Collapse of Venerable Law Firm Highlights Importance of Systems Thinking

I’m not your go-to person for an analysis of the legal profession or the economics of law firms. But the recent collapse of Dewey & LeBoeuf, resonates with me because I hear in its story the consequences of operating without a systems perspective and or a sustainability mindset.

As the New York Times reported today, the firm filed for bankruptcy last night. “With historical roots stretching back a century, Dewey — the product of a 2007 merger between Dewey Ballantine and LeBoeuf, Lamb, Greene & MacRae — employed at its peak more than 2,500 people, including roughly 1,400 lawyers in 26 offices across the globe,” according to the Times. 

But the firm came apart because of a series of actions and policies that undermined its ability to sustain itself. 

Many observers say the root causes of Dewey’s fall are not unique. Several of the largest firms have adopted business strategies that Dewey embraced: unfettered growth, often through mergers; the aggressive poaching of lawyers from rivals by offering outsize pay packages; and a widening spread between the salaries of the firm’s top partners and its most junior ones.

 

These trends, they say, have destroyed the fabric of a law firm partnership, where a shared sense of purpose once created willingness to weather difficult times. Many large firms have discarded the traditional notions of partnership — loyalty, collegiality, a sense of equality — and instead transformed themselves into bottom-line, profit-maximizing businesses.

 

“Because the partnership lacks any shared cultural values or history, money becomes the core value holding the firm together,” said William Henderson, a law professor at Indiana University who studies law firms. “Money is weak glue.”

Doesn’t it seem like the firm treated the values of partnership as externalities, when it might have placed those values at the center of its management approach? If it had, it might have found greater resilience in the face of the challenges that many law firms have experience over the last few years. 

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Work With Evolution, Not Against it, to Craft Green Messages

By Bonnie J. Wallace

How can marketers design campaigns that motivate good environmental choices? Human nature seems to work against behaviors that would be in the best interest of the collective, as the well-known tragedy of the commons metaphor illustrates. But there may be some good news: in the Spring 2012 edition of the Journal of Public Policy & Marketing, the authors of The Evolutionary Bases for Sustainable Behavior: Implications for Marketing, Policy, and Social Entrepreneurship argue that these same behavioral tendencies can be harnessed to encourage more sustainable choices and behavior if they are properly understood.

Vladas Griskevicius, Stephanie M. Cantú, and Mark van Vugt propose five different adaptive tendencies that form the evolutionary bases for our most destructive environmental and social behavior:

  1. Propensity for Self-Interest
  2. Desire for Relative Status
  3. Unconsciously Copying the Behavior of Others
  4. Valuing the Present over the Future, and
  5. Disregarding Impalpable Concerns

They then outline classic messaging approaches that fail to work as a result of these evolved tendencies, and suggest more effective approaches that leverage unconscious human nature. This is the first of a series of blog posts that explore their findings.

Behaviors that helped us to thrive when we were hunter-gatherers now threaten to destroy us and many other species. Our environment has changed much more quickly than our ability to develop new adaptive behaviors. If we employ strategies designed to change behavior that don’t take into account our evolutionary wiring, we risk making no difference—or worse, exacerbating the very problem we were trying to solve.

For example, the first ancestral tendency cited is the propensity for self-interest. Natural selection pushes us toward making choices that will be more likely to ensure the survival of our genes. Thus “a campaign urging people to use restraint in water use actually increased water use because people feared that others would be unwilling to restrain themselves.” A more effective approach could be tying the reduction of water use to keeping it available for their own children, grandchildren, etc.

Reciprocal altruism is another self-interest evolutionary trait that harnesses cooperation between interdependent non-kin groups. Cause marketing holds great promise in leveraging that tendency. However, typical cause marketing approaches (buy this widget and we’ll donate X$ to Y charity!) get the order of the give wrong: the authors cite new research showing that “a message in hotel rooms informing guests that the hotel had already donated to an environmental cause on behalf of its guests increased towel use by 26%.” Note that this order, where the requester of the behavior change makes the first give, actually allows the recipients to reciprocate!

Indirect reciprocity is a related trait that is tied to reputation and increased status, and can be a very persuasive motivator for individuals and corporations alike. Desire to enhance or protect reputation prompts many individuals to make conspicuous green choices, and can push corporations to put sustainable practices into effect. The authors point to the consumer-led “name and shame” campaign that compelled McDonald’s to discontinue plastic packaging.

