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Green Team Implementation Plan
- 1. Strategic Steps for a Sustainable Future Daivat Dholakia, Judy Ho, Kim Wong, Teo Tertel
- 5. Reminders: “These Come From Trees”
- 6. AirSpeed Bags For Packaging
- 7. Recycle Cardboard, Metal Shavings, Oil
- 11. Force Field Forces For Forces Against Cost savings No time! Too many projects already and low morale Enhanced reputation and company image Traditional way of doing things “old school” More convenience with digital processes in various departments Limited capital New sources of revenues Deviates attention from core business Preparing for future standards (ISO 14001) Not a business requirement
- 14. Product Catalogs
Hinweis der Redaktion
- MGMT 856 Green Team Assessment, FALL 2010.
- Our team has identified, Oceanic Worldwide, a scuba diving manufacturer headquartered in San Leandro, CA, as our organization of focus for a ‘green team.’ Oceanic has approximately 125 employees within the United States and another 300 employees located worldwide. Our team initially met with Oceanic’s Marketing Director, Doug Krause, and Director of Management Systems, Chauncey Chapman; for a tour of the entire facility which includes manufacturing, assembly labs, customer service, shipping, and administrative offices for the marketing, sales, operations, engineering, accounting, and purchasing departments. On another visit, our team met with Oceanic’s Senior Account Manager, Credit Manager, and Shipping Manager to evaluate their daily operations and help with our team’s assessment on the feasibility of a green team at the company. http://www.oceanicww.com
- Resistance > Non-Resp. > Compliance > Beyond Compliance > Efficiency > Strategic > Sustainable Oceanic’s Current Stage: Compliance Oceanic’s currently in the Compliance stage in the movement toward sustainability, since the company is managing its risks and liabilities to meet regulatory requirements by agencies and governments. Although the company does show signs of progress in attempting to move towards more sustainable operations, the decision factor is the cost associated with evaluating and implementing new practices. Due to financial constraints, Oceanic is unwilling to take on short term costs unless long term cost savings are apparent for the bottom line. Evidence of the company’s current compliance status include: Cardboard boxes, metal shavings, and lubricating oil being recycled through external pick-up arrangements. ISO 9000 certified quality management system which allows the company to decrease operating costs in certifying products for the European markets. Skylights have been installed throughout the warehouse to reduce energy use. Oceanic Buy-Back Program that encourages consumers and dealers to send old Oceanic dive gear back to the headquarters so that it can be properly disposed of. For their efforts, consumers receive a 20% off discount for new Oceanic products while dealers receive a 15% off discount. Lights switches in the administrative offices and conference rooms have been upgraded to motion sensor lighting systems to reduce energy use. Printers throughout the administrative offices have “These Come From Trees” sticker reminders to encourage employees to reduce the amount of paper used for printing and copying. Recycling bins are available for employees to use in the following departments and offices: Credit, Accounting, Marketing, Customer Service and Sales, Shipping, Inventory, Operations, Quality Control, Engineering, and machinery. Fax machines were adjusted so that all received and forwarded fax messages are sent via email and are not printed unless necessary. This e-fax setup has improved department productivity and reduced the cost of printing all faxes. The Sales department has reduced paper usage by converting a daily 200-page sales report to a PDF that is emailed everyday instead. In the summer, Oceanic keeps its shipping bay doors open during work hours to increase natural air flow and cool the facility. Oceanic is also working with five environmentally-friendly organizations: Reef Check, Save the Leatherbacks, Oceana, Ships 2 Reefs, and the Steinhart Aquarium at the California Academy of Sciences. Oceanic has received national recognition for assisting the Steinhart Aquarium with the design of a custom wetsuit for one of their penguins, in which the company covered the cost of materials and labor hours. Employees have invested a lot of time and energy into a beautiful garden area located between the warehouse and employee parking lot. Motivations for the garden include workers’ enjoyment in growing flowers, vegetables, and fruits as well as having the opportunity to be outside rather than in the warehouse all day. Product catalogs for customers to pick up at dealer stores have also been scaled back significantly leading to less paper wastage and a reduction in printing costs. The company has decided to transition from a 53-page high-quality product catalog to a three-fold brochure that highlights the best selling Oceanic products. Certain products (Oceanic Datamask, Oceanic OC1 dive watch) no longer are shipped in boxes with packaging materials; instead these products are protected in hard plastic cases that do not harm the environment and are more cost effective for shipping.
