This presentation provides an overview of the reputation risks facing organisations and how they can be minimised through a sustainable change delivery assessment.

1. Identifying risk and innovation
through Sustainable Change
Delivery Assessments
Michael Young
BSc, MBA, IPMA Level A©, CPPD, FAIPM, FAPM,
FAIM, MACS(Snr), MCIPS, CP
Adjunct Associate Professor
www.gpm.world

2. 2

3. 3

4. Who or what is GPM?
• Sustainable Project Management Professional
Development Organization
• Services in over 145 Countries
• Training through partners (Corp., University, Association)
• Certification of individuals (GPM-b™, GPM®, and GPM-m™)
• Methodology (PRiSM)
• Organizational Sustainability Assessments (PSM3™)
• Centre of Excellence
• Standards (P5)
Walking the Talk

5. 2010
Just a
laptop and
an idea
Launched
certification
system
2013 Became a signatory
to the UN Global Compact
Participated in first UN
Summit on Sustainable
Development
Became Signatory to UN
Business for Peace
The GPM Reference Guide
to Sustainability in Project
Management Published
The GPM-b and GPM-m
Certifications are
introduced
Received IPMA
Achievement Award
Received World HRD
Award
Started the
University
Partner Program
100 Countries Represented 130 Countries Represented 145 Countries
PSM3 Assessment
Model Launched
Signed MoU with
IPMA and GAPPS
Signed MoU with
UNOPS
Attended UN +15
Summit and
General Assembly
Attended COP21 at
request of UN
A whole lot more
Launched the GPM
Sustainability Centre of
Excellence
Signed UN Anti-Corruption
Call to Action and
contributed to the 10th
Principal Summit
Launched Sustainable
Agile Training
Launched Sustainable
PRINCE2 and MoU with
APMG
Published the GPM P5
Standard for Sustainability
in Project Management
(English, Spanish, Dutch,
Mandarin)
Regional Offices
Established
PRiSM
Methodology
Established
Training
Programs
Established
Awards Program
Launched
2011 20122009 2013 2014 2015

6. Where GPM operates

7. The P5™ Standard for Sustainability in Project
Management

8. So what’s the problem?

9. Source: Antonio Nieto-Rodriguez (2012): The Focused Organization, Gower, London

10. Impacts Across the Value Chain
Raw materials Suppliers
Inbound
Logistics
Company
Operations
Distribution
Product
Use
Product
End of Life
Increasing Positive Impact
Minimizing Negative Impact

11. What’s at risk?
Source: http://www.mckinsey.com/insights/consumer_and_retail/getting_the_most_out_of_your_sustainability_program
Research Shows that the value from sustainability challenges is substantial
Challenge Example
Regulation/Reputation
Rising operating costs
Supply-chain disruption
• Restricted license to operate
• Reputational damage based on perceived
misuse of resources
• Raw-material costs driven up by supply/demand
• True cost of water or carbon reflected in prices
• Production delay or cancellation due to lack of
access
• Especially significant for local resources – water,
power
Potential Impact % *EBITDA
70
60
25
*Earnings, interest, taxes, depreciation, and amortization

12. Brand and reputation damage
Damage to reputation/brand is the top risk facing organisations in 2015
AON Global Risk Management Survey
It takes 20 years to build a reputation and 5 minutes to destroy it
Warren Buffett
Once reputation damage has occurred, it can take the share price at least two
years to recover the lost value.
Georgia Tech study
• The industry sector is exposed to a number of unknown or unidentified
social, environmental and economic risks, often in the supply chain, which
can have a significant impact of brand image and reputation

13. The high profile supply chain failures of recent times have inflicted heavy
reputational damage on some leading global brands , and investors
want to insure against such a risk
ACCSR Whitepaper: First five steps to a sustainable supply chain

14. How would the following disclosures about a
prospective investment affect your investment
decisions?
12%
15%
73%
15%
12%
73%
Risk or history of poor Environmental Performance.
2014 2015
Reconsider Investment No Chance in investment Plan Rule out immediately

15. How would the following disclosures about a
prospective investment affect your investment
decisions?
12%
13%
75%
9%
15%
76%
Risk in supply chain not addressed
2014 2015
Reconsider Investment No Chance in investment Plan Rule out immediately

16. How would the following disclosures about a
prospective investment affect your investment
decisions?
22%
24%
54%
19%
18%
63%
Human rights risk from operations
2014 2015
Reconsider Investment No Chance in investment Plan Rule out immediately

17. Changing mindsets and expectations
Employment
• A recent survey of more than 3,700 students at top business schools
showed nearly half would chose a lower salary if it meant working for a
company with better environmental environmental practices.
• About 20% also said they would not work for a company with bad
environmental practices despite what the salary was.
Products
• 87% of consumers in the United States believe that companies should value
the interests of society at least as much as strict business interests.
• Millennials are twice as likely to buy from brands with good management of
environmental and social issues, and twice as likely to check product
packaging for sustainability performance.
Source: Yale University, World Business Council for Sustainable Development and the Global Network for Advanced Management survey, 2015