Harnessing our unconscious desire to act in our genetic self-interest is a powerful way to shift behavior, both on an individual, and a corporate level. Understand these sometimes counter-intuitive motivators can help marketers craft messages that lead to desired outcomes instead of unintended ones.


Bonnie J. Wallace is a freelance writer living in Los Angeles, specializing in responsible business. She holds a Sustainable MBA from Bainbridge Graduate Institute as well as a strong belief in business as a tool for transformation. When she’s not writing, Bonnie enjoys exploring ways that art can create community, and performing her supporting role as a stage mom.

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Which Looks More Sustainable?

On a recent GreenBiz webinar, Jeff Rice, director of sustainability at Walmart, gave a compelling presentation of is company’s approach to sustainability. This slide caught my eye. It illustrates what Walmart calls its “productivity loop”:

Source: Walmart

Walmart has been a real sustainability leader in recent years and deserves lots of credit for it. But to my mind, this picture has nothing to do with its sustainability leadership nor, for that matter with sustainability. Indeed, to me it depicts an inherently unsustainable dynamic: prices the spiral endlessly downward while sales continue to rise. I am pretty sure there is a lower limit on prices, and an upper limit on sales for that matter.

Contrast Walmart’s “loop” with this depiction of the “Circular Economy,”, from the Ellen MacArthur Foundation:

This is a vision of a truly sustainable system.

Now, the comparison isn’t exactly fair, because Walmart is an enterprise, and its “productivity loop” depicts its own operating model, while “The Circular Economy” depicted above is an entire economy. But it is worth thinking about what the future of sustainability demands of a retailer like Walmart, after it has wrung environmental and economic inefficiencies from its own operations and from its suppliers. How will it need to adapt its model to fit with and support a sustainable economic ecosystem?

Any thoughts?

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A Portrait of Sustainability Consulting in the Asia-Pacific Region

A Regional Difference in Industry and Technical Focus Among Consultants

New York City (April 20, 2012) – Green Research, the New York-based corporate sustainability research and advisory firm, today released an analysis of the sustainability consulting industry in the Asia-Pacific region. The analysis indicates that compared to sustainability consultants globally, consultants working in the Asia-Pacific region are more active in the construction, waste management and utility industries than their counterparts globally.

“Manufacturing is the sector that keeps sustainability consultants busiest around the world,” said David Schatsky, principal analyst at Green Research and author of the report. “But we see do see some regional differences in focus.”

Forty-three percent of sustainability consultants in the Asia-Pacific region have recently worked in the construction industry, compared to 33 percent globally. In utilities and waste management industries the figures are 33 and 31 percent compared to 23 and 21 percent among consultants globally.

The analysis, based on a proprietary global survey of sustainability consultants that drew 1,548 responses from six continents and 69 countries, focuses on responses from 108 consultants working in the Asia-Pacific region. Partners including Eco-Business.com and the International Society of Sustainability Professionals assisted in promoting the survey to respondents in this region.

This new analysis reveals that sustainability consultants in the Asia-Pacific region have much in common with their counterparts globally. Educational and professional backgrounds are similar, for instance, and the data shows that consultants around the world are generally optimistic about their business prospects despite a common top challenge: most consultants say prospective clients often lack adequate budgets.

The report reveals some differences apart from the types of industries hiring consultants. A significantly greater percentage of Asia-Pacific consultants are involved in technical projects such as carbon accounting and life cycle assessment compared to their counterparts globally.

The research is now available for free download at greenresearch.com. For more information, please contact David Schatsky at +1 646-783-8337 or info@greenresearch.com.

Contact: David Schatsky | info@greenresearch.com |+1 646-783-8337

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When to Use Carbon Offsets and Renewable Energy Credits

I recently saw another research firm quoted as saying some firms are “buying” green credentials by purchasing renewable energy credits and offsets. The implication was that there is something dishonest about this practice.

That’s unfair. Most of the companies we work with are very thoughtful about their use of offsets and credits. The better ones recognize that their first order of business is to improve their own environmental performance as far as economically possible.

Many companies now have goals to reduce greenhouse gas emissions and to use renewable energy. But companies sometimes find achieving those goals through operational changes challenging. As they work on tuning their operations, closing the gap by purchasing credits and offsets is a completely defensible alternative–as long as it doesn’t become an execuse for inaction.

From: Annual Sustainability Executive Survey, 2012

Green Research recently conducted a major survey of senior sustainability executives at large companies in North America and Europe. According to the study, about half of the respondents’ companies will be purchasing RECs in 2012 and about as many will purchase green power. Thirty percent will purchase carbon offsets. Despite all this, the buyers are troubled about those products:

  • More than a third said it was very or extremely important that they have greater confidence in the quality of the credits or offsets they buy
  • 25 percent felt strongly that they needed to communicate better about why they use them
  • 27 percent said they need to reduce their reliance on them.

