EM group-6

8/7/2019 EM group-6

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8/7/2019 EM group-6


Presentation on

Business Implementation Of environment Management

Presented by:Group-6

AbhishekSharma

Ankur

8/7/2019 EM group-6


Introduction

ØNew corporate viewØDeal more effectively with environment concerns

ØVoluntary actions by large firms

ØProactive approacho Procter &Gamble: Justifying Environmental

Actions

üLink environment actions to cost benefitassessments

üOwn solutions to environment problems

üTrust with local communities

üReduce its use of chlorine and ammoniumnitrogen

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oVolvo: Strategic Goal-Setting and Target setting

üVolvo environmental board set goals

compatible with strategic prioritiesüEnvironmental specialists worked together

with other functions

üBroader strategic goal

ü

ü

ü

ü

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Nine devices to integrate environmental

concerns:

ØIdentify Stakeholders and Related GoalsoDesire to integrate environmental concerns with

core concerns

o

Customers want “green products”o Fear of chemical effects among employees and

locals

o Cost effective accommodation

o Procter & Gamble: Community interview programüClear picture of local image

üHow environmental concerns affects coreinterests

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ØMaintain Senior Leadership Supporto Responsibility for improved environmental

management

o Environmental performance part of corporate

visiono Integrating actions with health and safety functions

oHewlett-Packard: strategic Metrics for Decisionmaking

ü“ TQRDC-E”oVolvo : Environmental Competency Center

üResponsible for property development,product planning, customer software and

hardware developmentüEnvironmental effects on designs

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ØGive environmental champions day-to-dayresponsibilityoWork fulltime on environmental issues

o

“Champions” find and maintain the right balanceo Come from traditional management track

oHewlett-Packard: Environmental StewardshipProgram

üHighly decentralized and entrepreneurialorganization

ü75-100 champions in normal businessprocess

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ØBuild Coalitions With Other Internal InterestsoTo give environmental concerns appropriate

weight

üE.g.: When customers want “greenproducts”

üEmissions account for significantoperating costs

üWDWR:Cost Savings Through“Environmentally”

oPollution preventioninvestments

o20 money saving examples

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Ø Integrate Relevant Elements Of the Value Chaino Identify each activity that contributes to the provision

of the product

o What all activities to keep in house and what all to co-

ordinate with external environmento DuPont and Olin: Views on internal and external

sources

o IBM and Ford: Views on using ISO 14001 to quality

suppliers

o P&G : Influencing suppliers’ environmentalperformance

üSustainable forestry to protect local hardwood

forests

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ØState Environmental Goals In Simple, SpecificTerms

o E.g.: for pollution prevention what a manager should be willing to sacrifice

o “win-win” answer o Ford : Environmental Performance targets in the

Business Plan

üCertify all manufacturing plants toISO14001

üUse 90%of returnable containers by 2001

üReduce paint shop emissions by 60g/m

üReduce energy wastage by 1% every year

•

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ØUse Cross-functional Teams For SpecificDecisions, projects And Processes

o

Environmental specialists should have broader capabilities

oOlin : Team Based Decision making

üEmphasized process over functions

üPortion of team members’ pay onperformance

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ØDevelop Tools To Identify Firm Wide Effects Of Environmentally Related Activitieso “Externalities” exist within each firm

o

E.g. : life-cycle assessmento E.g. : cost-benefit analysis

oVolvo: Environmental priorities strategies system

üMethodology and database for decision

makingüLife cycle analysis

üEffects on human health and environment

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§ Balance centralization and decentralization

• Effective firms try to bring the balancebetween centralization anddecentralization.

•

Integration of core activities withenvironment management.

• When a firm succeeds in integrating itsenvironmental and core management

concerns , the implementation of environment management policybecomes an integral part of day-to-day management.

• Example- Volvo

i ibili i l l

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Assign responsibilities clearly throughout the organization

•

• It is because it is not right to say that

Environment Management iseveryone’s responsibility.

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§ Design metrics to motivate theright behaviour

• Example-it may include observation ormeasurement of how environmentaldamage is being reduced with theimprovement in production process ,etc.

•

§ Use incentives to motivate the right behavior

§

•

Metrics can motivate the behavior only if linked to incentives

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Manage failures to disincentivesfor risk-taking

• Challenge of dealing with failedexperiments associated with pollutioncontrol.

•

• Following questions should be consideredwhile designing environmentalmanagement system:-

• How big a failure/mistake is accepted?• How many failures are acceptable?• What kind of decision screens can reduce

the probability of failure without undulydiscouraging experimentation?

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Empower employees withformal training

• Factual presentations, emotionalappeals, and open discussion groupson importance of environmental

issues.• Cross functional teams to train

employees in use of these methods.

•

Developing environmental specialistsfor environmental decision-making.

• Firms introducing new pollutionprevention

•

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Empower employees withformal training

programs or adopting new analytic tools.• VOLVO TRAINING PROGRAM (by

colleagues)

• Session 1- scared and shockedattendees.

• Session 2- how transportation affects

the environment.• Session 3- on Volvos role in

enviornment.

•

e e op a suppor e

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eve op a suppor veorganizational context fortools

• Environmental audits offers extensivevisibility within the firm ,helps seniorleadership senior leadership

appreciate the pervasiveness of environmental effects in their coreactivities.

• Resource, energy and material trackingsystems.

• Accounting systems that linkenvironmental effects to various

decisions.

eve op a suppor ve

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eve op a suppor veorganizational context fortools

• Engineering models of core productionand remediation activities that helpfirms compare the effects of alternate

environmental actions.

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Communicate continuouslyin all directions

• Conveys the commitment to effectiveenvironmental management to thewhole organization.

•Conveys the knowledge about the

realized performance of environmental management.

•

Conveys info on successes and failuresfrom one business unit to another tosupport learning across organization.

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Communicate continuouslyin all directions

• Promotes info exchange with scientificcommunity and nationalenvironmental groups.

•Conveys info to local communities

including employees who live there.

• Manage relationships with the

stakeholders.• Benchmark to promote continuous

improvement.

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CENTARL IMPLEMENTATIONCHALLENGES 2

• Radical organizational change takes along time

• Firms choose specific changes that they

can build on future learning• Activity at one plant acts as a seed for

extending change analogous

activities at other plants.• To identify such seed activities seek

lower risk, higher payoffs first.

se orma qua y

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se orma qua yframeworks to implementan integration policy

• Total quality management (TQM) toplan and implement the integration of EM.

•

TQM a three part technique: - identify firms key stakeholdersand what each wants.

- identify processes and map their

interrelationships. - Work continuously to remove

waste.

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Available formal qualityframeworks

• ISO 9000 is a family of auditing toolsthat ISO developed to define exactlywhat a firm has to do to implement

real TQM.• ISO certifies third-party auditors to

determine a firm has in fact changedits internal proesses in a way that itimplements TQM.

- U.S Automobile industry issuedQS9000 as supplier qualification

standards.

il bl f l li

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Available formal qualityframeworks

• TQM concepts to EM issues developedthe audit based guidelines called ISO14000.

•

ISO reached on specific guidelines asISO 14001 in 1996.

• Improves effectiveness and efficiencies

of the organizations environmentalmanagement systems.

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Queries ???

Documents

EM group-6