Desirability to Sustainability: The Opportunity for Brand and Design

Notes from Sustainable Brands Conference 2008
Attended as "Expert in Residence" for Sustainable Life Media
June 2-5, 2008
See Original Article


Given the inextricable link between building a strong product and building a strong brand, you’d think making the green design/green marketing connection would be a snap. (Surprise: It isn’t.) Attendees at the workshop Desirability to Sustainability: the Opportunity for Brand and Design, led by IDEO’s Steve Bishop and Ted Howes, learned some practical strategies for designing for sustainability.

Consider a can of Gillette shaving foam, as one workshop group was asked to do. The participants, which included a marketing consultant and a member of Disney Consumer Products, came up with a range of ideas, such as changing packaging to be not only biodegradable but refillable, shifting to organic and super-concentrated formulations, and applying Cradle to Cradle principles for managing product lifecycle impacts. They also tackled retooling the product’s marketing message for a prospective re-launch.

Although many workshop participants had no problem jumping into the redesign process, the frequently asked question eventually arose: What do you mean by sustainable? And in response, the frequent answer: Each company must decide the scope and parameters to be incorporated into its design thinking.

Proper consideration must be given to the way consumers perceive product changes. One participant voiced the concern of the potential to design sales right out of the product. Changes that affect perceived value would need to be navigated. There would be no escaping the implications to the brand.

Does this product need to exist? - the lesser-asked but even more important question - addresses the more substantial challenges for consumer products companies that are seeking to make the shift to sustainability. A whole category assessment and product rationalization process eventually will need to be undertaken by companies committed to long haul sustainability re-positioning -- RVN Consulting calls this Sustainability Transformation.

When considering design, rather then thinking about brand in terms of logos, taglines, advertising/ marketing, and numbers, IDEO invites clients to think about:

• Relationship between brand and customer. Bank of America’s Keep the Change program was provided as an example. The new service that helps customers save, also has the side benefit of improved customer retention.
• Conversation with the customer and Empathy to their experience. Potential Shimano customers with fond youthful memories of riding bikes found today’s shops and the complexity of equipment overwhelming. Becoming empathetic to this experience led Shimano to develop concept bikes, change the retail experience, develop a community around biking, and begin advocating bike paths and new engagement work around increasing bike riding in general.
• Story Telling. What story does the product tell for the company and the customer? Adobe had already made significant strides in greening. After considering eliminating packaging all together, the company instead opted to work with existing recycled materials and redesign for flat shipping to achieve transportation efficiencies to packaging facilities. Keeping the packaging supported the need of independent designer customers' to share a brand and credibility "story" by displaying product packaging on office shelves and displays.

Responding to the New Sustainability Marketplace

An audience member asked whether is it better to develop new sustainable brands versus change existing brands to be more sustainable? And although the question was not explored in significant depth in IDEO’s workshop, the danger of making brand claims that are not backed up is definitely a consideration of many companies going down the sustainability path. With activists and consumer groups targeting green washing, many companies are being very careful not to overly promote their greening initiatives.

Ted Howes expressed the perception of a green bubble similar to tech and the potential for consumer fatigue from the difficulty in navigating all the information associated with the green product marketing place. Consumers want to make choices that they can make readily.

Workshop participants were reminded of the challenge of shifting to sustainability. We’re dealing with a systemic problem, everything is attached to everything else and companies are not always sure where to start. But there is an opportunity to shift from a one way dialog to two way dialog with customers. Smart Meters were provided as an example of a product redesign that empowers customers in relationship to their energy use.

IDEO is using something similar to interactive design technique that involves developing specific customer personas and designing according to detailed first hand understanding about these model demographic profiles. Conducting in-person interviews with customers in their natural context allows themes and opportunity areas to be identified.

In the workshop, participants reviewed photos that were taken by our model customer and considered how our shave foam could be redesigned as a sustainable product offering for this customer.

Integration of Intuition

The intuitive nature of this sort of technique was questioned by one participant posing the change management question of how to explain these new types of techniques to our colleagues and companies. The answer: use both data driven and qualitative techniques as appropriate in different contexts. Qualitative and explorative techniques can be used to drill down into detail that can’t be explained by hard data.

A representative from EcoBags reflected on the importance of engaging suppliers as an extended part of the company allowing the company to stay in tune with customers’ entire experience. It was suggested that quantitative analysis is best for optimizing existing products and service offerings while qualitative is more effective for identification of new ideas.

A representative from UPS commented that he wished the company did more intuitive work, explaining the trap of size. Unless a new idea is going to generate 100x millions of revenues and 10x millions of profit it does not get much play - its just not big enough for a risk averse company like UPS to pursue. For UPS new products and services that are adjacencies to existing products are easier new ideas to push through.