- Benchmarking Oceanic’s sustainability status and initiatives in comparison to industry competitors. While there have been well-known dive magazines providing “green” articles and information for change, there is no dive company support at this point. Oceanic’s immediate involvement would enable the company to establish an environmental leadership position in the dive industry as well as a competitive edge for choosing Oceanic over competitors’ products. Our team identified two companies that are showing signs of green teams; these companies are: Body Glove (http://www.bodyglove.com/eco/) Aqua Lung (http://www.aqualung.com/us/content/view/260/321/) . Body Glove has an ‘Eco Mission’ section on its website that describes the sustainability initiatives that will be implemented as a part of its mission. The ‘Eco Mission’ divides Body Glove’s initiatives into five parts - mission statement, products, history, organizations we support, and take action. Body Glove already has an environmentally-friendly product line and partnerships with other non-profit organizations, including Reef Check, Surfrider Foundation and Heal the Bay. The mission of Body Glove is to become smarter, greener and cleaner but there is no other information provided on the website regarding green team goals or sustainability initiatives. Aqua Lung, a scuba diving equipment manufacturer for more than 60 years now, claims to be the first diving company in the world to receive the ISO 14001 certification from the British Standards Institute. In 2006, Aqua Lung measured the impact of each company process in order to calculate its impact on the environment. As a result of the ISO 14001 certification, the company was able to improve its compliance with regulations and environmental legislation, minimize waste, and reduce: energy use, environmental risks, and operating costs through sustainability initiatives. Aqua Lung also supports a number of non-profit organizations that are involved in environmental education, research and conservation groups, including EarthEcho, Total Pole Airship and Deepsea Under the Pole. With regards to Oceanic, other industry competitors such as Atomic Aquatics, Cressi, Genesis, Mares, ScubaPro, Seaquest, Tusa and XS Scuba do not have any green teams or sustainability initiatives being reported.
- Process of establishing and developing an agenda for the Oceanic green team, and an assessment of the progress made in implementing the green team. To begin the process of establishing an Oceanic green team, our team scheduled a time to tour the entire facility and arrange meetings with employees from various departments to get their feedback on job processes and sustainability initiatives. On Friday, October 8th, 2010, our team met with the Marketing Director and the Director of Management Systems for Oceanic. The Marketing Director gave our team a VIP tour of the Manufacturing Machinery area, Assembly labs, Shipping warehouse, and administrative offices for the Marketing, Sales, Customer Service, Engineering, Credit, Accounting, and Purchasing departments. On Monday, October 25th, 2010, our team met with Oceanic’s Senior Account Manager, Credit Manager, and Shipping Manager to evaluate their daily operations and get more feedback on the feasibility of a green team being established at the company to address the environmental impacts of work processes. The intention of our evaluation meetings with Oceanic managers was aimed at collecting information about work processes and working conditions. By seeing first hand the operations of the facility, our team was able to identify areas of compliance, as well as, areas of Improvement that a green team could address. Meeting with each manager individually allowed our team to gain a better understanding of each manager’s feelings on sustainability and if it is something they would consider getting involved in and support. Here are some of the questions we asked the Oceanic managers during our evaluations: EVALUATION QUESTIONS What is your daily routine for work activities? Are there any day-to-day operations you perform that seem unnecessary or a duplication of work? How about in other departments? What is your current budget? How much of the budget is used in areas you believe can be reduced? Please identify and explain if any. Are there any changes you would like to see? How willing are you yourself to give up personal time to helping the company achieve better resource management? Please describe your level of commitment to sustainability. Do you feel any of your employees in your department would be interested in leading or taking their own time to reduce resource use? Please identify them. Do you think there are any significant opportunities to reduce waste or optimize resource usage in other departments? Please describe them. We experienced immediate resistance and skepticism during our initial facility tour when trying to explain to employees our interest in establishing a green team. To resolve this issue, we adapted our terminology to avoid the negative connotations of “green” and began using “resource efficiency evaluation” and “sustainability assessment” in its place. Doing so allowed our team to have more meaningful conversations with employees; keeping them engaged in answering questions and providing valuable insights. We found most managers to be supportive of getting involved in a green team if monetary incentives were tied into their commitment. Managers also acknowledged the challenges of dedicating time to this green team with their already busy schedules as well as getting the Oceanic President’s support. Managers expressed their