the competiticompetition on irrelevantirrelevant……

Create uncontested market space

Make the competition irrelevant

Find ‘non-customers’Pursue differentiation

AND low costSet outrageous goals

and set your people loose!

Red vs. Blue Oceans…

• Focus on core market

• Beat the competition

• Combat ‘commoditization’

• Keep your customers

• Choose low cost or differentiation

• Set realistic goals and micro-manage

• Death by a thousand cuts!

“…do all this, and do it right, and do it first before this decade is out.” J.F.K. 1962

Set outrageous goals

Create uncontested market space

Low cost AND differentiation

Serve non-customers

2000’s Reinvented systems furniture

“be a good corporate neighbor by being a good steward of the environment”

Dirk Jan De Pree (DJ)1955

Herman Miller, Founder

2020 Commitment – crazy goals 2020 Commitment – crazy goals

ZERO

• Minimum LEED Silver

• 100% green energy

• landfill• hazardous waste generation

• air emissions

• water emissions

the mirra®

outrageous goalsnon-customers

In the past year….

23rd year most admired company in its industryFortune Magazine poll of industry executives and analysts

One of world’s 50 Most Innovative Companies Fast Company

One of 50 Best Manufacturing Companies Industry Week

"SAM Sector Leader" and "SAM Sector Mover”SAM Social Investing global ranking

Herman Miller a Green Ocean Winner?Herman Miller a Green Ocean Winner?

Green Ocean

Red Ocean

A few crazy ideas

2nd largest office furniture company in the world; $1.92B sales

“Serve our communities as a committed corporate citizen.”“Serve our communities as a committed corporate citizen.”

26

oCut energy 20% in 5 yearso Empower branch managers

Chairman’s Task Force on Sustainability -2008

Chairman’s Task Force on Sustainability -2008

o World’s largest fleet of fuel efficient vehicles

o Thousands of hybrids and electric vehicleso Fleet as 'petri dish' for fuel and engine

technology

Fleet Alternatives

Sustainable Construction

LOW COST AND DIFFERENTIATION

WeCar Sharing

Non-Customers

o$1.25 per rental, matched by Enterprise Foundation

Carbon Offset Program

50 million, 5 year

Tree Pledge

o $100 M fundo Algae biofuels PHDso Goal – large scale supply of biofuel

Enterprise Institute for Renewable Fuels

Last 12 monthsoBusiness Traveler Innovation Award for outstanding and original environmental efforts in the travel industry;

National Business Travel Ass./Wall Street Journal

oReaders’ Choice Award as their favourite rental car brand

Budget Travel Magazine

Green Ocean ahead?

o Irrational, right brain thinkingo unachievable goalso non-customerso create uncontested green ocean markets

Think Green Ocean

Susan SheehanLeapfrog Sustainability Hub

[email protected]

Susan SheehanLeapfrog Sustainability Hub

[email protected]