Sustainability Redesign: Putting People Back into the Equation

Although the question was posed: "is there even a green customer?" the discussion will have to be saved for later. Instead we addressed another comment: "design for sustainability - could mean anything." IDEO’s perspective is that sustainability requires an expanded scope that puts people back into the equation.

Three facets to be considered in design are personal, social, and environmental impact of the product or service. Steven Bishop took on the audacious task of demonstrating use of a Nettypot (a traditional Indian nose irrigation technique) to explain in detail.

1. Personal Impact speaks to how the product aligns with personal values. The Nettypot makes the user feel good and aligns with his values of natural healing. Steve could avoid using the pile of drug store remedies presented as the typical alternative.


2. Social Impact speaks to the social benefits derived from the design. Using the Nettypot has the potential to reduce hospital visits. The stats were given that of 180 visits to emergency room, 108 are not urgent resulting in unnecessarily clogged emergency rooms.


3. Environmental Impact of the Nettypot is particularly compelling in today’s context, where the properties of both over the counter and prescription drugs are increasingly showing up in our rivers and streams.

Addressing the new sustainability marketplace is both a demand and supply challenge. IDEO suggests we respond and motivate demand by connecting with people and addressing desirability, values, and brand. On the supply side think about energy intensity, green material, and supply chain.

• Increase the positive experience for the customer.
• Consider the design but also consider communications.
• Communicate the value of the offer and provide education so that the customer can evangelize themselves.
• Make the change desirable as opposed to a sacrifice. The example of the Cool Biz campaign in Japan worked to reduce personal body temperature by eliminating men’s ties, a fashion change that was fun and contemporary.

Although lifestyle assessment can be an extremely valuable exercise the cost and complexity can be significant, and customers don’t necessarily read Sustainability Reports. Companies must help people take the journey by providing support and motivation for behavior change --Edmund’s competition for best hybrid performance was provided as an example. Wal-Mart's PSP has been well recognized as a behavior change program for employees.

The workshop concluded with the last part of the group work, a brainstorming on how we might help our target customer persona take on new positive behaviors related to our shaving foam redesign. Were there green design failures our customer was experiencing and how could these be addressed. Personal insight into target customers was reverted back to as the ultimate cornerstone of a solid methodology for new design.

Revi Schlesinger heads RVN Consulting, a network of experts aligning to support the success of large-scale corporate sustainability integration initiatives. Continue the conversation at www.ReviSchlesinger.com/blog.html

Winning the War for Talent: How the Right Environmental Strategy Can Help

Notes from Sustainable Brands Conference 2008
Attended as "Expert in Residence" for Sustainable Life Media
June 2-5, 2008
See Original Article

Sustainability is fundamentally a human issue, said Paul Hannam, president of Bright Green Talent, at the start of this session on recruiting and retaining top talent. To address today’s challenges you’ve got to understand the cultural and psychological factors at play.

While a relatively small number of people make the difference in organizations, talent is the greatest source of competitive advantage. At the same time, organizations are competing for the same top 10% of candidates in a talent market that is more mobile then ever. Given that 81% of U.S. respondents to a recent Ipsos Mori Survey stated that they would prefer working for a company that has a good reputation for environmental responsibility, it’s safe to say that a strong reputation for sustainability can improve a company’s capacity to recruit.

Attracting, Engaging, and Retaining Leaders

With the cost of replacing a senior manager averaging at 200K, retention can have a significant impact on the bottom line. Engaged employees are more likely to stay and are higher-performing overall, Hannam said. He recommends the following three strategies to attract, engage, and retain top talent:

Career Development. Offer a compelling salary and benefits (that’s a no-brainer). Make sure to explain how potential recruits can engage their values and grow inside your organization.
Employee Engagement. Many people experience a divergence between the way they work and the way they live. Bring these into convergences to engage people at the values level. People want more today. Personal, spiritual and professional development and growth opportunities all attract extraordinary people.

Commitment to Service. Show that your organization applies its values to everything it does. Be specific! Prospective employees want to hear about:

• Integration of green in mission and values
• Green products and services
• Green building and practices
• Green transport policies
• Employee programs
• Community events

Once you’ve developed your value proposition, set up a green recruitment brand - essentially an elevator pitch for why your company is a great place to work.

Cases In Point: Interface & Seventh Generation

Joyce LaValle, SVP of Marketing for InterfaceFLOR, took the session floor to reflect on her company’s experience with recruitment and retention. Interface has the benefit of a stellar reputation as a sustainability innovator. Fifteen years ago, Interface shifted from a Take, Make, Waste mode of operating to a plan the company calls Mount Sustainability. (For a video clip of what inspired CEO Ray Anderson to reposition the company, click here.)

