Strategic Sustainability Systems: The G3 Program at the UAlbany School of Business Paul Miesing, Linda Krzykowski, Elio

1. G3: GOING GREEN GLOBALLY School of Business, University at Albany Strategic Sustainability Systems: The G3 Program at the UAlbany School of Business Paul Miesing, Linda Krzykowski, Eliot Rich UAlbany School of Business

2. Outline • Comments About “Sustainability” in the MBA Curriculum • Introduction to “G3” and The G3 Compass • The Players and Expectations • The G3 Process and Results • Neo-Classical View of Production vs. The System Dynamics Model • Counter-Intuitive Results • Sustainability Roadmap • Tentative Schedule

3. Comments about MBA Curricula Too theoretical and not practical Too reliant on traditional models and not reactive to current issues “Can’t create leader in a classroom” Teach in the silos, not on the platforms

4. Comments About “Sustainability” UAlbany Curriculum • What is “Sustainability”? • Why now? Is there money in it? What business models are sustainable? • Sustainability problems are big and complex, hence require cross-discipline solutions (science and engineering, computer science, biology, public administration and policy, law) • Key Challenge: Very intensive, highly-collaborative, integrative, and time-consuming twelve-day activity that develops a prototype to solve an intractable problem • Pedagogy Principles: Critical thinking, whole systems thinking, manage complexity, experiential emphasis

5. The G3 Compass Natural Environment and Organizations (NEO) World Without Walls (WWW) Ethics: Values, Integrity, Professionalism (VIP) • Value Proposition • Business Model Strategic Sustainability Systems (SSS)

6. Introduction to “G3” • “Integrative Cornerstone Group Project” is important to: • MBAs • Curriculum closure and consolidation (skills) • Jobs! (resume, experience, internships) • Knowledge about one of the most vital issues of the day • UAlbany School of Business • Reputation, research, funding, community outreach • Our clients • Value team recommendations to help them with sustainability and “Going Green Globally” initiatives

7. The Players • 2 Managing Partners and a Director • 6 Consulting MBA Teams • 6 Clients • Team Coaches and Executive Life Lines (“T-CELLs”) • Business Coach (one per team) • Science Coaches (Profs. Delano and Haldar; Nano PhD students) • Research Coach (Mary VanUllen) • Sustainability Life Line (Dr. Steven Ricci) • Project and Energy Life Line (Dr. Jim Mahoney) • 7 School of Business faculty members • 13+ Guest Speakers

8. G3 Partnering Organizations

9. G3 Clients

10. G3 Baseline Survey of student sustainability values Sustainability issues Attitudes toward sustainability challenges Personal habits Calculate personal carbon footprint Fishbanks ® Simulations

11. Student Expectations • From Us: • Do expect us to be available and on call for you, give feedback on your presentations and papers • … but Don’t expect us to always agree with each other • From your T-CELLS: • Do have a designated rep, use e-mail, expect advice and direction, and use them • … but Don’t expect answers from them • From your Client: • Do ask for information and expect some availability • … but Don’t expect a lot of time or for them to do your job for you

12. Our Expectations • From Individuals: • Do be committed, act professionally, and challenge yourself • … but Don’t let your ego get in the way or kill the messenger who gives you constructive feedback • From Your Team: • Do expect you to work hard, put in long hours, teamwork, and use feedback constructively • … but Don’t expect any free riders • From the Class: • Do have fun and learn a lot • … but Don’t attack each other or treat this project as another “classroom exercise”

13. The G3 Process • Client sustainability projects • Experts and Guest Speakers • Energy, regulation, science, technology, finance • Case Studies • UAlbany, NYSERDA, WalMart • Individual coaching sessions • Team coach, Dr. Ricci, Dr. Mahoney • 4 Presentations + 2 Papers • 100+ Hours Per Person of Work • … all in 12 Days!

14. G3 Results • Client Recommendations: • Multifaceted and integrated • Strategic management, marketing, finance, public policy, human resources, information technology, science, communications • Ability to Deal With: • Pressure … Deadlines … Ambiguity … Clients … Managers … Team members … Coaches … Multiple deliverables for multiple stakeholders … Incredible amount of work

15. Neo-Classical View of Production (without feedback) Input Conversion Output Infrastructure By-Products Resources Production Capital Products

16. Input Conversion Output Internal and External Infrastructure + Pressure to Remarket Waste + + Waste Remediation Remarketed Waste “Bads” Market - + + + Effect of Waste on Resource Replenishment + Waste Pressure to Remediate Waste By-products + + + + Production Waste Effect of Accumulated Waste on Goods Market Demand for Resource + + + + + Production Output + + + Inventory Production Capital Post Production Waste Effect of Natural Capital on Replenishment Natural Capital - + + Production Planning + - + Goods Market + + - + + +/- + + Production Waste Cost Sales Operations Cost - + Resource Use + + Income Natural Capital Replenishment + + - Resource Cost - + Market Price - Profit Reinvestment in Production - Accumulations of Material + + Flows of Material New Investments Flows of Information Remediation Cost + Capital Markets +

