HIP Metric of the Day - Accountability

October 6, 2011

Leading companies create accountability for sustainability at all levels, especially at the Board and CEO.  How does your enterprise integrate accountability and rewards with successes for sustainable and profitable growth?

ACCOUNTABILITY: At what level is there accountability for Human Impact and Profit?

(a) “We do not require any accountability for human impact within the company”

(b) “Staff leaders or leaders of pilot projects may be accountable for measuring impact”

(c) “Our managers have projects and initiatives that test the impact-to-profit link”

(d) “The Executive team is accountable for integrating impact and profit”

(e) “The Board and CEO mandate human impact and profit.” (e.g. linking bonuses to achieving financial, social and environmental performance goals.)

WORLD-CLASS EXAMPLE:  WALMART

Ensuring that accountability takes place across the entire enterprise requires multiple teams, sponsors, and networks. At Walmart (NYSE: WMT ), teams working on topics like reducing packaging are composed of representatives from inside staff, linkages to suppliers, and external experts, like academics and environmental nonprofits. These "sustainable value networks" (bit.ly/HRobx) are lead by "network captains," who are directors or VPs who help break down barriers to success. A higher level "executive network sponsor" and an enterprise-wide "sustainability team" oversee multiple teams and help provide alignment among multiple goals. On a quarterly basis, the entire company's staff is connected through a videoconference update to review progress toward goals, and celebrate the success of the past three months.  Procurement managers are compensated on the percentage of successful products that also drive environmental sustainability.

Firms seeking to drive profit with this HIP approach set up the corporate infrastructure that provides checks and balances for their Vision. By demanding responsibility, these companies become reach their goals as leaders socially and financially.

WHERE IS ACCOUNTABILITY AT YOUR ENTERPRISE?

How does your firm ensure accountability at all levels – including the Board and CEO --  at your enterprise? Please comment below – and share who in your organization owns the discipline of sustainability.

More information on sustainable management practices and financial alignment are described in The HIP Investor book (http://bit.ly/HIPinvestorBook) .  HIP book excerpts on these themes can be found on Matter Network and syndicated on REUTERS.

R. Paul Herman* created the HIP (Human Impact + Profit) methodology for entrepreneurs, companies and investors worldwide to realize how quantifiable sustainability can drive financial performance.
Herman advises investors, designs HIP portfolios, and manages the HIP 100 Index -- all… [Read more about R. Paul Herman]

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