But engaging this work on the outside must be accompanied by the work on the inside, LaValle said, and Interface soon set about engaging employees around the company’s new mission by playing to their strengths. Interface uses the Gallup’s tools for Strengths-Based Development to evaluate each employee’s unique abilities and level of engagement. People want to be known and understood, and be able to make a difference, LaValle explained. This is a life process.

Interface’s Mission Zero sustainable strategy has been a significant attractor of top employees to the company. Thanks to Interface’s highly committed workforce, the rate of innovation at the company has reached extraordinary levels, according to LaValle.

Jeffrey Hollender, CEO of Seventh Generation, called developing employee programs is a sloppy creative process, emphasizing that it’s ok to make mistakes as long as they’re dealt with quickly. When hiring a candidate, values always must come first and skills second, according to Hollender. If a person doesn’t align with the company’s values they will do far more damage than good, regardless of their skills for the job.

Conversely, once you’ve got your team in place it’s important to support a strong sense of we all succeed and fail together. (To that end, Seventh Generation does not give individual bonuses.) An atmosphere of openness and transparency helps, according to Hollender. For example, reporters regularly roam Seventh Generation’s offices, free to ask anyone anything. It’s a testament to our open environment and culture, Hollender said. He also suggested that companies should freely disclose their employee turnover rates, because that kind of metric tells people what’s really going on. (For more on building a strong culture of sustainability at Seventh Generation, click here.)

The Bottom Line

Today’s employees look for much more then the traditional salary and benefits in their work, Hannam concluded. Happy people want creativity and innovation, and they want to work with like-minded people in healthy context where they are appreciated and find meaning and purpose in their work. What’s great about green is it brings all these things together.

Revi Schlesinger heads RVN Consulting, a network of experts aligning to support the success of large-scale corporate sustainability integration initiatives. Continue the conversation at www.ReviSchlesinger.com/blog.html

Trends in Consumer Brand Perception: Who Made This Year's Green List?

Notes from Sustainable Brands Conference 2008
Attended as "Expert in Residence" for Sustainable Life Media
June 2-5, 2008
See Original Article

Amid talk of recession (or perhaps in the midst of a recession already), consumers are now more worried about the economy than the environment - a significant shift since last year’s Sustainable Brands conference, where Annie Longsworth, Russ Meyer, and Jay Leveton presented the findings from their first ImagePower Green Brands Survey. This year’s follow-up to that groundbreaking study, which covers the attitudes and perceptions driving green product purchases, shows a decidedly mixed bag.

The wave of eco-marketing and media attention over the last year and half appears to have been effective, with one-third of Americans reporting that they take part in environmentally focused activities and as many as eight in ten think it important or very important to buy from greener brands. At the same time, however, consumers reported a definite sense of eco-fatigue from the more than 3,600 new green products that have debuted in the last year.

It’s important that marketers focus on messaging that is effective rather than overwhelming.

~Annie Longsworth, Cohn & Wolfe

Concern about the economy has swelled to its highest level in 30 years, taking focus away from environmental issues, according to the report. In the U.S., 77% of respondents said they are more concerned about the economy versus 17% who are more concerned about the environment. In the U.K., the numbers were 65% and 28%, respectively.

It’s unclear, though, if consumers are feeling upbeat about anything these days. There appears to be a pervasive sentiment that things are generally getting worse not better, particularly among lower income brackets. In terms of environmental concerns such pessimism has shifted in recent years, according to the report, with more consumers saying the trouble lies with government's lack of initiative rather than industry's polluting activities. Better than a third of consumers (36%) said they expect the government to do more, followed by industry (26%) and consumers themselves (11%).

The Greenest Brands: Who’s Getting Ahead, Who’s Falling Behind?

Top-finishing brands included Whole Foods, Burt's Bees, and Trader Joe's (in the U.S.) and Body Shop, Marks & Spencer, and Waitrose(in the U.K.). (For complete lists in both markets, click here.)

That said, a lack of consumer awareness continues to plague marketers, with 33% of those surveyed failing to identify any green brands by name. Brands that garnered the most specific mentions included GE (5%) and Toyota (4%) followed by Wal-Mart and Whole Foods in a surprise dead heat (2%).

Product categories considered greenest included body care, grocery, appliances, household, technology, automotive, energy, and travel, in that order. In a bit of a surprise, Amtrak is getting some play among green travel brands amid increasing consumer awareness of the climate impact of air travel.

Thirty-eight percent of consumers said they plan to spend more on green products, and another thirty-five percent said they expect such expenditures to remain flat. Categories that seem set for a bump in green-product sales include household cleaning, energy, and appliances, according to the report.

So, what are the key takeaways for green marketers? The report consistently reinforces the fundamentals of branding. Values that drive brand strength are the same they always were: honesty, trust, quality, and safety. Only after these basics are met will most consumers reach for the greener products. And don’t bother trumpeting your company’s green vision for the future: As far as consumers are concerned, the proof is in the pudding.

