Unboxing the Sustainability Scorecard
We deserve clear visibility of our sustainability efforts through a powerful OKR solution.
This is the that leads to building this Sustainability Scorecard.
The Goal of Scorecards...
The goal of scorecards is to:
- Make the invisible, visible (i.e. strategy, sustainability, etc.)
- Put performance into context (the context could be our strategy or an established framework, such as B-Corp, <IR>, etc.)
- Report current performance (KPI's, KRI's etc.) on a daily / weekly / monthly basis (ie.e on-going reporting, not annual reports)
- Report in a format that fits diverse stakeholder needs (regulators, investors, employees, management, customers, communities, etc.)
- Cascade the strategy down the organization (ideally to the team and individual level)
- Create an environment to have risk-free conversations about performance... making sure leadership asks the right questions.
The Sustainability Scorecard
This view shows the organization's Sustainability Strategy Map along with performance indicators compared to Target. We call this a 30,000" view...think of looking out a jet airplane at full altitude. You have a wide view of the horizon, although can only make out large objects - mountains, lakes, farms.
This view allows leadership to see the cause-and-effect relationship between Strategic Goals and allows them to focus on the "big-picture" issues, to better prioritize their time and energy.
You should be able to view perfromance against multiple comparatives - such as Target, Best-in-Class, True Sustainability (the 100 year-goal), Regulatory Requirement, Industry Best Practice, etc.)
The Table View
This view shows the Perspectives, Objectives and top-level measures. Some readers prefer this to the Sustainability Strategy Map as it provides a bit more data, although you lose the cause-and-effect relationships.
The 20,000" View
By clicking on any Strategic Goal, the User can drill down to find more detail. In this case the supporting KPIs, trend lines, targets, etc., as well as definitions, analysis, commentaries, etc.
We should be able to see all activities - whether they are on-going process, like above, or focused projects and initiatives
Multiple Alternative Views - by Framework
Many organizations already have a preferred sustainability framework (B-Corp, GRI, etc.). The Sustainability Scorecard must support any and all frameworks so that you do not have to abandon all the education and work you have done.
In this example, we are looking at a UN-SDG view.
We could just as easily select any of the other built views...
Building Your Sustainability Scorecard
We can build these Sustainability Scorecards relatively quickly in organizations. If you don't have a sustainability strategy, we can just find the best-fit among the dozen or so established frameworks (like buying an off-the-shelf suit). In terms of KPIs (or KSI's) - every organization already has available indicators of performance. Some of these indicators will be perfect - others are weak - but can be used for now and improved later. (We have a formula for calculating indicator 'signal strength').
We would be happy to share our expertise with you - and help you build your Sustainability Scorecard. Just email / call us... Brett@pm2Consulting.com
ESG is becoming a regulated requirement - but it is just a category of OKRs within your OKR structure. This video explains the mechanism behind measuring ESGs through OKRs
In this series of videos I'll walk you through where that misinformation came from, why it is wrong, why you should include OKRs, and how to include OKRs