What Makes a Leader?
A lot has been written about what it means to be a leader. Certainly the area of sustainability and all the sub-categories under that umbrella offer a myriad of opportunities for organizations, companies and individuals to carve out a niche as a leader in a specialty or sub-specialty. By John Friedman
At the same time, however, I continue to be amazed at groups and organizations that refer to themselves as 'a' leader or 'the' leader without being questioned by their stakeholders or the community. I once worked for a very intelligent person who decried those who declared leadership based on size alone; "just because we're the biggest, that does not make us the best." In fact, he went on to point out that the larger a company or organization, the more important it was to be a leader lest it "lose more money" or "destroy more of the environment" based on its size alone.
Wise words from a savvy leader who understood that while size matters, excellence matters more. Excellence is a constantly moving target. And there are different ways by which a person, an organization or a business can seek to be one that sets and then continually seeks to improve upon, the standard of behavior. True excellence can be achieved through leadership, or closely following the leaders in a given area or field. Remember Avis Car Rental's theme "we try harder"? it was based on being smaller than their largest competitor and therefore sought to position the company as more service oriented (a leadership position).
Leadership by Action
The first way that organizations should consider is leadership by actions. This can be hard for larger organizations that may have entrenched methods of doing things, because to lead by actions requires that one's actions continually evolve, but that the underlying basis for those actions - the values that define the organization - remain rock solid and consistent. Companies that lead by actions are not afraid to experiment with new ideas and are willing (if not eager) to challenge their existing perceptions on a regular basis. Leaders in sustainability are not looking for ways to hang on to existing practices; they are investing in new programs and models that reduce the use of energy and natural resources. They are experimenting with technologies that not only reduce carbon output, some may be looking at ways to remove carbon from the atmosphere and capture it. And at the forefront are those organizations that are basing their business model on turning one industry's waste into the raw ingredients needed for completely different industries. Examples of this include companies that are extracting the petroleum out of discarded plastic bottles and using it to create the polyester fibers that they turn into sportswear, to producing synthetic gypsum (roughly 20% of U.S. raw gypsum use) from the by-product of manufacturing and energy-generating processes, primarily from desulfurization of coal power plant exhaust gases.
Leadership by Expertise
Another way in which companies can demonstrate leadership is through their expertise. The new focus on a 'sustainable' economy is paving the way for companies that offer products or services that help other companies reduce their environmental impacts. A great example is in the area of information technology which not only can be used to help improve efficiencies in manufacturing, it can be used to look at entire systems and provide vital information. Computer models alerted the world to the 'hole' in the ozone layer, satellites reveal changes in the polar ice caps, etc. In day to day application, measurement devices that monitor traffic flow could be used to automatically adjust traffic lights to facilitate safety and efficiency of transportation. Buildings that install monitors of electric power use help manage the peaks and valleys in consumption, reducing energy costs and helping utilities determine where electricity is needed and when. Devices measure the depth and speed of rivers can be used to feed real-time data that can protect lives and property from natural disasters such as floods.
Moving beyond the environmental pillar, on the social side, experts in issues like global development, fair trade, workers' rights, and labor relations will also continue to be in demand because companies are increasingly going to be asked (required) to measure and report on their footprints in these areas as well.
Leadership by Influence
The last area where leadership can be demonstrated is one that has not fully been explored by many. Leaders know that they need to look beyond their own actions and expertise, and use their values not only on those portions of the supply chain under their direct control, but to look beyond to those things over which they can have an influence. This includes holding suppliers - and even customers - to adhere to values.
Increasingly companies are requiring suppliers to do more than guarantee a level of quality for the products that they supply, some are requiring that suppliers maintain a chain of custody to ensure that the products that they are using confirm to environmental and social values. Large power-purchasers have been exploring the extent of the influence that they can have on their suppliers' behavior by implementing requirements beyond prices. Examples include Wal-Mart's efforts to reduce packaging and marketing materials and to sell sustainable seafood. In order to be a supplier to Wal-Mart, the giant retailer must be convinced - often using third party validation - that the seafood products that they are selling to customers are, in fact, sourced from sustainable species.
Changing consumer behavior is naturally harder. Programs such as charging and refunding deposits on glass and plastic bottles and aluminum cans provide direct financial incentives and are successful. But often, when there is not visible 'return' companies can do little more than 'suggest' the way in which their products are used and ultimately disposed of (or recycled). Manufacturers of computers, cell phones and a host of electronic devices offer power (and energy) saving tips for consumers, but over 90 percent of the electricity used today for computers is not in the 'server' room, it is at individual desktop stations that are left on at night and monitors that are left on when laptops are disconnected. In homes, chargers that live their lives in the socket are drawing power even when the portable device is not attached. TV sets that have not been turned on in weeks are drawing current to diligently keep track of the date and time and which channels to 'skip.'
When Home Depot creates a mechanism for people to bring back used compact fluorescent light bulbs (to prevent them from going into landfills), or when auto repair facilities take back worn out car batteries, those are attempts to influence consumer behavior. In these cases there is little financial incentive - and in the later case sometimes companies charge to dispose of battery 'cores' - that probably limit the programs' effectiveness.
For individuals the same three categories apply. It is not enough to walk the talk. True leaders also are willing to share their knowledge, ideas and expertise. And they rarely miss an opportunity to help encourage others to follow their lead. After all the mark of a leader is not how well they lead - it is whether or not they are successful in getting others to follow.


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