Building Sustainable Advantage From Vision to Value

In the twenty first century, community andproducts and/or services.
business leaders in both public and private sectorsMeeting the needs of both current and future
are addressing sustainability - meeting the needsgenerations
of the present without compromising the future.What is widely used today may be extinct
Sustainability is an important issue for enterprises.tomorrow; what is commonplace tomorrow may
Whereas an enterprise may be started by anot even have been thought of today. So it is
single entrepreneur to transform an innovativenecessary to anticipate the wants and needs of
idea into a valuable product and/or service, therethe future while deliberating in the environment of
is mutual responsibility with its constituencies tothe present.
perform and deliver value over time.The sustainable enterprise ensures that the
Constituencies build vested interests in anentrepreneurial, leadership, and managerial roles
enterprise as a consequence of its efforts toare performed throughout on an ongoing basis to
attract and acquire, expand, and maintaintransform innovation into value. Plans and policies
relationships with them. Employees rely on jobs,must be deployed and executed with anticipation
customers rely on products and/or services,and deliberation, and with contingency because
suppliers rely upon orders, and investors rely uponevents may take a different course from those
return on investment from generation toenvisioned.
generation. If an enterprise reduces orGaining a beneficial position that will continue over
discontinues operations, the effect is disruptive ontime
its constituencies, markets, and theEnacting change, either by causing it or responding
community-at-large, if not devastating.to it, is essential for sustainability. Maintaining
Accountants and auditors consider whether anbusiness-as-usual is insufficient - an enterprise
enterprise is a "going concern" based upon itsmust stretch beyond its comfort zone because
ability to meet its financial obligations. Doubts maythe only certainty is uncertainty.
arise from the inability of an enterprise toThe sustainable enterprise gains a beneficial
generate sufficient cash flows from operatingposition that continues over time by developing,
activities, sell assets to generate cash, orenhancing, or maintaining its current posture in
restructure debt. Being an "ongoing concern" is anmarketplaces, or by being willing to change.
extension of the concept.From the creation of a vision to the delivery of
Continuing as an ongoing concern means that thevalue on an ongoing basis, the sustainable
management of an enterprise has the confidence,enterprise builds:
competencies and commitment to operate- Aspirational advantage - loyal relationships
indefinitely. To do so requires fostering thebetween employee, customer, supplier, and
entrepreneurial mindset and actions through theinvestor constituencies because stated values and
discipline of intrapreneurship, and reaching beyondenacted values are consistent
business-as-usual by building sustainable advantage.- Competitive advantage - the position and
Considering sustainability responsibly in all decisionposture that offers consistencies better value
makingthan competitors
The sustainable enterprise employs three criteria- Collaborative advantage - relationships between
in all decision making - are the mindset andsuppliers, or customers, or peers as a partnership
intended actions environmentally, economically, andwith a common mission, and operating
socially responsible?dependently for mutual value
Being environmentally responsible impacts the- Cooperative advantage - relationships between
capabilities of people, processes, and products andsuppliers, or customers, or peers as an association
or services. It means taking care of the ecologicalwith a similar mission, but operating independently
biosphere by protecting natural resources; avoidingfor mutual value
pollution of air, water, and soil; being energyAchieving performance excellence
efficient; and reusing and recycling materials,The sustainable enterprise tries to do the right
supplies, and products to reduce waste.things, and then do them well. It is not afraid to
Being economically responsible means applying thechange direction when it is doing the wrong thing,
disciplines of stewardship and value managementor when things aren't going well. It is not afraid to
to constituencies. Employees are offered fairadmit mistakes, learn from them, and move on. It
compensation in exchange for loyalty andis willing to take preventive action, but when cure
productivity. Customers are offered quality andis necessary, it takes remedial action swiftly. It
value in exchange for loyalty and timelystrives to deepen relationships with current
payments. Suppliers are offered loyalty and timelyconstituents with existing and new products and
payments in exchange for quality and value.or services, but also broaden relationships in
Investors are offered returns above the cost ofexisting and new markets.
capital in exchange for commitment. RegulatorsAchieving performance excellence requires
are offered compliance in exchange for freedomalignment between the enterprise and its
to do business within laws and regulations.constituencies externally, and between
Competitors are offered challenges in exchangeorganizational units internally. It means exceeding
for fairness. As a consequence, natural, human,requirements and expectations in terms of
intellectual, and financial capital is not justcommitment to values and vision, and strength of
preserved but appreciates over time.financial and non-financial results including market
Being socially responsible impacts the markets andshare, resource utilization, productivity,
communities that the enterprise serves and istime-to-market, cycle time, quality, satisfaction,
served by. The minimum standards for socialand sustainability.
responsibility include not engaging in deceptive orBuilding sustainable advantage from vision to value
fraudulent practices, and providing safe facilitiesis an enterpriship (entrepreneurship, leadership, and
and equipment, processes and functions, andmanagement) competency.