Scenario 1: Influence Without Authority, Low Urgency
You are the director of product innovation within the research & development (R&D) unit of Spectrum Sunglass
Company.
You have recently noticed that sustainable economic development and the link between sustainability and
innovation is featured in many of the professional articles you read, such as “Why Sustainability Is Now the Key
Driver of Innovation.” While you generally feel very positive about Spectrum, you are frustrated that you don’t have
any new sunglass products to offer to the vocal customers who increasingly express concerns about Spectrum’s
environmental impact. Not only does sustainable development make sense to you personally, from both a moral
and an economic standpoint, you also see this as an opportunity to differentiate Spectrum’s products from your
competitors, which focus exclusively on design and price.
During Spectrum Sunglass Company’s annual strategy retreat, you decide to pitch the idea of forming a task force
to make the company and its products more environmentally sustainable. Your vision for Spectrum consists of three
specific goals:
(1) Eliminate 25 percent of waste by redesigning the manufacturing process.
(2) Reduce the current level of greenhouse gas emissions by 15 percent.
(3) Create a new product line based entirely on environmentally benign materials.
You argue that these goals, while aggressive, are achievable within the next two years. Based on your current
understanding, the task force will need to pursue the following activities:
(1) Conduct energy audits and set aggressive milestones for improvement on the three goals.
(2) Redesign processes and products to be more environmentally sustainable (and scale up successful
experiments quickly).
(3) Analyze environmental life cycles throughout the entire value chain inside the firm and with its suppliers.
(4) Replace fossil-fuel energy sources with renewable energy sources.
(5) Replace petroleum-based materials with biodegradable materials.
After politely listening to your proposal, the team present begins to respond.
Andrew Chen (general counsel): In my professional opinion, the sustainability project opens up the company to
unnecessary legal risks. If we go ahead with this, I would advise we pursue only one of the three goals, and that
we not publicly announce or promise it until after a careful internal due diligence process.
Paul Diaz (CFO): Instead of focusing on a pie-in-the-sky sustainability project, the task force’s time and money would
be better spent on finding innovative ways for Spectrum to reduce raw material costs and counteract the
seasonality of its business.
Daisha Farook (VP of operations): I’m concerned about a product and process change that is likely to increase raw
material costs and disrupt existing production flows.
Leslie Harris (VP of sales and marketing): This idea has considerable promise and it would be foolish to reject it
prematurely.
After an hour-long discussion, Hasan Ashraf, the CEO, and the rest of the management team agree to support your
proposal, with the condition that the measure of success be your team’s ability to achieve the proposed three goals
within the next two years. The CEO agrees to allow you and your task force to spend 75 percent of your time on this
change initiative over the next two years.
Your central challenge is to convince your colleagues that a dramatic change in the organization’s strategy and
products is necessary and that environmental sustainability is one of the keys to the company’s future. This challenge
is somewhat complicated by the fact that you must influence the rest of the organization without the formal
authority to command employees’ attention, and there is no generally perceived need to change at this moment
because of the company’s return to normal profitability. You do have a reputation for being competent and
trustworthy, however, and this reputational capital will be invaluable to you as you take on this new challenge.