Because of these concerns, in recent years, some companies have backed away from offsets and RECs. In 2011, for instance, computer maker Dell announced that it had ended its purchases of RECs for the purpose of classifying its operations as carbon neutral. Nike and PepsiCo stopped buying RECs and carbon offsets in 2010. The reason: to focus on direct investments that will accelerate their use of alternative energy sources. That’s great, if a company is savvy enough to know how to carry out such direct investments. Until that point, supporting the transition to a low-carbon economy via offsets and credits is a fine alternative.

What do you think?

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The Most Interesting Things Today

One of the most interesting things for me at today’s New York Times conference on the future of energy was a comment that U.S. Secretary of Energy Steven Chu made.

Thomas Friedman asked Secretary Chu what he would want to work on if he were just coming out of school today, a freshly minted Ph.D. Rather than choose a particular scientific or technological focus, his choice was “systems.” He cited the Toyota Prius as innovative system created from existing technologies.

That’s a pretty interesting answer.

Systems thinking is the key to unraveling some of our toughest challenges, particularly those related to energy and environmental sustainability. Everyone from scientists and technologists to individuals to corporate managers to policy makers ought to beef up their systems thinking skills.

The other interesting thing was a brief, low-key but mind-blowing presentation by Mitja Hinderks in which he explained how his little organization is going to cut global CO2 emissions by 25% with an innovative new design for an uncooled internal combustion engine that, compared to today’s engines, will have a fraction of the parts, a multiple of the efficiency, and could be swapped in and out of vehicles like a cartridge.

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Coming On Too Strong?! Tuning Green Marketing Messaging

By Bonnie J. Wallace

For those of us working to promote green business practices, it can seem self-evident that these issues are important. It follows that the language we use in messaging is frequently assertive, reflecting that assumption. But is that the most effective way to get our target audience to take action?

In the January 2012 edition of the Journal of Marketing, Ann Kronrod, Amir Grinstein, and Luc Wathieu say that it depends entirely on the target audience. Their research in Go Green!! Should Environmental Messages Be So Assertive?? shows that imperative language can be a very effective means to reach people already persuaded of a subject’s importance, but—here is the critical part—can actually decrease compliance among those people for whom the importance is not clear. In other words, assertive language in environmental and social justice messaging can be doing more harm than good, depending on who is on the receiving end.

This is particularly interesting given that this same team reports that in an examination of real slogans from http://www.ThinkSlogans.com, environmental slogans were nearly three times more often assertive than a random mix of slogans for consumer goods (57% vs. 19%). Examples used of such imperative messaging included Greenpeace’s “Stop the catastrophe” and Denver Water’s “Use only what you need.”

According to Kronrod et al, “The drawbacks in assertive phrasing have been extensively documented by researchers in communications, consumer behavior, and psycholinguistics. The overwhelming evidence accumulated thus far is that assertiveness interacts with consumers’ drive for freedom in a counterpersuasive manner.” In other words, nobody wants to be told what to do unless they already intend to do it.

The good news: research shows that a softer approach, acknowledging the difficulty of compliance, or simply suggesting/encouraging a behavior choice instead of demanding it (“You could bike to work once a week” vs. “Bike to work once a week!”) is considerably more effective, because it recognizes the perceived conflict between personal agendas and public good.

Another effective approach when messaging an audience that’s less committed to an environmentally friendly agenda is to first elevate the importance of the issue before making any requests. Showing a film clip, or photos that highlight the importance of the given issue can do this.  Once an issue is perceived as important, the audience is then more likely to be persuaded by assertive language.

This brings us to the flip side of these findings. For an audience that is already committed to the importance of an issue, softer language can be irritating, as the message is perceived to be out of line with the urgency felt.

My takeaway: it’s critical to align language to perception. The authors of this study note that it’s still unknown whether assertive language in green requests leads to long-term effects on behavior. Until then, we can at least meet people where they are for an immediate impact, without jeopardizing future credibility. What do you think??!!


Bonnie J. Wallace is a freelance writer living in Los Angeles, specializing in responsible business. She holds a Sustainable MBA from Bainbridge Graduate Institute as well as a strong belief in business as a tool for transformation. When she’s not writing, Bonnie enjoys exploring ways that art can create community, and performing her supporting role as a stage mom.

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