concern in making progress on green team goals and sustainability initiatives if certain “old school” employees refused to participate because they didn’t see any value in changing their work activities. Our team decided it would be necessary to replace the generic “green team” title with a title more appropriately aligned with the company’s ocean theme. For this reasons we have suggested the title “New Wave Sustainability Team” (NWST) as a way to reduce the negative connotations associated with a green team and treehugger stereotypes. Our team recommends that the NWST set up barbecues, movie days and engaging guest speaker PowerPoint presentations, to increase employee awareness and education on the benefits of environmentally-responsible practices at Oceanic. During our evaluations, we provided Oceanic managers with the following definition of “sustainable development” to make sure we had a common understanding. (Source: Brundtland Commission's definition of sustainability, http://www.unngosustainability.org/CSD_Definitions%20SD.htm): "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." PROFILE: New Wave Sustainability Team A team of Oceanic employees, selected from different departments and disciplines, committed towards a common goal of facilitating, Developing and reporting environmentally-responsible practices for internal and external business processes. NWST will take a leading role at Oceanic in developing and facilitating the involvement of the company’s strategic partners for combining synergies, resources, experience and coordinating capabilities that contribute to improved environmental performance. NWST will focus on Three Pillars of Success: Education, Awareness, and Action. Starting a green team would enable the company to focus efforts on sustainable activities which include: marketing campaigns, joint ventures with environmental organizations, magazine article coverage, Scuba Board announcements, and NWST merchandise. The dedicated NWST team will provide the necessary education, training, and access to resources so that Oceanic employees can get involved. These efforts will help transition the company into a business that improves the quality of life for its employees, the surrounding community, and the environment overall.
- ‘ Force field’ Analysis assessing the factors working for and against the success of an Oceanic green team. With a successful green team in place, Oceanic will be at the intersection of profitable business practices and good corporate citizenship. The company should facilitate the development of environmentally-responsible solutions and resource efficiency projects that are not harmful to the planet and its inhabitants. Forces For: Cost savings Enhanced reputation and company image by taking responsibility with environment 1st in industry (minimal involvement currently from dive companies) Passionate about protecting the world’s oceans Employees wanting to make a change More convenience with digital processes in shipping, inspections, billing dept “ Right thing to do” Positive PR New sources of revenues More effective use of limited office space and resources Preparing for future standards (ISO 14001) Decrease paperwork physical clutter in offices Growing customer base demanding environmentally friendly products and practices Forces Against: No time! Too many projects/tasks already and low employee morale Traditional way of doing things “old school” (not easy to change behaviors) Conservative culture for change Want proof that “going green” is effective and a cost savings Feel already doing enough Limited capital Resistance to working with “treehuggers” Worry about job security Deviates attention from core business Limited staff availability Not a business requirement People don’t believe or understand the business case as was apparent in pursuing ISO 9000 (Which is currently certified to ease transactions in Europe) No support from top management
- 5) Develop an implementation plan delineating the next steps in establishing an ongoing green team: 1. Present a business case to the Oceanic President for establishing a green team. During the evaluations, we noted that all Oceanic managers were reluctant to voluntarily establish a green team due to time constraints and a lack of formal authority. By first establishing a Sustainability Steering Committee (SSC) that includes managers from Marketing, Sales, Finance, Shipping, as well as the President, we feel the company will have the necessary resources to brainstorm the environmental impacts of all operational activities and identify areas of improvement. The SSC should set the stage for a green team and emphasize not only the advantages of internal improvements but also external factors that affect the company’s reputation. Establishing the NWST would show Oceanic’s commitment to protecting the world’s oceans and set an example for the rest of the dive industry. The NWST should provide trustworthy information, expert training and tools for taking action that other companies can take advantage of to get involved with environmentally-responsible processes. A green team, like the NWST, would provide a framework for success for Oceanic employees; equipping them with the skills necessary to manage the environmental impacts in work processes more effectively. Below is a list of areas identified by Oceanic managers and our team for reducing costs and environmental impacts at the company: Investigate the money Oceanic can generate by handling the recycling of cardboard internally rather than arranging a truck pick-up. Finding a better way to manage excess palettes since the company