Wednesday, December 9, 2009

Making Green from Green

Making green from the green – it is the new playing field? Once business can cross into this playing field, the game is on. Once real dollars can be made from environmentalism then it makes environmentalism good for you and good for the business. The sweet smell of profit and differentiation wafts through the air.

From my view, sustainability has been in the main stream small – medium business conversation for the past two years. I hear it louder in 2009 and this planning cycle. The possibility of using Green as a differentiator has been clear for a number of our clients.

Three of our clients are confronted by being the environmental leaders of their respective industries. They were not particularly looking for this distinction. It has been thrust upon them by the inertia of their competition. It has also been generated by their being proactive and keeping up to date.

The asphalt contractors built a new building and their parking lot is paved in water permeable asphalt. This means water runs through it and there is no need for drainage, sewers and the like. This is a big deal environmentally. It’s more expensive however, without the other drainage pipes and construction it is probably cheaper and without the environmental damage and complications.

Will Wal-Mart do parking lots with this stuff? They claim that they are a stand for sustainability. Will the municipal counties? Is the stimulus friendly to this? For me, the answer to all three questions is yes. It is just a matter of timing. It is no longer a question of if- it is now a question of when. It seems like Green from the green could be coming into its own.
Another client specializes in commercial laundry and offers uniforms, wipers and mats. They have built a brand new plant in the middle of Lawndale. With recycled water, heat from the washers being used to reheat water, reusable mats and uniforms, and efficient electrical usage, this plant is very much a green solution. It makes sense because it has dramatically driven down the costs of operating the plant and that holds great interest to the business. Their brand new plant can give them environmental leadership status in Chicago.

The million dollar question: From a business perspective, is that worth anything? Well, in my opinion, it is not a detriment. All things being equal, id anyone anti –environment? The question remains will customers be attracted to and maybe pay for it? Schools might, how about hospitals? Probably not your typical food manufacturer or tool shop or would they?

It is interesting to note that lots of manufacturing has gone to China and Mexico. As a traveler to both regions, let me assure you that in the sections where the American manufacturing relocated, it is very polluted. Is there an opportunity for Chicago manufacturers to distinguish themselves as greener as and therefore more attractive than their overseas counterparts? I think so and I think that this greener type of uniform and mat company can be part of that strategy.

I have watched both of these leadership groups around the table gasp in horror at the thought of that they could be seen as tree huggers. Not such bad a thing, I think, as a recovering hippie who listens to Rush Limbaugh. Apparently, for some executives this “tree hugger” name carries horrific implications. They are appalled that they might be turning into hippies. Again, I am not sure why they are so horrified by this possibility.

I am seeing a generational issue here. Executives in their fifties are environmentally sympathetic yet tree hugger phobic. Employees in their thirties who I will affectionally call Enviro – Fanaticists find great excitement in this development. They are absolutely passionate and excited to move these initiatives forward. So if you are looking at whom to put in charge, this lays it out. It is the older set that will give the OK and the younger set that will do the heavy lifting and both will lead business into the green promise land.

For the small to midsized company, there is opportunity and you need to get this and start taking action. This is not a political statement but one that reflects the reality of the times. Of course, there needs to be authenticity. If there is not real integrity in the actions that your company takes, then customers will see this for what it is. Fakes will be driven out. However ,you do not need to be perfect. That is not expected. This is a new direction for mainstream business and within that, there will be mistakes and false starts.

So what are we suggesting – get started. Make 2010 your green year. Look to see what you can do in the arena of packaging, recycling and making products that are more sustainable. Look to see where, by cutting costs and differentiating your products, you can make green from the green. This is also a direction that your employees will be eager to get on board and that your customers will no doubt embrace if they can see the value.

Let us know what you do and how you do.



Bruce

2 comments:

  1. Hippieism to Limbaughism? Now there's going from the sublime to the ridiculous!

    The only problem with the 60's is that they were too far ahead of their times. People then were doing some things that won't be taken seriously for a hundred years or more. But other things are now within the Overton window, being green and thinking sustainability being easy ones. The harder ones will be replacing corporate neo-monarchism with the democratic and free-market ideals that originally gave capitalism a good name.

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