Getting It Done
Resource effective-
ness and sustainabili-
ty must be integrated into day-to-day decision making

Performance

What does it take to be successful as a company? A clear vision and strategy are essential, but ultimately, the key to success is execution. To effectively execute a strategy, a company needs to have the right people, culture, resources, processes & systems, and a degree of luck. Excellence takes a lot of skill, time and perseverance. To achieve resource effectiveness, companies often face additional challenges. For example, managers who are used to focusing on short term financial performance now also need to deliver progress on longer term non-financial indicators, such as reduction of greenhouse gas emissions, and they need to successfully manage the trade-offs between these two objectives.

The key is to integrate resource effectiveness and sustainability into day-to-day decision making. The best way to achieve this is by fully incorporating these topics into standard business practices: defining KPI’s, setting targets, assigning responsibilities and allocating budgets, involving employees, monitoring progress and rewarding performance.


Target Setting
What gets measured, gets managed. The strategy and resource effectiveness transformation plan need to be translated into concrete targets for management, by following a four-step process. Read more


Processes and Systems
After setting the targets, the next step is to assign the responsibilities for implementation. Line management should be held accountable for achieving the objectives, and there should be a clear link to compensation. A growing number of companies have adapted bonus schemes to include non-financial metrics, either internal KPIs or external rankings, such as the Dow Jones Sustainability Index. Read more


External Reporting
As discussed under Profile, it is important for companies to communicate honestly and openly about resource effectiveness and sustainability, to satisfy the information needs of their stakeholders, i.e. investors, customers, employees, NGOs and governments. Companies provide this information in three ways: through strategies and plans, announcement of major initiatives, and updates on performance. Read more