currently leaves them outside and they are picked up by unknown people. Depending on the number of pallets Oceanic collects throughout the year, the company may be able to profit from wood pallets by reselling them to manufacturers for $2.50-3.50 per palette (http://ezinearticles.com/?How-To-Make-$125-A-Day-Recycling-Wood-Pallets&id=974015) Meet with the facility’s janitor (independent contractor) to make sure recycling and garbage are being separated during collection each night. Employees have complained that even though they have gotten into the habit of recycling, the janitor does not appear to be separating the items during collection. Oceanic needs to enforce the recycling policy with the janitor since the company has placed blue recycling bins in accessible, high-traffic areas and provided clear information about what can and cannot be recycled. Another alternative instead of having a janitor is to consider National Recycle, a company that pays for recycled mixed paper and cardboard. (http://www.nationalrecycle.com/index.htm) Schedule an inventory audit so that Shipping, Purchasing, and Marketing can work together to identify boxes of products and accessories that no longer are being sold through Oceanic and need to be removed from the warehouse inventory. Adjust printers to duplex printing as the default. Encourage IT to look at company computers and make sure they are Energy Star compliant and using effective energy-saving features to reduce electricity costs. Evaluate the benefits of Oceanic getting ISO 14000 or 14001 certified to reduce operational costs and environmental impacts. Revisit the proposal to install solar panels on the warehouse roof as a source of renewable energy that reduces the cost of energy use. Revitalize the Oceanic Buy-Back Program with a promotional campaign so consumers and dealers are encouraged to return old equipment to Oceanic for proper disposal. Also look into what the disposal process is for these returned or broken items sent to Customer Service and identify methods to refurbish and reuse the materials. Look into the cost savings of upgrading all facility lighting to motion sensor lighting, so that lights are automatically shut off when they're not needed. The new CFO at Oceanic has recognized areas of opportunity in the Finance and Credit departments for digital processes that reduce the unnecessary printing and duplication of work activities. Efforts are in place to have the Financial Audit List and Credit Records, starting January 1, 2011, be converted to a digitalized system to eliminate paper use. Engineering inspection documents and Customer Service documents should also be considered since they have been recognized as sources of high paper use. Since Oceanic is transitioning to a low-cost product catalog, we suggest the Marketing department dedicate more time and money to update the Oceanic website since this is where customers will be spending more time. Identifying ways to consolidate the 3 sister companies’ sales forms. Currently, the Purchasing department orders 3 different forms that the Sales department uses for product orders and therefore needs 3 printers that have the forms inserted. By taking the time to look into the design of a new blank form that all 3 sister companies can use (having an area that the printer can add the specific company’s logo), would reduce the need for three printers, separate form orders, and ink expenses. It’s also important to note that invoices are being printed routinely and sent with every order, even though many dealers are asking for the invoices to be emailed as PDF's. Virtual data recovery plans should be integrated to reduce the amount of office paper being printed and filed in rented storage areas. Evaluate how cost efficient it is having the Air Conditioning system for the office area on one master control (during our evaluations, it was noted that despite current renovations there are no plans to change the system.). The Operations, Shipping, and Customer Service departments are evaluating the integration of a UPS system that digitizes manual product-picking processes for packages and digital Return Authorization tags, ensuring more effective and efficient management of items being shipped and returned.(The original quote of $3 million for this integrated system forced Oceanic to put the project on hold and try to reduce the cost of the system’s implementation.). UPS integration would speed up the shipment of orders by using electronic confirmation hand-held devices that increase productivity and minimize shipping incorrect products. Identify new ways to cross-promote with environmentally-friendly organizations for an enhanced brand reputation and greater impact on raising environmental awareness. Conduct a life-cycle assessment or activity-cost based assessment to evaluate the supply chain (Mapping the environmental impacts of business: Raw materials > Suppliers > Business itself > Markets > End-of-life disposition)