Revi Schlesinger heads RVN Consulting, a network of experts aligning to support the success of large-scale corporate sustainability integration initiatives. Continue the conversation at www.ReviSchlesinger.com/blog.html

How to Establish Marketing Credibility and Avoid Greenwashing

Notes from Sustainable Brands Conference 2008
Attended as "Expert in Residence" for Sustainable Life Media
June 2-5, 2008
See Original Article


Walk through any grocery store and you can’t miss it: eye-catching product packaging that screams “essentially non-toxic!" or “eco-safe!” or “recyclable!” These vague, feel-good environmental claims are popping up on an ever-wider range of merchandise these days, thanks to a scorching-hot market. At the same time, the Federal Trade Commission and other governing bodies have offered little guidance (so far) on what exactly manufacturers can responsibly say about the environmental attributes of their products.

Well, you can’t fault marketers for trying or can you? Conscious consumers are calling the more egregious offenders “greenwashers,” and in an overloaded product market where customer loyalty is a powerful differentiator, it’s a backlash you definitely want to avoid.

In April 2007 Scot Case, of environmental marketing firm TerraChoice, sent teams of researchers into the retail environment for a little good old-fashioned field work. The group identified 1018 products that made environmental claims and captured the information available to support them (in many cases, it wasn’t much). Today, he and lawyer Brooks Beard of Morrison & Foerster shared with SB’08 attendees the key findings of that research “The Six Sins of Greenwashing," if you will to help savvy marketers get religion.

The "Sin of Fibbing" misleading customers about the actual environmental performance of products. A good example is “Energy Star Certified.” “ Energy Star does not actually certify products. The most grievous sin, fibbing is thankfully also the rarest, present in only 1% of claims reviewed, according to Case.

The "Sin of No Proof" occurs when a company is unable to provide proof of claims. This is definite potential target for the FTC and could be subject to penalization.

The "Sin of Irrelevance" refers to claims that are factually correct but essentially meaningless. For example, noting that a product is “CFC-free” when CFCs have been banned for years takes advantage of consumers’ lack of information.

The "Sin of Hidden Tradeoff" focuses consumers on a single issue while ignoring or hiding other tradeoffs, causing the buyer to perceive the product’s environmental performance as better then it actually is.

The "Sin of Vagueness" refers to claims that use meaningless terms. For example, one 100% petroleum brand listed “100% natural” on its label. When a person at the toll-free number was asked to substantiate the claim, the representative replied that oil comes out of the ground and was therefore “natural.”

The "Sin of Lesser of Two Evils" occurs as a result of attempts to differentiate products as having the best environmental performance in their class. But can a case really be made for organic cigarettes?

Stricter Enforcement on the Horizon

The FTC ruled against just 37 false or misleading ads in the 1990s, and since then most of the agency’s limited budget has been directed toward education rather than enforcement. This may soon change, with William E. Kovacic, the new FTC chair, signaling a change in direction. Brooks Beard warned attendees to prepare for a crackdown on boundary-pushing marketers within the next few months.

FTC’s Green Guides for marketing claims are not law, but they are given some weight by the courts. The FTC is now considering revisions to its Green Guides governing environmental marketing claims. Adjustments could include closer scrutiny of the words “renewable,” “sustainable,” and possibly “local”; a reevaluation of the word “recyclable” given variations in regional recycling services; new standards for the use of green seals and labels; and guidance on how lifecycle assessment might fit into the claim-substantiation process.

Companies should also anticipate increasing action on the state level. The “Plaintiff’s Bar” is being referred to as next “big ticket” in this area; the search has begun for consumers who are willing to pay more for environmentally friendly products to be included in class action suits.

What’s a Green Marketer to Do?

Green markers that are doing their job well are using language that attracts the “hard-core greens,” backing up their statements with detailed information made available on a website. Be aware, though, that it’s difficult to extol the virtues of one product without exposing others. Precision is recommended but, more importantly, don’t over do it; honesty and a little humility are the best policy. Case says it’s okay to be subtle upfront as long as you offer lots of additional information online or via phone hotlines, while Beard tells his legal clients to avoid broad claims altogether.

Environmental certifications are an additional tool for avoiding greenwashing. But with over 350 certification labels right now, navigating which one to use can be complicated in itself. Case and Beard both suggest working with those created by diverse stakeholder groups and verified by third parties.

Follow these basic guidelines (and the FTC’s revised Green Guides), and ye shall sin no more!

Revi Schlesinger heads RVN Consulting, a network of experts aligning to support the success of large-scale corporate sustainability integration initiatives. Continue the conversation at www.ReviSchlesinger.com/blog.html