17. Counter-Intuitive Results • Fallacy of the Infinite Resource: • Superior returns based on non-renewable or slowly-renewing resources draws in capital • Misleading signals to the market increases extraction and exploitation • If extraction grows faster than replacement/ renewal, market fluctuates and can collapse

18. Counter-Intuitive Results (Cont’d.) • Productivity Speeds Decline: • Improved extraction technology for declining resources speeds failure • Less productive extraction technology preserves declining resources and protects from market disruption and side-effects until replacements are available • Jevons Paradox – Technological progress that increases the efficiency with which a resource is used tends to increase (rather than decrease) the rate of consumption of that resource

19. Counter-Intuitive Results (Cont’d.) • Change Occurs Precipitously and Non-Linearly: • Ability to absorb waste are uncertain • Threshold effects upon reaching capacity can be dramatic • Market can send invalid signals – must understand the underlying system

20. Counter-Intuitive Results (Cont’d.) • Erroneous Forecasts: • Long delays for information • Effects of waste take time to appear • Uncertain and non-linear effects go unnoticed • Oceans as carbon reservoirs • Landfills as waste reservoirs • Overshoots from market momentum • Hard to reduce consumption and industry patterns once they are established

21. Counter-Intuitive Results (Cont’d.) • Correct investments in correct places ripples throughout the entire system: • Abundant opportunities to reduce resources for production processes, energy, by-products, transportation … all of which are avoidable costs! • Waste is an investment without customer value

22. Source: Adapted from http://www.epa.qld.gov.au/publications/p00771aa.pdf/The_business_sustainability_roadmap.pdf Business Sustainability Roadmap Leadership in Business Viability Maturity of Initiatives Leverage Innovations and Market Advantages Continuous Improvement Efficiency Gains Baseline Positions/ Planning Compliance “Triple Bottom Line” Stockholders, Sustainability, Social Responsibility

23. Tentative Schedule • Pre-G3: • January – Manage Expectations: Clients receive information packet and questionnaire; begin gathering information their team will need; begin conversations about what an appropriate project might look like • March – Questionnaire due from the client; project broadly defined and scoped out • Early April – Teams Formed: Assigned clients and given completed client questionnaire, forms, information

24. Tentative Schedule (Cont’d.) • G3: • Friday am – Kick-Off: Science and Motivation; Discussion about what consultants do • 12-1:30 – Student panel (last year’s group) • 2:00-4:30 – System Dynamics exercise • 4:30-6:00 – Teams meet clients and coaches • Weekend – Work - Work - Work on very specific, directive deliverables; build the research component of final report

25. Tentative Schedule (Cont’d.) • G3 (cont’d.): • Monday: Energy • Morning – Panel discussion; Speed dating • Lunch – With coaches • Afternoon – Work time; Skype with J. Mahoney • Tuesday: Policy and Regulation • Morning – Panel discussion; Speed dating • Lunch – With clients or tour of facilities • Afternoon – Work time; Skype with S. Ricci

26. Tentative Schedule (Cont’d.) • G3 (cont’d.): • Wednesday • Morning – Student presentations to faculty • Noon – Conference calls with coaches • Afternoon – Field Trips: Members go to different site • Evening – Teams brief each other • Thursday • Morning – Water and consumption/packaging panel; Speed dating • Afternoon – Sustainability panel; Speed dating

27. Tentative Schedule (Cont’d.) • G3 (cont’d.): • Friday • Morning – Work time • Afternoon – Presentations with coaches and clients • Weekend – Work - Work - Work • Monday • Morning – Presentations to faculty on client recommendations and 2 minute executive summary of white “research” papers (3-5 pages each)

28. Tentative Schedule (Cont’d.) • G3 (cont’d.): • Tuesday – Work Day • Teams meet with Ricci, Mahoney, Coach, Client • Wednesday • Final presentations; Lunch; Group photos

29. Our Own Continuous Improvement and Learning Loop Students move onto summer internships Growing success of G3 We de-brief with T-Cells, Clients, faculty Make adjustment to the G3 system Plan for growth Begin planning for next iteration

30. On-going Challenges to G3 Evaluation of the program Success in the market as indicated by clients Success in the market as indicated by outgoing student placement Success in the market as indicated by incoming students Evaluation of student learning Resources Very resource intensive Resources change with G3 iterations Integration – we live in silos, not on the platform Faculty and administrative commitment Reinforcement in curriculum vs. learning in a standalone project

31. Take Aways Graduate MBAs who embrace holistic thinking and feedback Give students experience recognizing feedback structures Give students a template for identifying investments which are sustainable AND profitable Provide a business-realistic, challenging, experiential and academic program Recognize leadership also has long range vision Develop leaders who respond to Triple Bottom Line

32. Questions?