- 2. Select well-positioned members for the NWST from a cross-section of departments. The SSC should work closely with Oceanic’s President to identify prospective members for the NWST and determine the level of formal authority and incentives (measured in performance reviews) each member will receive for their involvement. The goal is to craft a small cross-disciplined green team of 3 to 5 members; carefully selected by the SSC based on their backgrounds and passion for balancing business activities with environmentally-responsible practices. The SSC should establish meeting roles, processes, and ground rules that provide a framework for identifying, assigning, monitoring and reporting the status of the NWST sustainability programs and processes. To attract prospective members for the NWST, the SSC should schedule sustainability presentations that stress the need for environmentally-responsible alignment with Oceanic’s business goals, emphasizing the cost reductions and improved business efficiency and productivity by streamlining work activities. The SSC should also emphasize to prospective NWST members that Oceanic has the tools, time, and talent to be an industry leader in environmentally-responsible business practices. The SSC should also identify one individual to act as the NWST Sustainability Coordinator that leads, monitors and assigns projects to the NWST members. This individual should have some sustainability management expertise, excellent oral and written communication skills, as well as, have a determined attitude for championing sustainability initiatives. A strong leader of this nature will influence others to have a mindset that: “We are looking for solutions, not obstacles.” These characteristics moving forward, should be included by HR in job description requirements to further institutionalize the NWST job roles. 3. Establish a SSC that lays out the framework for a future NWST at Oceanic. The SSC will be used as a platform for the NWST launch. The SSC should meet weekly for an hour to review the list of sustainability projects being planned, underway, or finalized. The SSC should prioritize the list of projects that the NWST will work on with “low hanging fruit” projects at the top of the list. Having the NWST focus on these projects will give the team instant credibility from employees since these projects have easily attainable goals that can be accomplished with minimal effort. Another step that the NWST can take to achieve company-wide buy-in is to implement changes that do not cost more money than would be expected for the current activities. The SSC will be responsible for creating performance metrics that monitor the progress of NWST projects, making sure to allow some flexibility in meeting targeted goals and objectives. The SCC should conduct financial audits for the proposed sustainable initiatives to determine the true cost of resources (reviewing departmental budgets) and figure out what is expected of the NWST with regards to ‘what gets measured and what gets done.’ The SCC will need to assess the return-on-investment for capital-intensive projects and estimate an effective operating budget for financing NWST projects. Once the NWST is launched, the SCC should assure members of the NWST that they will have adequate time, money, and power to manage sustainability projects and that any levels of resistance should be reported to the SCC immediately. Transitioning from the SCC to the NWST should be a good indicator that a framework is in place for identifying, prioritizing, and addressing work processes based on their environmental impacts and levels of resource allocation.
- PHASE 1 : AWARENESS This phase should raise company awareness to compliance practices already in place as well as the need for the SCC to institutionalize environmentally-responsible practices through the use of the green team, NWST. The NWST should touch on the company’s current practices which include: having “Made from Trees” sticker reminders on printers, recycling bins made available for janitorial collection, and the Purchasing department’s reduction in office supplies. The current work activities and ways to improve them for added productivity and cost-savings should be addressed in this phase, such as going to digital processes instead of printing documents. Oceanic should also have the President inform the entire company through meetings and emails that the company is committing to a green team as a way to improve business practices and performance. PHASE 2 EDUCATION The NWST should seek to establish an educational experience for employees that helps them understand the benefits of taking steps toward sustainability. The NWST should work with top management to schedule blocks of time for employees to learn more about environmental conservation and how to get involved. The Plastiki expedition (http://www.theplastiki.com), Shark Water documentary (http://www.sharkwater.com), along with ways companies are getting involved and making a difference with their environmental impact should be discussed. Bulletin boards and and posting areas should be used to promote the NWST and provide facts and trivia using environmental graphics. The NWST should explain ways that employees can commit to environmentally-friendly practices for work and home that save on money and reduce environmental footprints. PHASE 3 ACTION The action phase should be used by the NWST to determine what the budget will be and the time it will take to execute NWST sustainability initiatives. These new projects should have metrics for progress made as well as be monitored and reported routinely to top management. The NWST will need to work closely with top management and departments to identify and prioritize all projects based on the resources (money, time, manpower) needed to meet targets and goals. By raising awareness and educating employees, taking action on sustainability initiatives should be a smoother process and not encounter as much resistance. Initiatives would include introducing a paperless process for the Finance, Accounting, and Credit departments, as well as in other departments such as Customer Service and Sales. Purchasing Department The NWST should work with the Purchasing department on “closing the loop” and introducing purchasing policies that