18. Executives Speak Up
77%
Action on climate change is an
urgent priority for my business
Climate change will create
opportunities for growth and
innovation for my company in
the next 3 - 5 years
80%
Data based on survey of 75 CEOs of Caring for Climate participant companies; data represents proportion of respondents selecting “agree” and “strongly agree”.
62%
CEOs believe they can not
quantify the value or their
sustainability initiatives

19. CSR projects are not delivering value
• Companies are hampered by poor coordination and a lack of logic
connecting their various programs
• CSR programs are often initiated and run in an uncoordinated way by a
variety of internal managers
• Best-practices companies operate CSR programs that are aligned with:
• the companies’ business purpose
• the values of the companies’ important stakeholders,
• the needs of the communities in which the companies operate
Source: https://hbr.org/2015/01/the-truth-about-csr

20. And the net result…
• Shareholder backlash
• Increased cost of capital
• Lower product sales and reduced consumer demand
• Reduction in share price and company valuation (listed company)
• Loss of donors, sponsors and supporters (not for profit)
• Damaged brand and reputation
• Missed opportunities to save costs
As the CEO, do you want this to happen on your watch?

21. Sustainable Change
Delivery
• Aims to maximize the social,
economic and environmental
value that the change initiative’s
investment objectives or resulting
asset brings.
• It also aims to minimize negative
impact (economic social and
environmental) from the method
and technique.
RISK
CapitalBenefits
Brand
Opportunity
Costs
Threats
Rumors/
Greenwashing

22. Sustainable Change Delivery Assessments
22
• Projects are vehicles for change – much easier
to implement sustainability through projects
• Using the urgency or driver of organizational
change
• GPM with PSM3 raises awareness of:
• what sustainability is,
• what areas of sustainability are important and should be
focused on,
• where they believe they are in these key areas, and
• where they should invest limited time, capital and
resources
• Identify key sustainability risks in the value chain

23. What is PSM3?

24. Projects
Product Impacts
Objectives & Efforts | Lifespan & Servicing
Process Impacts
Maturity and Efficiency
Society
(People)
Environmental
(Planet)
Economic
(Profit)
Labor Practices
& Decent Work
Society and
Customers
Human Rights Ethical Behavior Transport Energy Water Waste
Return on
Investment
Business Agility
Economic
Stimulation
Employment
Labor/
Management
Relations
Health and
Safety
Training and
Education
Organizational
Learning
Diversity and
Equal
Opportunity
Trained
Professional
Emigration
Community
Support
Job/
Unemployment
Public Policy/
Compliance
Customer Health
and Safety
Market
Communications
and Advertising
Customer
Privacy
Cultural Impact
Non-
Discrimination
Freedom of
Association
Child Labor
Forced or
Compulsory
Labor
Investment
and
Procurement
Practices
Bribery and
Corruption
Anti-
Competitive
Behavior
Digital
Communicati
on
Traveling
Transport
Energy Used
Clean Energy
Return
Renewable
Energy
Water
Quality
Water
Consumption
Water
Displacement
Recycling
Practices
End of life
disposal/
reusability
Waste
Disposal
Co2
emissions
Air Quality
Noise
Pollution
Good
Neighbor
Benefit Cost
Ratio
Direct Financial
Benefits
Sustainable
Return on
Investment
Net Present
Value
Flexibility/
Optionality
in the
project
Increased
Business
Flexibility
Local Economic
Impact
Sustainable
Profitability
/Indirect
Benefits
The GPM® P5™ Standard
For Sustainable Project Management
With Portfolio inclusions
Materials and
Procurement
Materials
used by
weight or
volume
Recycled
input
Materials
Sustainable
Procurement
Practices
Portfolios
Business Case Management
Organizational Commitment & Usage | Standards & Competence | Continuous Improvement

25. Some of the Sustainability Standards we Map to
25

26. A Different Approach to Assessments
• Focus on raising awareness and education and providing a model to
understand, prioritize and strategize
• Focus on assessments not audits
• Systems and discipline focused (not process or standards focused)
• Tailorable context specific model
• Capability maturity grid
• Providing a tailorable assessment framework
• Allowing for appreciative inquiry as opposed to a problem focused
approach
• A unique element / question ranking system
• Avoiding misusing ordinal scales
26

27. A Tailorable Context Specific Codel
• Different cultures, countries,
industries and organizations have
different areas of focus and priority
27
Is required for sustainability
Environment
(Planet)
Transport
Local
Procurement
Digital
Communication
Traveling
Transport
Energy
Materials
Energy Used
Emission / Co2
from Energy
Used
Clean Energy
Return
Water
Water Quality
Water
Consumption
Water
Displacement
Waste
Recycling
Disposal
Reusability
Incorporated
Energy
Waste
Category
Sub-Category
Elements or
Questions

