For every successful green project, there are five or ten that never get off the ground due to poor planning and execution or lack of top-management support. Even programs that can be concretely shown to save money or boost revenue hit the occasional brick wall. Don't let your next environmental initiative meet the same fate. We asked Eric Woodroof, Ph.D., a specialist on green project implementation, where management often goes wrong, and how you can avoid making the same mistakes.

SLM: In just the past few months, major corporations such as Waste Management, Dell, and Wal-Mart have announced sweeping companywide environmental initiatives. Clearly there's a business benefit to going green. So what's holding some companies back?

Eric: Most green programs fail due to some combination of three things: poor marketing, lack of collaboration, and inedequate financing.

A lot of people ask me why I put marketing first on that list, and my response is always this: Nothing happens in business without a sale. The development of every product or service begins with someone selling a solution to some type of problem. If you can't sell your project, it follows that no one is going to "buy it."

Secondly, once a product or service solution has been identified it must be continually updated to deliver consistent value. Especially now, with the proliferation of green technologies, it's not possible for one person to know all the ways to add value to a given project. You have to collaborate with other knowledgeable people and continue to educate yourself, or risk settling for lower returns.

Finally, it may come down to money. Even if a project is generating passion and enthusiasm, you may not have enough upfront capital to make it happen. Something like 35% of new projects are not implemented due to cash flow constraints.

SLM: It's interesting that you use the term "marketing" to describe the act of getting top-management buy-in for green projects. Most people think of marketing as selling to customers.

Eric: If you're pitching a new project to managment, in a sense you are marketing to a customer. You must first make the buyer (or project approver) understand that they have a problem or need before they'll want to hear about potential solutions. For example, a green project like energy retrofits may have a three-year payback. Your first focus, however, should be the inefficiencies of the current energy-management system. Demonstrate that the status quo is wasting the company's money. Then you're in a strong position to enumerate the benefits of the retrofit solution, such as lower costs and carbon reduction. In general, people tend to be more passionate and action-oriented when they feel they may lose something versus gain something it creates more of a sense of urgency.

Remember, though, that people can be very resistent to the message that they have a problem that needs solving. It can take seven "impressions" explanations or presentations before some people will agree on the problem and take action on a solution. Dont give up and dont be surprised or depressed when they dont take action after the first impression.

SLM: What about marketing to more than one department within your organization? Do you hone your message differently depending on the "buyer"?

Eric: Absolutely. Just yesterday I was talking to a company's engineering department and all they wanted to hear about was numbers and details. But the project also had a marketing component and all the marketing department wanted to hear about was the big picture. These green projects have so many benefits that it is possible to overstate your case. Focus on the benefits your audience wants to hear about and skip the ones that don't mean anything to them, or at least not as much.

That said, it's always a good idea to ensure that at least one member of your audience can see the bigger picture. Say you've got a great energy efficiency or solar panel project that will really reduce operating costs. That's controlled by one department, but the project may cost a million dollars to implement, and some of that money may come out of a completely different budget. You could have a situation where the project represents a financial boon to the company but the overall gains come at the expense of a particular department. That's why it's important to engage at the highest levels of the corporation. I tell the companies I work with to have a high-level manager present at all planning meetings.

SLM: So that's the marketing component, and I can understand why that comes first. You need top management buy-in before any new project can get off the ground. I must say, though, that I was a little surprised to see that money was third on the list, after education and collaboration.

Eric: Typically a project begins with a problem and management support for the solution. But before you finance, you've got to make sure you're committing to the best possible project for your needs. Collaborate, get educated, do your research. Encourage brainstorms with colleagues and bundle various elements to create a project that delivers the best, most sustainable value. Not incidentally, these are the easiest projects to finance.

SLM: That brings us to the money. Green projects can offer a very strong return on investment, but the initial capital costs may be prohibitive for many companies. How can you find the money for these projects if it's just not there?

Eric: Say you've got a million dollar project that would pay half a million a year a two-year return on investment but you don't have a million dollars handy. Consider going to the bank for financing. If the project lasts 15 years, and it's paid off in two, you've still got positive cash flow. The bottom line is, once you've figured out that a project is worthwhile, you can figure out a way to make it work for you financially.

Lets say you finance a $100,000 solar panel project for 15 years at 10% per year. That means that instead of investing $100,000 upfront (the bank provides these funds), you're paying $13,147 each year to the bank for 15 years. At the end of 15 years, the bank loan is paid off and you've still got your solar panels, which have been reducing your energy costs since the year they were installed.

SLM: Sounds like a pretty good deal. So to wrap it up, what are some basic initial steps for getting a green project off the ground?

Eric: It boils down to five steps:

1. Articulate the Problem


2. Collaborate to Add Value in the Solution


3. Quantify all the Benefits


4. Minimize Financial Risk


5. Develop an Executive Summary that "Sings"

Good luck!

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Eric A. Woodroof, Ph.D., CEM, is widely recognized for helping energy and environmental projects get approved and implemented. He has identified profit-improvement strategies at over 200 facilities, focusing on environmental as well as financial benefits. Dr. Woodroof has worked with the U.S. Public Health Service, Ford, GM, Hertz, Visteon, Southwestern Bell, and many others.