require environmentally-friendly products. Purchasing should look into ordering 100% post-consumer recycled paper, furniture made from recycled materials, and Energy Star-rated light bulbs and fixtures (which use at least two-thirds less energy than regular lighting). IT Department The NWST should work with IT to identify old equipment (computers/monitors/printers) that should be upgraded for energy-savings as well as the default settings for printers (set to duplex printing) and computer sleep modes. Maximizing computer efficiency (Computers in the business sector unnecessarily waste $1 billion worth of electricity a year.) by making a habit of turning off computers and unplugging power strips during non-work hours. During the day, IT should make sure employees have their computer monitors dim instead of going to a screen saver as well as have computers set to go to sleep automatically during short breaks (which can cut energy use by 70%). Marketing Department The NWST should work with departments on a variety of environmentally-friendly solutions from day-to-day office tasks to marketing campaigns over a period of one year - all focused on bringing awareness and opportunities to take action in protecting the world’s oceans. The NWST marketing strategy would emphasize the need for human responsibility in the care of our planet through environmentally-friendly solutions. Ocean protection advocates can support the cause by joining the Oceanic NWST movement via co-op environmental programs and marketing campaigns promoted on Oceanic’s website and Facebook. Empowering employees and consumers to take action and understand that their efforts are valuable in making a difference with regards to environmental impacts will bring them pleasure and satisfaction. Human Resources Once NWST has identified the appropriate sustainability initiatives it will implement, NWST should work with the human resource department and discuss ways to integrate these initiatives into various job descriptions. For example, a job description for a purchasing position might require a candidate to implement a plan that would increase purchase of post-consumer paper by a certain percentage. Additionally, department managers could use NWST initiatives as a metric to grade each employees’ performance evaluation. This method would hold every employee accountable towards reaching a company-wide goal. By tying sustainability initiatives directly to employee performance, financial incentives are automatically built-in. International advocacy for environmental conservation has become a popular message over the past 10 years. Our team’s market research shows that there is a minor influence in the dive industry in taking responsibility for the damages done to the ocean because of human impacts. Providing supporters with educational pieces and the ability to take action are essential in establishing a successful NWST program at Oceanic. It is again important to remember that the company has the tools, time, and talent to make a significant impact in global efforts to protect the environment. The NWST merchandise should be made available and used to leverage the NWST program by showing Oceanic’s contribution towards ecology, the environment and sustainability. As a gift to each employee, NWST should order Klean Kanteen bottles (http://www.kleankanteen.com ) for all employees at the headquarters and use this as a first step to gain their commitment. A section of Oceanic’s website should be dedicated to the NWST and provide a one-stop connection to educational resources, awareness, and tools for visitors and researchers who are interested in taking action. The Marketing department should work with environmental organizations on cross-promotional campaigns that show Oceanic’s support for environmental conservation and protection. Efforts to revitalizing the Oceanic Buy-Back dive gear recycling program should also be under consideration for increased sales. Another key effort by Marketing is to work with the Purchasing and Shipping departments to identify old inventory that needs to cleared out and/or donated so that the company no longer needs to rent overflow cargo containers for inventory. It was also brought to our attention that product manuals, merchandising items, promotional materials, catalogs, and brochures have a tendency to be ordered in excessive quantities and not tracked on a routine basis to see if future order quantities should be adjusted. This seems to be an inventory management and communication issue where no one is being held accountable for tracking inventory levels. There are some instances where products (such as Oceanic BCs) are ordered by the Purchasing department and yet are no longer on the price list and therefore are being stored but not sold! It would be in Oceanic’s best interest to address this for increased productivity during end-of-year inventory counts (less overtime reduces labor costs) and more space for current product inventories.
- Monitoring and Reporting the progress of the NWST sustainability initiatives. Routine check-ins with Oceanic’s President will be required to ensure the SCC and the NWST remain aligned with the company’s business goals. Schedule meetings between the NWST and departments should also be conducted to document the current progress of initiatives and identify if there are more ways to improve work processes. Quarterly performance reviews should be conducted to measure the progress made by employees on meeting targeted goals for sustainability initiatives and reward them if their contributions were valuable to improving the company’s environmental performance.