A recap of the Corporate Member meeting of Sustainable Brands on 9/26/13 - New Metrics

1. SB MEMBER MEETING
New Metrics – SAP, September 26, 2013

2. Meeting Objective
 To deepen member insight into sustainable
business/brand KPI and goal-setting best, and
‘next’ practices

3. Agenda
 9:15-9:45 -- Intros
 9:45-10:30 – Deriving SROI – Witold Henisz
 10:30-10:45 – Break
 10:45-11:45 – Exploring the Gold Standard in
Sustainability Performance Metrics – Bob Willard
 11:45-12:30 – Talk/Tour, Deepak Senior Vice
President, Head of Corporate Strategy, SAP
 12:30-1:30 – lunch
 1:30-5 – Open discussion, current best practices,
needs

4. Attending
 David Lear - Dell, Inc.
 Roberta Barbieri - Diageo
 Cathy Combs - Eastman
 Diane O'Sullivan - Eastman Performance Films
 Coleman Bigelow - Johnson & Johnson
 Kenneth Srebnik - Nissan North America
 Thomas Odenwald - SAP
 Annie Hou - The Coca-Cola Company
 Wendell Wilson - The Coca-Cola Company
 Alex Hausman - The Walt Disney Company
 Christine Kennedy - Unilever
 Arnold Barlow - UPS

5. Current State (1 of 2)
 Attending members reported currently
managing a wide range of KPI’s – from Coke,
on one hand, who is managing 12 KPI’s, 80%
of them tied back to financial value, to others
who are managing as many as 65 KPI’s, few if
any of which are correlated to ROI or reported
regularly to C-Suite

6. Current State (2 of 2)
 Attending members agree that setting
aspirational/stretch goals net better results than
safe, incremental goals, but significant obstacles
remain. Major challenges:
 Hard to choose between time-bound and open-ended goals
 Concerns over not reaching goals in a reasonable time frame
 Hard to quantify and communicate ROI of reaching goals
 Scope of goals may be beyond direct control
 Missing compensation incentives for key partners
 Missing executive support
 Implications for business model innovation

7. Core Discussion Takeaways
 Importance of starting with science-based, end-state vision first, then
establishing metrics and milestones from there
 Choose fewer, rather than more, KPI’s and seek to link them to financial
value explicitly
 Social impact may be perceived as hard to quantify or too expensive to
research, but new tools and modeling techniques alleviate many concerns
 Aligned incentives are key to driving success – Make failure safe,
worthwhile. Attach value to learning. For example, if bonuses tied to
meeting results, give credit for articulated learning from failure that clarifies
what/why to do differently
 Quantifying impact of sust’y work and/or global citizenship on reputation is
critical, yet no satisfactory methodology exists; breakthrough needed
 POLL: Is there interest in a monthly or quarterly member call on
metrics-related issues?

8. Tools & Resources
 Slides from New Metrics 2013 Conference
 SROI scenario modeling using probabilistic
analysis
 FV Tool used by Witold Henisz
 HDR SROI Analysis
 Monetizing social impact
 Bea Boccalandro
 Monetizing the value of human capital
 Interface and Route2
 Quantifying the ROI of sustainability strategies
 The Sustainability Advantage toolset by Bob
Willard

9. Speaker Slides
 Witold’s Henisz slides: Financial Returns to
Stakeholder Capital: Tying Community
Investment Back to the Balance Sheet
 Bob Willard’s slides: A Look at a Proposed
Gold-Standard Benchmark for Sustainability
Performance
 Password to access slides: sbnewmetrics13