28. A Tailorable Context Specific Model
The analysis and reporting is
tailored to each
organizations goals,
objectives and priorities
28
Is required for sustainability
Takes into account Different
cultures, countries,
industries as organizations
have different areas of focus
and priority

29. Outcome Analysis = Materiality
0 5 10 15 20 25 30
Organization
Supply Chain
Stakeholders
Organizational Goal - Social
0
1
2
3
4
5
NA
0 5 10 15 20 25 30
Organization
Supply Chain
Stakeholders
Facilitated Review Social
0
1
2
3
4
5
NA
0 10 20 30 40 50 60 70
Organization
Supply Chain
Stakeholders
Organizational Goal - Environmental
1
2
3
4
5
6
0 5 10 15 20 25 30 35 40 45
Organization
Supply Chain
Stakeholders
Facilitated Review - Environmental
1
2
3
4
5
6
0 2 4 6 8 10 12
Organization
Supply Chain
Stakeholders
Organizational Goal - Economic
0
1
2
3
4
5
NA
0 2 4 6 8 10 12
Organization
Supply Chain
Stakeholders
Facilitated Review - Economic
0
1
2
3
4
5
NA

30. 30
32 410 5
Undefined
Zero sustainability practices in
place and is at high risk.
Ignores environmental and
social regulations.
Provisional
Has Ad-hoc sustainability
policies and practices in place
with little consistency.
Foundational
Manages liability and adheres
to all labor, health & safety,
and environmental regulations
Essential
Makes proactive efforts to
improve profitability by
becoming eco-friendly.
Optimized
Aligns corporate principles
and values towards a
sustainable model. Seeks out
opportunities to improve
products and services
Principled
Bases decisions on value
creation to improve society
and the environment through
their products and services.
Assessment Ranking is less “Subjective”
A unique model for evaluation

31. Outcomes that provide value
-1
0
1
2
3
4
5
People: Labour practices & decent work
People: Society & Customers
People: Human Rights
People: Ethical behaviour
Planet: Transport
Planet: Energy
Planet: Water
Planet: Waste
Planet: Materials & Procurement
Profit: Sustainable Return on Investment
Profit: Business Agility
Profit: Economic StimulationProfit: Business Case Management
Practice: Governance
Practice: Leadership
Practice: Portfolio Management
Practice: Asset Lifecycle Focus
Practice: Value Management
Practice: Benefits Management
Practice: Risk Management
Practice: Stakeholder Engagement
Practice: Change Management
Practice: Processes
Organizational Goal
Facilitated Review
GPM Review
Outcomes for:
• Your Organization (Operations and Change)
• Your Supply Chain
• Your Distributors, Customers and Society

32. Why?
• GPM’s core values lie in the balance of where sustainability and project management converge
• Project management is the leading approach to implementation that delivers measurable results.
• As change agents, project managers have a unique opportunity to deliver economic and environmental results
for societies.
• For too long the focus of sustainability has been solely on ‘operations’. For too long projects we have delivered
have largely focused only on delivering profits without considering the environment or the impact on society.
• Sustainability without project management is nothing but a good idea that talked about but is never translated
into tangible results.
• Project management without considering sustainability misses an opportunity and also shirks our ethical
obligations by minimizing our impacts, which will felt the greatest by our children and their children.
• Sustainable project management is the space where we do our best work and where we believe the can make
the greatest change. So when we incorporate sustainability and project management we deliver benefits to the
CEO, shareholders, investors and also positively impact the environment, societies without compromising
profits.
• It comes as no surprise that sustainable project management is the number one emerging trend in project
management.
• “It has now been proved repeatedly across different industries and market segments, that sustainability
initiatives can act as strong differentiating platforms for organizations” (Harvard Business Review)

33. Engagement plans
Bronze Silver Gold Platinum
Discovery session    
Self-assessment review    
Assessment plan    
On-site 2-day PSM3 assessment    
High-level report on PSM outcomes 
Full diagnostic report   
Risk assessment   
CSR Program evaluation   
Detailed Action Plan   
Full organisational audit to identify evidence that
validates PSM3 results
 
Development of a GRI-Compliant reporting
framework
 
Corporate university training program for staff 

34. Next Steps
1. Complete a self-assessment
2. Select the engagement plan
3. Lock in a date to start

35. Essence
Gives you, the CEO, piece of mind,
protects corporate value and
differentiates your business from your
competitors.

36. 36
Thank you!
www.greenprojectmanagement.org
http://blog.greenprojectmanagement.org/
www.Facebook.com/greenprojectmanagement
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