In sustainability, we nearly always use the term benchmarking in terms of comparing our assets or operations against others, to determine how we stack up. What is normal, and how do we compare to normal. However, in business, there is another form of benchmarking that can be equally useful. Benchmarking is more than just comparing metrics, it also entails comparing business processes and leveraging best practices from other applications.
In ESG, we talk about the importance of telling our story. I often point out when speaking with clients that they are likely doing some very positive things, however, there may be opportunities to improve how we tell our story. But what exactly does that mean, and is there a better way to tell that story?
In the field of product management, there is a best practice called “User Story Mapping” which consists of a visual exercise in which product managers and their development teams define the work that needs to occur, the priority or steps required, and the details needed to “tell the story” of their product is attempting to address. Jeff Patton is often credited with developing the technique, in his book User Story Mapping. The practice is a best practice in organizing and laying out the strategy which has applications beyond product management.
Jumping back to ESG, I have written previously on the best practices for starting an ESG program. It is important to first look within and really contemplate why your organization feels it needs an ESG program. An equally important initial step is to begin gathering your data, it is after all the baseline that you will measure your program against. With these initial internal steps underway, the best practice is to conduct a Materiality Assessment. This important exercise can help an organization determine which ESG issues matter most to its stakeholders. Through a series of interviews and surveys, we engage stakeholders to learn what is important, or material, to the organization. This exercise helps underpin what is important to do, and may even provide a roadmap of what needs to be done.
But with your Materiality Matrix in hand, what is the next step? You have the why answered and potentially have identified the goals, but how will you accomplish those goals? What steps need to be taken, and in what order to meet those goals?
Now is the time to build the “Big Story” - to connect the goals of our stakeholders to the steps needed to realize those goals. Here is where I propose we lean into Story Mapping to help uncover the requirements of those goals, understand any prerequisites or dependencies, and provide the priority of the solutions.
Planning for your ESG strategy in some ways can be compared to asking people to make an egg. Eggs can be made in many different ways. Just because you make it the way you know how to make it doesn’t mean it will be the way your audience will want it. Some stakeholders may want the egg to be filling and incorporated into a complete meal. Others may want the egg to be solid so they can eat it with a fork. Others still may be focused on taste and want the egg highly seasoned so they don’t need to add seasoning to it. Perhaps the cook wants the egg complete in 10 minutes, so it can be prepared quickly or with fewer ingredients, so it can be made easier. How do you make the egg that meets the goals of your stakeholders?
For starters, we need to define exactly what the stakeholder expectations are - what are the goals? We also need to make sure that we have identified who the stakeholders are. In my egg example, this is answering some of those questions about what you want in an egg before we prepare it. What is the outcome you desire? In terms of ESG best practices, how your audience wants the egg to turn out is the Materiality Matrix.
In developing a Story Map, we would define these expectations as requirements and write down these goals on sticky notes - one requirement or goal per note. We lay those notes out horizontally in what you might call “the big story,” which is a step-by-step journey that describes the ESG program and how it meets the user goals. This is the backbone of our program.
On the vertical plane, we are indicating priority. Here we take the program elements and identify dependencies and prerequisites - allowing us to place them in an order that leads to the development of a logical strategy. We may add activities that need to occur, the details needed to reach each goal, and when we expect that goal to be launched.
The story map provides a visual reference for the people who are needed for engagement and program success. Bringing together purpose, governance, leadership, talent, operating models, and culture, the foundation of your ESG program.
Korn Ferry, an ESG consultancy, has laid 3 steps in a similar strategy that they refer to as an action map. Those steps:
Review - Review your Materiality study - or if you haven’t done one yet, do a Materiality Study. The study should identify the most pressing and important priorities based on the input of your stakeholders, both internal and external. This is also an ideal time to review your organization’s existing approach to ESG.
Assess - Reflecting on what is material, this is where we match up the goals with the ideas or strategies needed to realize the goal. Some additional considerations include:
How will the organization address how to collaborate together to realize the goal?
What risks does the goal expose the organization to and what are the risks if it is not addressed?
Who is responsible for reaching the goal, and are there any dependencies or steps that need to be taken before that goal can be reached?
What resources are required to reach the goal?
During the assessment we are looking for the key insights in each of the following priority areas, these insights will inform the next step, strategy. The priority areas include:
Board alignment, capability & governance
Operating model, organizational structure, and accountability
Leadership model
Culture Alignment
Executive goals and reinforcement
Communications (internal and external)
ESG Maturity
Strategy - tapping back into that Stephen Covey Habit, “begin with the end in mind,” what is the end state that the program intends to deliver. At the end of the roadmap, what does success look like? Perhaps it is reporting into or alignment with a particular framework? What are the people implications that result from accomplishing this goal?
Action - These are the specific actions that are needed to facilitate the strategy and realize the goal. Specific short-term and long-term steps will enable success to be realized. These actions can be expressed within the concept of the priority areas identified in step 2.
In terms of board alignment, capability, and governance - what actions need to be acted on to accomplish the goal, etc.
Just as in User Story Mapping, in ESG Story Mapping we are developing a visual representation of the stakeholders’ journey towards realization of their ESG Goals and breaking that story down into its individual parts. Doing so assists us in designing a program that is focused on the desired outcomes, it is focused on value, prioritizes actions, drives clear requirements, delivers value, exposes risks and dependencies, and builds consensus for the strategy.
Overall, the ESG Story mapping feeds the Strategic Roadmap which feeds Actions & KPIs allowing for progress reporting and building an effective ESG program. This circular process can grow with the organization’s ESG maturity and can be updated over time.
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Stay well!
Chris Laughman is the ThirtyNine Blog author, a blog dedicated to reducing the impact of the built environment. When not blogging, Chris is helping the real estate industry reduce energy and water impact as the Vice President of Sustainability for Conservice, the Utility Experts. Whether Multifamily, Single Family, Student Housing, Commercial, or Military, we simplify utility billing and expense management by doing it for you. Our insight into your utility consumption provides an opportunity to identify risks. Leveraging innovation and experience we ignite solutions with real impacts and track performance to ensure the trendline stays laser-focused on the goal. At Conservice we have developed a true bill-to-boardroom solution to help truly make a difference. We have before us a tremendous opportunity. Standing shoulder to shoulder, we will get this done. Contact me at claughman@conservice.com for more information.
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